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Winning Tenders

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Lengthy private discussions resulting in a competitive tender open to others ... What additional help will we require during the tender process? ... – PowerPoint PPT presentation

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Title: Winning Tenders


1
Winning Tenders
  • A Practical Guide

2
Programme
  • Contract considerations
  • Uncertainty and innovation
  • Legal status and procurement
  • Provider concerns
  • Procurement process
  • Consultation and conflict of interest
  • Payment mechanisms
  • Organisational capabilities
  • Being paid

3
How Have Things Changed?Context
  • Major NHS reconfiguration
  • PCTs and PbC clusters are commissioning
  • PCTs are contracting
  • Contestability means that practices can no longer
    rely on historic patient flows for their future
    income
  • For practices to prosper in the new healthcare
    market they will need to
  • Become more outward looking in their planning
  • Seek to engage with new opportunities
  • Adapt their ways of working to meet changing
    needs and expectations
  • Develop enhanced skills in planning, marketing
    and finance

4
In with the new
5
How Have Things Changed? NHS Drivers for Change
  • The 10 year NHS Plan 1997
  • The NHS Improvement Plan 2000 Ten years of
    reform
  • Shifting the Balance of Power 2001
  • The two Wanless reports
  • The best way of funding healthcare
  • The fully engaged public health scenario Our
    Health, Our Care, Our Say
  • - A government belief in flexible markets and
    the Choice agenda

6
How Have Things Changed? Key Themes
  • Efficiency, Efficiency, Efficiency!
  • Outcome driven
  • New roles and new ways of working
  • Quality of service, not number crunching
  • Patient and Public Involvement
  • Increased accountability
  • Plurality of provider private partnerships
  • Patient Choice

7
What Changes Will Patients See?
  • Standards
  • Inspection
  • Independent providers
  • NHS Foundation Trusts
  • Flexible Workforce
  • An end to waiting
  • Choosing Health

8
What Changes Will Patients See? And theres more!
  • New GMS contract
  • New pharmacy, optometrist and dental contracts
  • Choose and Book -Fair for all, personal to you
  • Payment by results - National tariffs
  • Plurality and diversity of provision
  • Practice based Commissioning

9
Who Else Is Involved?PCTs Can Contract for
Additional Services With
  • Commercial organisations
  • Voluntary / Charitable organisations
  • Mutual providers
  • Public Bodies
  • GMS PMS practices through a separate contract

10
What Are Others Doing?Competitors
  • With a specialist team of experienced
    professionals assigned to the new APMS
    initiative, (Private Provider) is happy to
    exchange ideas and explore options with PCTs. We
    have a pipeline of doctors at PCTs disposal and
    are adept at using the skills of advanced nurse
    practitioners, special interest GPs, pharmacists
    and healthcare assistants to provide a
    multi-practitioner approach to developing our
    services. We are experienced in designing and
    building new healthcare facilities. We can offer
    diagnostics emergency avoidance schemes
    intermediate care rehab services long-term
    conditions management and, of course,
    out-of-hours and in-hours primary care.

11
What Are Others Doing?Competitors
  • The strengths that (Private Provider) can
    demonstrate speak volumes about how we aim to
    fulfil APMS contracts
  • We pride ourselves on the closeness, quality and
    longevity of the relationships we build up with
    partner organisations
  • Our key focus is finding and delivering
    solutions to wide-ranging problems, as
    demonstrated in our contracts to build and run
    ISTCs
  • We have an excellent reputation for service
    provision and for delivering on budget and on
    time

12
What Is A Tender?
  • In simple terms, a tender is an offer to do
    work issued by one party to one or more others

13
What Do We Need To Consider? Considerations for
Contracts
  • The exact service to be provided
  • The length of contract
  • Performance monitoring, quality control and
    governance arrangements
  • Payment schedules and pricing structures
  • Employment issues, including protection of
    employment and pensions
  • Provision of premises and equipment
  • Provision of information and contract monitoring
  • Warranties

14
What Do They Expect Of Us?Uncertainty
  • PbC clusters are specifying services and
    preparing for tenders
  • PCTs may neither need nor want to specify the
    type of contract at the start of the process
  • The same services could be provided under PMS,
    GMS or APMS
  • The choice of contract may be not be determined
    by the PCT but by the contracting party

15
Do They Want New Ideas?Encouraging Innovation
  • A PCT/PbC cluster may not have an idea of what
    the service will look like at the start of the
    tender process
  • It may have identified a particular problem or
    service need and then be looking for creative
    ideas or solutions to solve it
  • This type of approach may help encourage more
    innovative solutions

16
Whats the Legal Status?Contracts
  • Section 16CC (2)(b) of the NHS Act 1977
  • Directions from the Secretary of State, currently
    the Alternative Provider Medical Services (no 2)
    Directions 2004
  • Provisions from the National Health Service
    (Personal Medical Services Contracts) Regulations
    2004

17
Will the Process Be Fair?EU Procurement Directive
  • EU Treaty means PCTs have obligations of
    transparency and fairness in tendering processes
  • The only formal requirement is to publish a
    contract award notice following the award of the
    contract much more will be expected

18
Will the Process Be Fair?Conflicts Of Interest
  • Conflicts of interest are particularly likely if
  • There is potential for the tendered services to
    be provided directly by the PCT
  • GPs in the PCT area are potential bidders for the
    services
  • GPs could lose their enhanced services to the
    proposed scheme
  • All potential conflicts of interest must be
    disclosed

19
Will the Process Be Fair?Experience
  • Does the PCT have tendering experience?
  • Does the PbC cluster have tendering experience?
  • Who is advising them?

