20 May Renaissance, Heathrow

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20 May Renaissance, Heathrow
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• Chairmans Welcome
• Stephen Dickinson
• PASS Consultant

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20 May Renaissance, Heathrow
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Working with the EU Procurement Directive

• Stephen Dickinson
• PASS Consultant

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ProcurementLegislation

• Government Procurement Agreement/WTO
• Treaty of Amsterdam
• EU Directives 2004/18/EC and 2004/17/EC
• UK and Scottish Regulations
• Government Guidances
• Procurement Strategies
• Contract Procurement Orders
• Standing Financial Instructions

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Legislation

• EU Procurement Legislation
• Public Contract Directive 2004/18/EC
• Utilities Contract Directive 2004/17/EC
• UK Legislation
• Public Contracts Regulations 2006 (Statutory
  Instrument 2006 No 5)
• Public Contracts Regulations (Scotland) 2006 (SI
  2006 No 1)
• Utilities Contracts Regulations 2006 (SI 2006 No
  6)
• Utilities Contracts Regulations (Scotland) 2006
  (SI 2006 No 2)

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Public Sector Thresholds

• Current EU Basis
• Supplies Part A Services
• Central Govt/NHS 90,319 133,000
• Local Govt, bgpl 139,893 208,000
• Part B Services 139,893 208,000
• Supplies/Services PINs 509,317 750,000
• Works and Works PINs 3,497,313 5,150,000
• Small Lots for Supplies Services 54,327
  80,000
• Small Lots for Works
  679,090 1,000,000
• Bodies governed by public law
• Except Part B Residual Services, R D (Cat
  8), certain Telecommunications services (Cat 5)
  and Subsidised Service contracts under Regulation
  34.

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EU Timescales

• Procedure Process Min Timescale
• Open Tender 52 days (36 days if PIN)
• Restricted Expression of Interest 37 days
• Tender 40 days (36 days if PIN)
• Restricted Accelerated Expression of Interest 15
  days
• Tender 10 days
• Negotiated Expression of Interest 37 days
• Negotiated Accelerated Expression of Interest 15
  days
• Competitive Dialogue Expression of Interest 37
  days

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PIN Notices

• For supplies and services, a PIN is required to
  be issued as soon as possible after the start of
  the financial year for each category of potential
  purchases expected to exceed 750,000 (513,166)
  in that financial year, where a contracting
  authority intends to seek a reduction in the
  tender timescale.
• For works above the normal threshold, the PIN
  notice must be sent to the Commission or
  published on the authoritys Buyer Profile as
  soon as possible after the decision approving the
  planning of the works, where a contracting
  authority intends to seek a reduction in the
  tender timescale.
• If this is done the deadline for receipt of
  tenders can be reduced to 36 days in general, if
  necessary.
• Alternatively a contracting authority may publish
  a Buyer Profile notice and publish the full PIN
  on their own Buyer Profile site.

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Buyer Profile (Living PIN)

• A contracting authoritys Buyer Profile should
  include
• What we buy how we buy information
• Prior Information Notices
• Information on ongoing invitations to tender,
  scheduled purchases, contracts concluded,
  procedures cancelled.
• Useful general information, such as a contact
  point, a telephone and a fax number, a postal
  address and an email address.

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EU Timescales

• Expressions of Interest timescales and Tenders in
  the Open Procedure may be reduced by a further 7
  days (5 days accelerated) where contract notices
  have been sent by XML to the OJEU
• Tender timescales may be reduced by a further 5
  days, excluding accelerated notices, where full
  and unrestricted access to contract documents is
  provided.

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Minimum Timescales
Open procedure 12 days 40 days 52 days
(36 days following full PIN/Buyer Profile
notice) - 7 days for electronic
notice - 5 days for contract
documents on internet Minimum 40 days
from dispatch of contract notice (24 days
following full PIN/Buyer Profile notice)
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Minimum Timescales
Selective procedures (restricted, negotiated,
comp. dialogue) Requests to Participate 37 days
from dispatch of notice (15 days if accelerated)
- 7 days for electronic notice (
-5 days if accelerated) 30 days
from dispatch of notice (net 10 days if
accelerated) Tenders in restricted procedures
40 days from ITT (10 days if
accelerated, 36 days following a PIN/Buyer
Profile notice) - 5 days if contract
documents on internet 35 days from ITT
(10 days if accelerated, 31 days following a
PIN/Buyer Profile notice)
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Alcatel

• The timelines given are the minimum (of at least
  10 days) under the Alcatel mandatory standstill
  period and show the days by which specific
  actions by-
• The tenderer (i.e.) a request for additional
  de-briefing within the standstill period), and
• The contracting authority (i.e. notify all
  tenderers of the award decision and the
  completion of any requested additional
  de-briefing)
• in order to comply with the minimum period
  before entering into a contract (assuming no
  legal challenges are made in Court).

