NHS GREENWICH Clinical Commissioning Group. Procurement Framework Document. Version 1.4

Transcription

1 NHS GREENWICH Clinical Commissioning Group Procurement Framework Document Version 1.4 Date Version Status Comments 28/03/ Draft Draft submitted to Governing Body on 3/04/13 and Market Management and Procurement Committee 15/ /05/ Draft Incorporating amendments to Version 1.3 requested by Governing Body and Market Management and Procurement Committee

2 CONTENTS 1. SUMMARY INTRODUCTION SCOPE 4 4. BACKGROUND PRINCIPLES OF NHS PROCUREMENT GREENWICH CCG PROCUREMENT PRINCIPLES DECISION TO USE A PROCUREMENT APPROACH PROCUREMENT DECISION PROCESS REASONS NOT TO CONTEST A SERVICE THROUGH PROCUREMENT PROCUREMENT ROUTES TYPES OF PROCUREMENT ANY QUALIFIED PROVIDER COMPETITIVE TENDERING SINGLE TENDER ACTION GOVERNANCE PROCESS FOR MANAGING PROCUREMENTS MARKET MANAGEMENT AND PROCUREMENT COMMITTEE PROCUREMENT TEAM TRANSPARANCY CONFLICTS OF INTEREST ROLES AND RESPONSIBILITIES TRAINING AND AWARENESS EQUALITY IMPACT ASSESSMENT REVIEW MONITORING/AUDIT

3 APPENDIX 1 NHS GREENWICH CCG PRINCIPLES 17 APPENDIX 2 EU PROCUREMENT THRESHOLDS APPENDIX 3 DECISION MAKING PROCESS FOR UNDERTAKING PROCUREMENTS APPENDIX 4 PROCUREMENT READINESS REVIEW APPENDIX 5 MARKET MANAGEMENT & PROCUREMENT COMMITTEE TERMS OF REFERENCE APPENDIX 6 TEMPLATE FOR USE WHEN SERVICES MAY POTENTIALLY BE PROVIDED BY GP PRACTICES.24 APPENDIX 7 GLOSSARY OF TERMS.27 3

4 1.0 SUMMARY This framework sets out how NHS Greenwich Clinical Commissioning Group (CCG) will manage its procurement process. GCCG has adopted the principle of the judicious use of competition and integration. This places procurement as only one of a range of mechanisms for securing safe services that meet the needs of the population whilst improving health outcomes and reducing inequalities. A copy of the NHS Greenwich principles is attached to this document as Appendix 1 Where procurement is the chosen route, this will be the result of a clear, transparent and auditable process. Separate documents covering how NHS Greenwich CCG will manage specific types of procurement, such as Any Qualified Provider and Competitive Tender are currently being updated to reflect current legislation, best practice and guidance. 2.0 INTRODUCTION The Health and Social Care Act (2012) places a number of duties on commissioning organisations, as detailed below. This procurement framework aims to support NHS Greenwich CCG in achieving its vision and objectives through the application of effective, robust and compliant procurement procedures whilst also contributing to the CCG s achievement of its organisational responsibilities in the following areas: Promotion of Research - We will ensure that best practice, current guidance and a strong evidence base underpin commissioning decisions Economic Sustainability We will ensure that through our procurement actions we develop the market, promote choice and are inclusive of all types of organisation. Environmental Sustainability We will ensure through our procurement processes that the environmental impact is included in all procurement evaluations, therefore encouraging all bidders to have suitable policies in place. Equality and Diversity We will ensure through our procurement and contract management that all of our contractors and suppliers have appropriate policies in place, comply with equalities legislation and we will ensure that we undertake Equality Impact Assessments as appropriate. This Procurement framework should be read in conjunction with Regulation 6 of Statutory Instrument 500/ NHS (Procurement, Patient Choice and Competitiion (No2) Regulations 2013 and NHS Greenwich CCG Conflict of Interest Policy. 3.0 SCOPE The principles set out in this framework are expected to be followed by all employees involved in the procurement process, including Non - Executive Directors, temporary employees, locums and contracted staff and the Commissioning Support Unit or any 4

