Novation, the supply company of VHA Inc. and the University HealthSystem Consortium (UHC), has created a new online Web site that will allow companies to participate in a competitive bid for its upcoming medical-surgical distribution contract. The online tool saves distributors time and money, and will help Novation speed new contracts to market. Novation has received more than 65 registrations for its medical-surgical distribution request for information (RFI) since the site went live in early November.
The registration site (http://www.novationco.com/suppliers/su_bidcalendar.asp) enables suppliers to register to participate in the RFI. Once registered, distributors are provided access to a separate Web site where they can electronically view and download all documents related to the RFI.
"Novation's online contracting process eliminates the cost and the wait time associated with the back-and-forth overnight shipment of paper documents," said Robert Benson, senior director, contract development, at Novation. "Distributors also can email the RFI documents internally throughout their organization to facilitate the completion of the RFI response. No software is needed to access the information -- only an Internet connection."
Novation continually seeks to identify new and innovative ways to streamline and enhance its public competitive bid process. In September, Novation began using this Web-based platform to conduct invitations to bid for all non-pharmacy products, distribution services and capital equipment. Use of the new web-based system will be expanded to other product categories in early 2005, according to Benson.
"E-contracting improves the work flow and reduces contract cycle time for members," Benson said. "Other industries, such as automotive, tool and die, chemicals, utilities, consumer goods, fast food and government entities, have used e-contracting for the past two or three years."
This new feature will continue to ensure that Novation follows a fair, high-integrity process that accommodates public competitive bid requirements. All supplier bids will continue to be evaluated on qualitative (non-financial) factors combined with financial factors. Members will continue to provide extensive input regarding criteria used in bid development and contract awards. These features are all parallel with Novation's existing competitive bid process.
About Novation
Based in Irving, Texas, Novation was established in January 1998 through a combination of the supply programs of VHA and UHC, two national health care alliances. Novation serves the purchasing needs of more than 2,300 members and affiliates of VHA and UHC. Novation managed nearly $22 billion in annual purchases for VHA and UHC members in 2003. For more information, go to www.novationco.com.