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Alcatel
If there is a delay in completing the
requested additional de-briefings, the end-date
of the standstill period must be extended to
ensure 3 full working days between the last
de-brief and the end of the standstill period
remembering that the last day must be a working
day The end of a standstill period must not
fall on a public holiday or at the weekend
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• Select Lists

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Select/Approved Lists

• May be used only as an aid to the selection
  process (can be used under thresholds)
• Selected candidates cannot be chosen only from
  those listed
• UK legislation does not stipulate a charge for
  inclusion in public bodies lists
• Utilities may use a Selection List and charge

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BiP Select

•  

BiP Select - A New National Supplier
Pre-Qualification Service BiP Select lets a
supplier, or potential supplier to the public
sector, choose the pre-qualification route that
suits you. Whether you decide to Certify or
Accredit your organisation, your details will be
made available to all BiP Select and
Constructionline registered buyers. BiP Select
gives the supplier, two options for
pre-qualification Select Certify Self-certify
by completing online questionnaire Select
Accredit Apply for third party accreditation.
Assessment conducted by Capita,
expert providers of the
DTI backed Constructionline service,
and to
the same exacting standards.
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BiP Select

• BiP Select - A New National Supplier
  Pre-Qualification Service
• Supplier Benefits
• Increased visibility to all BiP Select and
  Constructionline buyers (Over 8000)
• Option of Certify which is free of charge
• Increased credibility
• Recognition as an accredited supplier to the
  public sector
• Ability to see when buyers have viewed your
  details
• Improved efficiency through a single annual
  assessment for all tenders to buyers that are
  using Select Accredit
• No duplication of pre-qualification information
  leading to reduced administration
• A full debrief is given if application is
  unsuccessful

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Selection and Award Criteria
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Mandatory exclusions

• The award of public contracts to economic
  operators found guilty of
• organised crime
• corruption
• fraud to the detriment of the EC or
• money laundering
• must be avoided.
• Evidence can be sought from competent
  authorities.

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Other Grounds forExclusions

• Bankrupt or being wound up
• Guilty of other offences
• Guilty of grave professional misconduct
• Social security breach
• Unfulfilled obligations relating to taxes
• Serious misrepresentation in supplying
  information

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Qualifications

• Authorised to pursue professional activity
• Can provide required evidence of appropriate
  economic and financial standing
• Can provide evidence of appropriate technical
  capacity and professional ability
• Quality Assurance Standards
• Environment Management Standards

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Most Common Requirements

• Health and Safety Policy
• Environmental Policy
• Equal Opportunities Policy
• Race Relations
• Insurance
• References

• 2 Years Financial Accounts
• Personnel Profiles
• Past Experience
• Investors In People
• Staff Turnover
• TUPE/TURER

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Award Criteria

• Lowest Price
• or
• Most Economically Advantageous Tender (MEAT)
• Sub Criteria
• Quality, Price, Technical Merit, Aesthetic and
  Functional Characteristics, Environmental
  Characteristics, Running Costs, Technical
  Assistance, Cost-effectiveness, After Sales
  Service, Delivery Date/Delivery Period/Period
  of Completion.

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• Sustainability

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Sustainability

• There are a number of government policies where
  public procurement is seen as a lever to
  sustainability, which include
• Apprenticeships and Skills
• Equality gender, race, disability
• EU Procurement Markets
• Fair and Ethical Trade
• Human Rights and Core Labour Standards
• Innovation
• Local Labour UK Jobs and Manufacturing
• Regeneration
• SMEs (including black and minority ethnic
  enterprises BMEs, women owned WO and disabled
  owned DO businesses and social enterprises)
• Sustainable Procurement
• Third Sector Organisations (TSOs)

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Environmental Issues

• All central Government departments and their
  Executive Agencies in England had to
• Draw up, by 1 December 2005, and environmental
  purchasing policy
• Integrate this with departmental procurement
  activities
• Set up mechanisms for measuring and reporting on
  progress
• Work with suppliers to find sustainable solutions
  to the provision of goods, works and services,
  helping them to implement environmental supply
  chain management programmes where appropriate
• Include environmental consideration clauses
  into all contracts for goods, works and services
  (including PPPs and PFIs).

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Social Procurement

• There are numerous possibilities for taking
  account of social considerations in public
  procurement under the Directives, provided that
  the principles of non-discrimination and
  transparency are respected
• Criteria involving social considerations may be
  used to determine the most economically
  advantageous tender where they provide an
  economic advantage for the contracting authority
  which is linked to the product or service which
  is the subject matter of the contract.

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Q A

• V2 (13.04.06)

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20 May Renaissance, Heathrow
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• Presenter
• Clare Tunnicliffe
• Category Manager, NHS PASA

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• NHS Purchasing and
• Supply Agency
• Clare Tunnicliffe
• Category Manager
• 20th May 2008

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Agenda

• The value
• Where it all happens
• Where to find the information

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DH Spend
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So What Are the Drivers

• Comprehensive Spending Review 07
• Commissioning
• Innovation
• Sustainable procurement
• Local decisions

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What is bought where
NHS PASA www.pasa.nhs.uk
NHS Supply Chain www.supplychain.nhs.uk
Local
CPH www.pasa.nhs.uk

• Wider government frameworks
• www.ogc.gov.uk

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National purchasing current roles

• DH
• NHS PASA
• NHS BSA
• NHS Supply Chain

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NHS Purchasing and Supply Agency

• Executive agency of the Department of Health
• Senior departmental sponsor Commercial
  Directorate
• Category directorates Facilities Maintenance and
  Utilities, Pharmaceuticals, Agency Staffing,
• Contract coverage 3.0 billion
• Location London, Reading, Chester, Sheffield

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NHS Purchasing and Supply Agency

• Patient Safety
• Centre for Evidence Based Purchasing
• Benefits Tracking
• Transforming Government Procurement
• eEnablement
• Sustainable Procurement
• ACBS
• Emergency Planning

