Panels can be an efficient tool for the procurement of goods or services regularly acquired by entities. In a panel arrangement, a number of suppliers are selected through a procurement process90 who are each able to supply identified goods or services to an entity (or entities where it is intended that a number of entities will access the arrangement). A panel is usually established by entering into deeds of standing offer91 with contracts formed under those deeds when goods or services are acquired.

The way entities manage their panel arrangements will naturally vary to suit the nature, size and volume of work anticipated from the panel. Nevertheless, a common approach adopted by entities is to appoint a dedicated panel manager to administer the arrangement and to ensure that the entity achieves best value for money from the panel. In undertaking this role, panel managers should have access to entity guidance on managing panel arrangements and assistance from the entity's central procurement and contract advisory unit, where these exist.

Key elements of panel management include establishing regular communication with panel suppliers and users, providing guidance to users on panel operation, monitoring and reviewing procurement activity under the panel arrangement, considering any options for extending the term of the panel, and maintaining adequate documentation. Where a panel allows for access to other entities or has been established by a group or cluster of entities, it is important that procedures for its use and management are established, understood and agreed to by all parties. These elements of panel management are discussed below. The management of individual contracts are discussed in Part Five of the Guide.

Panels can be an efficient tool for the procurement of goods or services regularly acquired by entities.