5 other agency undertaking procurements on behalf of the Clinical Commissioning Group. 4.0 BACKGROUND 4.1 Principles of NHS Procurement The cornerstones of our procurement framework are The Procurement Guide for Commissioners of NHS-Funded Services published by the Department of Health and The Principles and Rules for Co-operation and Competition published in 2008 and updated in July 2010.This framework is compliant with the National Health Service (Procurement, Patient Choice and Competition) Regulations 2013 i(no 2) Section 75, 76 and 77 of the Health and Social Care Act 2012), and The Public Services (Social Value) Act 2012 It will be regularly reviewed and updated to remain compliant with EU Procurement Directives, NHS Regulation and DH issued Guidance, Strategies and Rules. Our local approach to procurement is adherence to the core principles set out within the Principles and Rules for Co-operation and Competition which are supported by the NHS Procurement, Patient Choice and Competition (No 2) Regulations. a) Services will be commissioned from providers who are best placed to deliver the needs of their patients and populations. b) Commissioning and procurement will be transparent and non-discriminatory and follow the Procurement Guide issued in July NHS Procurement (Patient Choice and Competition) Regulations 2013 c) Payment regimes and financial intervention in the system must be transparent and fair. d) Commissioners and providers must co-operate to improve services and deliver seamless and sustainable care to patients. e) Commissioners and providers should promote patient choice, including, where appropriate, choice of any qualified provider and ensure that patients have accurate and reliable information to exercise more choice and control over their healthcare. f) Commissioners and providers should not reach agreements which restrict commissioner or patient choice against patients and taxpayers interests. g) Providers must not refuse to accept services or to supply essential services to commissioners where this restricts commissioner or patient choice against the interests of patients and taxpayers. h) Commissioners and providers must not discriminate unduly between patients and must promote equality in line with the public sector duties 5

6 described in the Equality Act i) Appropriate promotional activity is encouraged as long as it remains consistent with patients best interests and the brand and reputation of the NHS. j) Mergers, including vertical integration between providers are permissible providing there remains sufficient choice and competition, or where these are otherwise in the patients and taxpayers interests, for example because they will deliver significant improvements in the quality of care Greenwich CCG Procurement Principles This principles outlined below summarise the combined effect of legislation, guidance and best practice. The over- riding principle of all GCCG procurements is that services are safe and appropriate to the population. a) Compliance with Standing Financial Instructions All procurements will comply with the requirements of the standing financial orders and standing financial instructions of NHS Greenwich CCG. These state that formal tendering procedures and quotes need not be applied where the estimated expenditure or income does not, or is not reasonably expected to exceed 50,000 or where the supply is proposed under special arrangements negotiated by the Department of Health. Where it is decided that competitive tendering is not applicable and should be waived, the fact of the waiver and the reasons should be documented and recorded in an appropriate record and reported. b) Value for Money All procurement processes and outcomes will be affordable, viable and represent value for money and will result in high quality, safe, fair and effective services for patients. National or local tariff will apply for services where this is available but in other cases contracts will be awarded to providers who can demonstrate best value for money. This does not mean that the lowest value bid will always be awarded the contract as whole life costs, whole life benefits and added value are all determining variables. c) EU Procurement Regulations All procurements will comply with the requirements of the EU Public Procurement regulations and procedures where they apply. These are outlined in Appendix 2. 6

7 d) DH Guidance and Regulation All procurements will take account of current DH guidance and regulation. Specifically all procurements will be: Transparent This involves transparency of what is to be competitivelyprocured and of the tender process itself including criteria for evaluation, the use of sufficient and appropriate advertising of tenders, transparency in making decisions not to tender and the declaration and separation of conflicts of interests. This will be underpinned by active public engagement in setting our commissioning strategies and establishing our commissioning intentions and public consultation on proposals for change in the way that services are provided. Proportional Competitive tenders and procurement exercises will be scaled and appropriate to the size and complexity of the project. The costs of procurement both for the commissioner and potential providers will be minimised where possible so as not to exclude potential providers through overly complex proceedings. Objective Decisions to competitively tender will be evidence based where possible, evaluation criteria will be clearly defined, and award of contracts will be based on merit. Non discriminatory The nature of any procurement will not prevent any provider from participating. All procurements will take full account of existing policies on equality, diversity and non-discrimination. To achieve this we will ensure that our procurement processes do not give an advantage to any market sector. This includes ensuring that timescales allow all potential providers sufficient time to address procurement requirements and all sectors have equal opportunity to compete where appropriate, that financial and due diligence checks apply equally and are proportionate and that pricing and payment regimes are transparent and fair. To ensure that our procurements fully adhere to our principles there has to be a market with the capability to deliver the services we want to commission. For the market to exist there must be potential for new entrants and this will be affected by barriers to entry, which may include their capacity to meet the requirements of the tender process rather than their ability to deliver the service. To enable new providers, small providers, social enterprises, third sector providers and others to enter the market, NHS Greenwich CCG will organise supplier development workshops and information events to educate potential suppliers about the procurement processes and help them to build a portfolio of documents that they will need when bidding to 7

