Post-Tender Negotiations post-tender price negotiation for the UK National Health System

Post-tender Price Negotiations in the UK National Health System

Marsh (2007) defines post tender negotiation as, the negotiations that take place after receipt of formal tenders and prior allowing suppliers to submit the lowest acceptable tenders, with a view of obtaining a step up in price, delivery, or content in situations. This should not other potential suppliers at a disadvantage in the competitive bidding system. In addition, the negotiations should involve at least two suppliers offering the best submissions according to the outlined award criteria. Nevertheless, from an ethical point-of-view, bidders should not use post tender negotiations to disadvantage other bidders by distorting the existing competition. It should apply in moderation, especially where there is an opportunity to lower prices and progress other elements of the submissions.

Notably, the current legislation forbids post-tender price negotiations for the UK National Health System (NHS). The reasons behind the prohibition are legitimate, in a bid to protect the health care systems from manipulation and possible distortion. Although post tender negotiations apply positively in some cases, there are numerous risks of post tender negotiations. Using the...

In addition, there is likelihood that bidders may not make their best offers when submitting their bids, but the legislation allows for challenge in an event of bidders feel that the negotiations took place unfairly.
Although the legislation forbids post tender negotiations, my opinion differs with this action. Most importantly, there are numerous risks, but negotiations are significant. It is the duty of any buyer to negotiate before awarding the businesses to the suppliers. From an ethical standpoint, it is wrong to negotiate after receiving bids from potential contractors. Moreover, the concept of carrying out negotiations in good faith is repugnant to the parties involved. In this context, each party taking part in the negotiations has the right to follow their own issues, so long as they avoid making misinterpretations (Marsh, 2007). Therefore, prior negotiations can be of assistance to both the buyer and the supplier in order to avoid taking advantage of each other. For instance, lack of negotiations can lead to reduction of prices to an extent where the buyer takes advantage of the suppliers.

The Bristol Healthcare System was looking for a private sector partner to extend its work…