20
What Should Worry Us?Potential Provider Concerns
  • Repetitive pre-tender quality vetting
  • Endless discussions that progress nowhere
  • An over-bureaucratic process
  • Lengthy private discussions resulting in a
    competitive tender open to others
  • A fix with only one bidder considered
  • Risk of losing intellectual capital when
    discussions put into the public domain and shared
    with others
  • Process disproportionate to the value ofthe
    contract
  • Competitors using loss leaders

21
What Types Of Tenders Are There?Types of
Procurement Process
  • Model A Competition against specification
  • Model B Competition against specification with
    variant bids encouraged
  • Model C Competition to act as a partner in
    developing and providing a service
  • Model D Responding to a direct approach
  • Source NHS Confederation

22
Tender Applications
  • Selection criteria and the parameters of the
    tender document should be clearly stated in the
    procurement pack
  • Contact details and methods of obtaining further
    information should be stated
  • Other sources of information may include
  • Freedom of Information Act
  • Annual report and accounts
  • Public Health report
  • Local Authority information
  • Doctor Foster ..

23
Are We Up To It?Initial Questions
  • What are the gaps in our skills and knowledge of
    planning and tendering?
  • What additional help will we require during the
    tender process?
  • What analytical and planning techniques are
    required?
  • Who will have to be involved?
  • Do we have the organisational capability?

24
What Comes Before Form Filling?Engaging in the
Process
  • Completing tender documentation is not about
    filling in the boxes with words the PCT wants to
    read
  • It is about proving you have undertaken all the
    essential preparatory work to ensure successful
    implementation
  • The documentation is the final evidence of that
    process
  • Proving you have the experience

25
What Sort of Organisation Are We? Your
Competitive Strategy
  • Cost Leadership
  • Having the lowest costs by being efficient and
    having economies of scale
  • Differentiation
  • Creating a unique service by packaging or quality
  • Focus
  • Concentrating in a limited field of activity

26
What Are Our Capabilities?Your Capability Profile
  • Is your current organisation capable of winning,
    sustaining and retaining the contract?
  • Resources available
  • Services provided
  • Systems used
  • Organisation structure
  • Quality of outcomes
  • Financial returns
  • Proven track record

27
What Are Our Capabilities?Organisation
  • Current facilities
  • Where are the bottlenecks?
  • Analysis of staffing
  • Qualities
  • Skills
  • Adaptation to change
  • Analysis of financial performance

28
What Are Our Capabilities? Expectations
  • Employees
  • Job satisfaction
  • Pay
  • Working arrangements
  • Patients
  • Quality
  • Access
  • National and local Associations
  • Purchasers

29
What Do We Want To Achieve?Generating Ideas
  • Time is needed to articulate and discuss
    perceptions of patient need
  • Avoid solutionism generating solutions
    without fully forming the problem
  • You need an insight into the thinking of the PCT

30
What Does the PCT Want?Using Marketing in the NHS
  • A coherent and objective read that
  • Responds to patient need
  • Responds to Ministers needs
  • Responds to targets
  • Responds to White Papers
  • Demonstrates value for money
  • Shows innovation
  • Ticks some boxes!
  • Answers the question!!!

31
How Do We Write The Tender?Putting it on Paper
  • Clear
  • Concise
  • Accurate
  • Factual
  • Evidence based
  • Business-like
  • Specific to the audience
  • With impact

32
What About the Money?Costing of Services
  • Basic pay
  • Allowances and enhancements
  • National Insurance and pension contributions
  • Additions for long-term sickness and maternity
    leave
  • Uniforms, vehicles, mobile phones etc
  • Equipment, materials, premises costs
  • Management and administration
  • Costs of gathering data, analysing it and
    reporting upon performance

33
How Do We Get Paid?Payment Mechanism
  • Method
  • Fixed price
  • Performance-related
  • Volume-related
  • Other measure?
  • Incentives for high-quality performance
  • Access to financial information, or an
    open-book accounting system
  • Price variation mechanism for changes to services

34
Where Do I Find Out More?Further Information
  • NHS PASA will be issuing a procurement pack and
    contract commentary on the NHS PASA website
    www.pasa.nhs.uk
  • www.healthskills.co.uk
  • www.lmcs.info
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