Developments at national level

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WELCOME
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Developments atnational level

• Neil Argyle
•  
• 16th October 2007

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Current issues

• NHS Supply Chain   
•  
• Collaborative Procurement Hubs
•  
• Future of PASA/ Commercial Directorate
• Office of Government Commerce - Transforming
  Government Procurement Capability Reviews

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General picture

• Department of Health budget for 2007/8 - 92
  billion
•  
• Expenditure on goods and services - 17bn?
•  
• Expectation that money is spent wisely
•  
• Plurality " of providers - private sector,
  outsourced services, independent treatment centres

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Procurement

• Emphasis on value for money
•  
• Gershon - public sector efficiency
•  
• DH Arms length bodies review
•  
• Target savings across DH 500 million by 2008
•  
• Procurement efficiency firmly on the agenda

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NHS Purchasing and Supply Agency

• replaced NHS Supplies in 2000
•  
• centrally funded
•  
• contract coverage 4 billion prior to outsoucing
  of NHS Logistics
•  
• aims to modernise the supply service to the NHS
  spread best practice undertake national
  contracting where appropriate
•  
• Centre for evidence based purchasing

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Commercial Directorate 

• Established 2003
•  
• remit to cover all DH expenditure 
•  
• Commercial Review
•  
• Supply Chain Excellence Programme -
•      - national contracts project
•      - collaborative procurement hubs
•      - supply chain efficiency
•      - redesign of PASA
•      - target savings 500 million by March 2008

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National contracts project

• " Waves" of activity 
•  
• dedicated teams - PASA/ consultants
•  
• new/re-engineered contracts  
•  
• savings target of 250 million
•  
• emphasis on benefits tracking

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PASA redesign

• categories transferred to NHS Supply Chain post
  October 2006
•  
• remaining categories - pharmaceuticals,
  facilities
• energy, telecoms,transport, agency services
  medical locums, nursing, temporary staff,
  medical maintenance 
•  
• less operational ,more enabling
•  
• support to cph's, data analysis, benefits
  tracking, policy, innovation

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NHS Procurement

• Jonathan Wedgbury CEO
• Healthcare Purchasing Consortium

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Agenda

• NHS
• Levels of Purchasing
• Key Priorities
• HPCs Approach to Collaboration
• Coverage
• Funding
• Future Plans

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• NHS

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NHS structure and funding flows as at March 2007
Budget for 2007-8 92 billion of which 6
billion is Capital
Commissioning
National Standard Price Tariff (HRGs)
Non-tariff agreements
(22 billion of services)
PLURALITY OF PROVISION
148 X Trusts
Independent Sector Treatment Centres
Private sector Providers of services
52 X Foundation Trusts
1 of budget Private (10 of elective
procedures)
99 of budget Public
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THE NHS The Facts

• 1.33 million staff
• 362 different organisations across England
• NHS spending more than doubled since 1997 to
  86bn
• Drugs bill 8bn
• Medical device bill 6bn
• Buyer of 17billion worth of goods services
  (6bn medical devices)

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• Levels of Purchasing

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The changing procurement landscape for management
of NHS non-pay expenditure (17 billion)
Commercial Agency (from 1.10.07?)
2.16 Billion
Commercial Directorate
(including Centre for Evidence-based Purchasing)
NHS Supply Chain
Collaborative Procurement Hubs
South West CPH
London
1.6 Billion
South East Coast CPH
NHS Yorkshire and The Humber Commercial Procuremen
t Collaborative
To manage all 17 Billion in partnership with
PASA and NHS Supply Chain
Individual Trusts (Procurement Departments)
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Supply Chain Excellence Programme 2005-2007
To deliver annualised savings of 500m by 2007/08
Collaborative Procurement Hubs
National Contracts Procurement
NHS consumables supply chain procurement service

• Addressed regional NHS spend c. 11bn
• Designed new purchasing model
• Used pathfinder approach to test, prove and
  refine model for rollout

• Addressed 4bn of national spend
• Improved sourcing of national products through
  new national framework agreements

• Tested whether the most effective supply chain
  and procurement service for the NHS can be
  achieved by partnering with the independent
  sector
• Partner with DHL to form new NHS Supply Chain

• Restructure to deliver more effective and
  strategic national procurement
• Meet future objectives of SCEP and ALB Review
  recommendations

NHS Purchasing Supply Agency reorganisation
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Collaborative Procurement Hubs

