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[1] 11/10/2012 PROCUREMENT OPERATING PROCEDURES

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[1] 11/10/2012

PROCUREMENT OPERATING PROCEDURES

[2] 11/10/2012

INDEX 1. Introduction

2. Governance and Separation of Duties

3. Value for Money and Competition 4. Quotations and Estimates 5. Tendering Procedures 6. Standards of Business Conduct for NHS Staff 7. Approved Suppliers 8. Ordering Procedures 9. Purchasing and Infection Control 10. Electrical Safety 11. Equipment on Loan or Free Issue 12. Disposals APPENDICES 1. Designated Purchasing Officers 2. Procurement Process Charts 1 - 6 3(a) Notification of Quotations Received 3(b) Procedure for Registering with the National Advertising Portal 4 Operational Procedure, Construction Industry Scheme (New CIS) 5(a) Stock Requisition Form 5(b) Non Stock Requisition Form 6 Indemnity Agreement 7a Tender Checklist (Restricted Procedures) 7b Tender Checklist (Open Procedures)

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1 INTRODUCTION

This document sets out the procedures which must be followed by the Procurement Department and all other staff with Delegated Purchasing Authority (DPA) when purchasing Goods and Services. It is important to set out procedures which are simple and practical, whilst ensuring that procurement decisions on contracts are robust, defensible and based on Value for Money (VFM) through competition. These procedures must be read in association with NHS Ayrshire and Arran Standing Financial Instructions - Sections 18 and 19. NHS Ayrshire and Arran Procurement Policy Manual Procurement Operating procedures as laid out in this document shall have regard to all relevant policies and procedures for public procurement as set out by the Scottish Procurement Directorate (SPD) refer. http://www.scotland.gov.uk/Topics/Government/Procurement Notwithstanding the foregoing, the health board standing financial instructions (SFI’s) shall have precedence except where superseded by Scots law or relevant regulations. Pharmaceutical Procurement The Pharmacy Directorate is authorised to use the JAC Pharmacy and Prescribing system for procurement and stock management. Within the pharmaceutical market there are branded and generic medicines. Generic medicines are contracted for on a national basis by National Procurement and the outcome is implemented locally. The Pharmaceutical Price Regulatory Scheme is the pricing framework for branded medicines agreed between the Pharmaceutical Industry and the UK Government. Prices are set nationally and contracting for branded medicines is not generally undertaken. NHS Scotland commitment discounts may be available via National Procurement. The Pharmacy Directorate has a full set of standard operating procedures covering purchasing, goods receipt and stock management. These meet the requirements outlined in the wider Procurement Procedures and Standing Financial Instructions. For the avoidance of doubt, all pharmaceuticals are purchased as stock items and received directly by the pharmacy store. LINKS TO FURTHER GUIDANCE AND DOCUMENTS REFERENCED IN THESE OPERATING PROCEDURES ARE AVAILABLE BY ACCESSING THE PROCUREMENT DEPARTMENT SITE ON ATHENA.

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2 GOVERNANCE AND SEPARATION OF DUTIES

2.1 In order to ensure that Procurement procedures are defensible and for the protection of both NHS Ayrshire and Arran and the staff concerned, it is essential that key procurement decisions involve more than one person. In the procurement process there are 2 key distinguishable roles for all purchases.

2.1.1 The budget holder/customer who perceives the need and makes out

the business case to obtain any necessary approval to spend, then commissions the procurement service and normally gives final approval to the recommended choice

2.1.2 The purchaser who fulfils the procurement role (including making the

legally binding commitment to the chosen supplier) and is responsible for ensuring that the procurement process fully complies with procurement law, SFI’s and secures best VFM.

2.2 NHS Ayrshire and Arran Procurement Department has responsibility for

governance with regard to Procurement Operating procedures and best procurement practice.

It is therefore vital that the Procurement Department is involved at some stage of each and every procurement made on behalf of NHS Ayrshire and Arran.

This ‘involvement’ takes different forms dependant on the value and complexity of the procurement exercise.

2.2.1 The Procurement department works with Directorates and National

Procurement to ensure that NHS Ayrshire and Arran staff is involved in the National Contracting Process, so products on the contract meet NHS Ayrshire and Arran requirements and the contract provides best VfM.

Once in place, these contracts can be ‘called off’ and used by Directorates and Departments in line with their scheme of delegation and authorised signatory arrangements. Budget holder approval of specifications for certain externally supplied products or services shall be delegated to Clinical Heads of Service or Managers of designated specialist support departments. Clinical Heads of Service or designated specialist support managers shall be responsible for ensuring that input into objective specification criteria for product or service specifications under national contract developments is provided and/or for ensuring that NHS Scotland and/or the Health Board’s peer selection decision making processes are applied to the process for determining relevant fit for purpose product or service specifications in their area of clinical or technical expertise. This should

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take account of clinical and other risk factors and should include consideration and input into the management of risk in product or service specification use or change. Given the foregoing, Clinical Heads of Service or designated specialist support managers are responsible and accountable for influencing peer compliance with relevant product or service selection and compliance with national or local contracts

2.2.2 To buy anything (not on national contract) of £25,000 or more a Tender exercise must be carried out.

Directorate and Department managers must work with, either the Procurement department directly or with an Officer with Delegated Purchasing Authority, ie a Designated Purchasing Officer. These are people who have the necessary knowledge and experience to fulfil the procurement role, (para 2.1), ensuring compliance with procurement law, SFIs and how to achieve best value for money (VfM).

2.2.3 For goods and services which are =>£10,000 and <£25,000 at least 3

formal quotes must be sought. Check with the Procurement department or appropriate DPO that there are no national or local contracts for these goods or services and to get help with sourcing suppliers.

The Procurement department can help to set staff up on the Public Contracts Portal, so the on line fully auditable “Quick Quote” facility can be utilised.

2.2.4 For goods and services which are below £10,000, one formal quotation is

required, 2.2.5 Following these procedures will ensure that the Procurement Department

will have cognisance of all expenditure with third Parties, that best practice is being followed and those risks are minimised.

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2.3 Designated Purchasing Officers are listed on Appendix 1.

To purchase goods and services from National Contracts and for purchases less than £25,000 Departments, have staff with ‘approved signatory’ authority which details the level of expenditure they can authorise

2.5 All contracting and procurement must be carried out in accordance with relevant

national public procurement process, regulations, directives and guidelines. By definition, a contract is an agreement between the Board and other

party/parties that is enforceable by law. Contracts can be formed orally, in writing or even by conduct; it is therefore vital to consult the Procurement Department when considering any procurement or contracting.

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2.6 Standard or model conditions of purchase or contract appropriate to each class of products and services, or for the execution of Works, shall be utilised for all purchase orders or contracts. Such standard terms and conditions shall be based on national public sector and/or national procurement model forms where appropriate. The Procurement Department shall be responsible for prior approval of proposed terms and conditions of purchase prior to their use for tendering purposes and any material exceptions to same prior to contract award should be referred to the designated officer for approval. All purchase orders or contracts entered into shall incorporate the appropriate set of agreed conditions.

2.7 Consultants appointed by the Health Board, responsible for the supervision of a

contract on its behalf shall comply with the SFI’s and these operating procedures as though they were officers of the Health Board.

2.8 All external commitments for the supply of products or services with suppliers

and contractors shall be made through the issue of a valid purchase order. This includes all call offs against contracts. Contractors shall be notified that they must not accept orders unless on an official form.

2.9 There must also be a segregation of duties between the Activities of external

ordering/call off, receipting and paying for goods and services. 2.10 All financial limits referred to in this document will be inclusive of VAT.

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3 VALUE FOR MONEY AND COMPETITION

Procurement processes should be proportionate to the total contract value, complexity, sensitivity and strategic importance of the goods and services being procured.

3.1 Prior to deciding on what procurement process to follow, if the Goods or

Services are available on NP (National Procurement) National Contracts, then these must be used.

3.2 If available on suitable and accessible Scottish or other UK Government

framework contracts then the procurement process will not be as time consuming or involve as many steps as a tender or OJEU tender process and often prove to represent best value.

3.3 Where there are several suppliers of the same Goods or Services within the

National Contract or other public service framework agreements, then the quotations or estimates should be sought from those companies to ensure best value is achieved. For more complex contracts, a “mini competition” exercise should be carried out.

Advice and assistance on what Goods and Services are available on National/Government Contracts and on carrying out a “mini competition” exercise is available from the Procurement Department. 3.4 In reference to the NHS Ayrshire and Arran Standing Financial Instructions:

3.4.1 Purchase of goods or services of a value or a contract of term value more

than or equal to £10,000 and up to £25,000 – requires a minimum of 3 written quotations (including electronic data).

3.4.2 Purchase of goods or services of a value or a contract of term value of

£25,000 or more – requires a competitive tender. (sub-threshold)

3.4.3 In line with EU Directives on Public Procurement, OJEU tender processes apply for contracts for “Products and Services” with an annual or contract term value of £113,057* or more, or all requirements for works with an annual or contracted term value of £4,348,550* or more.

