The Framework for procuring External Support for Commissioners (FESC) A practical guide
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1 The Framework for procuring External Support for Commissioners (FESC) A practical guide
2 DH INFORMATION READER BOX Policy HR/Workforce Management Planning Clinical Estates Commissioning IM & T Finance Social Care/ Partnership Working Document Purpose For information Gateway Reference Title The framework for procuring External Support for Commissioners (FESC) a practical guide Author Department of Health/Commissioning & System Management/FESC Publication Date 01 June 2009 Target Audience PCT CEs, SHA CEs, Directors of Finance, Directors of Commissioning Circulation List Description Cross Ref Superseded Docs Action Required Timing Contact Details FESC is a practical and cost effective procurement tool to help PCTs address gaps in commissioning capability or capacity by providing easy access to high quality commissioning solutions from pre-qualified and experienced private sector partners. FESC will help achieve the ambitions set out under the world class commissioning programme N/A N/A N/A N/A FESC Team Commissioning & System Management Directorate New Kings Beam House 22 Upper Ground London, SE1 9BW fesc.comms@dh.gsi.gov.uk For Recipient s Use Crown copyright p 1k Jun09 Produced by the Department of Health
3 Contents Foreword from Mark Britnell What is FESC? 4 Why should you use FESC? 8 How to use FESC 12 Getting started 14 2
4 Foreword World class commissioning is a ground-breaking programme that is transforming the way PCTs commission services, to ensure they are more closely matched to local needs and, as a result, that they deliver a better quality of care, improved health and well-being, and a reduction in health inequalities across local communities. The Framework for procuring External Support for Commissioners (FESC) will help you achieve the ambitions set out under the world class commissioning programme. PCTs are no longer simply providers of healthcare services they are local leaders of the NHS, who need to demonstrate expertise in commissioning outstanding services for their populations. To achieve this, you will need to draw on experience, skills, tools and innovations from a range of sources, including the private sector. We know you want to make progress quickly, and FESC has been designed to allow you to do this. It provides you with easy access to high quality commissioning support, and the opportunity to develop partnerships with experienced private sector organisations. As we move into leaner times and you need to deliver efficiency savings, FESC provides you with the means of commissioning in a different way to increase productivity and efficiency, whilst improving quality. This brochure sets out what FESC is, why you should consider using it and how to do so. I would encourage all commissioners to grasp this opportunity to help you on your path towards becoming truly world class. Mark Britnell Director General of Commissioning and System Management Department of Health 3
5 What is FESC? FESC enabled us to let out a Specialist Commissioning Contract across all nine PCTs in 16 weeks and we are already benefiting from the innovative approach our partner is taking. FESC was designed for procuring these kinds of long term partnering contracts and I have not used it for buying in consulting support. I have used the Catalist framework whereby we have been able to access FESC supplier skills and capacity through consortia arrangements. I have recently launched the two biggest FESC outsourcing deals to date in these two cases FESC will save time and money on the procurement process for both the NHS and bidders. We have a pool of pre-qualified bidders, an established process and an established draft contract to work with. Dr Paul Durrands, Commercial Advisor NHS South Central 4
6 The Framework for procuring External Support for Commissioners (FESC) has been established to provide practical support to PCTs as they work to develop their commissioning skills and move towards being world class. It is a practical, easy to use and cost effective procurement tool available to all PCTs, to help address gaps in their commissioning capability or capacity. FESC is a route to accessing thirteen independent sector organisations that have been selected as ideal partners to work with PCTs. All thirteen qualified to be on the Framework following a rigorous due diligence and selection process run by the Department of Health. Each organisation has tried and proven commissioning skills; some offer the full breadth of skills across the commissioning spectrum, while others are specialists in specific aspects of commissioning. These organisations can support you on all areas from better assessing need to managing performance and undertaking service redesign. FESC will deliver commissioning solutions, rather than traditional consultancy services. The business model is based around developing medium to long term relationships which can provide PCTs with vital specialist knowledge and experience. For these reasons, FESC is different to Catalist and other conventional procurement routes, which NHS organisations have traditionally used for buying consultancy services. FESC is the only framework in place that has the sole objective of enhancing core commissioning skills across the NHS. With the Framework already in place, FESC will enable you to move straight to procuring the services you need within a competitive environment, allowing you to focus on the task at hand without getting caught up in costly and lengthy procurement processes. What is FESC? 5
7 What range of commissioning solutions can you buy from FESC? The framework is organised into four categories: Assessment and Planning e.g. Health Needs Assessments Contracting and Performance e.g. Robust contract negotiation processes Performance management, settlement & review e.g. Acute invoice validation Patient and public engagement e.g. PCT prospectus Who are the suppliers? Aetna AXA PPP Bupa Health Dialog Partners in Commissioning Dr Foster Humana KPMG McKesson McKinsey Navigant Tribal United Health UK WG Consulting 6
8 7
9 Why should you use FESC? We are determined to become a world class PCT that commissions the very best health care services for the people of Northamptonshire. In order to achieve this ambitious goal we need help and support from the experts. FESC is about bringing in the expertise of a leading global organisation to improve our capacity and capability, to work in partnership with us on our organisational development programme, and to help us move closer to achieving the world class commissioning competencies. We want to help people live longer, healthier lives by commissioning the best and most appropriate services, and already we are seeing real measurable progress towards achieving these goals. John Parkes, Chief Executive Officer Northamptonshire Teaching Primary Care Trust FESC has been designed to: Help you become a world class commissioner Support you in developing partnerships with experienced independent suppliers Enable you to run a practical and robust contracting process Becoming a world class commissioner As you embed world class commissioning (WCC) within your organisation, you will no doubt already have begun to identify the skills gaps that exist. The skills needed are implicit in the eleven WCC competencies and many of them are both highly technical and innovative. 8
