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NHS Wirral Procurement of Healthcare Services Valerie Attwood

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NHS Wirral Procurement of Healthcare Services Valerie Attwood Divisional Head of Procurement and Contracting. Background.

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NHS Wirral

Procurement of Healthcare Services

Valerie Attwood

Divisional Head of Procurement and Contracting

  • The purchase of ALL goods and services in the public sector is subject to EU regulations (2004) and UK law (2006) - Different requirements apply to different products and services.
  • Key competency for World Class Commissioning
  • DoH PCT Procurement Guide (Summer 2008)
  • PRCC Dec 07/updated Dec 08
  • Supply 2 Health web portal launched Sep 08
regulations and thresholds
Regulations and thresholds

Values are aggregated

EU legal requirements to tender

  • £ 101,323 for supplies and Part A and services
  • £156,442 for Part B services
  • £3,927,260 for works / building projects

Local PCT requirements – example of local SFI’s

  • £10k and up to £90k - three written competitive quotes for goods and part A services
  • Full compliance with the EU procurement directives for supplies purchases over £90,319
  • Full compliance with the EU procurement directives for works projects over £3,497,313 – however local tender req. over £125k
  • Healthcare contracts, subject to the PCT Healthcare Procurement Strategy not SFI’s (Part B service)
assessment criteria to consider

Decisions on services you decide not to market test need to be recorded and notified to the SHA

Assessment criteria to consider

Estimated value of the contract

Government policy on protected services

Level of market interest



Is there a reason that competition is not appropriate in this circumstance

other possible options
Other possible options
  • Commission / purchase more of the same activity from existing providers
  • Use existing contracts to deliver a service improvement
  • ‘Flex’ existing contracts
  • Utilise the extended choice / free choice network
  • New formal contract
    • AWP / Tender
scenario examples
Scenario examples
  • Each table has a scenario
  • 5 minutes to discuss what you might do.
if you decide to go to competition
If you decide to go to competition
  • AWP exercise : 8 – 10 weeks
  • EU tender minimum 4 months start to finish, bigger contracts 6 – 12 months – need detailed specification
  • Framework contracts – do it once, then just mini comp exercises for next 3 years
new formal contract via competition
New formal contract via competition
  • Any Willing Provider
    • Intended to provide plurality of providers
    • Can be an ‘open’ or ‘managed’ process
    • No guarantee of activity or finance
    • Can be undertaken in 8 - 10 weeks
    • Template for accreditation included



PCT identifies an unmet need for a distinct service and produces a specification

Approach from third party to provide a local service

Assess strategic fit of Initial proposal and service spec

Once spec approved advertise service on ‘Supply 2 Health’

Undertake accreditation with interested providers and confirm compliance with spec.

If approved – undertake accreditation with provider

Confirmation of compliance and summary accreditation submitted to approvals committee

Final proposal + summary accreditation to approvals committee

Produce final contract based on one of the DH templates

Produce final contract based on one of the DH templates

Ongoing management and re-accreditation (min every 3 yrs)

Ongoing management and re-accreditation (min every 3 yrs)

new formal contract via competition1
New formal contract via competition

Tender exercise

  • Can result in sole or multiple providers
  • May be a minimum contract guarantee or framework
  • Average duration between 6 and 12 months

Representatives Clinical, Finance, Procurement, HR, E+D, Estates

Gain approval for competitive tender

Establish the team and project plan

Place advert


40 days

Complete specification

PQQ with interested providers

2-4 wks

Typical tender process

Evaluate PQQs and shortlist


Undertake bidder presentation day

Issue ITT to shortlisted providers

Involve procurement team

40 days

Tender Clarification

10 days

Evaluate offers

20 days

Undertake bidder presentations

Award contract

10 day standstill

Plan around board / committees

governance of process
Governance of process
  • Need standard policy on membership required for independent committees / evaluation teams for AWP and tender exercises
  • Need clear conflict of interest policy to avoid or manage risk of challenge

Ask for a clear project plan for implementation from the provider – make sure you agree

Define roles and responsibilities for key tasks

Consider the ‘critical path’

Have regular progress reviews with the provider

Plan a contract / provider launch

Monitor performance against KPI’s and take corrective action where necessary

risks of getting it wrong
Risks of getting it wrong
  • Increasing risk of legal challenge
    • Local council and children’s playgrounds
  • Focus of Co-operation and Competition panel
    • Restricted tenders for NHS in South East
  • Introduction of EU Remedies Directive in Dec 2009
    • Requirement to weight award criteria
    • Disclose scores to all bidders
    • Publish award notice early – ideally within standstill period
    • Can now stop contracts upto 6 months after award
other key skills
Other key skills
  • Contracting – Carole Hodgkinson this afternoon
    • Be clear and concise
    • Don’t allow ‘wriggle room’
  • Negotiation
phases in negotiation
Phases in Negotiation
  • Preparation
    • info gathering, know the market, supply/demand, BATNA
  • Opening
    • Each party presents their starting position
  • Bargaining
    • Clarify information, present counter arguments
  • Close
    • Agree a final position
car negotiation exercise
Car negotiation exercise
  • Sellers have a brief
  • Buyers have a brief

2 minutes to read brief then 5 minutes to conclude a sale / purchase – we will then see if buyers and sellers are still happy with the deal !!

sale positions
Sale positions
  • Seller
    • Desperate to sell
    • Well serviced
    • Will include tax
    • Target price £2,750
    • Will sell for £2,000
  • Buyer
  • Desperate to buy
  • Only car out of 4 in Autotrader you would buy
  • Had £2,900 cash with them
key messages
Key messages
  • Consider all the options / arguments
  • Ensure a fair and transparent process
  • Be clear and concise with providers
  • Adopt a team approach to utilise specialist skills
  • Fail to prepare – prepare to fail
  • Remember – It’s not rocket science!!!
further help and guidance
Further help and guidance

PCT procurement guide - DH


EU Directives and UK Procurement Law - OGC



Valerie Attwood

Tel: 0151 651 3944