1. NHS Commercial Solutions Voluntary Sector Briefing All About Procurement With DGS CCG Andy Glenister – Head of Procurement 20 November 2014

2. What we will cover How procurement works within the CCG What are the rules of submitting Where the procurement lists are made available Questions 2

3. Commissioning plan Operating plan Market management Procurement Implementation Contract management Corporate objectives Provider engagement Service delivery Procurement aims to make the link between a Commissioner’s health improvement objectives and capable providers to ensure effective delivery CCG Context

4. OutcomesOutcomes Service levelsService levels StandardsStandards ObjectivesObjectives Benefits and RisksBenefits and Risks CostsCosts Corporate goals Service needs Why? What? Commissioning an output based service Business case Service specification GovernanceGovernance Clinical safetyClinical safety Service deliveryService delivery WorkforceWorkforce EquipmentEquipment InfrastructureInfrastructure Delivery processes Delivery resources How? With? Getting the right solution from the right service provider Tender documents Procurement turns a service requirement into an assured service delivery CCG Context

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

6. 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. There is no one-size-fits-all approach to realising the objective of the Regulations. The Regulations do not generally include prescriptive rules on how commissioners must carry out their procurement activities. Extract from Substantive Guidance published by Monitor in December 2013 CCG Context - Regulations

7. 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

8. 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

9. 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 - Regulations

10. 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

11. ActivitiesPurpose Implement Obtain bids Obtain preferred bidder Prepare Initiation, planning, approval Transition Obtain detailed bids - Tender Review bids and select - Evaluation Obtain contract Negotiate and finalise contract - Contracting Obtain suppliers Identify potential providers - Shortlist. Prequalify Conclude Notification and recording CCG Context – Process

12. Documents CCG Context - Process Purpose Implement Obtain bids Obtain preferred bidder Prepare Obtain contract Obtain suppliers Conclude Advertisement. Service outline. Process. Qualification questions. Response template Specification. Process. Criteria. Solution questions. Response template. Notification letter. Feedback. Standard contract. All bid documents are electronic Web-based e-procurement portal commercialsolutions.bravosolution.co.uk Uses Bravo web service for interaction

13. 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

14. 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 - Process

15. DurationPurpose Obtain preferred bidder Prepare From 2 to 6 weeks Around 9 weeks. Evaluate (4), moderate (1), clarify (1), finalise (1), approve (2) Obtain contract Around 3 weeks Obtain suppliers Obtain bids Minimum 4 weeks Conclude 1 week CCG Context - Timeline Timeline varies according to scale and complexity Timeline depends on Scale and complexity of service Number of bidders Governance process Example is for a typical small AQP service

16. How will the solution operate to achieve the outcomes? How is the solution enabled and managed overall? What is the overall value of the solution? How will the solution ensure clinical quality and patient safety? How will the solution appear to patients? 5 perspectives of evaluation Bids are generally evaluated against a clearly defined set of criteria CCG Context - Evaluation

17. How will the solution operate to achieve the outcomes? How is the solution enabled and managed overall? What is the overall value of the solution? How will the solution ensure clinical quality and patient safety? How will the solution appear to patients? 5 perspectives of evaluation Criteria have relative weights in the overall evaluation 30% 20%10% 30% CCG Context - Evaluation

18. Service specification Evaluation criteria Evaluation questions Evaluation questions relate to the specification and the evaluation criteria CCG Context - Evaluation GovernanceGovernance Clinical safetyClinical safety Service deliveryService delivery WorkforceWorkforce EquipmentEquipment InfrastructureInfrastructure Delivery processes Delivery resources How? With? Getting the right solution from the right service provider Tender documents

19. Three things to do Keep control Understand the process Convince the buyer Qualifications required Evaluation criteria and weightings Deliverables and formats Timescales Plan, prepare, and resource Match the burden to the benefit Focus on quality not quantity Follow the process 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

20. Three things to avoid Fail to convince the buyer Deviate from the process Underestimate Miss a deadline Fail a deliverable – missing, incomplete, wrong format 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 Rules of bidding

21. 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 – Free-text, location, value, buyer, code Alert – Automatic notification by email 21 Opportunities

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24. What we will cover How procurement works within the CCG What are the rules of submitting Where the procurement lists are made available Questions 24© NHS Commercial Solutions 2013