PowerPoint Presentation Dos and Donts of Tendering

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WELCOME
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• CHAIRMANS OPENING ADDRESS

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STEPHEN DICKINSON FORMER DIRECTOR OF
PROCUREMENT, SOUTH WEDT LONDON PROCUREMENT
ALLIANCE
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Working with the New EU Procurement Directive

• Stephen Dickinson
• PASS Consultant

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• ProcurementLegislation
• Government Procurement Agreement / World Trade
  Organisation
• EU Directives
• UK Regulations
• Government Guidances
• Standing Orders
• Standing Financial Instructions

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• EU Procurement Legislation
• Supplies Directive 93/36 EEC
• Services Directive 92/50 EEC
• Works Directive 93/37 EEC
• Updated by Directive 97/52 EC
• Utilities Directive 93/38 EEC
• Updated by 98/4 EC
• UK Legislation Public . Contract Regulations
  19..
• Future New Consolidated EU Procurement
  Directive(s)

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• EU Thresholds
• Current EU Basis
  New EU Basis
• Supplies Part A Services
• Central Govt/NHS 99,695
  154,014 99,685 154k Local
  Govt, bgpl 153,376 236,945
  152,765 236k
• Part B etc 129,462 200,000
  152,765 236k
• Supplies/services PINs 485,481
  750,000 485,481 750k
• Works and Works PINs 3,834,411
  5,923,624 3,834,007 5,923k
• Subsidised Works 3,236,542
  5,000,000 3,834,007 5,923k
• Subsidised Services 129,462
  200.000 99,685 154k
• Bodies governed by public law
• Except RD, if covered, and certain telecoms
  services

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• EU Procedures
• Open (any company may tender)
• Restricted (any company may apply to tender)
• Negotiated (mainly used for complex projects)
• Accelerated (only to be used in exceptional
  circumstances outwith the control of the
  issuing authority)

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UK Preferred Procurement Process
Restricted
Award notices under 70 of contract notices
published

• Open

Negotiated
Accelerated
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60
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• Current EU Timescales
• Open Procedure
• 52 days for tenders (36 days if PIN issued)
• Restricted/ Negotiated Procedure
• 37 days for expressions of interest
• 40 days for return of tender (26 days if PIN
  issued)
• Accelerated Procedure
• 15 days for expressions of interest
• 10 days for return of tenders

Award Notices should be sent for publication not
later than 48 days after the award of a contract.
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• OJEU Publication Timescales
• Publication by OJEU
• 12 days to publish notices from dispatch by post
  or fax (5 if accelerated)
• 5 days to publish if dispatched electronically
  via an XML service

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• Minimum timescales
• Open procedure
• 12 40 52 (36 or at least 22 following full
  PIN/Profile)
• - 7 for electronic notice
• - 5 for contract documents on
  internet
• Minimum 40 days from dispatch of contract notice
• (at least 10 following full PIN/Profile)

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• Minimum timescales contd.
• Selective procedures (restricted, negotiated,
  comp. dialogue)
• requests to participate
• 37 days from dispatch of notice (15 if
  accelerated)
• -7 for electronic notice (- 5 if
  accelerated)
• 30 days from dispatch of notice (net 10 if
  accelerated)
• tenders in restricted procedures
• 40 days from ITT (10 if accelerated)
• (36 or at least 22 days following a
  PIN/Profile)
• - 5 if contract documents on internet
• 35 days from ITT (10 if accelerated, 22
  following a PIN/Profile)

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• Qualifications
• Not a criminal (Art 45) criminal organisation,
  guilty of corruption, fraud, money laundering
• Bankrupt winding up?
• Judgment against a professional
• Guilty of grave professional misconduct
• Not paid social security requirements
• Not fulfilled obligations relating to taxes
• Serious misrepresentation in supplying information

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• Suitability to pursue professional activity(Art
  46)
• Economic and financial standing (Art 47)
• Technical and professional ability (Art 48)
• Quality Assurance Standards (Art 49)
• Environment Management Standards (Art 50)
• Official Lists (Art 50) (may introduce if
  published and publish freely how to get onto such
  lists )

