The NHS has been forced to relaunch a tendering process for locum doctors after plans to introduce online auctions failed.

Recruiter has learned that NHS Purchasing and Supply Authority (NHS PASA) has now scrapped the tender plan after agencies raised concerns about its transparency.

Locum doctor agencies are furious because they will now have to resubmit their applications to be included in the framework. Some are even considering legal action against NHS PASA because of the time wasted in the process.

NHS PASA had originally been planning to use online auctions to recruit locum doctors, where agencies would be able to compete to undercut each other as part of a new framework agreement.

But the proposals met resistance from the recruitment industry and a locum trade union, which claimed the system would result in poorer patient care standards.

A letter from NHS PASA director Marcus Brindle admitted: “It is apparent to us that, following receipt of complaints from suppliers, our process has in certain instances been less than clear.”

Agencies which have applied for a place on the framework agreement must now resubmit their entries. Jackie Lawton, head of corporate communications at NHS PASA, said: “A lot of the work that the agencies have done for the original exercise will be appropriate for the new tender.”

A locum doctor recruitment agency manager, who wished to remain anonymous, said: “These contract processes are highly prejudicial against the smaller agencies. You have to devote an enormous amount of time to them.”