Are Supply Partnerships exclusive?
Where a single supplier can meet all of the Institute’s needs in a specific category of goods and/or services, the Supply Partnership will be an exclusive arrangement. In these instances, exclusivity means that the Institute will only procure goods and/or services in that category from the Supply Partner. This approach is expected to generate outcomes that exceed those which can normally be achieved using a traditional procurement model.
Where exclusive supply arrangements with one supplier for a particular category of goods or services cannot meet all of the Institute’s requirements, a panel structure may be established with a select number of Supply Partners. This ensures that a diverse range of product and service offerings from a range of different suppliers is available.
When establishing a panel, the Institute does not seek to replicate an existing market or to include every supplier that responds to the procurement process. Rather, best value for money can be ensured by selecting an exclusive panel that is large enough to give the Institute sufficient choice between brands and to deliver great outcomes, but small enough to still deliver real value to suppliers. This approach is also expected to generate outcomes that exceed those which can normally be achieved using a traditional procurement model.
How are Supply Partnerships structured?
Following a formal procurement process which will involve either a Request for Proposal or Request for Tender, the Institute will negotiate a Framework Agreement with the supplier(s) selected as a Supply Partner. The Framework Agreement will govern the relationship between the Institute and the supplier as partners.
Standard Conditions of Contract are also negotiated with the supplier at the time of being appointed as a Supply Partner which will be used for all specific procurement activities. The use of standard contractual terms and conditions eliminates the need for any further contracting once staff within the Institute start purchasing goods and/or services from the supplier.
Where there is one Supply Partner appointed to a particular category of goods and/or services, direct purchases can be made from that supplier using the standard contractual conditions and a purchase order. Where there are multiple Supply Partners appointed to a particular category of goods and/or services, an informal Request for Quotation process will be used to provide the opportunity for all applicable Supply Partners to bid for the work.
Unless specified within a procurement process, no minimum quantity of sales or turnover is guaranteed under a Supply Partnership.