8 become providers. These workshops will be open events available to any suppliers wishing to attend. e) Compliance with Greenwich CCG s overarching principles The CCG will ensure that procurements are underpinning by its overarching principles. These are as follows: Improving health outcomes Reducing health inequalities Simplifying clinical care pathways Encouraging self-management Improving collaboration Ensuring service development spans primary care Managing demand Judicious use of integration and competition These principles are outlined in full at Appendix 1. f) Equality and Diversity The law requires all public bodies, to demonstrate they are considering the needs and rights of different members of their community, by demonstrating they have paid due regard to equality issues in the decision making process. An equality impact assessment will be undertaken for all procurements and will form part of a Procurement Readiness Review. g) Conflicts of Interest As stated in our Conflict of Interest policy, individuals should not be involved in procuring, tendering, managing or monitoring a contract in which they have an interest. Members of committees where decisions around the award of contract are agreed, should either be excluded from the relevant part of the meeting or join in the discussion but not participate in the decision making itself. NHS Greenwich CCG will not award a contract where conflicts or potential conflicts between the parties involved in commissioning the services and the interests involved in providing them affect, or appear to affect the integrity of the award of that contract h) Social Value. The Public Service ( Social Value) Act 2012 requires that commissioners, at the pre-procurement stage, consider how what is to be procured may improve the social, environmental and economic well- being of the relevant area and how they can secure such improvement and to consider the need to consult The Procurement Readiness Review document, (Appendix 4) is the pre procurement document that ensures all stages of pre procurement are in place prior to the commencement of a procurement. It includes a requirement to 8

9 conduct and report on the consideration of social value and engagement, and how this will be factored into the procurement DECISION TO USE A PROCUREMENT APPROACH 5.1 Procurement decision process. Procurement is only one of a range of tools that can be used to drive improvements in quality, choice and value for money. The decision to embark on a contested or competitive tendering approach is the first step in the procurement process. Contesting health services should be the default position when the opportunity or need to secure a future provider is apparent, whilst acknowledging the risk and potential adverse consequences of a contested approach throughout the procurement. The decision to contest the provision of a service may be triggered by one or a number of events including: The commissioning of a new service for which there is no existing provider. The end of a previously awarded contract term. Concerns about the quality, effectiveness, appropriateness or value for money of an existing service. This could be evident or predicted as a result of a required significant change in service. Where the service is one that is not currently provided and where there is no current contract, the service must be subjected to competition. Under the Principles and Rules for Co-operation and Competition, (PRCC), all new services and significantly redesigned services should be tendered. Where there is an existing service in place that is not fit for purpose in that it does not offer best value or does not fit with NHS Greenwich CCG s strategic direction the options available are: a) Retain existing provider and renew the contract with sustainable KPIs built in. b) Validate the service through benchmarking and soft market testing or fit for purpose review. c) Market - test through competitive tendering or for secondary care services defined as routine elective create an AQP opportunity d) Where robust research can demonstrate that there is no competitive market for the service, adopt a Single Tender Procurement 9