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Collaborative Procurement Hubs
Regional Model
Regional Development Agencies
HOST
DOH - CD
Local Authorities
PASA NHSLA
Pharma Purchasing Group Rep
Clinical Networks
SHA others
Acute Trusts
PCTs
MH Amb Care Trusts
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Collaborative Procurement
North West NWCPH has been
operational since April 05. West Midlands
- On October 1st 2006, HPC merged with the
Lifesource CPH and the West Midlands
Procurement Alliance Yorkshire and Humber
YHCPH was formally established on 1 April
2007 North East PRO-NE has become a
collaborative procurement organisation since
April 2007 London The LPP works
alongside trusts in London to deliver savings and
improvements to enhance patient care South
West - East of England EoECPH became
operational on the 1 April 2007 South
Central PRO-CURE CPH formed in April 2006.
Solent East Midlands The resource
procurement hub was formed on 1 April 2006
South East Coast SECCPH was launched in April
2007
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The Supplier Zone
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CEP

• CEP collates and supports evidence gathering to
  assist in the adoption of innovative technologies
  in health and social care.
• Dedicated evaluation centres located in trusts
  and universities around the UK.
• CEP underpins purchasing decisions by providing
  objective evidence to support the uptake of
  useful, safe, innovative products and related
  procedures in health and social care.   
• all medical devices
• patient safety technology
• products on market or near market (post-CE
  marking)
• all products used in health and social care.
• Pharmaceuticals, food, furniture (unless linked
  directly to patient care), fixture and fittings,
  and products pre-CE marking are not covered

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eEnablement
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NHS-sid why?
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eCatalogues
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Key Bits of Information

• Web links
• Identifying opportunities
• NHS-sid
• Understanding the e-Strategy
• Local decisions

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• Questions?

www.pasa.nhs.uk
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20 May Renaissance, Heathrow
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Collaborative Procurement HubsJane Harrison,
Senior Category Manager NHS South East Coast
Collaborative Procurement Hub20 May 2008
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SCEP Supply Chain Excellence Programme
Collaborative procurement was one of four streams
of work within the Supply Chain Excellence
Programme (SCEP)

• SCEP aims to gain the best value for money for
  the 15 billion the NHS spends each year on goods
  and services (not including staff pay). It was
  set up in March 2004 after a thorough review by
  the Commercial Directorate of the existing NHS
  supply chain
• It is on target to help the NHS save 500 million
  a year by 2007/08

• SCEP comprises four projects running in parallel,
  each focusing on different areas of the NHS
  supply chain

Commercial Directorate SCEP
National Contracts Procurement Project
NHS PASA Organisation Project
NHS Logistics Authority Projects
Collaborative Procurement Hubs Project
Pathfinders x3
Wave 1
NHS PASA Organisation Design
Market Testing
Operational Improvement Projects
CPH Group 1
Wave 2
NHS PASA Organisation Implementation
Wave 3
CPH Group 2
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SCEP projects
Supply Chain Excellence Programme - Annualised
savings target of over 500m by 2007/08
Collaborative Procurement Hubs
National Contracts Procurement
NHS consumables supply chain procurement service

• Addresses 5bn of national spend
• Improve sourcing of national products through new
  national framework agreements
• Wave 2 in progress

• Addresses regional NHS spend c. 12bn
• Design new purchasing model
• Uses pathfinder approach to test, prove and
  refine model ready for full roll-out

• Determine whether the most effective supply chain
  and procurement service for the NHS can be
  achieved by partnering with the independent
  sector

• Restructure to deliver more effective and
  strategic national procurement
• Meet future objectives of SCEP and Arms Length
  Bodies Review recommendations

NHS Purchasing Supply Agency reorganisation
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Hubs represent a powerful approach to procurement
for the benefit of the NHS
Value fully leveraging the spending power of
the region, optimising value for money for every
stakeholder
Cohesive providing a co-ordinated and
consistent approach to relationships with the
commercial sector
Integration developing close and effective
links with key stakeholders
Collaborative Procurement Hub
Greater sophistication applying considerably
more sophisticated techniques to sourcing and the
supply chain
Commercial engaged in the whole process of
acquisition and lifecycle
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Collaborative Procurement in England

• North West NWCPH has been operational since
  April 05.
• West Midlands - On October 1st 2006, HPC merged
  with the Lifesource CPH and the West Midlands
  Procurement Alliance
• Yorkshire and Humber YHCPH was formally
  established on 1 April 2007
• North East PRO-NE has become a collaborative
  procurement organisation since April 2007
• London The LPP works alongside trusts in
  London to deliver savings and improvements to
  enhance patient care
• South West -
• East of England EoECPH became operational on
  the 1 April 2007

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NHS South East Coast Collaborative Procurement
Hub
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About us

• The NHS South-East Coast Collaborative
  Procurement Hub (CPH) is a newly formed shared
  services organisation covering the counties of
  Surrey, Sussex and Kent.
• The CPH influences a commercial spend of over
  1bn
• On behalf of 27 member NHS organisations
  including acute hospitals, primary care trusts,
  mental health trusts, ambulance trust and SHA
• It will drive maximum value from the commercial
  spend in the region and deliver procurement
  service and quality improvements.
• This new high-profile organisation is part of a
  national programme to drive better value for
  money in patient care.