* These are the current threshold limits and DPOs will be informed of Changes to

thresholds by the Head of Information and Clinical Support Services – Corporate Services.

3.5 To calculate the value of the purchase or contract, all associated costs over the

full term of the contract must be included.

3.5.1 For the purchase of goods or services the total volume of goods required must be included, eg if there are plans to purchase 6 pieces of equipment at £4,700 each, buying 4 at a cost of £18,800 and later buying 2 at

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£9,800 is not correct. A tender for the 6 pieces of equipment must be carried out.

3.5.2 For the purpose of services, the cost over the full term of the contract or

term value must be estimated (i.e. how long the contract will be in place). The term of the contract must be agreed including possible extensions BEFORE advertising the tender.

The maximum term for most contracts will be 4 years including extensions.

3.5.3 In some circumstances it is necessary to identify the need for Goods or

Services over the whole organisation, as for several parts of the same organisation to procure the same service or goods via a series of quotes or local tenders can be seen as ‘breaking up’ a requirement in order to avoid OJEU competition.

3.6 Contracts and purchase orders should not be placed in a manner which could

be interpreted as being devised to avoid financial limits specified within these Operating Procedures and European legislation.

3.7 For purchases of below £10,000 one formal quotation is required, the procuring

officer should however make every effort to ensure that Best Value is achieved, by assessing the market and available suppliers and through comparing prices and estimates.

In all procurement where the Board requires to “test” the market out with and prior to formal quotations or tendering procedures, firms may be asked to supply written or verbal estimates.

3.8 Exemptions from the competition process will only apply in exceptional circumstances or in cases of emergency where it is neither practicable or would put patients at risk or where delay would result in significant additional expense to the Health Board.

Such exceptional cases must be dealt with in line with NHS Ayrshire & Arran’s Standing Financial Instructions Section 18.6(d).

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3.9 Written permission from the Assistant Director of Finance (Corporate & Shared Services) is also required to purchase any NP national contracted goods or services from a non contract supplier and will only be considered if the Head of Procurement confirms that the department wishing to purchase has worked with the Procurement Department and exhausted all possible means by which the contracted supplier could be used.

Process charts outlining the main procurement processes are included in

Appendix 2. Appendix 2 which comprises 6 charts, is a quick overview of the Procurement

Process and is also available to view within the Procurement site. .

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4 QUOTATIONS OR ESTIMATES

4.1 Where a minimum of 3 formal quotations is required (=>£10,000 to <£25,000 inclusive of VAT), an auditable record of these must be completed.

This can be achieved by manually completing the “Notification of Quotations Received” form (Appendix 3(a)) or by using the web portal Quick Quote facility. www.publiccontractsscotland.gov.uk 4.1.1 Get registered as a user on the portal - see Appendix 3(b) for

instructions. 4.1.2 Ensure the companies you wish to quote for goods or services are

registered on the portal (this Portal is free of charge) set up the Quick Quote advert with a return date. When returns are viewed, you choose best value quote. The auditable record is kept in the system.

During the period between asking for quotes and the opening date, the

bidders can email questions for clarification to you and both the questions and your reply are sent out automatically to all bidders.

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5. TENDERING PROCEDURES 5.1 Tenders will either be "OJEU" or "Non OJEU" dependant on the contract's worth

over the whole life of the contract and the current EU thresholds see Para 3. Within these EU thresholds, compliance with EU Directives governing Public Procurement is a mandatory legal requirement.

These Directives specify detailed procedures, including adherence to strict timetables, requirements for advertising, invitations to tender and the award of contracts. DPOs are required to ensure that any OJEU tender complies with all current EU Directives. Further information, advice and assistance are available from the Procurement Department. Non OJEU tenders are still subject to Public Procurement Regulations and Procurement Best Practice. The following documentation must be included as a minimum with all non OJEU tenders:

• Invitation to Tender which includes the Conditions of Tender • Specification (Schedule 1) • Conditions of Contract (Schedule 2) • Appendices as follows:

Appendix 1, Form of Tender Appendix 2, Certificate as to Collusive Tendering; Appendix 3, Certificate as to Canvassing; Appendix 4, Tender Response Appendix 5, Detailed Costings; Appendix 6, Guarantee from Holding (Parent) Company

NHS Ayrshire and Arran standard Tender documentation templates are available on Athena or by contacting the Procurement Department on

TENDER PACK.zip

5.2 Standard appendices may include but is not limited to areas such as the Health Board’s policies and procedures relative to Contractors responsibilities under Health and Safety, Racial Equality and Diversity, Sustainable Procurement, Canvassing and Corrupt Practices.

5.3 Care must be taken to follow EU Directive and National Regulatory procedures

with regard to Advertising, Pre qualifications Evaluation criteria, feedback to unsuccessful bidders and contracting with successful bidders.

DPOs and the Procurement Department will be able to advise and assist at each step in the process.

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5.4 The Scottish web based Procurement Journey Routes 1 2 and 3 guidance and support should be used to assist with the tendering and quotation processes.

http://www.scotland.gov.uk/Topics/Government/Procurement/buyer-information/spdlowlevel/Q/editmode/on/forceupdate/on

5.5 Except where existing national or local contracts already exist (check with the

Procurement Department to determine this) or where other arrangements have been approved by the Director of Finance, and where the term value of the contract exceeds £25,000, formal competitive ‘sealed tenders’ in accordance with these tendering procedures must be followed.

5.5.1 Tenders shall be invited for the following categories; - the supply of all products, materials and manufactured articles;

- the supply of all externally provided services;

- building and engineering works; construction, maintenance and disposals.

A minimum of 3 formal sealed tenders in each case must be obtained. If

insufficient tenders are received, the tender opening process may be deferred or extended. Where less than 3 tenders/quotations are received the Chief Executive or Director of Finance will as far as practicable, ensure that the price to be paid is fair and reasonable.

Where it is clearly in the interests of NHS Ayrshire & Arran, late, amended, incomplete or qualified tenders may be considered. In such circumstances, a full report will be made to the Chief Executive who will have authority to admit such tenders. Where a company invited to tender requests a delay in the submission, any deferment approved will be notified to all the companies concerned.

5.5.2 Specific requirements and procedures including advertising in the Official

Journal of the European Union (OJEU) will be followed where the value of the contract exceeds the level determined from time to time by the European Union Consolidated Procurement Directive (currently £113,057 for goods and services and £4,348,550 for works).

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5.6 Tendering Process

CEL 05 (2012) states that; “eCommerce Systems: In support of governance and transparency each Board should adopt the Scottish Government national eCommerce solutions and associated business processes for all procurement activity. These solutions will include Public Contracts Scotland, Public Tenders Scotland, Collaborative Content Management and Pecos. Use of alternative or local systems for procurement activity must be approved by the Board's lead Procurement Manager or the Director of Finance, based on existing schemes of delegation. Procurement leads will work with National Procurement and any other relevant bodies to ensure appropriate decisions are made.” Therefore All competitive ‘sealed’ tenders including All OJEU tenders will be advertised on the National Advertising Portal

www.publiccontractsscotland.gov.uk (PCS) Following this advertisement the full tendering process can then be carried out using the PCS portal or by a manual paper based system until the PCS system is fully rolled out.

5.6.1 Public Contracts Scotland Process

The advert is completed on line by following the “Create Notice” process which provides a step by step form completion wizard and sets up :

• Title of the tender • Timescales for;

o Bidders obtaining documents o Receipt of tenders – i.e. the opening date and time o The award date o Embargo date on when documents can be received by bidders

before receipt of tender date. • Details in the form of a brief description of the goods or services

required. • List of officers who can view bidders list • Attachment of documents to the advert ITT, Tender documents, Ts

and Cs, plans and drawings etc. • Details of who will have to open the “Post Box” • Get a tender number from the office of the Assistant Director of

Finance (Governance and Shared Services)

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5.6.2 Procurement will provide assistance with this and once one advert is done this can be copied and amended for other tenders.

5.6.3 When the Post Box has been opened by each officer named in the “Create Notice” process, which is only possible after the allotted date and time, then a report must be sent to the office of the Assistant Director of Finance (Governance and Shared Services). The bid documents can then be e-mailed to the evaluation team.

5.6.4 Manual process

If the PCS process is not yet available to the department requiring to tender then the existing process must be followed

• An advert must be completed on PCS as described previously

however there will be no attached documents or post box and bidder list viewers.

• Before issue of the specification a registration number must be

obtained from the office of the Assistant Director of Finance (Governance and Shared Services) this number must be entered onto the front sheet and also onto the top left of return envelope

• The return envelope must be included with the tender specification.