10 5.2 Reasons not to contest a service through procurement There are a number of conditions that may be applicable that justify adopting a preferred provider approach to identifying a future service provider. These occasions will be rare. The service is a specialised service where provider designation has already taken place at national or regional level. Where the time required to undertake a contested approach will jeopardise continuity of service provision or timely delivery of a new service. Where the service to be procured has such strong service alliances with an existing service that an extension to an existing agreement is appropriate. Where the cost of undertaking a contested approach cannot be justified in light of the contract value. Where there is no reasonable expectation of more than one player coming forward to provide services PROCUREMENT ROUTES 6.1 Types of Procurement Once a decision has been made to undertake a procurement, there are a number of different types of procurement routes available. These are: to open the service to Any Qualified Provider (AQP) and enable patients to choose from these providers competitive tendering process to appoint a specific provider, a specified number of providers or collaboration of providers; or appoint a specific provider or group of providers without competition (Single Tender Action) The route that is chosen will depend on various factors, including the nature, scale and importance of the required service, the urgency of the clinical need, the number of potential providers, patients preferences and whether the service is suitable for an AQP approach. A flow chart is attached at Appendix 3 which outlines the decision making process from the point at which a decision is made whether to undertake a contested procurement to the decision as to which procurement route should be taken and the factors that need to be considered at each stage of the process. More details on the various procurement routes are outlined below. 10

11 6.2 Any Qualified Provider Principle 5 of the Principles and Rules for Co-operation and Competition states that where appropriate, commissioners should promote patient choice through Any Qualified Provider (AQP). Within this model any provider able to meet the service specification, financial and clinical quality standards set out for that service would be able to enter the market for a particular service. This procurement method does not limit the number of providers. The rationale is that where there are multiple providers delivering the same service specification for the same tariff, patients will choose the provider that best meets their own requirement, whether this is in terms of availability and access, environment, waiting times or other factors. These contracts are zero based, have no activity or financial guarantees and the contract award in essence gives permission to provide services to the Greenwich population following the accreditation of the named provider for a particular service and their inclusion on the local choice menu. In July 2011, the Department of Health (DH) issued Operational guidance to the NHS: Extending Patient Choice of Provider. This provides guidance on the implementation of the Government commitment to extend patient choice of provider and reaffirms the DH drive to extend the use of Any Qualified Provider procurements for appropriate services. The key principles are: Providers qualify and register to provide services via an assurance process that tests providers fitness to offer NHS- funded services. Commissioners set local pathways and referral protocols which providers must accept. Referring clinicians offer patients a choice of qualified providers for the service being referred to. Competition is based on quality, not price. Providers are paid a fixed price determined by a national or local tariff. To determine whether patient choice of AQP is appropriate for a given service, we will consider the characteristics of the service and the local healthcare system. This will include whether the service lends itself to patient choice, an assessment of the current market, how much competition and choice there is now and how much is required and what the barriers to entry are. The Directory of Qualified Providers and NHS Supply2Health website will show whether similar opportunities for AQP for that service have been created elsewhere and what price and service specification were used. 11

12 One of the key features of the suitability of AQP is whether the circumstances of the service mean that patients would be in a position to exercise choice. It is therefore more likely to be suitable for planned services than emergency services. Where we decide to use the AQP route, we will determine the service specification and associated pricing structure, key contractual terms and assessment criteria before advertising the opportunity to the market When undertaking an AQP procurement process, we will ensure that the principles outlined in 4.2 are followed. 6.3 Competitive Tendering Where services are not contracted for on an AQP model, competitive tendering can be used to secure a new contract especially when: - A current service expires or is terminated or - A new service model or significant additional capacity is needed Once a decision to tender has been made and where there is more than one capable provider a competitive tender will ensure fairness and help to demonstrate value for money (i.e. highest quality for the available resources). There may be a case for using a multi stage tendering process to restrict the number of providers invited to bid for a new contract to control the costs of running the procurement process and the potential investment of failed bids. For a complex procurement or where we are seeking innovative solutions or need to work with the providers to develop the service model, it may be more appropriate to use a process that allows for a dialogue with bidders, rather than just asking for bidders in response to a defined specification. 6.4 Single Tender Action Where there is only one capable provider for a particular bundle of services or the objective of the procurement is to secure services to meet an immediate interim clinical need, there will be a case for single tender action (uncontested procurement). A decision to procure through a single tender action should always take account of the potential to secure better value by investing in a competitive process. We will follow good practice and advertise a single tender opportunity in the same way as for other contract opportunities to demonstrate transparency and equality of treatment and to determine that there really is only one capable provider. We will ensure that we have in place evidence of the review and options appraisal that led to the decision that a single tender action was appropriate. 12

