Telecare National Framework Agreement

1

• Telecare National Framework Agreement
• National Telecare Programme
• Commissioning and Procurement Workshop
• Presentation by
• Paddy Howlin - Category Manager

2
Overview

• Background and origins of the national framework
  agreement
• Scope of the telecare national framework
  agreement and the participating suppliers
• Review Gate 2007
• How the NFA operates and how to access
• Benefits and savings opportunities
• How the NFA can benefit Scotland and your
  organisation
• How the NFA is making a difference to the
  development of Telecare

3
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

4
Telecare Procurement landscape November 2005

• Prior to NHS PASA developing the Telecare NFA
  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 funding to be invested within
  Telecare
• No public sector wide commercial overview
• 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 the UK
• No understanding on the purchasing patterns of
  the public sector
• No national pricing structure across the UK
  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

5
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 in England, announced in
  July 2004
• Support DH vision for the development of Telecare
  services Building Telecare in England July
  2005
• Opportunity to develop a procurement solution
  which would also assist Telecare initiatives in
  Wales, Scotland and Northern Ireland
• Mechanism to procure telecare effectively and
  efficiently during and post 2 year funding
• e.g. PT Grant - England, Telecare Development
  Fund Scotland, Telecare Capital Grant Wales
• Develop a single public sector market place for
  industry to channel products, services and new
  innovations ensuring UK Public Sector is
  receiving competitive pricing and wide
  range/choice of equipment and services

6
Organisations who can access Telecare NFA

• The following organisations can access the
  Telecare NFA in Scotland

7
Scope of Products on the Telecare NFA

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

based on Appraisal of the scope of Assistive
Technologies - November 2005
8
Scope of Services

• The following service elements are included
  within the scope of the Telecare NFA
• 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

9
NFA Suppliers and range of services
10
Equipment Modalities
11
Geographical Coverage
12
Sub-contracting and strategic alliances via NFA
13
NFA Review Gate 2007

• To ensure the NFA remains fit for purpose
  yearly reviews of the NFA will be undertaken
• 1st NFA Review Gate has been brought forward 12
  months recognising strategic developments and
  innovations within the Telecare/Telehealth market
  
• Review Gate will cover
• - Upgrade of existing equipment and products
• - Review of products and/or service
  modifications to the NFA i.e. additions and
  withdrawal of
• products and/or services
• - Introduction/removal of sub-contractors,
  third parties and strategic alliances/partners
• - Price Review - including
  modification/introduction of discounts
• Review Gate process is now ongoing proposal
  deadline 31 January 2007
• Successful proposals will be available from
  Telecare NFA from 1 April 2007

14
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)

15
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

16
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 person 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
17
Cost of tendering/processes within the public
sector

• Tender costs calculated using the OGC Tendering
  Cost Estimation Tool
• Numbers of local organisations that could tender
  for telecare equipment (_at_ 50,000 per tender)
• - 32 Scottish Local Authorities 1.6m
• - 15 NHS Scotland Health Boards 750,000
• Cost 2.35m before any equipment is bought!
• Over ¼ of Telecare Development Fund spent on
  procurement process costs
• Delay in implementing telecare impact on
  hospital admission costs,
• care costs etc, due to time taken for local
  tendering and implementation
• Figures do not include
• - Telecare/community alarm services
• - Housing associations, independent and
  voluntary organisations
• Figures could be far higher but these costs are
  negated by using the NFA and adopting the once
  only principal

18
Local tendering savings opportunities in
relation to the Telecare Development Fund

• Based on average Telecare Development Fund
  allocation of 226,562.50

19
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
20
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
  Development Fund, ensuring users and those in
  need of telecare/telehealth benefit quickly

21
How the NFA is making a difference? (1)

• Over 60 of Local Authorities in England have
  signed up to use the NHS PASA NHS E-Cat system
  since the launch of the NFA sign up is
  exclusive to Telecare
• NFA is being used by well established and high
  profile consortia as the key procurement solution
  (i.e. Northern Housing Consortium), replacing
  historical consortia arrangements
• Public sector is channelling its Telecare funding
  through the NHS PASA NFA estimated value of the
  NFA in year 1 likely to exceed forecasted target
  (based on first 6 months data)
• The benefits of the NHS PASA NFA have also been
  recognised in Wales and Northern Ireland NFA is
  being actively used to support Assembly
  Government initiatives

22
How the NFA is making a difference? (2)

• 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
  the public sector market effective market
  management, understand trends and potential new
  solutions
• Sales/Management Information Data returns will
  provide key information on how and what the
  public sector is procuring within Telecare
  assist in understanding and developing the market
  
• Sales/Management Information Data can be a key
  measurement to see how the Telecare Development
  Fund is being spent
• The NFA can be used to benefit other Telecare
  projects not just those funded by the Telecare
  Development Fund
• Gathering the data and information to help
  sustain the investment and development of
  telecare and assistive technology

23
Telecare Procurement landscape post NFA award

• The Telecare NFA 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 Telecare Development
  Fund)
• 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 Telecare Development Fund)
• Gaining a more accurate understanding of the true
  value of the market in the UK
• 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

24
How can Scotland benefit from the NFA?

• Access to an established framework agreement
  tendered for the use by Scottish Public Sector
  bodies, no need to establish own agreement
  nationally or locally
• Saving time, duplication of effort and
  procurement process costs
• Access to a wide range of choice of equipment,
  technology and suppliers
• Mechanism to channel Telecare Development Funding
• Supports the effective use of the Telecare
  Development Funding competitive pricing, best
  value and opportunities for significant savings
  by collating buying power
• Regular reviews of products/equipment ensuring
  latest technology and innovations can be sourced
  via the agreement
• Data provided by NFA Suppliers to NHS PASA allows
  the ability to track spending, use of funding and
  investment in telecare and telehealth develop
  the case for future investment and funding in
  this sector

25
How can my organisation benefit?

• 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 NHS PASA
  NFA, then this will remain unaltered until the
  end of this agreement

26
Summary

• The NFA is a significant platform, which can
  contribute to the vision and delivery of the
  Telecare Development Programme and for other
  investment into Telecare/Telehealth
• 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 Telecare Development
  Funding
• Essential that Sourcing Strategy and NFA continue
  to develop and evolve to keep up with new
  technology and innovation
• By procuring Telecare effectively through the
  NFA, it allows Telecare Commissioners/ Project
  Managers and those tasked with developing
  Telecare services to focus on the real challenges
  
• Realise the benefits available to you and your
  organisation getting the most out of the
  opportunities presented by the Telecare
  Development Fund

27
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/telecare/