governing body report - central london ccg · responsible director kiran chauhan, deputy managing...

Governing Body report

Paper: [INSERT]

1

Date 9th September 2015

Presenter Jatinder Garcha, Programme Lead Planned Care

Author Jatinder Garcha, Programme Lead Planned Care

Responsible Director Kiran Chauhan, Deputy Managing Director

Clinical Lead Dr Jack Jerjian

Confidential Yes ☐ No Items are only confidential if it is in the public interest for them to be so

The Governing Body is asked to:

Note the awarding of preferred bidder status, leading to the award of a contract, for multi-disciplinary community Musculoskeletal services to Healthshare Ltd for the purposes of the Governing Body Part I session. The decision to award the contract was made in Governing Body (Part II) session on 8th July 2015.

Summary of purpose and scope of report

Central London CCG’s current contract for community MSK services are due to end on 30th September 2015. The current contracts have undergone two contract extensions for 12 months covering 2014/15 and a further 6 months until September 2015. A further contract extension was not possible without significant risk of challenge of not following an open and competitive process to secure provision of services.

A redesign process for MSK services has been undertaken. A multi-disciplinary community MSK service, which provides an alternative to hospital-based outpatient services, has been defined in the Service Specification. The service will provide clinical assessment, diagnostics and treatment for MSK conditions in a community setting. This is in line with the CCGs Out of Hospital strategy and strategic commissioning intentions to ensure that high quality care is delivered as close to the patient’s home as is appropriate.

The service specialties that are included within the Service scope are:

Community MSK physiotherapy services;

Outpatient orthopaedic services;

Outpatient rheumatology services; and

Chronic MSK pain management services.

The Service must be delivered through a Multidisciplinary Team (MDT) approach. Specialists (including consultant leadership) from the specialties of rheumatology, pain management and orthopaedics will actively work within the MDT seeing patients and supporting genuine

Title of paper Community Musculoskeletal Service procurement outcome


Paper: [INSERT]

2

multidisciplinary working in the community.

The service specification has been developed in collaboration with the Collaborative group of CCGs (CWHHE). A generic specification for multidisciplinary MSK services has been developed through a process of service redesign by the CWHHE CCGs, and local enhancements to the generic specification are detailed in a Central London CCG specific Addendum to the specification. GP locality meetings, patient representatives and the Transformation Redesign Group have been engaged during the design of services for Central London CCG. While many of the local enhancements have now been adopted in the generic service specification, there are key local requirements and clarifications that have been detailed in the addendum.

The attached procurement evaluation report presents the recommendation made to the Governing Body for a preferred bidder to provide the service. This is based on the results of the evaluation carried out by the members of the Procurement Evaluation Panel of the bids received in response to the procurement.

Key points from the evaluation report to note are as follows:

The advertisement generated forty-seven expressions of interest

Four bids were received by the closing date

Bids were evaluated to select the bid that offered the optimum combination of service capability, quality and bid price within the affordability parameters set by the CCG;

The evaluation included scoring of allocated questions by clinicians (Dr Jack Jerjian – clinical

lead, Pip White – physiotherapist advisor and Alan Hakim – consultant rheumatologist),

patient representatives, and experts from ICT, HR, contracting, quality, and estates

An evaluation panel meeting was held to moderate the scoring of the tenders and agree a final score for each procurement question or if further clarification from bidders was needed to reach a final score. The evaluation methodology is outlined in the attached report.

The results of the completed evaluation are as follows:

Bidder Final Moderated Scores

Bidder 1– Healthshare Ltd* 73.25

Bidder 2 – Medway Community Healthcare 61.0

Bidder 3 – Central London Community Healthcare NHS Trust

52.57

Bidder 4 – Connect Physical Health 71.01


Paper: [INSERT]

3

The Governing Body approved Healthshare as the preferred bidder on 8th July 2015 on the basis of the above scores.

Quality & Safety/ Patient Engagement/ Impact on patient services:

The purpose of the procurement is to improve the quality and access to MSK services for patients in Central London.

Quality and safety representatives from the CCGs evaluated the bids. Patient representatives also evaluated the bids.

The mobilisation process is underway and the safe and effective transfer of patients and new referrals to the service is the key priority.

Finance, resources and QIPP

The affordability threshold and QIPP savings for the new service have been previously been approved.

Equality / Human Rights / Privacy impact analysis

None.

Risk Mitigating actions

There is a risk of some short term disruption to services when a new service is being mobilised.

Mobilisation planning was evaluated as part of the tender process and providers will be expected to work closely with incumbent providers to ensure a smooth transfer to the new ophthalmology pathways. Regular meetings with the provider will be held during the mobilisation period in advance of service commencement.

Supporting documents

The procurement evaluation report is attached separately.