13 7.0. GOVERNANCE ARRANGEMENTS FOR MANAGING PROCUREMENTS Our process for managing all service procurements will be consistent, clear, fair and transparent. Before any procurement is initiated, a procurement readiness review will be completed using the template attached at Appendix 4. This is to ensure that correct processes have been undertaken in line with our procurement principles, as outlined in Market Management and Procurement Committee The CCG Market Management and Procurement Committee will review and oversee all NHS Greenwich CCG procurements. This group reports to the NHS GCCG Executive Business Group and draft outline Terms of Reference are attached at Appendix 5. The rational for procurement decisions will be approved by the Market Management Committee and documented formally to ensure transparency and accountability. The committee will sign off specifications, evaluation criteria, decisions as to which providers are invited to tender and in some cases agree recommendations on the selection of provider. For contracts with a total value of over 15 million, recommendations will be need to be agreed by the Governing Body. 7.2 Procurement Team For each procurement, a procurement team will be established Membership of the team will be: Project lead Procurement Lead Clinical Governance Lead Finance Lead Clinical representative as required IM&T representative as required HR Adviser as required GP Clinical Representative A procurement and mobilisation project plan and timeline will be produced by the procurement lead in collaboration with the project lead for each procurement. The procurement team will undertake the following: 1. Document generation, (all letters, tender documents etc.) 2. Clarifications and responses to bidders questions 3. Proposed evaluation scoring 4. Evaluation of proposals and recommendations regarding shortlisting. 13

14 5. Prepare update and briefing reports 6. Recommending the Preferred Bidder(s) and contract award(s) for review and approval 7. Communicating with rejected/unsuccessful bidders 8. Internal and external communication and delivery 9. Mobilisation of new service provider(s) The Procurement team will provide regular reports on the procurement to the market Management and Procurement Committee. 7.3 Transparency A procurement forward plan that will list all current and future procurements has been established. This is linked to our Integrated Plan and will be regularly updated and reviewed to comply with local and national priorities, changes to the requirements in the annual operating framework and nationally mandated procurements. It will also reflect feedback from patients locally. The plan will highlight the priority, timescale and status of every procurement and will be available to view on our website. All procurements will be advertised on NHS Supply2Health. We will also ensure that details of all contracts, including the value of the contracts are published on our website as soon as contracts are agreed. Where services are commissioned through AQP, we will publish on our website and in our annual report, the type of services we are commissioning and the agreed price for each service. We will also ensure that contract awards over 1000,000 are published on NHS Supply2Health. As required by law, contract awards over 200,000 euros will be published in OJEU and in line with Cabinet Office policy and guidance, all tender opportunities and contract awards over 10,000 will be published on Contracts Finder. 7.4 Conflicts of Interest NHS GCCG will manage Conflicts of Interest in accordance with the requirements of the National Health Service, (Procurement, Patient Choice and Competition (No 2) Regulations SI 500 Part 2 Regulation 6. This requires that the NHS GCCG will not award a contract where conflicts or potential conflicts between the parties involved in commissioning the services and the interests involved in providing them affect, or appear to affect the integrity of the award of that contract Therefore the appropriate management of potential conflicts of interest is essential to protect the integrity of the NHS commissioning system and protect the CCG and GP practices from any perception of wrong-doing. 14

