The National Framework Agreement for Telecare

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• The National Framework Agreement for Telecare
• Presentation by
• Paddy Howlin
• Category Manager - Mobility and Telecare
• Presentation to Welsh Learning and Improvement
  Network
• Monday 30 October 2006 - Cardiff

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The Analogy
3
The Analogy
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Overview

• Background and origins of the national framework
  agreement
• Scope of the telecare national framework
  agreement and the participating suppliers
• How the NFA operates and how to access
• Benefits and savings opportunities
• Where are we now?
• Future developments

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Overview of NHS PASA

• The NHS Purchasing and Supply Agency (NHS PASA)
  
• formerly NHS Supplies
• formed on 1 April 2000
• an executive agency of the Department of Health
• policy lead on procurement
• Offices in Chester, Reading, Normanton and
  Sheffield
• The Agencys Aim
• Modernise and improve the performance of the NHS
  purchasing and supply system to
• become the centre of expertise, knowledge and
  excellence on matters of purchasing and
• supply for the NHS for the benefit of patients
  and the public

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Telecare Procurement landscape November 2005

• Prior to NHS PASA developing the Telecare NFA
  Part A the procurement landscape
• was as follows
• No national procurement or sourcing solution in
  place for equipment and services leading to
  concern on how organisations would make best and
  efficient use of PTG funding (English equivalent
  to the Telecare Capital Grant)
• No public sector wide market management
• Little or no management information available on
  spend or volumes of purchasing across the public
  sector
• No understanding on the true value of the market
  in England (Wales, Scotland, Northern Ireland)
• No understanding on the purchasing patterns of
  the public sector
• No national pricing structure across the country
  leading to inconsistency and difficulty in
  recognising competitive pricing and measuring
  best value
• No co-ordination of the public sector market to
  allow the development of new and innovative
  products/services or entrants into the market

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Background and origins of the Telecare NFA

• The NHS PASA Telecare National Framework
  Agreement (NFA) was established
• to
• Support the issue of the 80m Preventative
  Technology (PT) Grant announced in July 2004
• Support DH vision for the development of Telecare
  services Building Telecare in England July
  2005
• Delivery of policy through procurement
• Our health, our care, our say- White Paper
• Contribute to wider health, housing and social
  care agenda i.e. National Service Frameworks, NHS
  System reform, new vision for adult social care
• Gershon Efficiency Programme
• Mechanism to procure telecare effectively and
  efficiently during and post PT Grant
• Develop a single public sector market place for
  industry

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Organisations who can access Telecare NFA Part A

• The following organisations can access the NFA
  Part A

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Scope of Products on NFA Part A

• The following 11 product modalities form the
  basis of the equipment element
• of the NFA Part A

based on Appraisal of the scope of Assistive
Technologies - November 2005
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Scope of Services

• The following service elements are included
  within the scope of NFA
• Part A
• Installation Services - installation of
  equipment, training, battery replacement and
  de-installation
• Maintenance Services including standard repair,
  preventative and planned maintenance
• Response Services including control
  centre/monitoring and response services

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NFA Suppliers and range of services
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Equipment Modalities
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Geographical Coverage
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Sub-contracting and strategic alliances via NFA
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How the framework operates

• Users of the NFA can select any of the suppliers
  that will help deliver local strategies/plans
• Call off orders and service level arrangements
  are agreed against the NFA between users and
  suppliers
• Users of the NFA will still be required to
  undertake duty of care/risk assessments on
  equipment and services procured from the NFA to
  ensure their suitability and efficacy
• Further leverage and savings opportunities can be
  achieved by developing collaborative/joined up
  procurement between organisations via discounts
  provided by suppliers
• List of telecare products, equipment and services
  is available to users of the NFA via the NHS
  E-Catalogue (NHS-E-cat)

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Benefits to the users of the NFA (1)

• Transparency consistent pricing, with a
  national pricing structure established
• Efficiency (1) NFA established so Local
  Authorities, Health, Housing etc do not need to
  undertake their own EU procurement/sourcing
  activity
• Efficiency (2) - Supports the once only
  principal and ensure that suppliers within the
  market do not need to increase product prices to
  cover future overhead costs for responding to
  local tenders

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The tempting thing to do.

• Benchmark against the NFA terms and attempt to
  get even greater
• Prices and/or discounts
• Q What happens if we attempt to get improved
  terms from NFA suppliers?
• A If you renegotiate the NFA terms, you are not
  bound by the terms or
• OJEU process you are negotiating a
  separate deal.
• Q We can undertake our own tendering process?
• A Yes you can, however you need to assess if the
  aggregated spend during the life-
• time of the contract is in excess of EU
  public procurement regulations. You may be
• legally required to undertake a full OJEU
  tender.
• Q If we can make a saving compared to the PASA
  agreement, we can justify the
• time and resource required?
• A It may be possible to secure a saving on
  products and services, however compare
• the saving made compared with the cost of
  undertaking this work? Are savings
• really being generated and are projects
  being effectively delivered?