• Deliver 270 million savings by 2007
• Improved support for clinicians and clinical
  networks by increasing their involvement in
  purchasing
• Reduced clinical risk and enhanced patient safety
  strategies
• Stronger partnerships with suppliers through
  commitment to contracts and a focused route into
  the health economy
• Encouragement for innovation and provision of
  support for RD in emerging treatments and
  technologies
• Building a robust, sustainable environment for
  procurement specialists through improved career
  structure and enhanced recruitment and retention

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CPH Roll Out programme 2005-2008

• To have a hub available for every NHS Trust by
  March 2008
• Now working towards 10 Hubs
• 8 are passed business case stage and are either
  in mobilisation or advancing to maturity
• Slower progress in North East and London

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• Key Priorities

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Health and Service Priorities for 2007-8

• Development priorities
• Achieving a maximum wait of 18 weeks from GP
  referral to start of treatment
• Reducing rates of MRSA and other Healthcare
  Acquired Infections
• Reducing health inequalities and promoting health
  and well-being
• Achieving financial health
• Recovery action to improve mental health services
• Local action in preparation for 2008/9 (Our
  Health, Our Care, Our Say)
• Health reforms

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in a changing world
Commissioning
ISTCs
PbR
Patient Choice
FTs

• The changing structure of the NHS environment

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• HPCs Approach to Collaboration

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• HPC formed in 2001
• 7 founder members
• Turnover 2001/2 600,000 influenced spend 125
• million
• 63 members 2007/8
• Turnover 12,000,000 influenced spend 2.4
  Billion

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• Arms Length Agency of University
• Hospitals Coventry and Warwickshire
• 63 Customers
• 2.4 Billion managed revenue spend
• 22 Primary Care Trusts
• 23 Acute
• 4 Mental Health
• 9 Specialist
• Private sector

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• The Key To Success
• Work with me to develop a culture across your
  organisation which begins to view me as a
  commercial partner not a threat and someone who
  adds real value!

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• The Cost Down Theory
• Collaboration reduces a suppliers cost to serve
  through a single contracting organisation, volume
  commitments and effective uptake management

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• The Risk Of Not Collaborating
• Best value not achieved
• Wide variation in performance
• Best practice not shared
• Benchmarking within UK and USA suggests benefits
  of
• between 10-20
• Must acknowledge there will be opportunities for
  some
• trusts to improve on collaborative deals
• Can we effectively implement new technologies
  without
• effective collaborative networks

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• Key Ingredients For Good Collaboration Within
  Trusts
• Whats the trusts track record on collaboration
• Do you have the full support of the board
• Are the board prepared to make difficult
  clinical
• decisions
• Agree joint terms of reference
• Implement a trust specific workplan

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• Understand the complex nature of the trust
• Will your involvement be welcomed by the
• professional procurement lead
• Determine the strength of the procurement team
• How will communication be managed
• Ensure robust process in place to validate
  benefits
• How will performance be managed and reported
• Assess the quality of source data

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Key Objectives 2007/8

• Overall savings target of 28.1 million
• Achieve target by customer
• Ensure that all submitted savings are validated
• Report uptake on contract volumes and take
  action against variances
• Review non pay spend influenced by national and
  hub contracts
• Major contribution to LPP
• Deliver against turnaround projects
• Service strategy in place for all customers
• Provide web based performance data for all
  customers
• Develop Supply Chain Business Unit
• Strategy development of ADB

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Key Objectives 2007/8

• Identify opportunities for service development
  and new business with all
• existing customers towards 12 million turnover
  for 2007/8
• Complete a feasibility study for shared services
• A balanced income and expenditure position with
  effective budget
• delegation and monitoring
• Further develop proposals for a revised charging
  mechanism
• 5 year delivery strategy
• Develop a business case exploring the options
  for future legal status
• Develop consultancy business to exceed 1
  million turnover
• Develop marketing, brand development and
  corporate literature
• Develop staff retention and development strategy

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• Coverage

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• Purchasing of Goods Services
• Support to Commissioners
• Management of Local Purchasing Teams
• Turnaround Projects
• Supply Chain Management
• Electronic Requisitioning / E Commerce
• Electronic Catalogue Management
• Capital / PFI Consultancy
• General Commercial Advice

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• Funding

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• Currently block fee based on influenced
• spend for core services
• Additional charges for non core services
• charged on a day rate basis
• Looking at alternative funding models
• including
• Transaction Fees Supplier Trust
• Performance based contracts with gain share on
• both sides based on volume uptake

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• Future Plans

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• Opportunity to take advantage of the emerging
  commercial market in
• healthcare provision.
• Increasing competition from private sector
  procurement providers
• over the next 18 months will require HPC to
  evolve a strong
• commercial presence in NHS procurement in
  order to survive.
• Developing strong supplier partnerships.
• Leading on new technologies and innovation
  through our Clinical
• Team.
• Develop relationships with our customers that
  go beyond the
• boundaries of traditional purchasing and
  supply.
• Improve the financial health of our customers
  through improving
• quality leading on innovation and reducing
  costs.
• Influence circa 6bn of non-pay spend from
  public and private sector
• companies.
• Achieve annual turnover in excess of 30m
  within 5 years.