15 All Procurement Evaluators, as well as Members of the NHS CCG, Members of the NHS CCG Governing Body, members of committees, sub committees and employees who have any involvement in the award of any contract, will be required to complete a Conflict of Interest declaration, as detailed in the NHS Greenwich CCG Conflicts of Interest Policy. Conflict of Interest declarations will be a standardised part of all Procurement Evaluation Reports, submitted for approval to the Governing Body. The NHS CCG will also maintain a record of how an identified conflict is managed. The NHS Commissioning Board have produced a document entitled Code of Conduct: Managing Conflicts of Interest where GPs are Potential Providers of CCG Commissioned Services (July 2012). This sets out additional safeguards that CCGs are advised to use when commissioning services for which GP practices could be potential providers. The attached template (Appendix 6) sets out the factors on which CCGs are advised to assure themselves when commissioning services that may potentially be provided by GP practices. This will be completed for each relevant procurement in addition to the Procurement Readiness Review and submitted to the Procurement and Market Management Committee. 8.0 ROLES AND RESPONSIBILITIES CCG Procurements will be undertaken by NHS Greenwich CCG Procurement Team. This may include joint procurements on behalf of Greenwich and other CCGs. Some procurements may also be undertaken by South London Commissioning Support Unit on our behalf though our Service Level Agreement with them. Where this takes place, we will have systems in place to assure ourselves that their business processes are robust and enable us to meet our duties in relation to procurement. This will include the Commissioning Support Unit preparing and presenting information on bids, including an assessment of whether providers meet prequalifying criteria and an assessment of which provider provides best value for money. Where the Commissioning Support Unit is undertaking a procurement on our behalf, we will still need to sign off the specification and evaluation criteria, sign off decisions on which providers to invite to tender and make final decisions on the selection of the provider. 9.0 TRAINING AND AWARENESS The Senior Procurement and Delivery Manager and the Procurement and Delivery Manager are expected to be proactive in attending sufficient training events to ensure that they are sufficiently updated on legal and guidance changes to reduce the risk of overlooking legal requirements. 15

16 10.0 EQUALITY IMPACT ASSESSMENT An equality impact assessment will be undertaken for all procurements and will form part of the Procurement Readiness Review REVIEW This framework will be reviewed annually or whenever new guidance is published or new legislation or regulation is issued Each procurement will be followed by a procurement review and an updated Lesson Learned Log. This will not only ensure that the principles and process were fully applied in each individual procurement and whether the services commissioned deliver the intended benefits but will also be a training and development tool to inform future commissioning and procurement projects 12.0 MONITORING/AUDIT Compliance to this framework will monitored after each procurement 16

17 APPENDIX 1 NHS GCCG Principles Our Principles: We will improve quality and quality of patient experience by: Improving health outcomes with a relentless focus on the seven main health conditions and diseases in Greenwich and using evidence based approaches. Reducing health inequalities by taking a preventative, proactive approach and focusing on the health needs of black and minority ethnic communities and hard to reach groups. Simplifying clinical care pathways to ensure better quality care through aligned incentives and integrated approaches and services. Encouraging self-management of conditions wherever possible to reduce avoidable hospital admissions and to increase patients confidence using evidenced based measures and adopting best practice. Improving collaboration to harness economies of scale and scope in order to do more or better with available resources in the future through closer integration with Social Care, Public health and other partners. Ensuring service development is better connected to and wraps around primary care by commissioning service improvements that link to clinical processes in primary care. Managing demand effectively through referral management, seeking to support patients to make pathway choices and make best use of services in the community. Judicious use of integration and competition to enhance quality and offer more choice, increasing choice through the Any Qualified Provider policy and other commissioning innovations. Our 7 Guiding Principles 17

18 APPENDIX 2 EU Procurement Thresholds Any contract with a total value of more than the amounts listed below are subject to The Public Contracts Regulations 2006 and the Commissioner is required to advertise the contract opportunity in the Official Journal of the European Union (OJEU). The thresholds are reviewed every two years with the latest review completed in 01 January The current thresholds are: Type of Contract Service & Supply (includes supply, lease, rental or hire purchase of goods, excluding employment contracts) Threshold 173,934 Works (building & engineering, including capital works) 4,343,350 In addition services are classified as either Part A or Part B, with Part A Services being subject to the full EU Procurement regulations including advertising in OJEU. Part B Services have a minimal requirement such as not been required to be advertise in OJEU, or not being competitively tendered however they must adhere the principles of the EU procurement regulations of non- discriminatory, equal treatment and fairness. Part A Services (full regime) Accounting, auditing, book-keeping Market research and opinion polling Management consultancy Architectural, engineering, urban planning, landscaping and related technical services Advertising Building cleaning and property management Sewerage and refuse disposal IT Services Financial services Transport and courier services Maintenance and repair of vehicles and equipment Part B Services (partial regime) Catering Legal Security Educational Health and Social Recreational, cultural and sporting Other Services Appendix 3: DECISION MAKING PROCESS FOR UNDERTAKING PROCUREMENTS AND DETERMINING THE TYPE OF PROCUREMENT 18