This is available from the office of the Assistant Director of Finance (Governance and Shared Services) and will bear the address of the Chief Executive, Eglinton House, Ailsa Hospital

• The date and time for the return of the tender quotation must be

clearly stated in the specification, on the tender return envelope, and notified to the Assistant Director of Finance (Governance and Shared Services)

• The office of the Assistant Director of Finance (Governance and

Shared Services) must be notified of the names of all companies who have been invited to tender. This information will be entered into the tender register against the allocated tender number. Similarly, where Operational Managers are advised of companies who no longer wish to tender, the office of the Assistant Director of Finance (Governance and Shared Services) must be notified

• All tenders received at Eglinton House, will be date stamped and held,

unopened, in a secure place until the time of formal opening

• Tenders will be opened as soon as possible after the stated closing date and time by Finance Administrative staff in the presence of a representative of the Assistant Director of Finance (Governance and

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Shared Services) and a representative from the Operational Department

• Each tender amount will be recorded in the register and signed by the

opening and witnessing officers.

• The date and time of receipt of the tender, as noted on the envelope, will be noted in the tender register.

• The representative from the operational department will be presented

with the Receipt of Tender Form for signature of receipt of tender documentation to allow for evaluation.

5.6.5 Post Evaluation

Once the evaluation process has taken place the Assistant Director of Finance (Governance and Shared Services) must be notified in writing/e-mail of the Company to whom the tender is to be awarded.

Where it is the intention not to award the business to the lowest tender a written statement must be submitted to the Assistant Director of Finance (Governance and Shared Services) giving reasons for choice. The Assistant Director of Finance (Governance and Shared Services) will review the request and recommend approval or not to the Director of Finance. The Director of Finance will give final approval and then advise the Operational Manager concerned. The Director of Finance will also report this exception formally to the Audit Committee

5.6.6 The above procedures must be recorded on the Tender Checklist (Appendix 7) which should be kept with all tender documentation.

5.6.7 Retention of Documents

It is the responsibility of Operational Managers to ensure that all tender documents/quotations are retained in accordance with the NHS National Shared Services Document Storage and Retention Policy as follows:

RECORD TYPE RETENTION PERIOD – years after financial year to which they relate

Agreements, contracts and supporting correspondence and papers

6 years after the financial year to which they relate or contract expires

Invitations to tender 6 years Unaccepted tenders 3 years Tender Registers 6 years Supplier Correspondence 6 years after termination of

agreement

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For PCS users the only paper documents which must be retained are the evaluation papers, these should be retained for 6 years, all other records are maintained on the web site.

5.7 e-Tendering

5.7.1 Timescales for advertising and receiving noted interests through the

OJEU procurement process are also prescribed but can be reduced subject to setting out and making requirements accessible electronically inc. using PCS. The full regulatory, policy and procedural requirements, including electronic receipt and controlled recording and opening of sealed tenders can also be administered more effectively and efficiently by utilisation of national approved e-tender systems.

5.7.2 Training and guidance on the use of electronic e-tendering systems will

be provided by the Procurement department. Tendering processes utilising these e-tendering systems shall be administered by the Procurement department. All Health Board specifying and budget holding officers are therefore required to ensure that their Works, Products and Services requirements are directed accordingly.

5.8 Suppliers’ Charter

The Review of Public Procurement 2006 (McClelland Report) recognised that “The existence of a base of high quality and cost competitive suppliers is the optimum environment in which to achieve Best Value in procurement expenditure.”

5.8.1 Scottish Government has established a Suppliers Charter for use by all

public sector contracting authorities, including NHS Ayrshire and Arran. It defines the generic standards, which suppliers can expect from contracting authorities, and the standards that will in turn be expected of suppliers to the public sector.

5.8.2 The Charter sets out a number of commitments, including:

• Adequate publicity of contract opportunities • Use of a core qualification questionnaire • Provision of tender debriefing to any supplier that requests it

It also commits NHS Ayrshire and Arran to ongoing dialogue with business to achieve change.

5.8.3 The Charter commits business organisations to encourage their

members to adhere to the Charter, recognise the legislative framework in which the public sector, therefore NHS Ayrshire and Arran, operates and makes effective use of their skills and resources in bidding competitively

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for and providing specified quality / delivery on public sector, including NHS Ayrshire and Arran, goods, services and works.

5.8.4 NHS Ayrshire and Arran, through National Procurement, is a signatory to

this Suppliers Charter and therefore it should be used by all NHS Ayrshire and Arran procurement functions and promoted to all potential NHS Ayrshire and Arran suppliers. It is available at:

http://www.scotland.gov.uk/Topics/Government/Procurement/Selling/Supplierscharter2

5.9 Standards expected of suppliers

Suppliers to NHS Ayrshire and Arran are expected to maintain high standards of business and professional conduct e.g. in relation to legislative and policy requirements on the environment, equality issues, health & safety, employment and taxation. When bidding via tender for business with NHS Ayrshire and Arran, suppliers should generally be required to disclose any recent adverse court or tribunal rulings regarding their business/professional conduct. Where a bidder fails to comply with relevant legal obligations, consideration should be given to whether it should be excluded from competition on grounds of its unsuitability. In deciding whether or not a bidder should be excluded, account should be taken of the seriousness of the ruling/offence, whether or not the ruling/offence indicates that the bidder is of poor reputation and whether or not the bidder has taken appropriate action to remedy the problem which was subject to the ruling.

5.10 Corporate Social Responsibility

Corporate Social Responsibility (CSR) in NHS Ayrshire and Arran procurement, including sustainable procurement, is essentially about how, as part of overall value for money and affordability considerations, NHS Ayrshire and Arran takes account of the economic, social, environmental and equality impacts of its purchasing activity, maximising the positive outcomes and minimising the negative.

5.10.1 It is essential that when NHS Ayrshire and Arran buy goods, services and

works, it spends public funds in a way that achieves value for money. NHS Ayrshire and Arran corporately and end-users can make a significant contribution towards meeting wider CSR objectives by including, wherever it is sensible and legitimate to do so, such objectives within the overall assessment of value for money and affordability.

5.10.2 Generally CSR issues can be taken into account only where they are

directly related to the subject matter of the particular contract in question. Under Scottish Government guidance it is generally not permissible to take into account aspects such as NHS Ayrshire and Arran’s overall policy on CSR or the environment, where such policies are not directly relevant to the performance of a particular contract. Each contract should therefore be assessed independently.

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5.10.3 The key messages are that it is possible and very often desirable to

incorporate economic, social and environmental issues in NHS Ayrshire and Arran procurement, provided that doing so offers a value for money outcome, complies with legislative and regulatory requirements and is directly related to the subject matter of the contract. The greatest impact will be obtained by considering such issues at the outset and building them in at the beginning of the procurement process. It is vital therefore to work with the Procurement Department or DPO when developing Tender specifications. Further guidance on CSR issues is available at: http://www.scotland.gov.uk/Topics/Government/Procurement/policy/corporate-responsibility/procurecsrguidance

and Buying Green! - A Handbook on Environmental Public Procurement issued by the European Commission is available at: http://ec.europa.eu/environment/gpp/pdf/buying_green_handbook_en.pdf These are in addition to the NHS Ayrshire and Arran Environmental Strategy.

Guidance on how to incorporate social issues in NHS Ayrshire and Arran procurement has been published by the Scottish Procurement Directorate and is available at:

http://www.scotland.gov.uk/Resource/Doc/116601/0053331.pdf

5.11 Equality and Equality Duties

There is a range of equality legislation protecting people from discrimination on the grounds of race, disability, gender, age, sexual orientation and religions or belief. In addition, there are public sector equality duties which require NHS Ayrshire and Arran to take proactive steps to eliminate discrimination and harassment and to promote equality of opportunity with regard to race, disability and gender.

5.11.1 The race, gender and disability equality duties apply to public functions, which are carried out through all NHS Ayrshire and Arran procurement as well as those carried out generally and directly by NHS Ayrshire and Arran. This means that a private or voluntary organisation must have due regard to the general duties relating to race, disability and gender when carrying out a function on behalf of NHS Ayrshire and Arran.

5.11.2 NHS Ayrshire and Arran is required to comply with all relevant equality legislation. Where a contractor is carrying out a public function on behalf of NHS Ayrshire and Arran, they must also comply and indemnify the board against all costs, claims, charges, demands, liabilities, damages, losses and expenses incurred or suffered by the authority arising out of or in connection with any investigation conducted or any proceedings

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brought under the Anti-discrimination Legislation due directly or indirectly to any act or omission by the contractor or its agents, employees or sub- contractors. This must be included in contract terms and conditions.

5.11.3 The degree to which equality and diversity requirements are specified and incorporated within procurement documentation will vary according to the goods, services or works being purchased and should be assessed on a case by case basis. This will ensure that full consideration is given to the needs of, and the likely impact on, all users and others who are affected by the contract.

5.11.4 Further information on equality legislation, including guidance on the public sector equality duties, can be found on the Equality and Human Rights Commission (EHRC) website at:

http://www.equalityhumanrights.com/scotland/

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6 STANDARDS OF BUSINESS CONDUCT FOR NHS STAFF

6.1 In any circumstances where an officer has an interest, pecuniary or otherwise, in the outcome of a tender or quotation, the officer concerned must declare his/her interest, and withdraw from all contracting/purchasing arrangements concerning that item.