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• Create suitable reserves and working capital
  for the organisation to
• operate as an independent entity
• Create a competitive advantage, retaining
  customers through a
• comprehensive services offering
• Be the employer of choice for commercial
  solutions professionals in
• the NHS
• Introduce a charging mechanism which
  complements our workstream
• activity
• Build capacity within the organisation to
  develop the business in line
• with the corporate strategy.

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• Connecting To The Hub
• HPC Procurement Directorate
• Peter Wozywoda
• Director of Purchasing
• Healthcare Purchasing Consortium

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• Introduction Background
• Staffing Structures
• Target Areas
• Deliverables
• Consultation Processes
• Summary Close

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Structure of NHS Procurement
Commercial Agency (???)
Commercial Directorate
(including Centre for
Evidence
-
based Purchasing)
NHS Supply Chain
Collaborative Procurement Hubs
South West CPH
London?
South East Coast CPH
NHS Yorkshire and The Humber
Commercial
Procurement Collaborative
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Transforming Government Procurement
Transforming Government Procurement
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Value of The NHS Marketplace
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Influenceable Spend
NHS Supply Chain 4.3bn
Influenceable 15.7bn
Not Influenceable 2.3bn
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Purchasing Directorate A Performance Driven Team
Catalogue Coverage
Current Contract Portfolio Total Number of
Individual Line Items Total Contract Lines
499
34,900
70,364
Spend
1.3bn
500M
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Purchasing Directorate A Performance Driven Team
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HPC Savings Targets Achievement
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Purchasing Directorate - Organisation Structure
Philosophy
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Organisation Structure
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Purchasing Directorate - Organisation Structure
Senior Team
PETER WOZYWODA Director of Purchasing
MARIANNE HADLEY Personal Assistant
WARREN SIMMS Associate Director of
Purchasing Medical Surgical
FIONA CHEW Associate Director of
Purchasing Corporate
KYM STILWELL Associate Director of Purchasing
Healthcare Contracting Services
FIONA GRIMSHAW Associate Director of
Purchasing North Central London
PETER GORDON Associate Director of Clinical
Networks Innovation
JAMES NAYLOR Associate Director of Information
Jenny Murray-Robertson Maternity Pending
Final Confirmation
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Purchasing Roles
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Defining The Roles Clinical Innovation
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Ethos

• The New HPC Procurement will
• Strive to deliver continuing benefits to member
  trusts by becoming the leading procurement
  organisation within the NHS / Public Sector
• Adopt a holistic category management approach to
  procurement by
• Better integration with local operations teams
• Enhancing the approach to Tactical Purchasing
• Introducing a new Strategic Sourcing approach to
  key categories
• Undertaking Service Re-design projects as an
  integral part of its activities to making
  procurement relevant to national NHS-wide
  initiatives
• Re-define its core activities to provide an
  expanded complete commercial service offering to
  its members
• Engage more strategically with the supplier base
  to enhance levels of inter-action and drive
  innovation
• Develop the skill base of the team and adoption
  of best practice tools techniques

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Strategic Purchasing
The Chartered Institute of Purchasing Supply
define it as satisfying business needs from
markets via the proactive and planned analysis of
supply markets and selection of suppliers with
the objective of delivering solutions to meet
pre-determined and agreed business needs
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The Approach to Purchasing
Continued leveraging of benefit is getting
harder. To meet the expectations of our
customers, we need a new integrated approach to
procurement that adopts the right approach in the
right circumstance
Tactical Procurement General category work
undertaken by category that utilises a range of
techniques (tenders, rebates, discounts, etc) to
generate savings from category areas. Strategic
Sourcing Larger, more encompassing strategic
projects that drives to fully understand the cost
structure of key products and markets to leverage
greater benefit across the full breadth of the
supply chain. Undertaken by Category
Leads. Service Re-Design Activities that are not
restricted to specific categories, but range
across a specific service delivery that is
usually cross-functional and multi-categorised.
These involve more radical process re-engineering
skills and approaches, have a wider service and
quality impact, and measures benefits more
holistically than just cash-releasing.
Service
Strategic
Tactical Procurement
Sourcing
Re-Design
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Contracting
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Contracting
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Contracting
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Purchase Directorate Reporting Hierarchy
HPC Dashboard
HPC 4Q
Other HPC Departmental Reporting Formats