Governance and reporting


Paper: [INSERT]

4

Committee name Date discussed Outcome

Central London CCG Governing Body

08/07/2015 Approval of preferred bidder, with whom to proceed to contract award – Healthshare Ltd.

Central London CCG Governing Body

11/03/2015 Approval of Business Case.

Agreement to proceed with procurement.

Central London CCG Finance and Performance Committee

25/02/2015 Approval of Business Case.

Agreement to proceed with procurement.

Comments include:

- Consideration of contract based purely on a tariff basis with a short term income guarantee;

- Requirement to develop a service model costing up for future programmes.

Collaborative MSK Steering Group

03/02/2015 Agreement to proceed with a single procurement with separate lots. However, subsequent developments have resulted in Hammersmith and Fulham and Ealing CCG not being ready for business case development and procurement commencement.

Collaborative CCG Chairs meeting

22/01/2015 Agreement from Chairs of CCGs to adopt the generic specification with local enhancements where required.

Central London CCG Transformation Redesign Group

14/01/2015

10/12/2014

12/11/2014

Supportive of a consultant inclusive community MSK service. Draft specification circulated to committee. Further updates to be provided on progress.

PROCUREMENT OUTCOMES REPORT

A recommendation to the Governing Body

of

NHS Central London Clinical Commissioning Group

following completed evaluation of tenders received in regard to:

The procurement for the provision of a

Community Musculoskeletal Service

1st September 2015

[Recommendation approved by Governing Body on 8th July 2015 – this report is presented to the part 1 session of the Governing Body on 9th September 2015]

Table of Contents

1. Executive Summary 3 2. Purpose 4 3. Introduction 4

4. Background 5

5. Procurement evaluation panel 6

6. Pre-qualification process 6

7. Bid evaluation Process 7

8. Bid evaluation Results 7

9. Financial Implications 8

10. Recommendation 9

11. Approval 9

Appendix 1 - Procurement Documentation 10

Annex1 - Procurement Evaluation Panel 10

Annex 2 - Qualification Criteria 10

Annex 3 - ITT evaluation criteria 10

1. Executive Summary

1.1 This report with recommendation has been compiled on behalf of the Procurement Evaluation Panel for the provision of Community Musculoskeletal Services following the completion of the evaluation of bids received in response to the advert placed on Contracts Finder published on 27th March 2015.

1.2 Approval of the business case, service specification and to proceed to open

procurement was received from the CCG Governing Body on 11th March 2015. The procurement process has been completed in accordance with the timescales presented to the Governing Body in March and within the affordability parameters detailed within the approved business case.

1.3 The advertisement generated 47 expressions of interest from a range of potential providers.

1.4 During the Invitation to Tender (ITT) stage all potential bidders that expressed an interest were able to request clarifications on the ITT documentation. The bidder clarification stage ran from 27th March 2015 to 14th May 2015. The closing date for receipt of bids was 21st May 2015. The full procurement timetable followed to date it set out below:

Market Engagement Event Monday 23rd March 2015

Issue advert & ITT documentation Friday 27th March 2015

Bidder Briefing Event (Financial Model)

Thursday 30th April 2015

Issue TUPE information Tuesday 5th May 2015

Deadline for the receipt of clarification questions from Bidders

Thursday 14th May 2015

ITT Submission deadline Thursday 21st May 2015

ITT Bid evaluation stage Thursday 21st May – Tuesday 9th

June 2015

1.5 The ITT included a qualification stage through which four potential bidders submitted completed Qualification Questionnaires (QQs). These were evaluated for compliance with the published qualifying criteria resulting in all four applications successfully meeting the requirements.

1.6 The four bidders subsequently had their bids for the provision of Community

Musculoskeletal Services evaluated.

1.7 The bids were evaluated in accordance with the evaluation process developed specifically for this procurement, designed to select the most economically advantageous tender, i.e. that which offers the optimum

combination of service capability, quality and bid price, within affordability parameters.

1.8 The evaluation methodology was clearly outlined to all potential bidders within the Invitation to Tender documentation, a copy of which is attached as Appendix 1 to this report.

1.9 The evaluation was undertaken between 22nd May 2015 and 9th June 2015 involving scoring by individual evaluation panel members, subsequently moderated to agree a consensus score for each element of each bid.