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• NHS South East Coast Collaborative Procurement
  Hub
• The Atrium, Curtis Road, Dorking, Surrey, RH4 1XA
• Direct Tel [phone]
• Switchboard 01306 646822
• Web www.seccph.nhs.uk

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The Organisation Structure
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Our Aims

• A new procurement organisation that aims to
• seize every opportunity for achieving efficiency
  savings and effectively seizing and exploiting
  them
• deliver significant savings and directly
  contribute to financial recovery across the
  health economy
• develop procurement as part of the national
  Collaborative Procurement Hub (CPH) programme and
  as part of the SHA led Fit for the Future
  programme
• set out the significant opportunities available
  to the health economy and to deliver further cash
  releasing cost savings by harnessing and
  leveraging its collective buying power.

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Our Objectives

• In addition to targeted regional cost savings,
  the NHS SEC CPH will
• develop a detailed programme of continuous cost
  reduction and cost management projects across
  the health economy
• develop and strengthen market management in key
  supply markets through working with trusts and
  other partner organisations
• leverage cost avoidance strategies and
  opportunities across all areas of spend and in
  particular in high risk spend areas
• significantly up-skill procurement and commercial
  resource, capacity and competency across the
  health economy
• reduce clinical risk and improve patient safety
  through increased pro-active clinical engagement,
  product rationalisation and product
  standardisation
• work with commissioners and the SHA to leverage
  the health economys significant spend to support
  social and environmental targets, such as Good
  Corporate Citizenship through partnership working
  with GOSE and SEEDA
• support innovation and work in partnership with
  NHS Innovation South East.

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Service Benefits
Capabilityincrease
Market Stimulation
Enabling tools technologies
Improved Patient Outcomes
Integrated Procurement
Category Management Strategic Sourcing Market
Management Best practiceProcurement AccountMana
gement
Delivered Cash Releasing Savings in 07/08 (first
year)
Bespoke ProcurementServices
Best practice data analysis
The Workplan
Forecast Cash Releasing in 08/09
Drive Innovation
Fair, open transparent procurement
National Regional Network representation
Interface with Public Interest Companies
Develops within region capacity
The South East Coast CPH provides you with access
to regional procurement expertise as well as
support for trust specific projects
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Business Plan 2008/9 - 2009/10
CPH Business Case
Strategic Procurement
E-procurement and process Improvement
Performance/ Finance / Information Management
and reporting
Supply Chain
Stakeholder/ Procurement Engagement

• Category Management approach
• Approved Work plan by CPH Board / HOPS/Lead
  stakeholders
• Delivery of financial and non financial benefits
  - value
• Market management

• e-enablement
• Catalogue management and supplier adoption
• Process review and improvement
• Interface with Strategic Procurement within Hub
  Trusts.
• Supplier Interface

• Supply Chain Network
• Routes to market
• Demand Management
• Internal Supply Chain
• External Supply Chain

• Integrated Procurement
• Product selection and standardisation projects
• Communication and marketing
• Stakeholder mapping
• Modernisation agenda
• Trust Diagnostic

• Performance analysis and reporting
• Return on Investment
• Development of balanced scorecard approach or
  similar
• Knowledge bank
• Strategic spend analysis and market analysis
• Contracts/Project Portfolio
• Development of the Business Model

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Procurement
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Strategic Sourcing Methodology
Activities
Products

• RG2 signoff -inc. eye on stakeholders implemn
  strategy (ppt)
• Economics spreadsheet vRG2 (xls)

• Sourcing documents (RFP, RFI, PQQ, ITT)
• Contract (doc)
• Economics spreadsheet vRG3 (xls)

• Service Level Agreement / KPIs

• RG4 Signoff -12 months after RG3 (ppt)

• Terms of reference (doc)

• RG1 signoff (ppt)
• Economics spreadsheet vRG1 (xls)

Tools

• Baseline questionnaire (survey monkey)

• Contacts database (xls)
• Project plan (xls)

• Pre-negotiation pack (ppt)

• PQQ evaluation (xls)
• Supplier pricing ranking (xls)
• Evaluation criteria (xls)

• Quality management plan

• Contractually agreed supplier reports
• Benefits tracking tool

Reporting Weekly progress reports Trust
tracker Risk Issues log
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Category Management

• Product categorization
• Strategies aligned with users requirements
• Disciplined project planning and management
• Communication plans
• Delivery of solutions

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Purchasing Models

• Alignment of current contracts
• Bundled deals combining equipment with
  consumables, do they provide value for money?
• Basket of goods procedural based, within a
  category and with a supplier
• Complete solutions all products required for
  a procedure
• Product standardisation
• Supplier rationalisation
• Further develop strategic models such as bulk
  buy, loyalty discounts
• New areas ie capital equipment
• Contract renewals

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Stakeholder Engagement

• Develop links / relationships with
• SHA Networks
• User networks
• Maintain and develop relationships with
• SEC CPH Networks
• SEC CPH Forums
• User Engagement
• Identify stakeholder types, stakeholders,
  stakeholder groups
• Develop models
• Other agencies
• NHS Purchasing Supply Agency
• NHS Supply Chain

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e-Enablement
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e-Enablement