• Region 4Q
• W.M NCL

ROI Focus Report

• ADB Trust Specific Reports
• S0 - 01

ADB Project Specific Database
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Saving Opportunity Report SO-1
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4Q Document - Example
1
3
2
4
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Action Plan
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The Gateway Process
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1
3
4
5
1
BASELINE
2
SELECT SOURCING STRATEGY
3
SELECT SUPPLIERS
4
IMPLEMENTATION
5
PERFORMANCE MANAGEMENT
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MOBILISATION

• Identify critical trusts and key stakeholders
• Engage key stakeholders
• Select appropriate OJEU procedure
• Start to identify / understand current sourcing
  group baseline
• Volumes
• Pricing
• Contracts
• Policies
• Specifications
• Forecasts
• Conduct supply market analysis
• Market segmentation
• Competitive situation
• Suppliers

• Assess current sourcing practices
• Strategically segment the sourcing group
• Business impact
• Supply market complexity
• Analyse alternative sourcing strategies
• Select appropriate sourcing approaches and
  techniques
• Calculate potential savings against established
  baseline

• Generate potential supplier master list
• Develop formal communication plan to inform
  suppliers of OJEU notice
• Post high-level OJEU notice
• Create Pre-Qualification Questionnaire (PQQ)
• Issue PQQ to suppliers signed up in SID (Supplier
  Information Database)
• Screen returned PQQs against developed evaluation
  criteria
• Establish supplier short list
• Completion of Baseline

• Establish formal engagement strategy
• Assess for e-auction or other tender route
• Conduct pre-tender clarifications
• Conduct ITT process utilising best practice frame
  agreement
• Analyse supplier responses against developed
  evaluation criteria/weightings
• Perform selection of supplier(s)
• Finalise agreement

• Create transition/ implementation plan
• Begin internal hand-over process into trusts
• Consider organisational implications and required
  changes
• Create new processes and procedures
• Monitor sourcing results
• Identify supplier issues and carry out
  mitigation actions

• Develop processes and procedures to track and
  measure savings and contract compliance
• Develop processes and procedures (KPIs) to
  continuously benchmark supplier performance
• Develop processes and procedures (KPIs) to
  monitor supply market conditions
• Conduct on-going category management

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The Gateway Process

• The Gateway Process
• Is an integral part of the Category Management
  approach
• Is the tool used by HPC to develop in-depth and
  expert knowledge of selected markets in the
  Category Management approach
• Is designed to ensure buy-in by Trusts
• Ensures that the team use a process which is
  robust and clear internally within HPC, and
  externally for stakeholders
• What does it look like?

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The Gateway Process
1

• Identify critical trusts and key stakeholders
• Engage key stakeholders
• Select appropriate OJEU procedure
• Start to identify / understand current sourcing
  group baseline
• Volumes
• Pricing
• Contracts
• Policies
• Specifications
• Forecasts
• Conduct supply market analysis
• Market segmentation
• Competitive situation
• Suppliers

Stage 1 ends with Commitment Gate 1 Commitment
Gate 1 requires internal authorisation within HPC
to move to the next stage of the project
1
MOBILISATION
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The Gateway Process
2
2
BASELINE

• Generate potential supplier master list
• Develop formal communication plan to inform
  suppliers of OJEU notice
• Post high-level OJEU notice
• Create Pre-Qualification Questionnaire (PQQ)
• Issue PQQ to suppliers signed up in SID (Supplier
  Information Database)
• Screen returned PQQs against developed evaluation
  criteria
• Establish supplier short list
• Completion of Baseline

Stage 2 ends with Commitment Gate 2 Commitment
Gate 2 signifies agreement by Trusts of the
Baseline information. This Commitment Gate
requires sign-off by stakeholders. Stakeholders
will be presented with detailed activity data in
respect of their Trust, and will be asked to
confirm that the data is correct. The data
included in the Baseline will be used in
development of an appropriate strategy and in
later savings calculations, and is therefore
essential
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The Gateway Process
3
3
SELECT SOURCING STRATEGY

