Why do suppliers propose rebates as part of the financial component of their bids?

Suppliers include rebates in their competitive proposals for many reasons:

Efficiencies
Suppliers derive value from the efficiencies of doing business with HealthPRO Canada as we consolidate purchasing volumes across the entire country. Without a national group purchasing organization, suppliers would have to significantly increase resources required to manage hundreds of RFPs issued by individual hospitals, provincial health authorities and SSOs and the resulting contracts.

Contract commitment and compliance
HealthPRO Canada’s high levels of contract commitment and compliance ensure that suppliers receive the business they were awarded.

Layer of price confidentiality
Rebates allow suppliers to reward the large national purchasing volumes and the commitment HealthPRO Canada delivers without compromising higher margins on lower volume clients. They also see value in keeping their net price confidential from their competition.

Adherence to procurement regulations
Suppliers are confident in our adherence to all procurement regulations, including the Canadian Free Trade Agreement (CFTA), the Comprehensive Economic and Trade Agreement (CETA), and the Broader Public Sector (BPS) Procurement Directive, amongst others, regulations that ensure an open, fair and competitive process.