6.2 Health Board staff are prohibited from ordering or obtaining goods for their

personal use through the Board’s ordering system or in such a way as to take advantage of Health Board discounts or other privileged purchasing arrangements. Thus, all goods obtained through the Board’s auspices shall be for the official use of the Board in the delivery of patient care.

Accounts with suppliers to the Health Board must never be used for personal

purchases by members of staff or anyone using their name. Where discounts are offered to NHS Ayrshire and Arran staff by companies, these will be agreed with the Board for all NHS Ayrshire and Arran employees and be advertised on ATHENA/ the Intranet.

6.3 Visits by officers at suppliers’ expense to inspect equipment, etc must not be

undertaken without the prior approval of the Chief Executive or Director of Finance.

6.4 All staff should be made aware of, and comply with, the requirements of

1989(GEN)32 “Acceptance of Financial Assistance, Gifts and Hospitality and Declaration of Interest” as re-stated and reinforced by NHS MEL(1994)48 “Standards of Business Conduct for NHS Staff” with regard to acceptance of financial assistance, gifts and hospitality and declaration of interest.

To access this site click: http://www.sehd.scot.nhs.uk and search under Publications.

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7 APPROVED SUPPLIERS

7.1 Every external party who wishes to supply goods and services or works to NHS Ayrshire and Arran shall be subject to meeting minimum qualification criteria, which shall vary depending on the nature and value of the requirement. The minimum qualification criteria shall include Financial Standing, Technical Competence and Operational Capability.

7.2 The Estates and Capital Planning departments have a procedure in place

whereby a form is completed and there are certain requirements which must be met for construction companies.

This enables the department to maintain a list of the pre-approved suppliers which can make the process for tendering less time consuming.

Application for inclusion on the list is available on the NHS Ayrshire and Arran website, www.nhsaaa.net and the National Advertising Portal.

7.3 This process will in no way circumvent the need to issue adverts for contracts

under the OJEU process or National Procedures, ensuring that procurement opportunities are suitably publicised to encourage open and fair competition. Companies interested in any procurement opportunity will be vetted for financial, technical and operational capacity prior to being issued with an Invitation to Tender.

7.4 Companies included on National Purchasing Contracts are deemed to be

approved contractors/suppliers and there is no requirement for the procuring department to carry out a separate review or assessment of these companies.

7.5 In all other cases, ie for non-construction contracts, 7.1 applies as per National

and European Regulation.

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8 ORDERING, RECEIPT AND PAYMENT PROCEDURES A contract should be in place or an NHS Ayrshire and Arran purchase order raised in

advance of receipt and invoice of all goods, services or works by NHS Ayrshire and Arran. This applies to all goods, services and works.

8.1 Ordering

A valid purchase order (PO) must be raised in one of the two operating systems, Cedar eFinancials or PECOS, for all goods, services or works to be procured by NHS Ayrshire and Arran. PECOS is regarded as the default system for all non-stock ordering, with the exception of Pharmacy who use JAC. POs must be raised at the earliest opportunity and will form an instruction for the supply of the goods, services or works. They must be raised, authorised and received by the supplier prior to the receipt of the goods, services or works by NHS Ayrshire and Arran.

8.2 Receipt (Goods Receipt Notes) or Returns

The processes for receipting are an important element of the approach to risk and fraud management implemented by NHS Ayrshire and Arran and are also an important enabler for end-to-end P2P process efficiency.

8.2.1 The submission of an invoice that does not match the original PO or does

not have a valid GRN recorded on the appropriate system, Cedar or PECOS, will result in an invoice mismatch exception process and will create unexpected and significant workload in processing the invoice through to payment.

8.2.2 It is imperative that end-users who order goods, services or works

undertake their responsibilities in ensuring that the goods, services or works are receipted as soon as possible after fulfilment, either in part or full as is necessary. Likewise, any Returns to suppliers must be entered on the appropriate system, Cedar or PECOS at the time the return is made.

Guidance on PECOS and Cedar purchase ordering and goods receipt functions

are available from the Procurement Department.

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8.3 Invoices

8.3.1 All invoices should be paid on time. As with all public sector organisations, NHS Ayrshire and Arran is bound by the Late Payment of Commercial Debts (Interest) Act 1998, under which suppliers have a right to claim interest on payments made outwith agreed terms, or 30 days after receipt of a valid invoice where no payment terms are agreed. Where there is no contractual provision or other understanding to the contrary, suppliers should therefore be paid within 30 days of receipt of a valid invoice or similar correct and due demand for payment.

8.3.2 As part of its plan for supporting economic recovery in Scotland, the First

Minister announced on 9 October 2008 that the Scottish Government would aspire to a 10-day target for paying bills to businesses in Scotland. Paying supplier bills within ten working days is seen is a key objective, and an important expression of the Scottish Government's commitment to supporting business through the current economic downturn. Improvements in methodology have been introduced and continue to be introduced to aspire to the 10 day target of paying suppliers. NHS Ayrshire & Arran have this aspiration above and beyond the contractual commitment to pay suppliers within 30 days.

8.3.3 The payment of invoices that do not have a pre-requisite contract or

order for goods, services or works provided tends to facilitate unofficial buying by allowing the procurement function and processes to be bypassed. It also means that authority to procure is retrospectively given rather than pre-approved. Therefore, suppliers should be given notice that goods, services and works should only be provided on receipt of appropriate contract or purchase order reference information and within that same written notice, informed that invoices received without contract or purchase order references will require special approval if they are to be paid and that this will delay payment. At a later point in time invoices received without a pre-approved contract or purchase order number should be returned to suppliers for this information. The payment cycle should not commence until a valid invoice with all required data is received by NHS Ayrshire & Arran.

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8.4 Cedar efin

8.4.1 Stock Requisitioning

Stock items include stationery and National Distribution Centre stock items. List of all stock items are maintained on the Athena Procurement Department, Customer Services section, or can be provided by Procurement Department on request.

Stock Requisition Form (Code STA0543), Appendix 5(a) must be used to order these items.

It is vital to complete a Stock Requisition Form for stationery items separate from that for NDC items, as they are processed separately. A copy of the Stock Requisition Form is attached as Appendix 5(a).

8.4.2 Ward Product Management (WPM)

Wards and departments who are receiving a Level 1 or Level 2 WPM service are not required to complete Stock Requisition forms as the Customer Services Assistant will maintain stock levels for them. If amendments to these levels or new items are required then staff on these wards or departments should contact the Customer Services Assistant. Wards or Departments who are receiving a level 3 WPM service will have a Stock Requisition form developed with the Customer Services Assistant for their workforce.

8.4.3 Non Stock Requisitioning

On completion of a VFM exercise, ie Estimates, Quotations, Tender or OJEU process, the Goods, Services or Works are ordered using either: • non stock requisition to Procurement Department • eProcurement system order.

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8.4.4 Non Stock Requisition to Procurement Department

A Non Stock Requisition Form (code STA0545) Appendix 5(b) should be completed detailing:

• proforma unique numeric identifier

• name, department and hospital of authorised requisitioner

• transfer (charging) point number

• full description of item/service required

• quantity required

• indicative cost (including VAT)

• suggested suppliers

• delivery address

• reason for request, ie routine requirement; new requirement; replacement due to (loss/theft/condemned);

• signature and designation of requisitioning officer

• signature and designation of authorised requisitioning officer (budget holder)

• financial coding information.

For all requisitions of a value greater than £10,000, a copy of the quotation form must be attached and for a value greater than £25,000, the tender reference number must be included.

8.4.5 These forms will be sent to the Procurement Department where orders will be raised using Cedar e-Financials or Pecos. This order will be distributed as follows: Computer Generated (2 part) Part 1 Purchase Order

sent to supplier

Part 2 Goods Received Note (buff copy) or copy of Order

sent to authorised non stock requisition signatory for completion and return when goods received.

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8.5 eProcurement System Ordering

Follow system procedure and process as per training provided. These are outlined in the following link: www.train2procure.scot.nhs.uk

8.6 All purchase orders must be authorised by an officer so designated by the Chief Executive. A copy of the authorised Ordering Officers List showing:

• name • designation • specimen signature and • financial limits

will be monitored by the Director of Finance.

8.7 No goods, services or works other than utilities and purchases from petty cash shall be ordered except on an official purchase order (including e-ordering) and contractors shall be notified that they should not accept orders unless on an official form.

8.8 Goods Received Notes

8.8.1 One copy of the purchase order acts as a Goods Received Note (GRN)

and must be completed by the officer who received the goods/services from the supplier.

8.6.2 Goods Received Notes for orders raised by Procurement must be fully completed and forwarded to Procurement within 2 working days of receipt of goods/services to allow the receipt to be processed on the system.

8.6.3 The Goods Received Note is as important as the Purchase Order and

must be completed with extreme care. While the Purchase Order is a request to a supplier for goods or services, the GRN is the final authority to pay an invoice. It is important, therefore, to ensure that the goods have actually been received and are in goods condition before completing a GRN.