• Assess current sourcing practices
• Strategically segment the sourcing group
• Business impact
• Supply market complexity
• Analyse alternative sourcing strategies
• Select appropriate sourcing approaches and
  techniques
• Calculate potential savings against established
  baseline

Stage 3 ends with Commitment Gate 3 Commitment
Gate 3 requires the selected sourcing strategy to
be authorised internally. Following internal
authorisation, the strategy document will be
presented to stakeholders with a recommendation
for external sign-off. Commitment Gate 3 is an
essential confirmation that stakeholders are
happy with the approach on the specified project.
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The Gateway Process
4

• Establish formal engagement strategy
• Assess for e-auction or other tender route
• Conduct pre-tender clarifications
• Conduct ITT process utilising best practice frame
  agreement
• Analyse supplier responses against developed
  evaluation criteria/weightings
• Perform selection of supplier(s)
• Finalise agreement

SELECT SUPPLIERS
4
Stage 4 ends with Commitment Gate 4 Commitment
Gate 4 asks the stakeholders to confirm that they
are happy for the contract to be awarded to the
recommended supplier
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The Gateway Process
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IMPLEMENTATION

• Create transition/ implementation plan
• Begin internal hand-over process into trusts
• Consider organisational implications and required
  changes
• Create new processes and procedures
• Monitor sourcing results
• Identify supplier issues and carry out
  mitigation actions

There is no Commitment Gate at Stage 5
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The Gateway Process
5
6

• Develop processes and procedures to track and
  measure savings and contract compliance
• Develop processes and procedures (KPIs) to
  continuously benchmark supplier performance
• Develop processes and procedures (KPIs) to
  monitor supply market conditions
• Conduct on-going category management

PERFORMANCE MANAGEMENT
Stage 6 includes Commitment Gate 5 At Commitment
Gate 5, the savings achieved via the project are
confirmed in the ADB system and are emailed to
Trusts for sign-off and return
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The Gateway Process

• Is the Gateway Process used on all occasions?
• Yes the same basic process will be followed for
  all projects
• The only thing that will differ is the extent of
  detail at some of the stages
• At the start of each project, it will be made
  clear to all Trusts exactly what they will be
  expected to sign-off, and at what point

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Medical Team successes in 07/08

•  
• ICDs and Pacemakers West Midlands North
  Central London 1.2m savings
•  
• Pharmacy - Establishment of West Midlands
  Strategic Pharmacy Pharmacy Network Group,
  delivering Actual 2.6m forecast 3.5m
• Pathology delivery a 1m savings across all sub
  categories
•  
• Orthotics Framework - innovative approach to this
  business aiming to streamline competitive
  processes and allowing optimisation of product
  costs
•  
• Intra Ocular Lenses - mini competitions in
  collaboration with NHSSC to achieve hub based
  savings
• Orthopaedic Implants successful delivery of 1m
  savings across consortium.

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Medical Team successes in 07/08

•  
•  
• Cardiac Stents - Delivery of London Procurement
  Project West Midlands 1M
• Hearing Aids - agreement of hub based pricing for
  HPC Trusts enhancing discounted national prices.
  saving circa 300,000pa (total amount claimed).
• Establishment of Paediatric Procurement Network
  across West Midlands North Central London
•  

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Medical Team plans for 08/09
Categories to be delivered in 08/09 Cardiology
-Coronary Stents   Orthopaedics - Elective
Orthopaedic implants Orthopaedics Trauma and
Spines   Orthotics -Orthotic mini competitions
against framework   Pathology- Framework for
Chemistry Analysers Framework for Haematology
Analysers   Enteral Feeds West Midlands
Contract Procedure packs standardisation
rationalisation Infection Control Strategic
review of category
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Corporate Team Successes

• Successes in 07/08
• Allied Health Professionals development of a
  Master Vendor Agreement to significantly reduce
  admin related to agency bookings.
• Leasing Advisors framework awarded to include
  reviews of lease portfolios and ongoing lease
  advice
• Laundry Services significant costs reductions
  realised via outsourcing of traditional in-house
  laundries
• Legal Services framework awarded to cover 9
  areas of law on a rate card basis. Further
  developments planned for menu based pricing
• Document Production award of framework for a
  fully managed document production service due Nov
  07
• SMS replacement of patient reminder letters
  operational in one major acute Trust. Roll-out
  imminent

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Corporate Team plans for 08/09

