Single tender waivers
Single tender waivers
Single tender waivers (STWs) may be required to allow for procurements to be achieved without full tendering processes when a purchase may be time critical, or it may not be possible to go to the open market as there are no other suppliers or where continuity is required.
The use of STWs must be appropriately controlled to ensure that they are used only when required, and not to bypass formal procurement procedures. Overuse or weak control of STWs may result in organisations not achieving best value for money or best service available and may be used to continue relationships with businesses that would not satisfy procurement requirements or where a conflict of interest has not been adequately declared.
Procurement should be conducted in accordance with an organisation’s Standing Financial Instructions (SFIs) in order to ensure value for money.
We completed a benchmarking exercise, which focused on the NHS sector. We collated the single tender waiver information for the 2021/22 financial year (1 April 2021 to 31 March 2022) for thirteen NHS organisations; four acute NHS Trusts, three mental health NHS Foundation Trusts and six acute NHS Foundation Trusts.
Each organisation is unique, with its own structure, requirements, budgets, and governance, therefore direct comparisons are not appropriate, however our findings can help public sector organisations to be better informed in their assessment of reasonable single tender waiver usage.
Key points from our benchmarking exercise:
- The top two reasons for STWs were continuity benefit (34%) and sole supplier (31%). 7% were classified as ‘urgent’. Although there are occasions where classification as urgent is required, it may highlight a lack of planning
- There was no consistency in the type, level or frequency of STWs detail reported to each organisation’s audit committee. However, 62% reported to each audit committee
- A breakdown by financial quarters, which included year to date resulted in a more meaningful analysis and allowed for greater comparison with unusual fluctuations easily identified
- 54% of organisations reported year on year data; this is useful for identifying any issues or improvements required.
Our benchmarking highlighted best practice points for consideration, which are relevant to all public sector organisations:
- Increased planning in advance
- Determine whether the use of frameworks should be encouraged
- Include STWs as % of total procurement as a performance target
- Raise procurement’s profile and encourage engagement with those frequently requesting STWs
- Scrutinise all STWs
- Consider the sufficiency of single tender waiver reporting and determine if it is clear, concise and informs appropriate decision making:
- Does the report appear complete?
- Evidence of adequate authorisation?
- Evidence of any reason for bias towards taking single tender action?
- Is there adequate comparative data to identify trends and query anything unusual?
Please click below to download the benchmarking exercise report, or contact one of our team.