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20 APPENDIX 4: PROCUREMENT READINESS REVIEW Project Name: Lead Commissioner: Date: Project Lead: Task Yes/No/N/A Date Comments Signed off by 1 Is the service : New Existing but significantly redesigned Existing but the contract is due to expire Existing but is not delivering as expected 2 If the service already exists has a contract variation been considered 3 If the service already exists has an extension to the existing contract been considered. 4 If the service already exists and has not reached the end of the contracted term, is it possible to improve the service through contract/performance management 5 Business Case has QIPP Gateway 2 Approval 6 Public engagement/consultation has taken place 7 Has there been stakeholder involvement? 8 Has a social value review been conducted How will social value be factored into the procurement 9 Service Specification is finalised: Cost Envelope/Tariff Care Pathways Minimum Data Set KPIs CQINNs 10 Service Specification is signed off 11 Where a contract is in place has notice been given? 12 Has the procurement route been approved by the Market Management and Procurement Committee? Has a contestability questionnaire been completed? 13 Has a procurement plan been agreed? 14 Has a communication plan been agreed? 15 Has a risk appraisal been undertaken? 16 Do the risks identified have owners? 17 Are the following business processes and leads in place: IT Invoicing Contract Management Data collection and activity reporting KPIs 18 Contract documentation agreed and assembled 20

21 APPENDIX 5 DRAFT TERMS OF REFERENCE GCCG Market Management and Procurement Committee 1. Purpose The role of the Market Management and Procurement Committee is to oversee the implementation of GCCG procurement policy and processes within the procurement framework, ensuring that such policies are at all times fit for purpose and compatible with national regulations and guidance, GCCG SFI s and EU law and that all procurements clearly follow these processes and policies. The Group will have the delegated authority to agree procurements to a whole of contract financial value to a level to be agreed by the Governing Body. 2. Duties/ Roles and Responsibilities The Market Management and Procurement Committee will be responsible for determining whether procurement is the most appropriate option and to confirm the type of procurement to be used. The Market Management and Procurement Committee will only consider a potential procurement after a Business Case has been approved by QIPP Gateway. The Committee will Oversee the implementation of CCG commissioning decisions where this involves market management or procurement Manage conflicts of interest between commissioners and providers Ensure compliance with competition policy and guidance and the law Oversee the decision on method of procurement such as AQP, formal competitive tender or Single Tender Action through the use of a contestability questionnaire, ensuring that there is sufficient evidence to support the decision 21

22 Ensure specifications are robust and provide quality assured services and sign off the specifications Support the implementation of open and transparent decision criteria for award of contracts and sign off the evaluation criteria Sign off decision on which providers are invited to tender Ensure contracts between GCCG and providers include clear performance criteria Maintain list of CCG approved providers Ensure patient choice and equity of access to services Make final decisions on the selection of the provider in the following circumstances as laid out in the CCG s Standing Financial Instructions o Provided that at least one Director is present at the meeting up to a total contract value of 500,000. o Provided that the Director of Finance is present up to a total contract value of 15 million. If the contract value if higher than this, then the final decision on the selection of the bidder should be made by the CCG Governing Body. 3. Accountability a. The Market Management and Procurement Group reports to the GCCG Executive Business Group b. The Committee is authorised to seek any information it requires from any employee or provider of services commissioned by GCCC and employees are directed to cooperate with any request made by the Committee. c. The Committee is authorised by to obtain outside legal, clinical or other independent professional advice and to secure the attendance of outsiders with relevant experience and expertise if it considers this necessary. 4. Committee Membership Membership shall include: a. Director of Integrated Commissioning b. Chief Financial Officer (or nominated deputy) c. An NHS Greenwich CCG Lay Representative d. A GP Representative on the CCG Governing Body e. Director of Integrated Governance (or nominated deputy) f. Associate Director of Service Redesign 22