• Plans for 08/09
• IT hardware e-auction in conjunction with the OGC
  live for April 08
• Direct mail solution to deliver cost savings on
  patient appointment letters and other printed
  matter
• Voice recognition technology to take costs out of
  resource-intensive transcription
• Document storage framework encompassing options
  for simple off-site storage through to integrated
  scanning solutions
• Integrated frameworks for clinical, domestic and
  recyclable waste streams
• Patient Transport contract for West Midlands
  South to encompass eligibility criteria

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Commercial Team successes in 07/08

• UCLH Turnaround Project - 4m savings across
  trust
• UHNS Turnaround Project - 1.5M savings
• Divisional Teams Shropshire and Staffordshire -
  delivery of 900k savings, contract coverage of
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• Introduction of full 4Q reporting system to allow
  management of performance and monitor savings
  delivery of 27m across West Midlands North
  Central London

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Sustainable Procurement
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Sustainable Procurement
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• THE FUTURE
• Continue To Be At The Heart Of HPC
• Continue To Focus On Delivery
• Migrate From Purchasing To Commercial
  Directorate
• Broaden The Service Offering From The Function
• Continue To Be Relevant To Trusts Agendas
• Be Recognised As Adding Value And Not Just
  Savings
• Develop And Enhance The Skills Of The Team
• Better Exploit Technology
• Engage More Strategically With The Market

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Advantage West Midlands - Exercise
Questions / Discussions
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The Tendering Process

• Tendering for Public Contracts is
• Bureaucratic
• Process driven to ensure probity and an audit
  trail.
• 2. Legalistic
• Driven by EU Directives and UK Regulations
• 3. Slow
• Up to 9 months not unusual
• 4. Dangerous
• Risky to Buyers and Suppliers
• 5. Flawed
• Aimed at promoting competition and procedural
  conformity not necessarily Value for Money

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Legislation

• Government Procurement Agreement (World Trade
  Organisation)
• Treaty of Amsterdam (EU Treaty)
• EU Directives 2004/18/EC (Public) and 2004/17/EC
  (Utilities)
• European Court of Justice
• UK and Scottish Regulations

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Legislation

• EU Procurement Legislation
• Public Contract Directive 2004/18/EC
• Utilities Contract Directive 2004/17/EC
• UK Legislation
• Public Contracts Regulations 2006 (Statutory
  Instrument 2006 No 5)
• Public Contracts Regulations (Scotland) 2006 (SI
  2006 No 1)
• Utilities Contracts Regulations 2006 (SI 2006 No
  6)
• Utilities Contracts Regulations (Scotland) 2006
  (SI 2006 No 2)

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EU Thresholds
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• Background
• For the first time, all UK businesses will have
  access to public sector lower value procurement
  notices under 100,000 in the one place. The new
  Portal will enable all suppliers to
• Browse a database of public procurement contracts
  by product, service and by region
• Access a named contact for each advertised
  contract
• Publish their business profile online which can
  be accessed by all public sector buyers
• Register interest in particular categories of
  business and then receive e-mail alerts when
  those relevant opportunities are advertised.

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• Benefits
• The new portal will help buyers through
• Ability to advertised both local, regional and
  National low value tenders
• Better value for money through use of local
  supply chains
• More competitive tendering for low value gt100k
  contracts
• Review standardised PQQ for equal treatment

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EU Procedures

• Open (any undertaking may tender)
• Restricted (any undertaking can apply to be
  selected to be invited to tender)
• Negotiated with a call for competition and
  competitive dialogue (any undertaking can
  apply to be selected to participate)
• Accelerated restricted/negotiated
  (for
  use only in exceptional circumstances of urgency
  not of the contracting authoritys making)

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PIN Notices

• For supplies and services, a PIN is required to
  be issued as soon as possible after the start of
  the financial year for each category of potential
  purchases expected to exceed 750,000 (513,166)
  in that financial year, where a contracting
  authority intends to seek a reduction in the
  tender timescale.
• For works above the normal threshold, the PIN
  notice must be sent to the Commission or
  published on the authoritys Buyer Profile as
  soon as possible after the decision approving the
  planning of the works, where a contracting
  authority intends to seek a reduction in the
  tender timescale.
• If this is done the deadline for receipt of
  tenders can be reduced to 36 days in general, if
  necessary.
• Alternatively a contracting authority may publish
  a Buyer Profile notice and publish the full PIN
  on their own Buyer Profile site.

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Buyer Profile (Living PIN)

• A contracting authoritys Buyer Profile should
  include
• What we buy how we buy information
• Prior Information Notices
• Information on ongoing invitations to tender,
  scheduled purchases, contracts concluded,
  procedures cancelled.
• Useful general information, such as a contact
  point, a telephone and a fax number, a postal
  address and an email address.