8.6.4 In order to comply with the Late Payment Interest Act 1998, prompt issue of GRNs is crucial to the payment process. Failure to comply with this will result in discounts being lost and inaccurate management statements.

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9 PURCHASING AND INFECTION CONTROL

It is vital that infection control is considered in the procurement of equipment used for the treatment of patients.

9.1 New Equipment

The department who wish to buy new equipment must follow the procedures detailed within this operating procedures document and for surgical Instruments contact the Central Decontamination Unit see 9.2 for Electrical Medical equipment contact Medical Physics see 9.3 otherwise;

9.1.1 Contact the procurement department to first ensure that the product is not

already available through national contract. Items on national contract have been passed as fit for purpose by a Commodity Advisory Panel.

9.1.2 If not on contract and a new product then the risks associated with using the

product must be assessed and complete and clear instructions for decontamination of the product must be provided by all prospective suppliers.

9.1.3 Prior to purchase the following conditions must be satisfied:

• Equipment chosen must be of a design that facilitates effective decontamination

• The manufacturer must provide detailed decontamination instructions including what decontamination agents are suitable e.g., chemicals, heat, etc. This may require to be translated into a local protocol

• The purchasers must ensure that the manufacturers decontamination instructions can be carried out locally

• If the manufacturers’ instructions cannot be carried out locally then suitable arrangements must be put in place to ensure decontamination can be performed off site either by NHS Ayrshire & Arran, e.g. Central Decontamination Unit, or by an approved 3rd party

• All COSHH risk assessments in relation to the decontamination process must be undertaken

• Responsibility for decontamination must be clearly identified • Staff training in the use of and decontamination of the equipment must be

undertaken. • Single use devices will not be re-used

9.1.3 If there are any doubts about the suitability of the product and the

organisations ability to suitably decontaminate the product then contact the Infection Control Team or the Sterile Services Manager

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9.2 Surgical instruments 9.2.1 It is NHS Ayrshire and Arran’s policy that all Medical Devices purchased

should be CE marked. Any items of new equipment to be purchased shall be fit for intended purpose, easy to clean and be compatible with existing decontamination equipment. All new equipment must be accompanied with the manufacturers’ decontamination instructions.

9.2.2 For new instruments / kits manufacturers are required to comply with 17664

(2004) BSEN. These must only be purchased through the Central Decontamination Unit and comply with that Departments’ policies and procedures.

9.2.3 Clinicians when hiring On-loan equipment must inform the Central

Decontamination Unit of the arrangements and specialist instructions at the earliest possible time.

9.3 Electrical Medical Equipment

This must be procured through the Medical Physics Department who will ensure that decontamination and infection control issues are addressed throughout the procurement process.

9.4 Service Contracts It is necessary to ensure that the requirement to prevent and control Healthcare Associated Infection, including assurance process, is explicit in all contracts with external clinical and non-clinical service providers. 9.4.1 This can be addressed by including appropriate requirements in the

specification of services and monitoring compliance through Service Level Agreements (SLAs) and the contract management process.

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10 ELECTRICAL SAFETY

All electro medical equipment, electrical goods and equipment requiring ongoing maintenance must be delivered to the relevant maintaining Department (Medical Physics/Estates) so that appropriate electrical safety and acceptance tests can be undertaken prior to use. These checks are required by the Electricity at Work Regulations (1989) and to ensure compatibility with the electrical supply.

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11 EQUIPMENT ON LOAN OR FREE ISSUE

11.1 In order to protect the interests of NHS Ayrshire and Arran where such equipment is lost or damaged whilst in NHS Ayrshire and Arran’s possession, the undernoted procedure should be observed at all times.

11.2 All proposed arrangements for the free issue or loan of equipment from

suppliers must be notified to the appropriate “maintaining department”, ie Medical Physics for all electro medical equipment and Estates for all other equipment.

11.3 The “maintaining departments” will then liaise direct with the suppliers and

arrange for delivery of equipment, following which:

• the equipment will be appropriately checked

• an Indemnity Agreement will be signed by the supplier. Where appropriate, central Master Indemnity Agreement arrangements will apply, other NHS Ayrshire and Arran’s own Indemnity Agreement will apply, Appendix 6.

• Where “special conditions” are being applied for electro medical equipment,

NHS Ayrshire and Arran’s Area Physicist will determine the acceptability of same, in conjunction with appropriate parties, and for all other equipment, NHS Ayrshire and Arran’s Head of Procurement will similarly determine acceptability.

• This equipment will be delivered by the “maintaining department” to a named

individual within the department using the equipment.

11.4 All equipment will be returned to the supplier via the appropriate “maintaining department”. Returns will only be accepted by the “maintaining department” from the named individual within the department utilising the equipment. They will be recorded as received within the “maintaining department”, checked and recorded when returned to the supplier. 11.5 Any arrangements in relation to the free issue or loan of equipment which is not subject to the above procedures will be deemed to be “unauthorised” and NHS Ayrshire and Arran will not be held liable on an individual basis.

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12 DISPOSALS

12.1 Introduction Officers with responsibility for stock, equipment and materials should be aware of the need to release them for sale should they become obsolete or surplus to requirements. Items not suitable for re-sale should be disposed of in the most economical manner possible. In arranging for disposal, the objective is to maximise the benefit to NHS Ayrshire, either in cash terms or alternatively by putting the material to good use in a way that would benefit NHS Ayrshire and Arran. In assessing the economy of repairs or refurbishment, the value of staff time involved must be added to the repair cost. Many of the skills and techniques and particularly the ethics of purchasing also apply to disposals work. A note of items disposed of or scrapped must be made against the relevant entry in the assets register, stock account or similar record, with identification details of the authorising officer. The item(s) being disposed of may exceptionally give rise to a notifiable loss within the terms of Government Accounting and will need to be formally written off by the Director of Finance.

12.2 Approval of Disposal of Surplus Material Irrespective of the value of the items, formal approval must be obtained prior to any disposal. The proposals for disposal of surplus material should include:

• ascertaining that materials are surplus to requirements;

• checking that the method of disposal is fully accountable and likely to maximise the benefit to NHS Ayrshire and Arran;

• assessing the minimum sale price to ensure that at least a reasonable return

will be obtained, whilst retaining the likelihood of making a sale.

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12.3 Responsibility for Disposals Once formal approval has been given to the proposals for disposal of surplus material, the officer responsible for the disposal should make the necessary preparations. To ensure that the highest possible price is obtained for materials sold, it is usually advisable to invite quotes or competitive tenders from as many likely purchasers as possible and this must be undertaken with the assistance of the Procurement Department. Disposals Policy is available to view on the Procurement site.

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Appendix 1

PROCUREMENT POLICY DESIGNATED PURCHASING OFFICERS

THE FOLLOWING ARE THE OFFICERS IN THE DEPARTMENT WITH OVERALL RESPONSIBILITY FOR

ANY CONTRACTUAL MATTERS AND THE LINK WITH THE PROCUREMENT DEPARTMENT TO MAINTAIN INFORMATION ON PROCUREMENT REGULATIONS AND GOVERNANCE

DESIGNATED PURCHASING OFFICERS

AREAS OF RESPONSIBILITY

Head of Procurement ANDREW ELLIOT

• All Commodities/Services with the exception of licensed products (medicines) procured via Stock and Non Stock Purchase Orders.

• Stores (General, Estates and Theatres). • Contracting for all Supplies and Services.

Procurement & Systems Manager ELAINE McCABE

• All Commodities/Services with the exception of licensed products (medicines) procured via Stock and Non Stock Purchase Orders.

• Stores (General, Estates and Theatres). • Contracting for all Supplies and Services.

Senior Planner (regional) SLAs STEVEN SHEACH

• Service Level Agreements with other Health Boards.

Voluntary Organisations Manager LINDA JONES

• Contracts with Voluntary Organisations and Local Authorities.

Medical Physics JOHN AMOORE

• Medical Physics Supplies/Services and Electro medical equipment procured via Non Stock Purchase Orders.

• Contracting for Medical Physics Supplies/Services Biochemistry Laboratory Manager GORDON TAYLOR

• Laboratory Stationery procured via Stock Purchase Orders. • Laboratory Supplies/Services provided via Non Stock Purchase

Orders. • Stores (Laboratory)

Lead Pharmacist - Crosshouse & Operational Services MARGARET NICOL

• Pharmaceutical Commodities/Services (including medicines) procured via Stock and Non Stock Purchase Orders.

• Stores (Pharmacy). • Contracting for Pharmaceuticals.

Estates Manager IAIN McINALLY

• Estates Commodities/Services procured via Non Stock Purchase Orders.

• Contracting for Estates Services/Commodities. Head of Capital Planning JOHN SCOTT

• Estates Capital Projects

Head of Property Services IAIN GAIRNS

• Estates Property

Sterile Services Manager LOUISE REDPATH

• Surgical Instruments/kits

I M & T ANDREW MAITLAND

• IM & T Equipment.

