NHS Greater Glasgow And Clyde - Achieving Good Equality Outcomes Gordon Beattie Head of Procurement

Who Are We? NHS Greater Glasgow and Clyde is the largest health authority in the UK We purchase a wide range of goods and services from needles and syringes to Healthy Living Centres and Community Engagement Our non-pay purchasing spend is ~£400m per annum Central procurement team based at Glasgow Royal Infirmary We have a dedicated section of our team who procure ‘social’ services

Who we are - NHSGG&C as a local investor As a Local Investor NHSGGC spends approximately £400m per annum on bought in goods and services. Working with local business and enterprises servicing GG&C’s needs : from local (GCC area) suppliers from SME’s %30% 31%50%

How it works - Commissioning and Procurement The report Commissioning and Procurement in the Public and Third Sectors – A framework for action in the north east provides the following definition: Commissioning – “the cycle of assessing the needs of people in an area, designing and then securing an appropriate service” Procurement – “The specific aspects of the commissioning cycle that focus on the process of buying services, from initial advertising through to appropriate contract arrangements”

How it Works - GG&C Working With Social Enterprises Access to NHS GG&C Opportunities –GG&C procurement team advertise all tenders over the value of £50k – Best Value not lowest price –Seek best solutions against budgets –Contracts awarded against quality, service and value criteria –Outcome based tenders to encourage innovation and allow alternative solutions to be presented

How it Works - Why Tender? Legislative requirement to Tender –EU Directive –Public Contracts (Scotland) Regulations –NHS GG&C Standing Financial Instructions Agent of change / Ability to innovate Fair, transparent and auditable process Contract Management and Key Performance Indicators (KPI’s) Expectations, roles and responsibilities defined

Equality and Diversity - The Procurement Process Strategic Context Equality and Diversity requirements for the Health Board are set out in the NHSGG&C Equality Scheme ( ) and in legislation via the new Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 which now confers the following specific duty on public bodies: Duty to consider award criteria and conditions in relation to public procurement

Strategy Assessment Stage Procurement Officers need to consider the nature of the goods or services being procured and consider the propensity to be at risk of breaching the Equality Act The following boston box should be used as initial guidance: Value £ High Low E&D Risk of Breech Implement Level 1 Implement Level 3 Mitigation Implement Level 2 Mitigation Equality and Diversity - The Procurement Process

Mitigation Strategies: Level 1: the risk of breech is low.  Ensure terms of conditions include the requirements in law regarding the Equality Act Level 2: the risk is high although the value is low.  A formal Pre Qualification process should ensure suppliers have the capacity to meet the E&D requirements  Officers should also consider including E&D requirements in the specification (e.g. no sexually exploitative advertising etc). This will apply to procurements subject to formal tender by the SFI’s. Lower value procurements at high risk will be assessed on a case-by-case basis. Level 3: there is a high risk of breech and the value is high (typically over the EU Procurement thresholds).  All Level 2 plus  the contract agreements must include specific performance clauses with regards to E&D  E&D should form part of the award scoring criteria.

Equality and Diversity - The Procurement Process Create awareness of needs with suppliers (advertising, meet the buyer events etc). Consider whether E&D issues are relevant to the subject of the contract early in process of identifying needs Make requirements clear and easily understood in specifications Advertise requirement adequately (via OJEU / Public Sector Advertising Portal / NHSGGC internet Procurement Pages) Criteria for selecting bidders and PreQualification Questions (PQQs) must be relevant to the subject of the contract. Award criteria must be clear at the Invitation to Tender (ITT) stage. Again any social benefit criteria must be linked to the subject of the contract. Post Award conditions of contract should set a context for ensuring the E&D clause requirements are achieved.

Tender Specification Stage - For Level 3 rated procurements  the following areas of the specification should be clearly established :  Compliance with the Equality Act  Equality Management Systems to track and report on performance.  Continuous improvement requirements post award including open book audits.  Disclosure Scotland Protecting Vulnerable Groups (PVG) disclosures.  Proposals for ongoing delivery of Equality and Diversity Systems and Training to the extent relevant to the Contract.  Proposals for Quality Assurance of the Service to be delivered under the Contract. The above requirements should form part of the Award Criteria. The following additional terms of the contract should be included as part of the ITT documentation:  Early termination clauses (no fault termination with 30days notice)  Entitlement for the authority to terminate immediately if the contractor is convicted of specified offences at any time during the term of the contract  Specific performance KPI’s to be provided by contractor  Consumer Surveys. Procurements rated as Level 2 should be assessed on a case-by-case basis whether such additional requirements should be included. Equality and Diversity - The Procurement Process

Post Tender Stage - for Level 3 rated procurements The following enhanced contract management should be considered for inclusion in the terms of the contract:  Specific performance KPI’s to be provided by contractor.  Enhanced Supplier Management (regular formal meetings)  Continuous Improvement Audits.  Consumer surveys to assess delivery performance. Failure to provide such information and/or poor outcomes would be considered under defect remedies including early termination.

NHS GG&C Procurement How it Works – Tendering Key Learning's Procurement legislation –Prescriptive – Fair, Transparent, Non-Discriminatory Seek Help –Guidance is available from many organisations Be prepared –Read tender documentation –Plan to allow time to meet all of the dates Ask questions/research –The Public Contracts Scotland portal has functionality to ask questions related to tender. All answers are posted to everyone who has registered. –Each stage of the process states the scoring methodology ensuring information is given to allow scoring against each of the criteria. 13

NHS GG&C Procurement Be relevant –Answer the question relating it to tender opportunity –Ensure the information provided is clearly related to tender and question asked Be accurate –Ensure that your tender response is accurate –Ensure documents are edited correctly References –When providing referees ensure that they are able and willing to provide a reference and that they will be available to do so. Meet deadlines Seek feedback from the tender process –You should receive constructive feedback to help improve your performance in future competitions 14 How it Works – Tendering Key Learning's

NHS GG&C Procurement Questions? Further information: – Contacts: –Sarah WalkerCommodity Officer –Rebecca BurnsCommodity Manager –Colin SmithCommodity Team Manager –Gordon BeattieHead of Procurement 15