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• Request for Basic Requirements
• Environmental Policy
• Health Safety Policy Statement
• Equal Opportunities
• Insurance
• 2 Years Financial Accounts
• Principal Personnel CVs
• Past Experience
• Quality Assurance
• Investors In People

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• The proposed new ConsolidatedEU Procurement
  Directive
• New Features
• Competitive Dialogue
• Electronic Reverse Auctions
• Framework Agreements
• Dynamic Purchasing Systems

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• Competitive Dialogue (Article 29)
• A new procedure - reflecting most economically
  advantageous tender criteria
• Based on the inability to award a contract -
  cannot define the specification

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• Competitive Dialogue - Process
• Open, restricted or negotiated procedures
• Notification on announcement of selection
  criteria and level of competency needed to be
  admitted to the process
• Dialogue designed to develop one or more
  potential solutions.
• Can be conducted in successive stages
• Must result in sufficient candidates to ensure
  genuine competition.

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• Reverse Auctions
• Lowest price or Most Economically Advantageous
  Tender
• Response to a tender is starting point

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• Reverse Auctions Process
• Use Open, Restricted or Negotiated Procedure
• May be used for reopening of competition amongst
  parties to a framework agreement
• Criteria either set as lowest price or price
  and/or most economic tender based on stated
  criteria.
• Must state use of e-auction in tender notice

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• Reverse Auctions Specifications
• Quantifiable values expressed in figures or
  percentages
• Full information made available on the e-auction
  process
• Conditions for bidding
• Electronic equipment to be used
• Before proceeding with auction a full initial
  evaluation of all candidates in accordance with
  award criteria
• Candidates simultaneous notification of
  commencement
• Minimum 2 day notification
• Mathematical formula for determining ranking
• Instantaneous ranking notification

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• Reverse Auctions - Closure
• a) either on the date fixed and indicated in
  advance or
• b) when no further bids are received within a
  preset time frame, or
• c) when the number of phases fixed in the
  invitation have lapsed.

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• Framework Agreements
• (call off contracts)
• Now possible
• Can go to one at tendered price
• Bidding within the pool have to ask price from
  all economic operators (minimum of three)
• Competition remains on the same award criteria

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Framework Agreements(call off contracts)

• Maximum term 4 years
• Must not be used improperly or hinder, restrict
  or distort competition
• May be with one operator or three or more
• No substantive amendments to terms
• Publish notice of the award not individual
  contracts under the framework

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• Framework Agreements
• (call off contracts)
• 1. Can be single or multiple frameworks.
• 2. Contracts awarded through either applying the
  terms set forth in the framework agreement or, if
  not all terms have been fixed in advance, awarded
  following the reopening competition between all
  the parties to the framework agreement.

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• Dynamic Purchasing Systems - Access
• 1. Notice must state dynamic purchasing system to
  be used
• 2. Use completely electronic system including
  issuance of notice to OJEU
• 3. Follow the rules pertaining only to the Open
  Procedure up to award
• 4. Admit all candidates who satisfy selection
  criteria and submit indicative tender
• 5. Offer unrestricted full access to
  specifications and internet address for all
  documents.
• 6. Allow application for admittance to new
  candidates throughout the life of the system.

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• Dynamic Purchasing Systems - Process
• Each contract arising from the use of the DPS
  must be subject to a fresh invitation to tender
• Allow not less than 15 days for responses to each
  tender
• 3. Evaluate all submissions
• 4. Award on the basis of best tender based on
  award criteria
• 5. Dynamic Purchasing System may not last more
  than 4 years

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• CLARE TUNNICLIFFE
• CATEGORY MANAGER, NHS PASA

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• NHS Purchasing and
• Supply Agency
• Clare Tunnicliffe
• Category Manager, Energy
• 13 June 2007

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Agenda

• National purchasing
• The Supply Chain Excellence Programme
• NHS PASA organisation
• Category directorates
• Major projects
• Future developments

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National purchasing

• Efficiency
• Innovation
• Sustainable procurement
• Reform
• Collaboration

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National purchasing current roles