O & HRD CLAIRE BULLOCH

• Local Clinical Staff and Agency Staff.

Mental Health ELAINE STEEL

• Mental Health and Community Group Medical equipment.

Public Health ELAINE YOUNG

• Procurement relating to Public Health services.

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Are the requirementsFor Grant funding

Met by this

Follow Grant funding processNo competition is required

Yes

No

ApAppendix

If Unsure at any stage ask the Procurement Department

Establish the requirement

Is there aLegal requirement

For the OrganisationTo pay for this

There is an obligation to payAnd no competition is requiredThe process should be taken forward with Stephen Sheach

This will most often involve patient services and services provided by or for other Health boards

Does this involve contracting with

Local authorities or Voluntary

Organisations

Procurement process should be taken forward with The Voluntary

organisations Manager

Follow the procurement process working with the Procurement Department or the appropriate Designated

Purchasing Officer

No

No

Yes

Yes

1.

Appendix 2

[36] 11/10/2012

Confirm appropriate budget or finance

available

On NPO national contract or local

contract?

Yes

NoOn another Public service contract? e.g.

OGC

Yes

No

If Unsure at any stage ask the Procurement Department

Get quotes, record at departmentOrder for best VFMNSR/eProcurement

Get min 3 quotes, (use Quick Quote) record at department, Order for best VFM

NSR(with copy of Quotes) / eProcurement

Advertise on portal Non-OJEU Tender exercise

See Process Chart 3

Advertise on PortalOJEU Tender exerciseSee Process Chart 4

£10,000 - £25,000

>£25,000 - £113,057

>£113,0507 or 4.3M (Works)

<£10,000Source suppliers

andCost estimates

Multiple suppliers? Mini competitionOrder from national

contract NSR / eProcurement

Yes

No

Yes

NoMultiple suppliers?

Mini competition

Order from contract

NSR / eProcurement

or

1

2 1. The procurement department will advise on national contracts

2. NPO National contracts are mandatory. The use of other public servicecontracts is optional. However, using them negates the need for a full tender exercise and may represent best value

3. To use the advertising portal for quotes you must be registered – contact theprocurement department or view the procedure on the procurement departments Athena page.

3

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Advertise Tender opportunity on Advertising

PortalSet out timetable for procurement exercise

Compile details of requirementand technical specification

Set evaluation criteriaAnd evaluation group

Put tender packtogether

Get tender number And envelopes from

financeSend tender documentation

and ITT to suppliers

Record receipt of BidsAt Greenan house

Evaluate bids againstagreed criteria and select best value

Write out to bidders bothpreferred and others

Offer debrief to bidders

Get contract signed

Monitor the Contract

1

2

3

1.

2.

3.

The Use of the Publiccontractsscotland advertising portal is mandatory. The Procurement department can provide guidance on its use.

NHS A&A has proformas for procuring goods and services and all documentation is available from the relevant DPO

3

The size of group will vary with the size and complexity of the tender and evaluation may be on price alone and can be completed at the opening of the tender envelopes.

It should be noted that the above process (and the one shown in OJEU process Chart4) has been simplified and is for general guidance only. For specific guidance on working with voluntary organisations and local authorities contact the Voluntary organisations managerFor more complex procurement in e.g. building and works and I.M.&T etc. the process involves further steps and documentation.

If Unsure at any stage ask the Procurement Department

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Select most appropriate OJEU process (in most cases

restricted procedure)Set out timetable for procurement exercise

Compile details of requirementand technical specification

Set evaluation criteriaand evaluation group

Put tender packtogether inc ITT

and PQQ

Send tender documentationand ITT to short listed suppliers

Record receipt of BidsAt Greenan house

Evaluate bids againstAgreed criteria and

select best value

Write out to bidders bothfavoured and others

Offer debrief to bidders

Award tender and get contract

signed

Monitor Contract

Using the Advertising Portal Send out contract notice settinga deadline date in adherence

to EU timescales

Short list suppliersGet tender number and envelope from finance

Send out Pre-qualification questionnaire to all those

expressing an interest

Mandatory standstill period

of 10 days

Issue contract award noticewithin EU timescale

1

2

1. The Use of the Publiccontractsscotlandadvertising portal is mandatory.Mandatory minimum timescale between advert and expression of interest 37 days

2. Mandatory minimum timescale between ITT sent out and Closing Date 40 days

If Unsure at any stage ask the Procurement Department

3. Mandatory minimum timescale in 1 and 2above are reduced by 7days and 5 days respectively when using electronic tendering.

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Establish the requirement

Does thisinvolve patient care

services, either provided to or by Ayrshire and

Arran

Yes

No

Does this involve contracting

with local authorities or voluntary

organisations

Yes

No

Follow the procurement process working with the Procurement Department or the appropriate

Designated Purchasing Officer - (see procurement process charts 2-4)

For voluntary organisations the DPO is the

Voluntary Organisation Contracts Manager

For local authorities the DPO is the Voluntary Organisation Contracts

Manager

For other patient care services the DPO is the Planning Manager

Are the requirements for

Grant funding met by this?

Follow grant funding process -no competition is required

Yes

No

Yes

No

Refer to Policy, Planning and Performance Assistant Director

of Planning or appropriate Planning Manager

Categorise type of agreement. Ensure that agreement is within

appropriate setting

Check from database - does organisation already have an agreement

with NHS Ayrshire and Arran ?

Check total financial commitment with organisation and responsibility against public

contract reg’s. If appropriate then make amendments to existing Service Level Agreement

Confirm financial viabilitywith responsible

manager.

Close process - inform ADPNo

Yes

Successful supplier selected?

See

Process

Map

2

No

Yes

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Problem With performance related

To agreementIdentified ?

Yes

DPO sub groupof Service Level Agreement

Management Group to scrutinise final draft documents

and agrees contract.

Responsible manager informed -agrees contract with supplier.

Information report to Service Level Agreement Management Group

DPO and responsible manager to develop formal agreement outlining legal

obligations, service specification, performance information obligations and

financial schedule

No

No

Yes

Contract management commencesincluding quarterly performance management

Annual Health Check with DPO to Service Level Agreement Management Group for oversight

Move to enforcement processP

rocess

Map

1

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Appendix 3(a)

NHS AYRSHIRE AND ARRAN NOTIFICATION OF QUOTATIONS RECEIVED

HOSPITAL ........................................................................................................................ QUOTATIONS FOR THE SUPPLY OF ............................................................................ ............................................................................................................................................ ............................................................................................................................................

S U P P L I E R

PRICE (Excluding VAT)

I recommend acceptance of the quotation submitted by ............................................ ............................................................................................................................................ for the sum of £ .................................................................................. (excluding VAT) SIGNED ...................................................................................... Requisitioning Officer SIGNED ....................................................................................................Budget Holder If cheapest quotation not accepted, please indicate reasons why ............................. ............................................................................................................................................

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Appendix 3(b)

NHS AYRSHIRE AND ARRAN PROCEDURE FOR REGISTERING WITH THE NATIONAL ADVERTISING PORTAL

Go to website www.publiccontractsscotland.gov.uk

Click on New to the site? REGISTER HERE

Click on REGISTER AS A CONTRACTING AUTHORITY

Click on Find

Type Ayr in search box, click on Search

Pick from drop down box Ayrshire and Arran NHS

Click on Next

Fill in details as prompted Read terms and conditions tick

Terms & conditions

Click on Save

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Appendix 4 OPERATIONAL PROCEDURE

Construction Industry Scheme

(New CIS)

This procedure covers the use of contractors who fall within the above taxation legislation and are registered with the HM Revenue & Customs as Gross, Standard or Higher Rate Tax Payers (formally CIS 4, CIS 5 & CIS 6). This taxes classification was effective from 1st April 2007. The procedure must also be used in conjunction with NHS Ayrshire and Arran’s Standing Financial Instructions. The use of contractors registered with HM Revenue & Customs as Gross, Standard or Higher Rate Tax payers will be restricted as follows:

1. Before engaging any firm the tax status of the said company must be confirmed by the appropriate Estates Manager, highlighting whether they are Sole Traders, a Limited Company or a Partnership. This includes obtaining copies of the Registration Card, a copy of which should be retained within the appropriate Facilities Department, and providing their unique Tax Reference Number (UTR) before being offered work with NHS Ayrshire and Arran.

2. To be contracted to supply both labour and materials thus transferring any financial risk.

(The following apply only to Standard Rate Tax Payers)

3. Tenders/quotations must ask for the supply of labour and materials and show the split of each on the appropriate tender/quotation.

4. Buying orders must state that the order is as per the appropriate quote/tender and is for the

supply of labour and materials. NB To ensure full compliance with HM Revenue & Customs regulations NHS Ayrshire and Arran have an obligation to provide information for each calendar month, advising HM Revenue & Customs of everyone who has been engaged by NHS Ayrshire and Arran as a Gross, Standard or Higher Rate Tax Payer and a declaration form will be completed online by the Finance Department.

