This week we would like to discuss the
process for doing business with NMMC. Most of our supplies,
equipment and services are purchased through our relationship
with MedAssets and VHA (formerly known as Voluntary Hospitals of
America), two national group purchasing organizations (GPO) that
contract with vendors on behalf of over 1000 hospitals
nation-wide. This allows us to receive the best possible
pricing and quality. However, not everything we purchase is
offered by our GPO’s. The following is NMMC’s current policy
related to purchasing anything outside of our GPO relationship
and has been in place since March 8, 1994.
Our Purchasing department may issue a
Request for Proposal (RFP) if it is determined that a GPO
contract does not meet our clinical or financial needs. This
process is conducted by purchasing department employees in
consultation with the appropriate department heads or VP’s.
Construction projects, pharmaceuticals, food, insurance,
consulting/service contracts, etc. follow a similar process,
except that the appropriate department conducts the process
instead of the Purchasing Buyer mentioned below.
1.) Develop a list of Competitive
Vendors – Using departments will provide Purchasing with a
list of competing vendors. Purchasing may add competing vendors
to that list
2.) Issue an RFP – The RFP will
describe the products to be purchased, the time period for the
purchase, the terms and conditions requested, a required vendor
response format, a required response deadline, and a designated
buyer (Purchasing employee) for vendor communications.
3.) Vendor Communications during the
RFP process – All communications by vendors will be with the
designated buyer. Should the buyer determine that additional
information is needed to clarify a vendor response, then that
information will be shared with all vendors.
4.) RFP Analysis – The buyer will
provide an analysis of all vendor proposals and comparisons to
current costs. Buyer will include an analysis of the proposed
Terms and Conditions.
5.) RFP Review – A review of the
proposals will be accomplished by a Purchasing team made up of
representatives from the using departments, Purchasing, and
other departments as appropriate.
6.) Negotiations – The Purchasing
buyer may negotiate with any vendor at any time to attempt to
get the vendor to improve his RFP offer
7.) Contract Award – When the
Purchasing team decides to make an award, the Purchasing buyer
will notify all vendors of the final outcome and submit all
contract documents to the Purchasing Director for signature.
When making this decision, price, service, and value added items
will be considered
We hope this clarifies the process we
follow for awarding contracts. Our next Open Letter will
discuss our Conflict of Interest Policy.
October 31, 2004