• SEC CPH has reviewed the systems and processes
  used by the NHS in the region
• Issue
• Identified that there was limited and
  uncoordinated provision of catalogues at a trust
  level and that uptake of hub contract catalogues
  was variable. The lack of an accurate catalogue
  has resulted in inefficiencies in the Supplychain
• inaccurate purchase orders,
• generated unnecessary queries,
• invoice matching issues
• Delays in settlement of invoices
• Solution
• The hub has invested in a catalogue management
  tool called Nexus from GHX that will enable the
  immediate distribution of any published
  catalogues to all 27 NHS trusts in the region.
• In order to improve the accuracy of the data and
  reduce errors SECCPH will be embarking on an
  engagement process with its current and future
  suppliers to jointly manage our contract
  catalogues on Nexus

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e-Enablement continued

• Result
• By encouraging suppliers to submit any catalogues
  and updates to Nexus, the SEC CPH will be able to
  immediately distribute this information to all
  trusts, so that within 24 hour all trust
  catalogues will be automatically updated and any
  purchase orders generated will be accurate.
• Nexus is used by a number of hubs in addition to
  a number of individual trusts, therefore once the
  supplier has placed updates on the system, it
  will distributed to all Nexus enabled trust
  buyers that contract with that supplier.
• This will reduce the number of individual
  requests for catalogues from the suppliers and
  ensure for a significant number of NHS trusts
  that they are ordering the correct item at the
  correct contract price.
• By reducing the potential for errors, will reduce
  the requirement for manual intervention and
  minimise the possiblity of delays in delivery due
  to incorrect or outdated product codes and
  prices.

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Other Areas

• e-Tendering CPH using Bravo system
• e-Auctions as and when appropriate
• Project management system benefits tracking
  system

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Business Development
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Aims

• To monitor the changing procurement landscape of
  the NHS ensuring
• Hub projects can support patient demand and
  patient choice
• CPH projects deliver benefits to meet the
  financial pressures of the modern environment
• The procurement activities support clinical needs
• To bring viable business opportunities to the
  Procurement teams within the CPH
• To make the Hub more approachable for new
  suppliers
• To expand CPH activities to provide best value to
  our stakeholders

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Benefits Example

• A supplier contacted the CPH with an offer of
  logistics support
• As this was an unknown area the CPH Business
  Development Manager and Supplier Performance
  Contracts Data Manager met representatives from
  the supplier
• The meeting exposed an area where there is a
  perceived opportunity and this is now being
  explored by the CPH with trial sites being
  approached

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• Dave Heason
• Business Development Manager
• dave.heason_at_nhs.net
• NHS South East Coast Collaborative Procurement
  Hub
• The Atrium, Curtis Road, Dorking, Surrey, RH4 1XA
• Direct Tel [phone]
• Switchboard 01306 646822
• Web www.seccph.nhs.uk

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Supplier Performance
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Aims

• To use a variety of measurement methods to ensure
  that contracts continue to meet the changing
  business needs of the NHS
• To develop the strengths of suppliers and
  identify areas for improvement on both sides
• To foster an innovative approach to contract
  delivery to explore opportunities for increased
  process/supply chain/resource efficiency
• To manage and develop the relationship with the
  supplier on an ongoing basis to gain a greater
  understanding of both NHS and Commercial drivers,
  developments and pressures (whether customer,
  supplier, category or market-related)

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Benefits

• The use of evidence-based vendor rating can
  identify risks, issues and weaknesses to your
  business and provide opportunities to find
  solutions
• The fostering of a mutual improvement culture
• The ability to see performance from two angles
  not only in terms of contracted performance to be
  measured but also added performance to be enabled
• Contract specified performance related to
  conditions of contract and KPIs
• Added Value opportunities available to increase
  operational efficiency and drive out waste (in
  processes, supply chains etc)
• The ability to tailor your response to the NHS
  with a highly developed understanding of the
  changing NHS landscape, drivers, pressures and
  developments

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• David Burrows
• Supplier Performance Contracts Data Manager
• david.burrows2_at_nhs.net
• NHS South East Coast Collaborative Procurement
  Hub
• The Atrium, Curtis Road, Dorking, Surrey, RH4 1XA
• Direct Tel [phone]
• Switchboard 01306 646822
• Web www.seccph.nhs.uk
•  

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• Thank You.

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20 May Renaissance, Heathrow
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• Presenter
• Dr Kemal Ahson
• Mosaic Project Team

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Equality in the NHSBeyond Procurement20 May
2008

• Dr Kemal Ahson, Lifeworld Ltd
• DH/Mosaic Procurement Advisor
• www.mosaic.nhs.uk

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Introduction

• Mosaic
• how the NHS actually buys
• Context for equality
• Equality legislation
• Implications for procurement staff
• Implications for suppliers
• Resources

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how the NHS actually buys

• A view from a supplier
• Is there an NHS?
• Change is a constant
• Different forms of tendering
• and Commissioning
• Is it for you?