Review Date: July 2008

Mrs M Moore Mrs M McGurkAsst Director of Information & Clinical Support Services Assistant Director of Finance

(Governance and Shared Services) Please sign as read and understood Signed .......................................... Estates Manager ..................................... Date .....................................

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Appendix 4

APPROVED CONTRACTORS All Contractors used on NHS Ayrshire and Arran sites are subject to the conditions of this document. Please sign as read and understood. Signed: ................................................................ Estates Manager Date: ...........................................

[45] 11/10/2012

Appendix 4

STRICTLY CONFIDENTIAL 1 COMPANY INFORMATION

1.1 Name of company: ..................................................................................................................................... 1.2 Address of Registered Office: .............................................................................................................................. ................................................................................................................................ ............................................................................................................................... Post code............................... Tel no ............................. Fax no ....................... Email address ..................................................................................................... 1.3 Address of local office (if different from 1.2)

1.4 Bankers details: The Health Board operates a BACS payment system. Companies applying for inclusion on the approved list must understand that use of the standard BACS payment system is a condition of inclusion. If successful your banking details will be requested at a later date.

1.5 Names and addresses of any subsidiary or associated companies or parent company in the case of a subsidiary or associated company.

1.6 Please state the following details relating to the new CIS system:

a) your CIS Tax Payers Rate (gross, standard or higher rate) b) your unique Tax Reference No (UTR)

Please enclose a copy of your documentation with your application.

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1.7 Membership of a national trade association is a mandatory requirement for all companies seeking Approved Contractor status. Please state the National Trade Association(s) of which your company is a member. ............................................................................................................................................................................................................................................................

Please enclose with your application a copy of your registration details.

1.8 Registration with Constructionline is a mandatory requirement for all companies seeking Approved Contractor status. Please state your company Constructionlilne Registration number. ............................................................................................................................................................................................................................................................Please enclose with your application a copy of your current Constructionline certification.

1.9 Please indicate below the categories of work which you wish to be considered for. ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

1.10 The maximum value of work you will be considered for will be equal to your Constructionline approval limit foot that category of work. If you wish a lower figure to be used, please indicate it below. ..............................................................................................................................

If you wish to set a minimum value of work that you wish to be considered for, please indicate below. ..............................................................................................................................

1.11 Please specify any arrangements that your company offers for call outs. ..........................................................................................................................................................................................................................................................................................................................................................................................

1.12 Are you registered/accredited with any organisation regarding quality assurance/environmental or other issues YES/NO If YES, please provide with your application details of all accreditations held, including copies of all relevant certification.

2. INSURANCE

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2.1 Employers Liability Insurance details Insurer: .............................................................................................................. Policy number: ................................................................................................. Extent of cover: ................................................................................................. Expiry date: .......................................................................................................

2.2 Public Liability (Third party) Insurance details Insurer: ............................................................................................................... Policy number: ................................................................................................... Extent of cover: .................................................................................................. Expiry date: ........................................................................................................

2.3 Contractor’s All Risks Limit details Insurer: ............................................................................................................... Policy number: ................................................................................................... Extent of cover: ................................................................................................... Expiry date: .........................................................................................................

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2.4 Motor Vehicle Insurance details Insurer: ............................................................................................................... Policy number: .................................................................................................. Extent of cover: ................................................................................................... Expiry date: ......................................................................................................... Please enclose with your application copies of all current insurance documentation. If approved, it is your responsibility to ensure that at all times the documentation that we have on file for your company is current.

3. HEALTH AND SAFETY INFORMATION CHAS accreditation is a mandatory requirement for all companies seeking Approved Contractor status.

Has your company been assessed by the CHAS (Construction Health & Safety scheme) in the past 2 years? If YES, please state the date of last assessment and enclose a copy of your letter of compliance or accreditation certificate. Date of assessment: ..........................................................................................

If NO, please access the CHAS website on www.chas.gov.uk and follow the appropriate instructions to register.

(a) State the name and designation of the person with overall responsibility for health and safety: ................................................................................................................................................................................................................................................................ ................................................................................................................................

(b) Does he/she have executive authority? YES/NO

If NO, state name and designation of person who does. ................................................................................................................................

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3.3 (a) Is the person named in 3.2(a) above with person with responsibility for the provision of Health and Safety Training and advice? YES/NO

(b) If NO, state details of the person who does carry that responsibility. Name: .................................................................................................................... Company: .............................................................................................................. Address, tel and fax nos: ..................................................................................... ................................................................................................................................................................................................................................................................ ................................................................................................................................ Qualifications and experience: ......................................................................... ............................................................................................................................... ............................................................................................................................... ............................................................................................................................... Please provide with your application details of the safety monitoring strategy that you would employ during work on our premises.

3.4 Has your company in the past 5 years been prosecuted or served with any prohibition or improvement notices? YES/NO If YES, give details of all incidents (attach additional sheet if required). ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................

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3.5 Has your company any Health and Safety or Environmental prosecutions pending? YES/NO If YES, give details of all incidents. ............................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ The information provided in 3.4 and 3.5 above will be cross-checked with HSE, SEPA etc and any failure to disclose information will result in your application being immediately denied.

3.6 Will you permit a representative of NHS Ayrshire and Arran to examine your company’s premises, health and safety arrangements and accident records over the last 3 years: YES/NO If you answer NO to this question your application will be denied.

4. ENVIRONMENTAL ISSUES NHS Ayrshire and Arran is committed to a policy of sustainable development.

Please enclose details of all relevant policies and procedures your company has in relation to environmental issues, including a copy of your environmental policy and details of your process for identification and control of environmental risks.

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5. DISCLOSURE SCOTLAND CHECKS

To enable contractors to operate on NHS property it is a mandatory requirement that staff employed by your company or by any sub contractor working directly for your company undergo Scottish Criminal Record Checks. Are these checks currently carried out? YES/NO If YES, please include with your application details of the process you undertake to ensure your staff and sub contractors are suitably vetted, together with details of the level of clearance that your staff have. If NO, then please be advised that all staff you anticipate working on our sites would require basic clearance in advance of your application being approved.

6. REFEREES

6.1 Please state the name and addresses of 2 Public Authorities, eg NHS Boards, Local Authorities etc, government departments or key private sector customers who would be prepared to act as referees on your behalf. Please also state the names and designations of the persons to contact.

(a) ......................................................................................................................................................................................................................................................................................................................................................

................................................................................................................. (b) .................................................................................................................

................................................................................................................. ................................................................................................................. .................................................................................................................

7. DECLARATION I, ......................................................................................................(name in block capitals) ................................................................................................................................ (title) hereby certify and affirm that the information provided in pursuance of all foregoing questions contained within this application (including all additional pages/documents provided in pursuance thereof) is, to the best of my knowledge and belief, true. I further affirm that all material changes will be brought to the attention of NHS Ayrshire and Arran.

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I understand that the answers and any additional information provided will form the basis of the application to be considered as an Approved Supplier or Contractor to NHS Ayrshire and Arran. I have complete authority to sign such an application on behalf of: .................................................................................................. (Company name) .................................................................................................. (Signature) .................................................................................................. (Date) Any contractor who provides inadequate, inaccurate or false information is liable to be excluded from the Approved Contractors or Suppliers List. PLEASE USE THE ATTACHED CHECKLIST TO ENSURE ALL REQUIRED DOCUMENTATION IS ENCLOSED WITH YOUR APPLICATION FORM.

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Appendix 5(a)

NHS AYRSHIRE AND ARRAN STOCK REQUISITION FORM

HOSPITAL .................................................................. WARD/DEPT ..........................................................

TRANSFER POINT ...................... DATE ................................ EXPECTED DELIVERY DATE ................

REQUISITONING OFFICER ...........................................

AUTHORISING SERVICE USER ............................

NOTES: (1) CODE NUMBERS MUST BE SPECIFIED. (2) WHITE COPY TO PROCUREMENT DEPT. YELLOW COPY TO BE RETAINED BY USER. CODE COMMODITY UNIT OF

ISSUE UNITS REQD

CODE COMMODITY UNITS OF ISSUE

UNITS REQD

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Appendix 5(b)

NHS AYRSHIRE AND ARRAN NON STOCK REQUISITION FORM

From: Name: ............................................................................ Transfer Point: ............................

Hospital: ....................................................................... Extension no: ................................

Ward/Dept: ...................................................................

Subject:

REQUISITION FOR FURNITURE AND OTHER NON-STOCK ITEMS

Please arrange for the undernoted item to be ordered and charged against the Transfer Point indicated above. Description of item: (including size, colour, etc where appropriate).

................................................................................................................................

Quantity Required: .................................................................................................................................. Indicative Cost: (if known):

...................................................................................................................................

Suggested Suppliers: (if known):

....................................................................................................................................

....................................................................................................................................

Delivery Address:

.....................................................................................................................................

...................................................................................................................................... Additional Information (including Maintenance and Revenue Costs) (if any):

....................................................................................................................................... .......................................................................................................................................