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Buyer Profile Websites

• Dept. Culture, Media Sport http//dcms.g2b.info
• Scottish Ambulance http//www.scottishambulance.g2
  b.info/
• London Borough Barnet http//barnet.g2b.info/
• OFGEM http//ofgem.g2b.info/
• ESPO http//www.espo.org
• OJS http//ted.europa.eu/
• EC law and case-law http//europa.eu.int/eur-lex/
  en/
• BiP Solutions Ltd http//www.bipsolutions.com

105
EU Timescales

• Procedure Process Min Timescale
• Open Tender 52 days (36 days if PIN)
• Restricted Expression of Interest 37 days
• Tender 40 days (36 days if PIN)
• Restricted Accelerated Expression of Interest 15
  days
• Tender 10 days
• Negotiated Expression of Interest 37 days
• Negotiated Accelerated Expression of Interest 15
  days
• Competitive Dialogue Expression of Interest 37
  days

106
EU Timescales

• Expressions of Interest timescales and Tenders in
  the Open Procedure may be reduced by a further 7
  days (5 days accelerated) where contract notices
  have been sent by XML to the OJEU
• Tender timescales may be reduced by a further 5
  days, excluding accelerated notices, where full
  and unrestricted access to contract documents is
  provided.

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Minimum Timescales
Open procedure 12 days 40 days 52 days
(36 days following full PIN/Buyer Profile
notice) - 7 days for electronic
notice - 5 days for contract
documents on internet Minimum 40 days
from dispatch of contract notice (24 days
following full PIN/Buyer Profile notice)
108
Minimum Timescales
Selective procedures (restricted, negotiated,
comp. dialogue) Requests to Participate 37 days
from dispatch of notice (15 days if accelerated)
- 7 days for electronic notice (
-5 days if accelerated) 30 days
from dispatch of notice (net 10 days if
accelerated) Tenders in restricted procedures
40 days from ITT (10 days if
accelerated, 36 days following a PIN/Buyer
Profile notice) - 5 days if contract
documents on internet 35 days from ITT
(10 days if accelerated, 31 days following a
PIN/Buyer Profile notice)
109
Supplier Lists

• Why Use Accessible information on potential
  suppliers of all sizes. Saves time in identifying
  potential tenderers
• Why Not Information held quickly out of date,
  expensive to manage, difficult to update cannot
  be used as a sole source for high-value (OJEU)
  tenders
• Solution Electronic supplier information
  database, where the data is updated by the
  supplier

110
Electronic Supplier Lists

• Available online
• Create bespoke lists
• Create tender response lists
• Identify potential suppliers
• Data input and management is down to supplier.
• Suppliers required to update at regular intervals.

111

•  

Select Accredit
A New National Supplier Pre-Qualification
Service BiP Select lets a supplier, or potential
supplier to the public sector, choose the
pre-qualification route that suits you. Whether
you decide to Certify or Accredit your
organisation, your details will be made available
to all BiP Select and Constructionline registered
buyers. BiP Select gives the supplier, two
options for pre-qualification Select Certify
Self-certify by completing online
questionnaire Select Accredit Apply for third
party accreditation.
Assessment conducted by Capita, expert providers
of the BERR backed
Constructionline service,
and to the same
exacting standards.
112
Select Accredit

• Select Accredit Pre-Qualification Service
• Supplier Benefits
• Increased visibility to all BiP Select and
  Constructionline buyers (Over 8000)
• Option of Certify which is free of charge
• Increased credibility
• Recognition as an accredited supplier to the
  public sector
• Ability to see when buyers have viewed your
  details
• Improved efficiency through a single annual
  assessment for all tenders to buyers that are
  using Select Accredit
• No duplication of pre-qualification information
  leading to reduced administration
  
• A full debrief is given if application is
  unsuccessful

113
Competitive Dialogue

• Definition
• Competitive Dialogue is a procedure in which
  any economic operator may request to participate
  and whereby the contracting authority conducts a
  dialogue with the candidates admitted to the
  procedure, with the aim of developing one or more
  suitable alternatives capable of meeting its
  requirements, and on the basis of which the
  chosen candidates are invited to tender

114
Competitive Dialogue

• New procedure where the award criterion is most
  economically advantageous tender
• For use for particularly complex contracts
• where an authority considers that the open or
  restricted procedure will not allow the award of
  the contract
• based on its inability to define the technical,
  financial or contractual solutions to meet its
  needs

115
Framework Agreements

• Definition
• A framework agreement is an agreement between
  one or more contracting authorities and one or
  more economic operators, the purpose of which is
  to establish the terms governing contracts to be
  awarded during a given period, in particular with
  regard to price and, where appropriate, the
  quantity envisaged.