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Context for equality

• Legislation
• Healthcare inequalities
• DH Policy
• Equality Impact Assessments
• Socio-economic goals
• Freedom of Information

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Equality legislation

• Equal Pay Act 1970
• Sex Discrimination Act 1975
• Race Relations Act 1976
• Race Relations (Amendment) Act 2000
• Employment Equality (Religion or belief)
  Regulations 2003
• Employment Equality (Sexual Orientation)
  Regulations 2003
• Disability Discrimination Act 1995
• Disability Discrimination Act 2005
• Civil partnerships Act 2004
• Gender Recognition Act 2004
• Employment Equality (Age) Regulations 2006
• Human Rights Act 1998
• Equality Act 2006
• Duties to promote race, disability and gender
  equality
• Draft Single Bill

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Positive duties

• The Race Relations (Amendment) Act 2000
• The Disability Discrimination Act 2005
• The Equality Act 2006 (positive duty to promote
  gender equality came into force April 2007)
• Positive duties broadly cover
• Eliminate unlawful discrimination and harassment
  in employment and service delivery
• Promote equality of opportunity for all
• Promote good relations between different groups
• Promote positive attitudes towards disabled
  people and make reasonable adjustments

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Implications for procurement staff

• Equality matters
• Legislation and policy
• Equality Impact Assessments
• Principles
• Positive duties
• Not positive discrimination
• some of their actions

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Implications for suppliers

• Equality matters
• Different implications and proportionality
• Look at contract clauses
• Public authority
• Supply-chains
• part of your business case

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Resources

• NHS Trusts/PASA www.pasa.nhs.uk
• Mosaic project www.mosaic.nhs.uk
• Beyond Procurement Guide Department of Health
• Equal Opportunities Commission www.eoc.org.uk
• NovoPraxis www.novopraxis.com
• Dr Kemal Ahson (020 7937 0919)
  kemal_at_lifeworld.info

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• Presenter
• Mark Roscrow
• Director, Welsh Health Supplies

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Selling to the NHS

• 20th May 2008
• Renaissance Hotel, Heathrow

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Mark Roscrow

• Director
• Welsh Health Supplies

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Health a devolved responsibility
Organisational Environment

• Welsh Assembly Government
• Minister for Health Edwina Hart MBE

• Minister for Health Social Services Edwina
  Hart
• Accountable/Responsible for
• Health and NHS Wales
• Social Services and social care
• Food safety

www.wales.gov.uk
101
Background to WHS

• WHO WE ARE
• Welsh Health Supplies is a Service Provider to
  the National
• Health Service in Wales and is managed by
  Abertawe Bro
• Morgannwg University NHS Trust.
• The role is to provide 3 key links in the Supply
  Chain
• 1. The negotiation of All Wales Contracts
• 2. A Materials Management Service Plus,
• 3. A local Equipping and Contracting function

102
Background to WHS
LOCATIONS Welsh Health Supplies operates from
four sites. The All Wales Contracting section,
operate out of one location in Cardiff and
provide services to all Trusts in
Wales. Materials Management operate out of two
locations, Bridgend who service Trusts in South
Wales, Denbigh who service Trusts in North Wales
and Swansea for the Local Contracting Service
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Organisational Structure
Welsh Health Supplies is a business unit under
the management of Abertawe Bro Morgannwg
University NHS Trust
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NHS Wales Organisational Structure
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Doing business with WHS

• All Wales Contract programme
• 5 Commodity areas
• Facilities
• Medical
• Utilities
• Pharmacy
• Special Projects

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WELSH HEALTH SUPPLIES/INFORMING HEALTH CARE

• Welsh Health Supplies also supports the Informing
  Healthcare programme in Wales.
• Current Procurement activity includes the
  following
• - National Chemotherapy System
• - Laboratory information systems

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• - Point of care testing
• - Clinical Pathways tool
• Further details and information can be obtained
• from Nic Cowley and Michelle Sell-
• nic.cowley_at_ihc.wales.nhs.uk 01656 678102
• michelle.sell_at_ihc.wales.nhs.uk 01656 678130

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WELSH HEALTH SUPPLIES LOCAL FOCUS

• CAPITAL EQUIPPING Current schemes include
• - Ward refurbishments
• - Theatre and cardiac service upgrades
• - Equipping new hospitals (Ysbyty Cwm Rhondda,
  Cynon Valley Hospital)

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• - Revision to mental health services
• Further details on Capital Schemes available from
  Clive Osborne-
• Clive.Osborne_at_whs.wales.nhs.uk 01792 704168

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WELSH HEALTH SUPPLIES LOCAL FOCUS

• LOCAL CONTRACTING Contracts include
• Maintenance of equipment
• Car parking
• Orthotics
• Window cleaning
• Further details on Local Contracting available
  from Kath
• Pugh-
• Kath.Pugh_at_whs.wales.nhs.uk 01792 704163

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WHS Web Site

• www.whs.wales.nhs.uk

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WHS Project Work

• Some recent examples include
• Angiography Equipment Project
• Automatic Pharmacy Dispensing Systems ?
• CT/MRI Scanners
• Framework agreements for Telemedicine video
  conferencing
• Agency Nurses Framework Agreements

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• Further information on Projects available from
  Bethan Jenkins
• Bethan.Jenkins_at_whs.wales.nhs.uk 02920 315457

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Contracting Process
Demand
Bravo
Oracle
OJEU
Order Goods
Issue Contract Information
Tender Out
Bravo
Tender In
Tender Award
E-Auctions
Bravo
Analyse
Internal CMS
120
WHS Tendering key steps

• Preplanning stage (stakeholder engagement)
• OJEU advert (appropriate procedure) Bravo
• Pre Qualification Questionnaire (use of
  appropriate selection criteria)
• Tender stage (weighting and criteria)
• Evaluation process
• Contract award

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Pre Qualification Questionnaire

