Introduction to Procurement (Course Taster)

8/9/2019 Introduction to Procurement (Course Taster)

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http://www.novapro-m.com

Public Procurement Processes-

Adapted for NHS Organisations

NovaPro M Ltd 2010


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Course Tutor: Dr Fatai Badmus


BSc . ( Hons ); MB ChB ;PRINCE2 (Project Management) Practitioner ;

MSP (Managing Successful Programmes) Practitioner ;

MBCS (Full Member of the BCS the Chartered Institute of IT);CITP (Chartered IT Professional).

Contact options:Complete form at http://novapro-m.com/aboutTel: +44 84 4884 2652 or +44 84 4884 2652Fax: +44 84 4774 2924eMail:[email protected]


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Health & Safety, etc http://www.novapro-m.com

o Fire exit locations:o Toilet locations:

o Hydration fluids (sadly non-alcoholic!) freelyavailable throughout the dayo Two 15-minute tea/coffee breaks and a 1-hour

lunch break, to ensure energy levels are kept up.


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Course Programme

Start time: 09:00 Hrs

Session 3 : Procurement forPoachers (aka Providers), thenQ&A - 13:00 14:00


, 09:00 09:15

Session 1 : Introduction toprocurement, then Q&A -09:15 10:15

Coffee Break: 10:15 10:30

Session 4 : Procurement How-To, then Q&A - 14:00 15:00

Coffee Break: 15:00 15:15

Session 5 : Group Scenario-

Session 2 : Procurement for Game-Keepers (akaCommissioners), then Q&A -10:30 12:00

Lunch Break: 12:00 13:00

,

16:15

Closing Session , includingrecaps and Q&A - 16:15 16:30

Finish time: 16:30 Hrs


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Introductions http://www.novapro-m.com


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Session 1

Introduction to Procurement


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What is Procurement?


Public procurement is the process of the

acquisition, usually by means of a contractualarrangement after public competition , of goods, services, works and other supplies by the

ublic service from third arties.


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Principles of Public Procurement

1. Accountability


2. Competitive Supply

3. Consistency

4. Effectiveness

.

6. Fair-dealing


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Principles of Public Procurement - 2

7. Integration


8. Integrity

9. Informed decision-making

10. Legality

. espons veness

12. Transparency


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More definitions

HM Treasury Purchasing guidelines:


The concept of best value formoney can be defined as the

optimum combination of wholelife cost (not just initial or short

purpose) and delivery factorsagainst price, to meet the

customers requirements.


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More definitions - 2


and non-quantifiable (or intangible) costs andbenefits.

The obli ation devolves u on ublic urchasers

to compile a procurement specification whichincludes social, economic and environmentalpolicy objectives within the procurement

process.


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More definitions - 3 http://www.novapro-m.com

A VFM Improvement or a Procurement Saving canbe described as:

A benefit generated by the purchasers initiativeand achieved by an action beyond that of, or

- , .


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Establishing best VFM is directly linked

" "

More definitions - 4 http://www.novapro-m.com

purchasing which are:

The right commodity (or service).In the right quantity.Of the right quality.

At the right price.To the right location.At the right time.

From the right source.


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The Procurement CycleBasic procurement processes can be

summarised as follows ( relevant formal stage descriptionsare in bold blue ):


1.Determine the requirement Business Case2.Produce a specification to define the need;3.Find and select potential sources Advert / Contract

Notice / Deciding on the Procurement Route / EU Considerations / GatewayConsiderations / Framework Procurement

4.Make an enquiry to the potential suppliersagainst the specification Expressions of Interest / Pre-

ua ca on ues onna re nv a on o en er

5.Evaluate the responses to the enquiry Obtaining Quotes or Tenders / Tender Evaluation

6.Negotiate the terms of the contract - Post TenderNegotiations

7.Prepare a purchase order and send to theselected supplier Contract Award


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The Procurement Cycle 2

8. Manage the progress of the order - ContractAward


. - ContractAward (including the Alcatel procedure of 10 days to receive any appeal)10. Progress chase Service Delivery11. Monitor incoming goods and services,

accept if satisfactory, reject if inadequate Service Delivery12. Deal with discrepancies - Contract Management

.services Payment on Delivery of Value

14. Ensure that proper stock managementcontrols are in place if the goods are to be

held in stores. Dispose of surplus assets.


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Prime considerations Need to ensure that all procurement is carried

out in an expedient and efficient manner.


compliant with The Public ContractsRegulations 2006.

Need to ensure that there is an appropriatelevel of competition to promote the submissionof the most economically advantageous

solutions. In procuring goods, services or works, everypurchaser is personally responsible and

accountable for achieving value for money(VfM).


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Why do formal procurement? It is a legal requirement (to help with achieving WCC

competency # 9 Secure procurement skills)

Enables ou to be fair o en and trans arent to hel with


achieving WCC competency # 8 Promote improvementand innovation)

You encourage competition across a range of providers (tohelp with achieving WCC competency # 7 Stimulate themarket)

achieving WCC competency # 11 Make sound financialinvestments)

You can evaluate the source(s) of supply (to help withachieving WCC competency # 10 Manage the local healthsystem)


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But, why bother? Well, the Cooperation and Competition Panel is taking a

keen interest!


According the DH, The panel will advise the Strategic HealthAuthorities and the Department of Health, and (for compliance issues)Monitor, on resolving disputes relating to competition for NHS-fundedservices. It will have the specific responsibility for considering complaintsabout issues associated with the procurement of clinical services,advertising and promotion, and the merger or acquisition of healthcareproviders where an NHS body is involved. It will only consider disputeswhere these have not been able to be resolved locally.

The Cooperation and Competition Panel will ensure that providers operateon a eve p ay ng e , sa eguar ng e n eres s o pa en s an

taxpayers.

And all that is in addition to the eagle eyes of the SHA intheir normal statutory oversight role!

The next slide puts this relationship into some context.


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But, why bother? - 2 http://www.novapro-m.com


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EU procurement regime

The EU Treaty principles of non-discrimination onground of nationality; equal treatment;transparency; proportionality and free movement of


goo s an services app y to a pu ic sectorcontracts. The regulations have 2 levels a full regime for

priority services (Part A) and a lighter regime forother services (Part B).

Health and social care services are Part B services.

threshold amount (updated every 2 years). Currentthresholds are (briefly): 101,323 for Part A services & supplies

156,442 for Part B (residual) services 3,927,260 for Public Works


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EU procurement regime - 2

The main requirements of the regulations are:


Competition through a tender advertised in the

Official Journal of the EU (Part A). Compliance with minimum timescales for providers

to respond to adverts, pre-qualification checks andtenders (Part A).

contract award (Part A).

Provision of feedback to unsuccessful suppliers andissue of contract award notice within 30 days of award (Parts A & B).


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Session 2

Procurement for Commissioners

Documents

Introduction to Procurement (Course Taster)