nhs wirral procurement of healthcare services valerie attwood
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NHS Wirral Procurement of Healthcare Services Valerie Attwood Divisional Head of Procurement and Contracting. Background. - PowerPoint PPT PresentationTRANSCRIPT
NHS Wirral
Procurement of Healthcare Services
Valerie AttwoodDivisional Head of Procurement and Contracting
Background• The purchase of ALL goods and services in the public
sector is subject to EU regulations (2004) and UK law (2006) - Different requirements apply to different products and services.
• Key competency for World Class Commissioning
• DoH PCT Procurement Guide (Summer 2008)
• PRCC Dec 07/updated Dec 08
• Supply 2 Health web portal launched Sep 08
Different classification of servicesPart A Services (full regime) Part B Services (partial regime)
Accounting, auditing, book-keepng Catering
Market research and opinion polling Legal
Management consultancy Security
Architectural, engineering, urban planning, landscaping and related technical services
Educational
Advertising Health and Social
Building cleaning and property management
Recreational, cultural and sporting
Sewerage and refuse disposal Other Services
IT Services
Financial services
Transport and courier services
Maintenance and repair of vehicles and equipment
Regulations and thresholds
EU legal requirements to tender• £ 101,323 for supplies and Part A and services• £156,442 for Part B services• £3,927,260 for works / building projects
Local PCT requirements – example of local SFI’s• £10k and up to £90k - three written competitive quotes for goods
and part A services• Full compliance with the EU procurement directives for supplies
purchases over £90,319• Full compliance with the EU procurement directives for works
projects over £3,497,313 – however local tender req. over £125k• Healthcare contracts, subject to the PCT Healthcare Procurement
Strategy not SFI’s (Part B service)
Values are aggregated
Decisions on services you decide not to
market test need to be recorded and
notified to the SHA
Assessment criteria to consider
Government policy on
protected services
Estimated value of the contract
Level of market interest
Is there a reason that competition is not appropriate in this circumstance
Assessment Criteria
Other possible options• Commission / purchase more of the same activity
from existing providers
• Use existing contracts to deliver a service improvement
• ‘Flex’ existing contracts
• Utilise the extended choice / free choice network
• New formal contract
• AWP / Tender
Scenario examples
• Each table has a scenario
• 5 minutes to discuss what you might do.
OH NO… WE NEED TO TENDER !!!!
If you decide to go to competition
• AWP exercise : 8 – 10 weeks• EU tender minimum 4 months start to finish,
bigger contracts 6 – 12 months – need detailed specification
• Framework contracts – do it once, then just mini comp exercises for next 3 years
New formal contract via competition
• Any Willing Provider• Intended to provide plurality of providers• Can be an ‘open’ or ‘managed’ process• No guarantee of activity or finance• Can be undertaken in 8 - 10 weeks• Template for accreditation included
Approach from third party to provide a local service
Assess strategic fit of Initial proposal and service spec
If approved – undertake accreditation with provider
Final proposal + summary accreditation to approvals
committee
Produce final contract based on one of the DH templates
PCT identifies an unmet need for a distinct service and produces a specification
Once spec approved advertise service on ‘Supply 2 Health’
Undertake accreditation with interested providers and
confirm compliance with spec.
Confirmation of compliance and summary accreditation
submitted to approvals committee
Ongoing management and re-accreditation (min every 3 yrs)
Open Managed
Ongoing management and re-accreditation (min every 3 yrs)
Produce final contract based on one of the DH templates
New formal contract via competition
Tender exercise• Can result in sole or multiple providers• May be a minimum contract guarantee or framework• Average duration between 6 and 12 months
2-4 wks
Gain approval for competitive tender
Establish the team and project plan
Place advert S2H or OJEU
Complete specification
PQQ with interested providers
Evaluate PQQs and shortlist
Representatives Clinical, Finance, Procurement, HR,
E+D, Estates
Typical tender process
40 days
Undertake bidder presentation day
Issue ITT to shortlisted providers
Tender Clarification
Evaluate offers
Undertake bidder presentations
Award contract10 day standstill
Involve procurement
team40 days
10 days
20 days
Plan around board / committees
Governance of process
• Need standard policy on membership required for independent committees / evaluation teams for AWP and tender exercises
• Need clear conflict of interest policy to avoid or manage risk of challenge
Mobilisation
• Ask for a clear project plan for implementation from the provider – make sure you agree
• Define roles and responsibilities for key tasks• Consider the ‘critical path’• Have regular progress reviews with the provider• Plan a contract / provider launch• Monitor performance against KPI’s and take
corrective action where necessary
Risks of getting it wrong
• Increasing risk of legal challenge • Local council and children’s playgrounds
• Focus of Co-operation and Competition panel• Restricted tenders for NHS in South East
• Introduction of EU Remedies Directive in Dec 2009• Requirement to weight award criteria• Disclose scores to all bidders• Publish award notice early – ideally within standstill period• Can now stop contracts upto 6 months after award
Other key skills
• Contracting – Carole Hodgkinson this afternoon
• Be clear and concise
• Don’t allow ‘wriggle room’
• Negotiation
Phases in Negotiation
• Preparation• info gathering, know the market, supply/demand, BATNA
• Opening• Each party presents their starting position
• Bargaining• Clarify information, present counter arguments
• Close• Agree a final position
Car negotiation exercise
• Sellers have a brief • Buyers have a brief
2 minutes to read brief then 5 minutes to conclude a sale / purchase – we will then see if buyers and sellers are still happy with the deal !!
Sale positions
• Seller
• Desperate to sell
• Well serviced
• Will include tax
• Target price £2,750
• Will sell for £2,000
• Buyer
• Desperate to buy
• Only car out of 4 in Autotrader you would buy
• Had £2,900 cash with them
Key messages
• Consider all the options / arguments• Ensure a fair and transparent process• Be clear and concise with providers• Adopt a team approach to utilise specialist skills• Fail to prepare – prepare to fail• Remember – It’s not rocket science!!!
Further help and guidance
PCT procurement guide - DHhttp://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_084778
PRCC - DHhttp://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_081098
EU Directives and UK Procurement Law - OGChttp://www.ogc.gov.uk/
publications_and_training_training_module_on_the_new_public_procurement_directives.asp