• Commercial Directorate
• NHS PASA
• NHS BSA
• NHS Supply Chain

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Commercial Directorate

• Established 2003
• Provide commercial knowledge and expertise
• Improve effectiveness and efficiency in the NHS
• Exploit commercial opportunities/innovation
• Commercial solutions programme
• Central clinical procurement programme
• Supply Chain Excellence Programme

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SCEP projects
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NHS Purchasing and Supply Agency

• Executive agency of the Department of Health
• Senior departmental sponsor Commercial
  Directorate
• On-going integration with Commercial Directorate
• Category directorates Facilities Maintenance and
  Utilities, Pharmaceuticals, Agency Staffing,
• Contract coverage 3.0 billion
• Location London, Reading, Chester, Sheffield

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NHS PASA key objectives

• Deliver efficiencies and other key benefits
• Join up procurement strategy across the NHS/DH
  and social care
• Build commercial capabilities
• Deliver and support the development of DH and
  wider government policies through procurement

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NHS PASA Category Directorates Facilities,
maintenance and utilities

• Gas and oil
• Electricity
• Water
• Telecommunications
• Estates
• Transport
• Decontamination

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NHS PASA Category Directorates - pharmaceuticals

• General
• Specialised
• Vaccines
• Homecare

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NHS PASA category directorates- agency and
services

• Medical locums
• Nurses
• Allied health professionals
• Ancillary
• Scientific and technical staff
• Recruitment advertising
• PCT purchasing
• Leasing

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NHS PASA Directorates

• Procurement enablement
• Policy and innovation

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Purchasing for safety

• Procurement impact on patient safety
• Injectable medicines
• Working with hubs and trusts
• Government, NHS, and industry stakeholders

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Centre for Evidence Based Purchasing

• The role of CEP is
• To underpin purchasing decisions by providing
  objective evidence to support the uptake of
  useful, safe, innovative products and related
  procedures in health and social care

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Contract Uptake

• NHS engagement
• Building relationships
• Information
• Monitoring and reporting

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DH support

• Sustainable development
• Advisory Committee for Borderline Substances
• DH emergency planning
• DH centre of expertise

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Future developments

• NHS Commercial Agency
• Transforming Government Procurement

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NHS Commercial Agency (proposed objectives)

• Commercial input to health policy
• Building commercial capabilities in the NHS
• Joining up commercial strategy across the NHS
• Delivery of savings for the NHS and DH
• Create and manage targets in the independent
  sector 

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Transforming Government Procurement

• Transforming Government Procurement report
  January 2007
• Setting procurement standards
• Department collaboration
• Increased professionalism
• Procurement capability reviews

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• Questions?

www.pasa.nhs.uk
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• EUGENE COOKE MSc MCIPS
• HEAD OF PROCUREMENT, ROYAL BERKSHIRE FOUNDATION
  TRUST

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Selling to the NHS - A Trust viewEugene Cooke
MSc. MCIPSHead of ProcurementRoyal Berkshire
NHS Foundation Trust13th June 2007
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Setting the scene (1)

• The Hospital Acute / Central Reading
• - NHS Foundation Trust (June 2006)
• - 850 beds in the trust
• - 3850 staff WTEs
• - 220 million pay / non pay spend
• - 80 million non pay spend
• - Approx. 35 40 million influencable

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Setting the scene (2)

• - 750,000 plastic aprons used
• - 150,000 bandages
• - 67,000 suction catheters
• - 115,000 catheters cannulae
• - 61,000 boxes of cereal

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Setting the scene (3)

• - In 2004/2005 NHS England Statistics
• - 6.8 million surgical procedures performed
• - 1.3 million admissions (200,000 chemotherapy
  sessions)
• - Bones Joints 600,000 operations performed
• - 140,000 hip and knee replacements (not inc.
  revisions)
• - 600,000 babies born in hospital (doesnt incl.
  home assisted)
• - 500,000 Eye operations (300,000 catarachs)

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Setting the scene (4)