• Typical criteria used include the following
• a) Company conduct
• b) Economic and financial
• c) Technical capability
• Specific example for procedure gloves include
  compliance to products specification standard
  BSEN455 (medical gloves single use)

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• Tender stage (weighting and criteria)
• Include the following as examples
• Financial criteria 60
• b) Qualitative criteria 40
• - Clinical acceptance
• - Tender compliance
• - Product range
• - Delivery
• - Environmental
• Evaluation process
• Contract award

123
E-Tendering

• WHS now utilise Bravo system

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E-Auctions What the Buyers Say

• Dynamic trade (OGC)
• Beneficial tool in the armoury of supply chain
  professionals (CIPS)
• Enable price reductions by real time dynamic
  competition between suppliers (Value Wales)
• A form of audited negotiation (PASA)

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Welsh Health Supplies Electronic Catalogue

• NHS Wales use of Oracle, Finance and Procurement
  system (version 11.5.10 November 07)
• Managed service provision (New Contract from 1st
  June 2008)
• Electronic ordering

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Key Issues for Suppliers

• Back office integration
• Catalogue content
• Online management of catalogue/pricing
  information
• Marketing approach

136
Other issues

• Value Wales (All Wales Sourcing Plan)
• Impact of Supply Chain in Wales
• Exchange Wales (Sell to/Buy to Wales)
  www.sell2wales.co.uk

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NHS Co-operation

• Home nations collaboration on a range of issues
  including
• Contracting
• E-commerce
• Benchmarking
• Training

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Questions?
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Selling to the NHS - A Trust viewEugene Cooke
MSc. MCIPSNational Head of ProcurementNHS
Blood Transplant20th May 2008
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Setting the scene (1)

• - NHS Foundation Trust
• - 850 beds in the trust
• - 4000 staff WTEs
• - 245 million pay / non pay spend
• - 80 million non pay spend
• - Approx. 45 60 million influencable

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Setting the scene (2)

• - 750,000 plastic aprons used
• - 150,000 bandages
• - 67,000 suction catheters
• - 115,000 catheters cannulae
• - 61,000 boxes of cereal

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Setting the scene (3)

• - In 2004/2005 NHS England Statistics
• - 6.8 million surgical procedures performed
• - 1.3 milion admissions (200,000 chemotherapy
  sessions)
• - Bones Joints 600,000 operations performed
• - 140,000 hip and knee replacements (not inc.
  revisions)
• - 600,000 babies born in hospital
• - 500,000 Eye operations (300,000 catarachs)

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Setting the scene (4)

• - In 2004/2005
• - 55,015 inpatients
• - 333,295 outpatients
• - 72,635 seen by AE
• - 5046 babies born
• - Each day 116 operations carried out
• - Each day 475 x- rays taken
• - Each day 2300 meals cooked
• - Each day 2.4 tonnes of waste generated

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Setting the scene (5)

• - Small distribution area (Not a store)
• - 375 transfer points / ordering points
• - Massive Agenda for change / modernisation
  process
• - Public expectations continuous improvement
• - Funding issues
• - Procurement Team of 16
• - Consolidated department onto one site September
  05

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Role of Procurement (1)

• - Value for money / economies of scale
• - Better procurement practice / delivering
  efficiencies
• - Professional staff / raise procurement
  standards
• - Minimise risk / SFIs / SFO/s
• - Ensure transparency in procurement practices
  (End Users)
• - Cross Trust Procurement Strategy Group

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Role of Procurement (2)

• - Compliance with legislation (Local / Govt./ EU)
• - Optimum use of resources, releasing funds to
  areas for improvement
• - Culture within the organisation / management of
  change
• - Product rationalisation POGs (Product
  Ownership Groups)
• - Co-ordinated approach Materials Management
• - Savings target
• - New systems (implementation of Oracle)

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Drivers for Procurement (1)

• - Local SFIs / SFOs, specific to Trust
• - Government legislation Modernisation, targets
  funding
• - EU legislation (OJEU ((was OJEC)) )
• - Controls Assurance / Governance
• - Internal Audit / External Audit / NAO

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Drivers for Procurement (2)

• - External Audit Audit Commission
• - Better Practice
• - Influence more spend
• - Collaboration with other trusts / shared
  approach
• - Confederation / HUB / Collaborative Procurement
  Hubs
• - Savings Confederation / HUB wide

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Drivers for Procurement (3)

• - Legislation over the last number of years
• - Government changes
• - EU legislation changes more coming
• -Push for efficiencies (SCEP programmes)
• - Foundation Hospital NHS status bulk of trusts
  by end of 2008
• - Targets are Here to stay (rising and
  continuing)
• - Overspend (500m in red last year 06-07 / 500m
  in black 07-08)
• - Ever changing environment technology /
  medical advances
• - 25 different pieces of NHS Legislation in last
  25 years (more??)