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Benefits to the users of the NFA (1)

• Transparency consistent pricing, with a
  national pricing structure established
• Efficiency (1) NFA established so Local
  Authorities, Health, Housing etc do not need to
  undertake their own EU procurement/sourcing
  activity
• Efficiency (2) - Supports the once only
  principal and ensure that suppliers within the
  market do not need to increase product prices to
  cover future overhead costs for responding to
  local tenders

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Key steps and costs involved in the tendering
process
Costs
Tendering Process
Develop Business Case
Notify short-listed suppliers
Supplier presentations
Staff time 162.5 man days
Establish project team
Consultation
Final scoring
Resource/staff costs
Develop Specification
Consultation
Estimated cost 50,000
Research market and pricing comparison
Develop pricing documentation
Recommendation Report
Costs not considered
Commence tendering process (OJEU ad)
Pre-tender meeting
Project Sign off
Administration?
Finalise agreements
Respond to queries
Manage EOI returns
Opportunity Costs?
Implementation meetings with successful bidders
Agree evaluation criteria
Pre qualification questionnaires
Consultancy/external resources?
Issue Tenders
Pre qualification evaluation
Monitoring Compliance?
De-brief unsuccessful bidders
Evaluate Bids
De-brief suppliers
Post offer clarification
Costs to industry?
Audit
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Cost of tendering/processes within the public
sector

• Numbers of local organisations that could tender
  for telecare equipment and/or relating service (_at_
  50,000 per tender)
• - 150 Social Services Authorities 7.5m
• - 150 Primary Care Trusts 7.5m
• - 238 District councils within counties
  11.9m
• Cost 26.9m before any equipment or services
  are bought!
• Figures do not include
• - 270 Telecare/community alarm services
• - 138 Community equipment services
• - Housing associations, independent and
  voluntary organisations
• Figures could be far higher but these costs
  are negated by using the NFA

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Local tendering savings opportunities in
relation to TCG

• Based on average TCG allocation of 405,454.54
  (8.9m/22 LAs) 100 Equipment

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Benefits to the users of the NFA (1)

• Transparency consistent pricing, with a
  national pricing structure established
• Efficiency (1) NFA established so Local
  Authorities, Health, Housing etc do not need to
  undertake their own EU procurement/sourcing
  activity
• Efficiency (2) - Supports the once only
  principal and ensure that suppliers within the
  market do not need to increase product prices to
  cover future overhead costs for responding to
  local tenders

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Costs to industry in responding to local tenders
Costs
Tendering Process
Develop Business Case
Notify short-listed suppliers
Supplier presentations
Preparation/bidding
Staff resources
Establish project team
Consultation
Final scoring
Administration
Develop Specification
Consultation
Research market and pricing comparison
Additional marketing
Develop pricing documentation
Recommendation Report
Opportunity Costs
Commence tendering process (OJEU ad)
Pre-tender meeting
Project Sign off
Costs are eventually reclaimed in the cost of
products/services
Finalise agreements
Respond to queries
Manage EOI returns
Implementation meetings with successful bidders
Agree evaluation criteria
Pre qualification questionnaires
Issue Tenders
Pre qualification evaluation
De-brief unsuccessful bidders
Evaluate Bids
NFA will negate this
De-brief suppliers
Post offer clarification
Audit
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Benefits to the users of the NFA (2)

• Savings by collating public sector buying
  power, improved terms and pricing has been
  achieved (bottom line average savings of 13.9)
• Further savings opportunities are available via
  commitment discounts and price breaks negotiated
  via the NFA (1,600 product lines)
• Product and service a comprehensive range of
  products and services available via the NFA
• Supporting existing systems and innovative
  solutions
• No charges there are no user costs applicable
  for using the NFA
• Avoid delays - in implementing the Telecare
  Capital Grant, ensuring users and those in need
  of telecare/telehealth benefit quickly

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Benefits Tracking/Sales Data

• A significant benefit of the development of the
  NFA, is that it requires all participating
  suppliers to provide monthly sales information to
  NHS PASA
• Information provided by suppliers is fed in to
  the NHS PASA Benefits Tracking Tool (BTT) and
  will help the Agency measure the impact and
  benefits of the NFA
• Sales data will benefit the Welsh Assembly,
  suppliers and users of the NFA by
• Monitoring use of TCG funding assess who is
  utilising the TCG
• Assess the impact of TCG funding understand the
  level/type of equipment being invested in
• Assess funding outside of TCG on developing
  Telecare
• Help influence and guide future Welsh Assembly
  spending/investment in this market
• Understand market demand help inform and
  develop market capacity and capability
• Develop future procurement/sourcing strategy
• Inform future policy direction

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How will the NFA make a difference?