116
Framework Agreements

• Framework agreements are used, in the case of
  repetitive purchases, to choose certain economic
  operators who, when the time comes, will be able
  to meet the purchaser's needs.
• Contrary to the wildly held belief, Framework
  agreement between the contracting authority and
  suppliers do not, at present, exempt the
  contracting authority from the obligation to
  comply with the procedures, as per the Directive,
  for each contract awarded.
• The UK and Scottish regulations make allowance
  for the use of such agreements but only subject
  to strict rules and procedures.

117
Framework Agreements

• For every contract to be awarded, the contracting
  authority should, in writing, invite all the
  undertakings capable of meeting the specific
  requirement to complete their tenders for it.
• The contracting authority must fix a time limit
  for tenders which is sufficiently long, taking
  into account factors such as the complexity of
  the subject of the contract and the time needed
  to send in tenders.
• The tenders must be submitted in writing and
  their content must remain confidential until the
  deadline for replies has expired.
• The contracting authority must award the contract
  to the tenderer who has submitted the best tender
  on the basis of the award criteria set out in the
  framework agreement.
• In each case in writing will include by
  electronic means.
• An auction can be held.

118
Electronic Process

• Electronic means are put on a par with
  traditional means of communication and
  information exchange.
• As far as possible, the means and technology
  chosen should be compatible with the technologies
  used in other Member States.
• Contracting authorities may make use of
  electronic purchasing techniques, providing such
  use complies
• with the rules drawn up under this Directive and
• the principles of equal treatment,
  non-discrimination and transparency.

119
e-Auctions

• Definition
• An electronic auction is a repetitive process
  involving an electronic device for the
  presentation of new prices, revised downwards,
  and/or new values concerning certain elements of
  tenders, which occurs, after an initial full
  evaluation of the tenders, enabling them to be
  ranked using automatic evaluation methods.

120
Electronic Auctions
Open or restricted procedures stating use of an
auction
-








Open, restricted or competitive dialogue
procedures have been implemented but cannot be
brought to a satisfactory conclusion and the
negotiated route with a contract notice is adopted




Circumstances when an electronic auction may be
used




-
Mini competition within a framework if e-auctions
were stated in the contract notice

Competition for contracts to be awarded through a
dynamic purchasing system if stated in the
contract notice.
121
Electronic Auctions
Expressions of interest invited in accordance
with the selected procedure. Contract notice
states that an electronic auction will be used
Contract awarded on lowest price or most
economically advantageous offer as stated in the
contract notice or specifications. In the case of
the latter, quality features of the tender,
where included in the auction phase, must be
capable of being expressed as a single value
within the assessment formula. The initial
evaluation is combined with changes to values
subject to auction to identify the winning bid
-









Full initial evaluation of tenders using the
award criteria specified in the contract notice
or tender documents. Admissible bids proceed to
the auction phase.



Using an electronic auction




-
Invitations to participate, communicated
electronically, include the initial evaluation
(if based on MEAT), the assessment formula,
details of process and conditions of bidding
Close the auction at the time and date specified,
when prices/values submitted do not meet minimum
difference criteria or when specified phases are
complete

Conduct the auction
122
Dynamic Purchasing Systems

• Definition
• A dynamic purchasing system is a completely
  electronic process for making commonly used
  purchases, the characteristics of which, as
  generally available on the market, meet the
  requirements of the contracting authority, which
  is limited in duration and open throughout its
  validity to any economic operator which satisfies
  the selection criteria and has submitted an
  indicative tender that complies with the
  specification

123
Dynamic Purchasing Systems
Publish a further simplified notice advertising
the requirement
The open procedure must be used and the system
must be advertised in the Official Journal
through a contract notice providing the web site
at which tender documents may be consulted
-








Give 15 days for responses to be submitted



When a specific requirement arises for the
products covered by the system, the purchaser
must conduct the following process

Invite final tenders from all admitted suppliers
once any new suppliers responding to the
simplified notice have also been evaluated

Suppliers may at any time during the systems
operation submit Indicative Bids for the
product or service required and may be admitted
to the system or not on the basis of this
submission. Bids must usually be assessed within
15 days.


-
Award must be based on the criteria stated in the
contract notice which may be refined for the
specific bid (call off)
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THANK YOUFOR ATTENDING
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