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Using Dynamic Purchasing Systems for Children’s Services

Using Dynamic Purchasing Systems for Children’s Services. Adam Sargent, Category Specialist. What is a Dynamic Purchasing System (DPS)?. E U Directive 2004/18/EC Article 33

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Using Dynamic Purchasing Systems for Children’s Services

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  1. Using Dynamic Purchasing Systems for Children’s Services Adam Sargent, Category Specialist

  2. What is a Dynamic Purchasing System (DPS)? E U Directive 2004/18/EC Article 33 “A dynamic purchasing system is a completely electronic process for making commonly used purchases for a period of up to four years.” European Commission, Practical Guide 4.2.5.2

  3. The Procurement Angle • OJEU Notice (Establishment) – the notice is standard but must include information on the establishment of a DPS for the organisation • Four Year Period • Open Market – A DPS allows any supplier to enter contract throughout its lifetime, only when they pass the accreditation. • Accreditation (PQQ) – These are the Pass and Fail questions (i.e. insurance levels, financial etc) • Enrolment (Technical Questions) –Your general quality questions to ensure compliance with the overall contract • Mini-Competition – Every requirement is sent to the open market for quotation • Bidding – after initial evaluation, suppliers get a second chance to reduce their price only. • MEAT – The final list of suppliers will have a rank, based on the merged score of their quality and price weighting.

  4. The Commissioning Angle • Set out in Service Categories (i.e. Health Care, Respite, Short Breaks – Overnight / residential) • Few Limitations • Changes in circumstance • Changes in ability • Location • Requirement Specific – at each requirement is specific to the clients need, also variable to the following • Outcome Focused – Can state an outcome needed, allow supplier to return with the solution.

  5. Personalisation • What if the client prefers a specific supplier? • What if the clients preferred supplier is not top of the final list? • If a service is brokered, the organisation must appoint the number 1 ranked supplier. Where a client wishes not to use said supplier, the organisation can provide the final listing to the client along with a direct payment. This allows the client to use the organisations accredited suppliers, reducing the risk to them. • The future? • The future may hold a client facing portal (if a DPS Specific system used), allowing them to use the DPS for personal allowance. This means all management information is captured in one place and reducing the risk / increasing client savings.

  6. Shared Added Benefits • Market Shaping – showing the market what is being procured, allowing them to develop into different services or collaborating to meet demand • Market Share – can help to spread the demand around the marketplace • Payment function (if a DPS Specific system used), where the supplier can be paid directly through the system. • Service Level Agreements (SLA) created automatically (if a DPS Specific system used), • Interfaces with Care Management Systems (if a DPS Specific system used), inputting the spend and SLA’s directly against the clients profile. • Auditable • Feedback against suppliers available • Management information available • Value for Money!!

  7. Overall Limits and Myths • 15 days for each requirement – legislation states 15 days from point of advert before award. Precedent set is an ‘open framework’ with a view of no challengers due to marketplace consistently available. • Bidding is on price only – as stated, based on quality and price scoring • Too much to evaluate (if a DPS Specific system used), a large majority of the scoring is automated, minimum scoring needed on quality in requirement. • The project specification will need to be detailed and precise to limit pointless responses. • Make each requirement large enough to provide over period to avoid multi low value projects. (if not using a DPS Specific system) • A register of members will need to be kept – challenging if done manually, DPS specific system will keep up-to-date supplier profiles. • A process to check admitted suppliers qualifying criteria will need to be put in place - challenging if done manually, DPS specific system will allow for automatic criteria.

  8. System Used • Matrix SCM • YPO Framework Call-off • Pan-London agreement which includes • No implementation fee • Low percentage gain share • All paid from savings made • No savings made, no payment. • More details / Matrix contact details – email me

  9. Useful Links • http://ec.europa.eu/europeaid/prag/document.do?chapterId=4.2.5.2.&id=41 • http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32004L0018:en:NOT

  10. Questions? Adam Sargent, Category Specialist adam.sargent@newham.gov.uk

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