• - In 2004/2005 RBH Statistics
• - 55,015 inpatients
• - 333,295 outpatients
• - 72,635 seen by AE
• - 5046 babies born
• - Each day 116 operations carried out
• - Each day 475 x- rays taken
• - Each day 2300 meals cooked
• - Each day 2.4 tonnes of waste generated

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Setting the scene (5)

• The Royal Berks -
• - Small distribution area (Not a store)
• - 375 transfer points / ordering points
• - Massive Agenda for change / modernisation
  process
• - Public expectations continuous improvement
• - Funding issues
• - Procurement Team of 16
• - Consolidated department onto one site September
  05

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Role of Procurement (1)

• - Value for money / economies of scale
• - Better procurement practice / delivering
  efficiencies
• - Professional staff / raise procurement
  standards
• - Minimise risk / SFIs / SFO/s
• - Ensure transparency in procurement practices
  (End Users)
• - Cross Trust Procurement Strategy Group

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Role of Procurement (2)

• - Compliance with legislation (Local / Govt./ EU)
• - Optimum use of resources, releasing funds for
  improvement
• - Culture within the organisation / management of
  change
• - Product rationalisation POGs (Product
  Ownership Groups)
• - Co-ordinate ward approach Materials
  Management / NHSSC
• - Savings target (always rising?)
• - New systems

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Drivers for Procurement (1)

• - Local SFIs / SFOs, specific to Trust
• - Government legislation Modernisation, targets
  funding
• - EU legislation
• - Controls Assurance
• - Internal Audit
• - Monitor

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Drivers for Procurement (2)

• - External Audit Audit Commission
• - Better Practice
• - Influence more spend
• - Collaboration with other trusts / shared
  approach
• - Confederation / HUB - TVPC / Collaborative
  Procurement Hubs
• - Savings Confederation / HUB wide

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Drivers for Procurement (3)

• - Legislation over the last number of years
• - Government changes
• - EU legislation changes more coming
• -Push for efficiencies (SCEP programmes)
• - Foundation Hospital NHS status 50 by end of
  2007
• - Targets (rising and continuing)
• - Overspend (500m in red last year / 500m in
  black)
• - Ever changing environment technology /
  medical advances
• - 25 different pieces of NHS Legislation in last
  25 years

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Role of Suppliers (1)

• - Be aware of EU / Government / Trust legislation
  changes
• - Knowledge of Public Accountability
• - Be aware of PaSA role
• - Get on the SID list / other authorised /
  accredited lists
• - Find out how trusts work (within the STHA /
  TVPC / HUB, independently)

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Role of Suppliers (2)

• - Make contact with Procurement Department within
  the trust
• - Work with procurement managers (as well as
  Clinicians) to
• Reduce supply chain costs, transaction costs
• Eliminate waste
• Facilitate innovation
• Facilitate collaboration
• Better information
• Facilitate Sustainability

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Role of Procurement Suppliers

• - Work together
• - Reduce overall supplies costs
• - Provide a better managed supply chain
• - Present processes - review
• - New ways of doing things / innovation /
  partnerships
• E-commerce / E-procurement (e-Auctions)
• Purchase card (can you work with it?)
• Electronic Catalogue
• - Consolidated deliveries / Avoid duplication
• - Better returns procedures

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Future for Procurement

• - Performance managed
• - Professional staff
• - Better standards
• - Higher profile
• - Innovation Think outside the box
• A better focussed and motivated team
• THANK YOU FOR LISTENING
• eugene.cooke_at_royalberkshire.nhs.uk

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• STEPHEN DICKINSON
• FORMER DIRECTOR OF PROCUREMENT,
• SOUTH WEDT LONDON PROCUREMENT ALLIANCE

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Dos and Donts of Tendering

• Stephen Dickinson
• PASS Consultant

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Dos and Donts of Tendering

• Know that public sectoris a regulated market
• Learn the rules, before you start playing the
  game
• Apply the rules dont look for ways to skirt
  them
• Ask about the marking and weighting of
  questionnaire answers
• If weighting is not revealed, ask about order of
  priority

