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NHS Wirral Procurement of Healthcare Services Valerie Attwood

NHS Wirral Procurement of Healthcare Services Valerie Attwood Divisional Head of Procurement and Contracting. Background.

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NHS Wirral Procurement of Healthcare Services Valerie Attwood

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  1. NHS Wirral Procurement of Healthcare Services Valerie Attwood Divisional Head of Procurement and Contracting

  2. Background • The purchase of ALL goods and services in the public sector is subject to EU regulations (2004) and UK law (2006) - Different requirements apply to different products and services. • Key competency for World Class Commissioning • DoH PCT Procurement Guide (Summer 2008) • PRCC Dec 07/updated Dec 08 • Supply 2 Health web portal launched Sep 08

  3. Different classification of services

  4. Regulations and thresholds Values are aggregated EU legal requirements to tender • £ 101,323 for supplies and Part A and services • £156,442 for Part B services • £3,927,260 for works / building projects Local PCT requirements – example of local SFI’s • £10k and up to £90k - three written competitive quotes for goods and part A services • Full compliance with the EU procurement directives for supplies purchases over £90,319 • Full compliance with the EU procurement directives for works projects over £3,497,313 – however local tender req. over £125k • Healthcare contracts, subject to the PCT Healthcare Procurement Strategy not SFI’s (Part B service)

  5. Decisions on services you decide not to market test need to be recorded and notified to the SHA Assessment criteria to consider Estimated value of the contract Government policy on protected services Level of market interest Assessment Criteria Is there a reason that competition is not appropriate in this circumstance

  6. Other possible options • Commission / purchase more of the same activity from existing providers • Use existing contracts to deliver a service improvement • ‘Flex’ existing contracts • Utilise the extended choice / free choice network • New formal contract • AWP / Tender

  7. Scenario examples • Each table has a scenario • 5 minutes to discuss what you might do.

  8. OH NO… WE NEED TO TENDER !!!!

  9. If you decide to go to competition • AWP exercise : 8 – 10 weeks • EU tender minimum 4 months start to finish, bigger contracts 6 – 12 months – need detailed specification • Framework contracts – do it once, then just mini comp exercises for next 3 years

  10. New formal contract via competition • Any Willing Provider • Intended to provide plurality of providers • Can be an ‘open’ or ‘managed’ process • No guarantee of activity or finance • Can be undertaken in 8 - 10 weeks • Template for accreditation included

  11. Open Managed PCT identifies an unmet need for a distinct service and produces a specification Approach from third party to provide a local service Assess strategic fit of Initial proposal and service spec Once spec approved advertise service on ‘Supply 2 Health’ Undertake accreditation with interested providers and confirm compliance with spec. If approved – undertake accreditation with provider Confirmation of compliance and summary accreditation submitted to approvals committee Final proposal + summary accreditation to approvals committee Produce final contract based on one of the DH templates Produce final contract based on one of the DH templates Ongoing management and re-accreditation (min every 3 yrs) Ongoing management and re-accreditation (min every 3 yrs)

  12. New formal contract via competition Tender exercise • Can result in sole or multiple providers • May be a minimum contract guarantee or framework • Average duration between 6 and 12 months

  13. Representatives Clinical, Finance, Procurement, HR, E+D, Estates Gain approval for competitive tender Establish the team and project plan Place advert S2H or OJEU 40 days Complete specification PQQ with interested providers 2-4 wks Typical tender process Evaluate PQQs and shortlist

  14. Undertake bidder presentation day Issue ITT to shortlisted providers Involve procurement team 40 days Tender Clarification 10 days Evaluate offers 20 days Undertake bidder presentations Award contract 10 day standstill Plan around board / committees

  15. Governance of process • Need standard policy on membership required for independent committees / evaluation teams for AWP and tender exercises • Need clear conflict of interest policy to avoid or manage risk of challenge

  16. Mobilisation Ask for a clear project plan for implementation from the provider – make sure you agree Define roles and responsibilities for key tasks Consider the ‘critical path’ Have regular progress reviews with the provider Plan a contract / provider launch Monitor performance against KPI’s and take corrective action where necessary

  17. Risks of getting it wrong • Increasing risk of legal challenge • Local council and children’s playgrounds • Focus of Co-operation and Competition panel • Restricted tenders for NHS in South East • Introduction of EU Remedies Directive in Dec 2009 • Requirement to weight award criteria • Disclose scores to all bidders • Publish award notice early – ideally within standstill period • Can now stop contracts upto 6 months after award

  18. Other key skills • Contracting – Carole Hodgkinson this afternoon • Be clear and concise • Don’t allow ‘wriggle room’ • Negotiation

  19. Phases in Negotiation • Preparation • info gathering, know the market, supply/demand, BATNA • Opening • Each party presents their starting position • Bargaining • Clarify information, present counter arguments • Close • Agree a final position

  20. Car negotiation exercise • Sellers have a brief • Buyers have a brief 2 minutes to read brief then 5 minutes to conclude a sale / purchase – we will then see if buyers and sellers are still happy with the deal !!

  21. Sale positions • Seller • Desperate to sell • Well serviced • Will include tax • Target price £2,750 • Will sell for £2,000 • Buyer • Desperate to buy • Only car out of 4 in Autotrader you would buy • Had £2,900 cash with them

  22. Key messages • Consider all the options / arguments • Ensure a fair and transparent process • Be clear and concise with providers • Adopt a team approach to utilise specialist skills • Fail to prepare – prepare to fail • Remember – It’s not rocket science!!!

  23. Further help and guidance PCT procurement guide - DH http://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_084778 PRCC - DH http://www.dh.gov.uk/en/Publicationsandstatistics/Publications/PublicationsPolicyAndGuidance/DH_081098 EU Directives and UK Procurement Law - OGC http://www.ogc.gov.uk/publications_and_training_training_module_on_the_new_public_procurement_directives.asp

  24. THANK YOU FOR LISTENING ANY QUESTIONS? Valerie Attwood Tel: 0151 651 3944 Email: valerie.attwood@wirral.nhs.uk

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