1.10 The results of the completed evaluation are as follows:

Bidder Final Moderated Scores

Bidder 1– Healthshare Ltd 73.25

Bidder 2 – Medway Community Healthcare 61.0


52.57

Bidder 4 – Connect Physical Health 71.01

1.11 On the basis of these results it is the Procurement Evaluation Panel’s

recommendation that NHS Central London CCG enters into a Contract with Bidder 1 as the Recommended Bidder. This recommendation is subject to any challenges that may be received during the standstill period of 10 calendar days, and the CCG receiving sufficient assurances from the preferred bidder prior to contract signature in relation to the CCG’s due diligence process

1.12 Subject to approval of the Governing Body, a standard award letter covering

the standstill period will be issued to the Recommended Bidder and unsuccessful letters covering the standstill period will be issued to the unsuccessful bidders. The unsuccessful bidders will be provided with detailed written feedback in accordance with best practice and being informed by current procurement regulations.

1.13 Subject to the Board’s approval, mobilisation planning will commence

immediately and engagement will take place with the exiting provider to implement robust exit arrangements so that patient care is not impacted upon through the transition period.

2. Purpose

2.1. The purpose of this report is to present a recommendation for consideration

and approval of the Governing Body. The recommendation is based on the

results of the evaluation carried out by the representatives appointed by NHS Central London CCG to form the Procurement Evaluation Panel to evaluate bids received in response to the Invitation to Tender issued on 27th March 2015 for the provision of Community Musculoskeletal Services.

3. Introduction

3.1. This report has been compiled on behalf of the Procurement Evaluation

Panel following the completion of the evaluation of responses to the Invitation to tender for the provision of Community Musculoskeletal Services.

4. Background

4.1. NHS Central London CCG currently has contracts in place with a number of

Local Acute Trusts and Community Service MSK Providers for the provision of Community Musculoskeletal Services.

4.2. The CCG has exercised a number of extensions to existing contracts, which are due to expire on 30th September 2015.

4.3. In order to ensure a high quality and consistent service for the future, that represents best value for NHS Central London CCG, a decision was taken to competitively tender the service. The CCG Governing Body approved this decision and the business case at the meeting on 11th March 2015.

4.4. An initial contract term of 3 years and 6 months is to be offered to the Recommended Bidder so that contract expiry dates are in alignment with those of Community MSK contracts held by collaborative CCGs and coterminous with the financial year.

4.5. A pre-procurement soft market testing exercise was undertaken to gauge the

level of market interest in the Contract and offer potential bidders the opportunity to review the Service Specification.

4.6. A “future opportunity” was published on Contracts Finder on Thursday 5th

March 2015. Potential bidders were given until Thursday 19th March to express their interest, review the Service Specification and return a completed soft market testing questionnaire. Potential bidders were also invited to a market engagement event which was held on Monday 23rd March.

4.7. The level of interest from potential bidders during soft market testing

indicated that the market for the provision of the services in scope was sufficiently developed.

4.8. The level of Market interest indicated that a bespoke procurement process

akin to the Open Procurement Procedure should be designed in compliance

with procurement regulations and advertised through Contracts Finder. The defining characteristic of the Open Procedure is that it involves a single stage procurement process where all submitted tenders are evaluated without a shortlisting stage, ensuring a proportionate approach for bidders and benefitting the CCG in minimising the overall procurement timescale.

4.9. The soft market testing exercise confirmed that there were a number of

suppliers capable of delivering the service specification in full. In order to achieve consistent service levels and benefit from economise of scale, the CCG opted to advertise the opportunity as a single lot.

4.10. The procurement process was managed by NHS Shared Business Services (NHS SBS) on behalf of NHS Central London CCG using the NHS SBS EU-Supply electronic procurement system to administrate, track and record all communications with bidders and receipt of completed tenders.

5. Procurement Evaluation Panel

5.1. The members of the Procurement Evaluation Panel for each Lot having been

involved throughout this procurement are provided within Annex 1.

5.2. Annex 1 also confirms the Statements of Confidentiality and declarations made by the panel members in regard to potential Conflicts of Interest.

5.3. No Conflicts of Interest were identified as raising any concern in regard to

this procurement.

6. Pre-Qualification Process

6.1. The Invitation to tender was published on Friday 27th March 2015. Bidders were given eight weeks from this date to submit their completed tender.

6.2. Tender receipt and opening took place by NHS SBS on Thursday 21st May

2015.

6.3. Four bids were received.

6.4. Preliminary compliance checks were carried out by NHS SBS on Thursday 21st May 2015 to confirm all the correct information had been received.

6.5. Bidders were required to submit a completed Qualification Questionnaire

(QQ). Bidders received clear information outlining the basis on which the QQ submission would be evaluated to determine whether their Bid Response would be evaluated further. A copy of the qualifying criteria is provided at Annex 2.