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Dos and Donts of Tendering

• Remember
• The first stage of the selection process is
• REJECTION

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Dos and Donts of Tendering

• Questionnaires
• Remember short-listing is about disqualifying
  applicants
• Quantify your questionnaire answers as far as
  possible
• Ask about disqualifying criteria
• especially turnover
• Be sure to provide all submissions and answer all
  questions
• When answering Mandatory Questions the answer is
  always YES

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Dos and Donts of Tendering

• Basic information most commonly requested
• Environmental Policy
• Equal Opportunities Policy
• Health Safety Policy
• Insurance
• 2 Years Financial Accounts
• Principal Personnel CVs
• Staff Turnover
• Past Experience
• Quality Assurance
• Investors In People

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Dos and Donts of Tendering

• Expressions of Interest and
• Invitations to Tender
• First thing to do Read the instructions
• Second thing Read them again
• Third Get someone else to read them
• Finally Before returning tenders, read
  instructions one more time and make sure you have
  complied with them

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Dos and Donts of Tendering

• Pre-Tender Meetings
• If briefings are offered attend if at all
  possible
• Ask questions preferably in open forum not in
  private
• Ask about tender assessment and for any
  weightings or order of priority
• Verify acceptability of variations
• Ask about budget

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Dos and Donts of Tendering

• Pre-Tender Meetings
• Bring key personnel not sales team or window
  dressing
• Team should know the tender and each other
• Include specialists if pre-presentation questions
  suggest it
• If using presentation tools know how to operate
  them

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Dos and Donts of Tendering

• Pre-Tender Meetings
• Arrive on time but expect to run late
• Stick strictly to the given timetable
• Dont argue with the presentation board
  chairperson
• Dont interrupt own team members
• Dont make rash promises

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Dos and Donts of Tendering

• Basic Tips for Expressions of Interest and
  Invitations to Tender
• Prepare a database of the basic information
  likely to be requested
• Copy all documentation and store the originals
  safely
• Set up a team - comprised of a member of each
  relevant department (never do it alone)
• Check if variants are acceptable
• Do not presume that the contract notice is
  infallible
• Ask questions!

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Dos and Donts of Tendering

• Basic Tips for Expressions of Interestand
  Invitations to Tender
• Note the ITT order of questions, do not shuffle
  the answers
• Do not do the most important work close to the
  deadline
• Do not be late in delivering the tender
• If asked for hard-copies, send the number asked
  for
• Stay focused on client requirement not what the
  company can deliver

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Dos and Donts of Tendering

• Basic Tips for Expressions of Interest and
  Invitations to Tender
• Keep bumpf separate from the requested material
• Do not hold anything relevant back
• Ensure clear and precise display
• Avoid hand-written answers
• Ensure compliance with all requirements
• Check, recheck and recheck tender - involve
  others.

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Dos and Donts of Tendering

• Are your tenders addressing
• Government Initiatives?
• Environmental and Sustainability
• Promotion of opportunities for SMEs
• Innovation
• Wider Markets Initiative
• Partnership
• National Procurement Strategy
• Social Issues - Employment Law - TUPE etc.
• You need to clearly identify and explain the
  benefits
• of any of the Governments Initiatives in your
  submission

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Dos and Donts of Tendering

• Tenderers Common Mistakes
• Fail to understand the service and/or
  specification or dont comply with the
  specification
• Lack sufficient capacity believe size doesnt
  matter (small company - big contract)
• Financially unstable
• Pad out a bid with documents to make it look
  good    
• Dont show experience of similar work
• Take the tender to the wire
• Tender doesnt hang together (put together in
  parts) does your company?
• Dont turn up to supplier meetings

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Dos and Donts of Tendering

• Winning tenders
• Are customer focused
• Clearly express how where the MEAT is
• Provide added value
• Are innovative
• Identify and address risk
• Will deliver and allow for development.

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Dos and Donts of Tendering

• Debriefs
• Always ask for a debrief, whether you win or lose
• Note when procurement will be due for re-tender
• Note all information that will help you prepare
  next time use FOI if you have to

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• THANK YOU FOR ATTENDING

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