HSV has introduced a Master Supply Agreement for collective procurement activities

From this month, HSV will move away from individual contracts for tenders to a Master Supply Agreement (MSA) structure with standard terms and conditions for suppliers. The MSA will be accompanied by a module that contains detailed commercial and operational terms for each supplier.

The new contract structure will reduce the need to renegotiate terms and conditions with suppliers during the tender process, resulting in considerable time and cost savings.

The MSA terms align with the procurement of goods and services supply policies set out in the HealthShare Victoria Purchasing Policies (HSV PPs). It will protect the interests of health services through more efficient contract management and more effective negotiation opportunities for procurement.

The MSA structure standardises the agreement’s core terms and conditions while maintaining the flexibility to cater for contract specifics and key performance matters.

The new MSA and module structure will be rolled out in a phased approach with a focus on new tender activities. It will not be applied to previous or open tenders.

HSV’s Chief Financial Officer John Delinaoum led the development of the MSA and modules, working with teams across HSV to ensure the right balance of commercial, compliance and operational needs were reflected in the agreement.

John says the MSA will help to streamline the tender process and avoid lengthy delays to implementation.

“It will help the procurement team to complete the process more efficiently, and it also means that suppliers have a clear understanding of health service matters and won’t need to spend additional time renegotiating the terms and conditions of the MSA,” he says.

HSV Director Procurement Rebecca Prior says the success of projects like this is highly dependent on a blend of legal and commercial expertise, and the Legal team has been tireless in assessing and incorporating input from the Procurement team.

“The result is a document that is legally effective, commercial and practical.”

“A willingness to review and reconsider the best approach for HSV, customers and suppliers is important in a dynamic environment such as the health sector supply chain.”

The MSA, effective from 9 October 2023, is available on HSV’s website. The MSA terms will be reviewed and updated periodically, and all historical versions will be available online.