NHS Commercial Solutions Voluntary Sector Briefing All About Procurement With DGS CCG

Andy Glenister – Head of Procurement 20 November 2014

What we will cover

How procurement works within the CCG What are the rules of submitting Where the procurement lists are made available Questions

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CCG Context

Procurement aims to make the link between a Commissioner’s health improvement objectives and capable providers to ensure effective delivery

Corporate objectives

Commissioning plan Operating plan

Provider engagement Service delivery

Market management Procurement Implementation Contract management

CCG Context

Procurement turns a service requirement into an assured service delivery Commissioning an output based service

Why?

Corporate goals

• Objectives • Benefits and Risks • Costs Business case

What?

Service needs

• Outcomes • Service levels • Standards Service specification Getting the right solution from the right service provider

How?

Delivery processes

• Governance • Clinical safety • Service delivery Tender documents

With?

Delivery resources

• Workforce • Equipment • Infrastructure

CCG Context

Procurement operates within a framework of principles, law and policies EC Treaty UK Law • Primary legislation • Regulations • Common law • Case law Transparency Equal treatment Non-discrimination DH Policy Best placed provider Proportionate procurement CCG Policy

CCG Context - Regulations

The regulations require careful consideration The Regulations give commissioners a framework within which to decide on a case-by-case basis how to secure high-quality, efficient services that meet the needs of patients. The Regulations do not generally include prescriptive rules on how commissioners must carry out their procurement activities. There is no one-size-fits-all approach to realising the objective of the Regulations.

Extract from Substantive Guidance published by Monitor in December 2013

CCG Context - Regulations

The regulations say the CCG must: • Act with a view to securing the needs of the people who use the services, improving the quality of the services, and improving efficiency in the provision of the services, including through the services being provided in an integrated way Not optional 7

CCG Context - Regulations

The regulations say the CCG must: • • Act in a transparent and proportionate way Treat providers equally and in a non-discriminatory way, including by not treating a provider, or type of provider, more favourably than any other provider • Procure the services from one or more providers that • are most capable of delivering the objective in relation to the services, and provide best value for money in doing so Consider …making improvements, including through…services being provided in a more integrated way, enabling providers to compete to provide the services, and allowing patients a choice of provider of the services 8

CCG Context - Regulations

CCGs take great care to stay within the regulations • • • • • Demonstrate probity of public procurement Breaches can be subject to legal challenge Challenge costs time and money to resolve Challenge may disrupt service delivery to patients Successful challenge may require re-procurement Striving to achieve • Transparent, proportionate • • Equal treatment, non-discrimination Best value, most capable 9

CCG Context - Process

The CCGs uses market engagement prior to procurement to ensure service can be commissioned • • • • • • • Confirm feasibility of service delivery Confirm affordability of service delivery Identify difficulties and improvements in service delivery Refine specification Refine procurement approach Enable provider development Stimulate provider co-operation Engagement takes various forms • • • Market events Requests for information Individual discussions 10

CCG Context – Process

Purpose

Prepare

Activities

Initiation, planning, approval

Obtain suppliers

Identify potential providers - Shortlist. Prequalify

Obtain bids

Obtain detailed bids - Tender Obtain preferred bidder Review bids and select - Evaluation Obtain contract Negotiate and finalise contract - Contracting Conclude Notification and recording Implement Transition

CCG Context - Process

Purpose

Prepare

Documents Obtain suppliers Obtain bids

Obtain preferred bidder Advertisement. Service outline. Process. Qualification questions. Response template Specification. Process. Criteria.

Solution questions. Response template.

Notification letter. Feedback.

Obtain contract Conclude Implement Standard contract.

• All bid documents are electronic • Web-based e-procurement portal commercialsolutions.bravosolution.co.uk

• Uses Bravo web service for interaction

CCG Context - Process

• The prequalification process is a means of identifying a short list of potential providers who we will invite to tender • • • • We will evaluate bidders in terms of Eligibility Economic and financial standing Technical or professional capability Track record • • • The prequalification process is not about Assessing bidders’ potential solution Pricing Contract terms and conditions

CCG Context - Process

• The tendering stage is a means of selecting the preferred provider(s) who we will invite to contract • • • • We will evaluate bidders in terms of Satisfying the requirements “What does it do?” Giving assurance in the solution “How does it do it ?” Pricing of the solution “How much do we pay? How do we pay it?” Value for money – “Is it worth it?” • • • The tendering process is not about Track record Generic capabilities Marketing material

CCG Context - Timeline

Purpose

Prepare Obtain suppliers Obtain bids

Duration

From 2 to 6 weeks Minimum 4 weeks • • •

Timeline depends on Scale and complexity of service Number of bidders Governance process Example is for a typical small AQP service

Obtain preferred bidder Obtain contract Around 9 weeks. Evaluate (4), moderate (1), clarify (1) , finalise (1), approve (2) Around 3 weeks Conclude 1 week Timeline varies according to scale and complexity

CCG Context - Evaluation

Bids are generally evaluated against a clearly defined set of criteria

5 perspectives of evaluation

What is the overall value of the solution?

How will the solution ensure clinical quality and patient safety?

How will the solution operate to achieve the outcomes?

How is the solution enabled and managed overall?

How will the solution appear to patients?

CCG Context - Evaluation

Criteria have relative weights in the overall evaluation

5 perspectives of evaluation 30%

What is the overall value of the solution?

How will the solution ensure

30%

clinical quality and patient safety?

20%

How will the solution operate to achieve the outcomes?

10%

How is the solution enabled and managed overall?

10%

How will the solution appear to patients?

CCG Context - Evaluation

Evaluation questions relate to the specification and the evaluation criteria Evaluation criteria Service specification Evaluation questions Getting the right solution from the right service provider

How?

Delivery processes

• Governance • Clinical safety • Service delivery Tender documents

With?

Delivery resources

• Workforce • Equipment • Infrastructure

Rules of bidding

Three things to do

Understand the process

• Qualifications required • Evaluation criteria and weightings • Deliverables and formats • Timescales

Keep control

• Plan, prepare, and resource • Match the burden to the benefit • Focus on quality not quantity • Follow the process

Convince the buyer

• You know what the job is • You know how to do the job • You’ve got what it takes to do the job

Rules of bidding

Three things to avoid

Deviate from the process

• Miss a deadline • Fail a deliverable – missing, incomplete, wrong format

Fail to convince the buyer Underestimate

• Poor content • The solution…and a bit more…no assumptions • Nothing but the solution • Poor presentation • Typos, spelling, punctuation • Somebody else’s name • …what it takes to achieve a good result

Opportunities

Advertised on Contracts Finder • online.contractsfinder.businesslink.gov.uk

Covers all UK public sector procurement • Not just healthcare Types of advertisement • Market engagement • • Contract opportunities Contract award Facilities • Register as a provider – Easy and quick • • Search Alert – Free-text, location, value, buyer, code – Automatic notification by email 21

Opportunities

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Opportunities

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What we will cover

How procurement works within the CCG What are the rules of submitting Where the procurement lists are made available Questions

© NHS Commercial Solutions 2013

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