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Role of Suppliers (1)

• - Be aware of EU / Government / Trust legislation
  changes
• - Knowledge of Public Accountability
• - Be aware of PaSA role
• - Get on the SID list / other authorised /
  accredited lists
• - Find out how trusts work (within the STHA /
  HUB, independently)

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Role of Suppliers (2)

• - Make contact with Procurement Department within
  the trust
• - Work with procurement managers (as well as
  Clinicians) to
• Reduce supply chain costs, transaction costs
• Ensure order numbers on invoices (eliminates
  time wasting for all)
• Eliminate waste Green capabilities
• Facilitate innovation
• Facilitate collaboration
• Better information
• Facilitate sustainability

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Role of Procurement Suppliers

• - Work together COLLABORATE
• - Reduce overall supplies costs
• - Provide a better managed supply chain
• - Present processes - review
• - New ways of doing things / innovation /
  partnerships
• E-commerce / E-procurement (e-Auctions)
• Purchase card (can you work with it?)
• Electronic Catalogue
• - Consolidated deliveries
• - Avoid duplication
• - Better returns procedures

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Future for Procurement

• - Performance managed
• - Professional staff
• - Better standards
• - Higher profile
• - Innovation Think outside the box
• A better focussed and motivated team
• THANK YOU FOR LISTENING
• eugene.cooke_at_nhsbt.nhs.uk

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Dos and Donts of Tendering

• Stephen Dickinson
• PASS Consultant

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Dos and Donts of Tendering

• Know that public sector is a regulated market
• Learn the rules, before you start playing the
  game
• Apply the rules dont look for ways to skirt
  them
• Ask about the marking and weighting of
  questionnaire answers
• If weighting is not revealed, ask about order of
  priority

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Dos and Donts of Tendering

• Remember
• The first stage of the selection process is
• REJECTION

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Dos and Donts of Tendering

• Questionnaires
• Remember short-listing is about disqualifying
  applicants
• Quantify your questionnaire answers as far as
  possible
• Ask about disqualifying criteria especially
  turnover
• Be sure to provide all submissions and answer all
  questions
• When answering Mandatory Questions the answer is
  always
• YES

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Most Common Requirements

• Health and Safety Policy
• Environmental Policy
• Equal Opportunities Policy
• Race Relations
• Quality Insurance
• Insurance

• 2 Years Financial Accounts
• Personnel Profiles
• References and Past Experience
• Investors In People
• Staff Turnover
• TUPE/TURER

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Dos and Donts of Tendering

• Expressions of Interest and
• Invitations to Tender
• First thing to do Read the instructions
• Second thing Read them again
• Third Get someone else to read them
• Finally Before returning tenders, read
  instructions one more time and make sure you have
  complied with them

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Dos and Donts of Tendering

• Pre-Tender Meetings
• If briefings are offered attend if at all
  possible
• Ask questions preferably in open forum not in
  private
• Ask about tender assessment and for any
  weightings or order of priority
• Verify acceptability of variations
• Ask about budget

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Dos and Donts of Tendering

• Pre-Tender Meetings
• Bring key personnel not sales team or window
  dressing
• Team should know the tender and each other
• Include specialists if pre-presentation questions
  suggest it
• If using presentation tools know how to operate
  them

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Dos and Donts of Tendering

• Pre-Tender Meetings
• Arrive on time but expect to run late
• Stick strictly to the given timetable
• Dont argue with the presentation board
  chairperson
• Dont interrupt own team members
• Dont make rash promises

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Dos and Donts of Tendering

• Basic Tips for Expressions of Interest and
  Invitations to Tender
• Prepare a database of the basic information
  likely to be requested
• Copy all documentation and store the originals
  safely
• Set up a team - comprised of a member of each
  relevant department (never do it alone)
• Check if variants are acceptable
• Do not presume that the contract notice is
  infallible
• Ask questions!

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• Basic Tips for Expressions of Interest and
  Invitations to Tender
• Note the ITT order of questions, do not shuffle
  the answers
• Do not do the most important work close to the
  deadline
• Do not be late in delivering the tender
• If asked for hard-copies, send the number asked
  for
• Stay focused on client requirement not what the
  company can deliver

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Dos and Donts of Tendering

• Basic Tips for Expressions of Interest and
  Invitations to Tender
• Keep bumpf separate from the requested material
• Do not hold anything relevant back
• Ensure clear and precise display
• Avoid hand-written answers
• Ensure compliance with all requirements
• Check, recheck and recheck tender - involve
  others.

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Dos and Donts of Tendering

• Are your tenders addressing Government
  Initiatives?
• Environmental and Sustainability
• Promotion of opportunities for SMEs
• Innovation
• Wider Markets Initiative
• Partnership
• Social Issues - Employment Law - TUPE etc.
• You need to clearly identify and explain the
  benefits of any of the Governments Initiatives in
  your submission

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Dos and Donts of Tendering

• Tenderers Common Mistakes
• Fail to understand or dont comply with the
  specification
• Lack sufficient capacity (small company - big
  contract)
• Financially unstable
• Pad out a bid with bumpf to make it look
  good    
• Dont show experience of similar work
• Tender doesnt hang together (put together in
  parts) does your company?
• Dont turn up to supplier meetings

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• Winning Tenders
• Are customer focused
• Provide added value at no added cost
• Are innovative
• Identify and address risk
• Show clearly how they will deliver continuous
  development and
• improvement
• Clearly show how and why they are the Most
  Economically
• Advantageous Tender
• They provide benefits that
• are demonstrable/measurable
• are tangible
• have identifiable monetary value

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• Final Pointers
• Dont believe the PQQ/ITT is correct ASK
  questions if in any doubt
• Identify and meet risk head-on and up front
• Always show how and why your tender provides good
  VfM
• Try to add value throughout the course of the
  contract
• Identify problems early and discuss
• Audit relations throughout the contract
• Be positive and professional

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• Chairmans Closing Address
• Stephen Dickinson
• PASS Consultant

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