23 g. Senior Procurement and Delivery Manager h. Procurement and Delivery Manager (minute taker) i. Patient Representative J Secondary Care Clinician 5. Quorum rules The required quorum for reaching a decision is four Panel members 6. Conflicts of Interest a) All committee members should declare any potential conflict of interest regarding individual procurements. Where a committee member has a material interest, they should either be excluded from relevant parts of the meeting, or join in the discussion but not participate in the decision making itself. b) The committee should also ensure that all Committee Members, and Procurement Evaluators complete a Conflict of Interest declaration c) Where it is likely that GPs will be involved in bidding for and providing services the NHS Commissioning Board document Code of Conduct: Managing Conflicts of Interest where GPs are Potential Providers of CCG Commissioned Services should be adhered to and the template questionnaire completed for each relevant procurement (see Appendix 6). 7. Frequency of Meetings The Market management and Procurement will report (via one side action sheet, as a minimum requirement) to the GCCG Executive Business Group 8. Frequency of Meetings a. The Committee will aim to meet monthly and no less than 6 times per year. b. Terms of Reference, frequency of meetings and Membership will be reviewed annually, or as required by changes in organisational requirements. c. Agenda and supporting papers will be circulated at least four days prior to the meeting. d. Minutes of all meetings will be recorded and minutes circulated to committee members. 23

24 APPENDIX 6 Template To be used in addition to the procurement readiness review when commissioning services from GP practices,including provider consortia, or organisations in which GPs have a financial interest NHS Greenwich Clinical Commissioning Group Service: Questions for all three procurement routes Question How does the proposal deliver good or improved outcomes and value for money what are the estimated costs and the estimated benefits? Comment/Evidence How does it reflect the CCG s proposed commissioning priorities? How have you involved the public in the decision to commission this service? What range of health professionals have been involved in designing the proposed service? What range of health professionals have been involved in designing the proposed service? How have you involved your Health and Wellbeing Board(s)? How does the proposal support the priorities in the relevant joint health and wellbeing strategy (or strategies)? What are the proposals for monitoring the 24

25 quality of the service? What systems will there be to monitor and publish data on referral patterns? Have all conflicts and potential conflicts of interests been appropriately declared and entered in registers which are publicly available? Why have you chosen this procurement route? How will the CCG make its final commissioning decision in ways that preserve the integrity of the decision-making process? Additional question for AQP or single tender (for services where national tariffs do not apply) Question How have you determined a fair price for the service? Comment/Evidence Additional questions for AQP only (where GP practices are likely to be qualified providers) Question How will you ensure that patients are aware of the full range of qualified providers from whom they can choose? Comment/Evidence Additional questions for single tenders from GP providers Question What steps have been taken to demonstrate that there are no other providers that could deliver this service? Comment/Evidence In what ways does the proposed service go above and beyond what GP practices should be expected to provide under the GP contract? 25

26 What assurances will there be that a GP practice is providing high-quality services under the GP contract before it has the opportunity to provide any new services? 26

27 Appendix 7 - Glossary of terms Any Qualified Provider, (AQP) Introduced by the Department of Health in 2011 to replace Any Willing Provider. Any Qualified Provider is a procurement model that CCGs can use to develop a register of providers Accredited to deliver a range of specified services within community setting. The model sets a single tariff but no activity guarantee. It is intended to deliver choice for patients and reduce bureaucracy and barriers to entry for potential providers Clinical Commissioni ng Group Competitive Tender EU Procurement Directives Social Enterprise Replaced PCTs from April 2013 as the organisation responsible for commissioning healthcare services in both community and hospital settings When a single provider is required, bidders compete to deliver the best bid against a service specification. Bids are evaluated on price, quality, value for money. A set of procurement rules that all member states must adhere to in their procurement laws. Due to be updated September Social enterprises are businesses which exist to address social or environmental need. Rather than maximising profit for shareholders or owners, profits are reinvested into the community or back into the business. Supply2Health Third Sector Supply2Health is an online resource that allows NHS Commissioners to advertise the clinical services they require to enable Healthcare Service Providers to identify business opportunities within the NHS. The Supply2 Health portal is also where all NHS Any Qualified Provider (AQP) opportunities are advertised The Voluntary sector or not for profit Community sector. This sector sits between governmental or public sector and the private ( for profit sector) 27