10 Using FESC to buy in some of these skills will help you build a strong foundation for reaching level 2 in your competencies and moving forward on your journey to becoming world class. Some of the services that PCTs have already bought via FESC include: Health Needs Assessment: Identification and assessment of health needs and health inequalities of the local population Acute Invoice Validation: Establish robust processes to validate and reconcile activity data and the opportunity to improve services Performance Management: Management of awarded contracts against agreed outcomes and metrics Care Pathway Redesign: Redesign of local health services in line with identified evidence-based outcomes measures The services that can be accessed through FESC are in line with the WCC competencies. You can find a table on the FESC website, which details the FESC products that may be used to help you achieve level 2 and move to level 3 and 4: /Procurement/FESC/index.htm. This approach is focussed on building robust and sustainable commissioning organisations capable of achieving real health gain. Developing partnerships with experienced and independent suppliers FESC will enable you to develop a true partnership with your supplier, the benefits of which go far beyond those detailed in any contract. The FESC suppliers have a range of commissioning products and services which have already been developed and tested, and are being used either in an NHS context or in other comparable health care systems. This will mean that you can acquire commissioning capabilities faster than if you had to start from scratch, and you will be able to learn skills and techniques from experienced suppliers and mentors. Suppliers are also Why should you use FESC? 9
11 incentivised financially to deliver your outcomes, and are committed to a programme of knowledge transfer to you and your team over the course of the project. Running a practical and robust process The procurement process should be more efficient as the rules underpinning FESC are already in place. Much of the documentation has been developed, so you will not need to develop it for the exclusive use of your project. This means you will be able to focus on the real issues within your project and the content of what you are procuring. Pro-forma documents already available through FESC: Legal agreements Procurement documentation, templates and process Business case guidance Technical guidance Service specifications for the principal FESC services 10
12 11
13 How to use FESC NHS Barnsley is committed to supporting the population of Barnsley to maximise their health and well-being. We identified that in order to take us to the next level to meet our ambitious goals around public engagement and communication, it was necessary to partner with a FESC provider. NHS Barnsley found that the rigour of developing a service specification for the procurement provided for a robust contract. We also found the availability of a standard FESC contract extremely useful enabling the process to progress smoothly and efficiently. Sue Bentley, Director of Performance and Governance NHS Barnsley Once you have decided that FESC is the right tool to help you meet your commissioning objectives, your procurement project can be broken up into different stages, each of which should be considered and agreed at the outset. Careful planning and preparation is essential. We have established a best practice approach for running a FESC procurement process, taking into account Office of Government Commerce guidance. By following this model, you should be in an ideal position to secure the right partner through FESC, that meets your specific needs. Experience to date has shown that time invested in planning and preparation early in the process will reap benefits for the project as it progresses, in terms of both the quality and pace of the procurement. 12
14 The Four Stages of the FESC Process Timeline 4 Weeks 8-10 Weeks 2 Weeks Pre-formal procurement Procurement process Contract finalisation Delivery Strategic Outline Case (SOC) Outline Business Case (OBC) Request for information Establish project team and governance Start procurement documentation Initial Call Off Notice Full External Support Services Agreement Clarification, evaluation and scoring at each stage Selection of preferred bidder Full Business Case (FBC) Deal closure discussions Contract signature Contract and Performance management PCT involvement Supplier involvement The work you need to undertake prior to commencing the formal procurement process. This stage enables you to make an informed decision as to whether FESC is the most appropriate tool for your requirements. The steps you need to go through when engaging with the independent sector suppliers from the first stages of the competitive process through to the selection of preferred bidder. This is usually a relatively short stage where final details, in particular legal matters of the project are addressed and the PCT approves the project. This is the beginning of your partnership with the private sector supplier. Throughout this stage you need to ensure that you have developed a system to manage the contract effectively. Draw up plans for change 13
15 Getting started Once you have decided that you want to use FESC you will need to be committed to securing the best solution for your organisation, and the early stages will be critical to success. Experience demonstrates that private sector suppliers are extremely well organised and committed to proceeding through the procurement process at pace. Your team and approach should mirror this. FESC projects often involve the procurement of complex skills or tools in order to ensure the project runs as smoothly and effectively as possible, it is worth identifying dedicated resource to work on the project. As a minimum, you will need a Senior Responsible Owner, ideally your Chief Executive or an Executive Director, and a dedicated and experienced Project Director. The central FESC team within the Department of Health is available to provide you with support in the form of facilitation and guidance throughout the duration of your FESC process. The team s experience is based on work with projects that are already up and running, and projects currently in the procurement process. They also have an in-depth understanding of the FESC process in particular what does and does not work. The team has a broad range of commercial and financial skills together with practical experience and will support you throughout the project. For further information, please visit the dedicated FESC website, Procurement/FESC/index.htm Alternatively, you can send any queries to fesc.comms@dh.gsi.gov.uk. 14
16 Getting started 15
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