6.6. All four QQ submissions received were evaluated to be compliant, meeting the minimum acceptable threshold. The table below summaries the outcome following the QQ evaluation:

Bidder ID QQ evaluation outcome & score Bidder 1– Healthshare Ltd Pass Bidder 2 – Medway Community Healthcare

Pass


Pass

Bidder 4 – Connect Physical Health Pass

7. Bid Evaluation Process

7.1. Compliance with the Contracting Authority’s published affordability threshold

was checked for the overall bid price submitted. The affordability threshold having been set in light of market forces and the intentions of the CCGs to deliver best value. The scoring methodology published to potential bidders encouraged the submission of competitive prices, including being required to be below the published affordability threshold.

7.2. All Bidders met the affordability threshold set out within the ITT and none of these raised any concerns in regard to being considered unreasonably low.

7.3. Tender clarification queries were directed back to the bidders where

appropriate.

7.4. Qualitative evaluation took place between 22nd May 2015 and 5th June by the Procurement Evaluation Panel.

7.5. Moderation of qualitative evaluation scoring took place on 9th June 2015

resulting in agreed consensus scores for each Service Delivery and Quality question for each of the bids.

8. Bid Evaluation Results

8.1. The distribution of weighted marks available in the evaluation process were

as follows:

Evaluation Criteria Available Marks

Service Model 8

Resourcing and Staffing 20

Coordination and Integration of Care 13

Patient Involvement and Experience 10

Operational Resilience and Continuous Improvement 9

Service Mobilisation and Transition Planning 20

Finance 20

Total 100

The Quality criterion was evaluated by a multidisciplinary team of 13 evaluators. A full breakdown of the evaluation criteria is provided at Annex 3.

8.2. The overall, high-level results of evaluation, including the moderated scores

for Service Delivery and Quality, are:

Evaluation Criteria Bidder 1 Bidder 2 Bidder 3 Bidder 4

Service Model 5.25 4.75 4.75 6.00

Resourcing and Staffing 18 14 14 12.5

Coordination and Integration of Care

8.50 5.50 7.50 9.00

Patient Involvement and Experience

7.63 5.00 5.50 6.88

Operational Resilience and Continuous Improvement

7.38 3.25 3.25 4.00

Service Mobilisation and Transition Planning

15.50 8.50 14.25 16.00

Finance 11.00 20.00 3.32 16.63

Total 73.25 61.0 52.57 71.01

8.3. Bidder 1 achieved consistently high scores when evaluated against quality

criteria. In particular, their proposals for the resourcing and staffing of the new service scored well compared to those scores achieved by other bidders. Their quality submission provided the Procurement Evaluation Panel with a high level of confidence that they would deliver a quality service on behalf of the CCG. Furthermore, Bidder 1 also provided a bid price that was sufficiently competitive to allow them to secure the highest marks overall in terms of offering the most economically advantageous tender.

9. Financial Implications

9.1 Based on the CCG’s assumptions regarding activity levels, the price

tendered by Bidder 1 has the potential to deliver a 5% overall reduction in

expenditure compared with the maximum affordability price or £2,300,000 per year. The actual expenditure will be dependent upon activity.

9.2 9.3 The financial implications assessed relate in whole to direct service

provision expenditure of the CCG. No capital or other costs or investment implications have been identified.

10. Recommendation

10.1 The recommendation of the Procurement Evaluation Panel is that Bidder 1,

Healthshare Ltd, be confirmed as the Recommended Bidder and that engagement with the Bidder should progress toward contract signature, subject to any challenges during the 10 day standstill period.

10.2 Subject to approval, a standard award letter covering the standstill period will

be issued to the Recommended Bidder and an unsuccessful letter covering standstill period will be issued to the unsuccessful bidders.

Note: The unsuccessful bidders will be provided with detailed written

feedback including comparative marks awarded to the Recommended Bidder.

11. Approval

11.1 The Governing Body of NHS Central London approved the recommendation

in 10 above, the appointment of Bidder 1 as Recommended Bidder on 8th July 2015.

Authors: Jatinder Garcha Project Lead - NHS Central London CCG Tom Baker Procurement Manager - NHS Shared Business Services Jack Jerjian Clinical Lead - NHS Central London CCG

1st September 2015

Appendix 1

ITT Documentation – Bidder Instructions (including Evaluation Methodology)

ITT Doc 1_BIDDER INSTRUCTIONS (1).doc

ITT Doc 2_QUESTIONNAIRES-STATEMENTS-DECLARATIONS.docx

ITT Doc 3_SERVICE SPECIFICATION (3).doc

Annexes

Annex 1 - Procurement Evaluation Panel membership, confirmation of agreements to maintain Confidentiality and Details of any Conflicts of Interest

COI and Confidentiality_Record Tracker MSK.docx

Annex 2 – Qualification Criteria MSK Qualification

Criteria.docx

Annex 3 – ITT evaluation criteria MSK Award

Criteria.docx

governing body report - central london ccg · responsible director kiran chauhan, deputy managing...

Documents