• Allows projects to focus on delivery one key
  part of the process has been delivered can now
  focus on the wide range of other challenges
• Understanding of market and supplier capability
• Mechanism to introduce new products/solutions to
  market effective market management, understand
  trends and potential new solutions
• Monthly BTT/Sales Data returns will provide key
  information on how and what the public sector is
  procuring within Telecare assist in
  understanding and developing the market
• BTT information will be a key measurement to see
  how TCG is being spent
• The NFA can be used to support and benefit other
  Telecare projects not just those funded by TCG

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Telecare Procurement landscape 1 year on

• NFA Part A and the sourcing strategy adopted over
  the past 12 months has contributed to
• The development of a procurement solution in
  place for equipment and services (contributing
  to the effective use of the TCG)
• The introduction of public sector wide market
  management and development
• Receiving key management information and data
  which will access the spend and volumes of
  purchasing across the public sector (and monitor
  the use of the TCG)
• Gaining a more accurate understanding of the true
  value of the market in Wales
• Gaining a more accurate understanding of the
  purchasing patterns of the public sector
• The introduction of a national pricing structure
  across the country leading to greater
  consistency, recognising competitive pricing and
  ensuring best value
• The development of a single public sector market
  providing a mechanism for the development of
  new and innovative products/services and entrants
  into the market

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How can my organisation benefit from the NFA?

• Public sector organisations should have
  automatically been transferred over to NHS PASA
  NFA terms by the participating NFA suppliers
  from 30 June 2006
• Need to ensure that you are receiving the correct
  terms from your suppliers
• Register on the NHS E-Catalogue (NHS E-Cat)
• Ensure all telecare purchase orders include the
  PASA reference number
• Download the NHS PASA Telecare Information Pack
  to understand the full range of suppliers,
  products and service solutions available from the
  NFA
• Work collaboratively between organisations/geograp
  hically to secure greater discounts based on
  collating regional/cross sector buying power and
  leverage
• if an existing deal that has been through the
  relevant procurement processes (i.e OJEU,
  competitive tender/constable process)
• and provides improved pricing to the PASA NFA,
  then this will remain unaltered until the end of
  this agreement

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Key Steps to take after today

• Register on NHS E-cat - understand range of
  products, services, prices and discount available
  
• Download the NFA Information Pack this will
  provide you with a detailed overview of the NFA,
  how it operates, what it includes and
  details/profiles of all 15 suppliers
• Ensure you are receiving all of the benefits and
  pricing
• Bookmark www.pasa.nhs.uk/eat/telecare.stm
• Regularly view the PASA Telecare website this
  is updated weekly and will provide up to date
  information on the development of the NFA over
  the coming weeks and months
• Contact PASA if you have any questions or
  queries/feedback on the effectiveness of the
  agreement let us know of good news stories as
  well as any problems

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and that Analogy?

• Weve travelled a long way, very quickly
• The NFA is a significant platform, contributing
  to the vision of the Welsh Assembly and delivery
  of telecare in Wales
• It is key that both users and suppliers channel
  telecare procurement through the NFA to maintain
  the momentum and sustainable development of
  telecare, during and post TCG
• There is still further to travel before we get to
  the end of the journey

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Future Developments

• To maintain the momentum, the following projects
  are ongoing or being
• developed in 2007
• Ongoing discussions and work with telecare groups
  and consortia to get maximum benefit from the NFA
  
• Working with the participating NFA suppliers to
  introduce new products, services and strategic
  partners to the agreement
• Developing compliance, awareness and uptake of
  the NFA with potential users
• Engagement with key telecare decision makers at a
  regional level via the development of a Strategic
  Telecare Consultation Group
• - develop and evolve the sourcing strategy
• - develop compliance and support for the NFA
• - develop telecare procurement jointly
  with Social Care, Health and Housing

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• By Procuring telecare effectively, the people who
  need the equipment and services will benefit
  quickly and effectively making best use of the
  resource and funding being provided by the Welsh
  Assembly
• We cannot lose this focus!

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Further Information

• Contact
• Paddy Howlin Category Manager
• Tel [phone]
• E Mail paddy.howlin_at_pasa.nhs.uk
• Andy Gudgeon Category Specialist
• Tel [phone]
• E Mail andy.gudgeon_at_pasa.nhs.uk
• Or via the NHS PASA Website www.pasa.nhs.uk/teleca
  re/