Reason for request: * Routine requirement/new item/replacement due to Loss (completed Loss/theft/condemnation form to be Theft submitted to General Services Manager) Condemnation Signature (Requisitioning Officer): .......................................................................................... Date ..................................... Signature (Budget Holder): ........................................................................................................ Date .................................... Designation of Budget Holder: ............................................................................................................................................ PROCUREMENT DEPARTMENT USE ONLY Date Ordered ................................................... Order No .................................................. Actual cost £ ..............................

DISTRIBUTION: 1st & second 2nd copies - Procurement Department, 3rd copy retained by Budget Holder.

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Appendix 6

DRAFT LOCAL INDEMNITY AGREEMENT

Agreement between: (1) { } (“the Supplier”);

(2) NHS Ayrshire and Arran, hereinafter referred to as “the Board”.

1 DEFINITIONS

1.1 The following words shall have the following meanings:

1.1.1 “Equipment” means all equipment on loan or to be loaned or supplied free of charge after the date on which this Agreement comes into force to the Board.

1.1.2 “Goods” means all supplies, consumable items and other goods of any description excluding Equipment.

2 DURATION

2.1 This Agreement shall come into force on date of signing and shall continue in force until .................................................. unless terminated in accordance with Clause 7.

3 AGREEMENT

3.1 The Supplier agrees that all loans and supplies of Equipment by the Supplier to the Board during the period of this Agreement will be subject to the terms of this Agreement. This Agreement will apply to the use of the Equipment by employees, agents and sub contractors of the Board and employees, agents and sub contractors of any university who use the facilities of the Board for the purposes of teaching students. The Supplier acknowledges that the loan or supply of the Equipment to the Board at no cost is of benefit to the Supplier whether that be the evaluation, testing, research, trialling of the Equipment or other benefit.

3.2 The Supplier agrees that every supply of Goods at no cost by the Supplier to the Board during the period of the Agreement will be subject to the terms of this Agreement.

4 SUPPLY

4.1 In the event that the Supplier shall lend or supply any Equipment to the Board in consideration of the evaluation, testing, research or trialling of the Equipment or other benefit to the Supplier, the following conditions shall apply:

4.1.1 the equipment shall be on loan free of charge;

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4.1.2 the Board shall be entitled to use the Equipment at the premises detailed in the delivery note relating to the delivery of Equipment to the Board;

4.1.3 the Supplier shall provide the Board with written evidence of the safety of the Equipment, drawing attention to any failures to comply with relevant European or British Standard Specification or Department of Health Specifications or aspects of safety that have not been fully tested. Restrictions on the use of the Equipment necessary to ensure the safety of patients or staff shall be pointed out to the Board.

4.1.4 a delivery note shall accompany the delivery of the Equipment identifying the Equipment serial number;

4.1.5 detailed instructions in the use of the Equipment shall be given to the Board’s nominated staff by a qualified agent of the Supplier and detailed instructional manuals where available shall be supplied to the Board;

4.1.6 none of the Equipment shall be modified or interfered with by the Board without the Agreement of the Supplier;

4.1.7 the Board shall not be liable for any charge for maintenance, repair, consumable materials and accessories required for the operation of the Equipment during the period of the loan or for any carriage or installation charges except by prior notification and the issue of an official purchase order by the Board;

4.1.8 the Supplier upon receipt of a written request at any time from the Board shall remove the Equipment from the premises of the Board within the period stated in the request and in any event within 14 days of request free of charge and shall provide the Board with a receipt for the Equipment;

4.1.9 the Board shall permit the Supplier to remove the Equipment from its premises on receipt of reasonable notice in writing;

4.1.10 the Equipment shall remain continuously at the Supplier’s risk during and after the period of the loan.

4.2 In the event that the Supplier shall supply free of charge any Goods to the Board the following conditions apply:

4.2.1 the transfer of the Goods, shall be deemed to be a contract for the transfer of goods as defined by section 1(1) of the Supply of Goods and Services Act 1982;

4.2.2 the Supplier agrees that this transaction and the transfer of Goods effected by it should be subject to the current National Health Service Standard Conditions of Contract for the Purchase of Goods;

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4.2.3 a delivery note shall accompany the delivery of the Goods identifying the Goods by batch number.

5 INDEMNITY

5.1 The Supplier shall indemnify and hold the Board harmless against all liability in respect of personal injury to or the death of any person, loss of or damage to any property of the Board and any loss or expense attributable to the installation, presence, use or removal of the Equipment or Goods on or from the premises of the Board, except liability or loss resulting from the negligence or fault of any of the Board’s employees or agents.

6 INSURANCE

6.1 The Supplier shall effect public and product liability insurance against its potential liability under Clause 5 in the minimum sum of TWO MILLION POUNDS STERLING in respect of any one incident.

6.2 The Supplier shall upon request produce to the Board or any person acting on behalf of the Board documentary evidence that such insurance is properly maintained.

6.3 In the event that the Supplier shall default in maintaining the insurance, the Board may itself effect insurance and may charge the cost together with an administration charge of five per cent to the Supplier.

7 TERMINATION

7.1 This Agreement may be terminated by either party giving to the other party four weeks written notice to the other expiring at any time.

7.2 Notwithstanding the termination of this Agreement, the Supplier’s obligations under Clauses 4 and 5 shall remain in full force and effect.

8 GOVERNING LAW

This Agreement shall be governed by the law of Scotland and the parties hereby submit to the jurisdiction of the Scottish Courts: IN WITNESS WHEREOF this Agreement on this and preceding two pages are executed as follows:

On behalf of the Board by:

Signature ......................................... Witness Signature ...........................................

Name ............................................... Name ................................................................

Designation ..................................... Designation ......................................................

Place of Signing................................ Place of Signing ...............................................

Date ................................................ Date .................................................................

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On behalf of the Supplier by:

Signature ......................................... Witness Signature ...........................................

Name ............................................... Name ................................................................

Designation ..................................... Designation ......................................................

Place of Signing................................ Place of Signing ...............................................

Date ................................................ Date .................................................................

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Appendix 7

TENDER CHECKLIST (RESTRICTED PROCEDURE)

or N/A

Notes

Approved Tendering Strategy Procurement / DPO lead contacted and stakeholder Group

agreed

Strategy Report prepared (std Template) Timetable agreed PIN Notice Publish PIN Notice Open Day PQQ Stage Obtain Tender No (office of Asst DOF) Required info for Tender Register (as above) Agree Selection Criteria Create PQQ Create Notice on PCS Portal and attach PQQ docs Notice approved by DPO and Published Evaluate PQQ Responses and Shortlist ITT Stage Create Specification Agree Award (evaluation)Criteria Decide on Additional Clauses/Info required Prepare Appendices Create Invitation to Tender (ITT) Create Specification Decide on Award Criteria Decide on Additional Clauses Decide on Terms and Conditions (T&Cs) Create Invitation to Tender (ITT) Create Stage 2 Notice on PCS portal and attach Tender

docs

Notice approved by DPO and Published to shortlisted bidders

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Appendix 7a

TENDER CHECKLIST (RESTRICTED PROCEDURE)

Tender Review Open (Unlock) Tender Submissions Print page showing bids received (audit trail) Send to office of Asst DOF Evaluate Tender Award Complete Tender Report and send to Asst DOF Request Authority if Not Lowest Bid Receive Agreement to Proceed Standstill and Decline Letters Sent (OJEU) Send Award Letter after Standstill Period (OJEU) Send Successful and Unsuccessful letters (non OJEU) Publish Contract Award on PCS Portal Signed Award Letter Received from Supplier Contract File Completed Post Award Purchase Order Raised directly on Pecos Non Stock Requisition completed and sent to Procurement Copy of Order/GRN note received from Procurement

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Appendix 7a

TENDER CHECKLIST (OPEN PROCEDURE)

or N/A Notes

Tendering Strategy Procurement / DPO lead contacted and stakeholder Group

agreed

Strategy Report prepared (std Template) Timetable agreed PIN Notice Publish PIN Notice Open Day ITT Stage Obtain Tender No (office of Asst DOF) Required info for Tender Register (as above) Create Specification Agree Award (evaluation)Criteria Decide on Additional Clauses/Info required Prepare Appendices Create Invitation to Tender (ITT) Create Notice on PCS Portal and attach Tender Docs Notice approved by DPO and Published Tender Review Open (Unlock) Tender Submissions Print page showing bids received (audit trail) Send to office of Asst DOF Evaluate Tenders Award Complete Tender Report and send to Asst DOF Request Authority if Not Lowest Bid Receive Agreement to Proceed Standstill and Decline Letters Sent (OJEU) Send Award Letter after Standstill Period (OJEU) Send Successful and Unsuccessful letters (non OJEU) Publish Contract Award on PCS Portal Signed Award Letter Received from Supplier Contract File Completed

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Appendix 7b

TENDER CHECKLIST (OPEN PROCEDURE)

or N/A Notes

Post Award Purchase Order Raised directly on Pecos Non Stock Requisition completed and sent to Procurement Copy of Order/GRN note received from Procurement