NHS Highland Sustainable Procurement Strategy 2015-16 1
NHS Highland Sustainable Procurement Policy 2015-16 CONTENTS 1. Introduction Page 3 2. Executive Summary Page 3 3. Policy Scope Page 4 4. Policy Implementation Page 5 2
1. Introduction Sustainable Procurement is defined as a process whereby an organisation meets their needs for products, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to a society and the economy, whilst minimising damage to the environment. Sustainable Procurement should therefore consider the economic environmental and social consequences of design, non-renewable material use: manufacture and production methods: logistics: service delivery: use: operation: maintenance: re-use: recycling options: disposal and suppliers capability to address these consequences throughout the procurement and supply journey. This policy seeks to lay down the policy guidelines that will guide sustainable procurement in NHS Highland and links this to our annual Flexible Framework assessment and outlines achievements and actions for the year ahead. This policy is intended to align fully with Scottish Procurement Policy and the Scottish Government s Sustainable Procurement Action Plan, NSS National Procurement Framework, Frameworks Scotland and the overall strategic aims and objectives of NHS Highland and the Highland Quality Approach including NHS Highland s Procurement Strategy for 2012-15, our Equality Outcomes and other related policies. 2. Executive Summary In line with Scottish Government procurement policy and NHS Scotland Good Corporate Citizen requirements, this Sustainable Procurement Policy sets out the areas and process whereby NHS Highland will ensure that sustainable procurement considerations are embedded in its requirements for products, services, works and utilities in a way that achieves value for money on a whole life basis. Governance and performance management in respect to this policy with be undertaken by NHS Highland s Procurement Steering Group on behalf of the NHS Highland Senior Management Team. Objectives and activities associated with the implementation of this policy shall align with the objectives detailed in the Scottish Governments Sustainable Procurement Flexible Framework assessment tool. 3
3. Policy Scope Policy focus is segmented into three key areas: Economic covering:- Corporate Governance Supplier selection and tender evaluation processes in accordance with Scottish Government Procurement Journey including opportunity assessments and where relevant taking into account sustainable whole life cost criteria. Ethical trading Supplier and product or services selection processes to be undertaken in accordance with NHS Highland s Standing Financial Instructions and the NHS Highland Ethical Procurement Policy. Payment on time NHS Highland introduced a No PO/No Pay policy at the beginning of 2014 and now will not pay an invoice unless it has a purchase order number on it. Supplier invoices shall be paid in accordance NHSS standard conditions of purchase along with the Scottish Governments payment on time initiative, targeting 10 days from receipt of valid invoice. Waste Reduction Adoption and application of CSI Methodologies throughout NHS Highland s Procurement and Supply Chain processes. NHS Highland will also utilise technology, such as Warp-IT where appropriate, to help reduce the need for new products and therefore reducing the volume of waste generated. Risk and Health and Safety Management. This policy shall be consistent with NHS Highland s Risk and Health and Safety policies. NHS Highland s procurement risk, supplier selection and tender evaluation and management processes shall address and ensure sustainability factors are considered in all of NHS Highland s key procurement and supply decisions. Environmental:- This policy shall be consistent with NHS Highland s Environmental and Carbon footprint policies. NHS Highland s procurement processes shall, where practicable, take into account supplier and product selection criteria that minimise environmental impact and shall fully comply with relevant procurement legislation. This policy shall also take account of NHS Highland s obligations under section 44 of the Climate Change (Scotland) Act including completion and regular updating of the Climate Change assessment tool. 4
Social:- This policy shall be consistent with NHS Highland s Equality and Diversity policy and our published Equality Outcomes. Fair and equitable consideration to be given to all potential providers of NHS Highland s product and services needs, including Supported Businesses, Third Sector Organisations, Social Enterprises and Small and Medium sized Enterprises (SMEs). All potential providers of NHS Highland s product and services requirements shall be directed towards the Scottish Government Public Contracts Scotland (PCS) website as NHS Highland s primary public procurement advertising portal. NHS Grampian shall give due consideration to the inclusion of Community Benefit Clauses (CBCs) in its contract development and award procedures provided they are a core requirement, that is, they provide economic benefit and/or help achieve one of NHS Highland s Health Plan policy objectives. CBCs shall also have a direct link to the core purpose of the contract, in order that they can be included in the technical assessment of potential contractors and in award of contract decision and terms. 4. Policy Implementation. Policy implementation shall be referenced in the NHS Highland Procurement Strategy and the action points identified from the Flexible Framework assessment will be auctioned on an ongoing basis as a business as usual activity, we will ensure that appropriate objectives and activities are undertaken as follows: Communication This Sustainable Procurement Policy shall be made accessible to all staff and suppliers to ensure that there is sufficient awareness of its content and objectives. Information will be published on the Procurement section of the NHS Highland Intranet pages, the NHS Highland Internet or the NHS Highland dedicated page on the Knowledge Hub. Information cascade to NHS Highland s suppliers shall take place through encouraging and supporting the registration of all existing and potential suppliers onto the Scottish Government Public Contracts Scotland Advertising Portal which includes publication of NHS Highland s Supplier Charter. Information cascade to NHS Highland s suppliers shall be further supported by ensuring that relevant suppliers are advised of NHS Grampian s sustainable procurement policy during appropriate supplier and tender evaluation processes for specific requirements. Staff competency NHS Highland s Procurement Training and Development Plan shall ensure that all relevant staff involved in the Procurement and Supply Chain cycle shall have sufficient awareness of NHS Highland s sustainable procurement policy and that key 5
specifying and procurement staff shall demonstrate sustainable procurement competence through the incorporation of sustainability criteria within relevant defined needs, specifications, supplier selection and tender award criteria for formal contract arrangements. We will ensure that all procurement staff, including those working in devolved procurement areas, such as the Pharmacy, will complete the Scottish Government Procurement Competency Self-Assessment exercise at least once every 3 years. Procurement process NHS Highland s procurement processes shall ensure that the majority of its needs for products, services, works and utilities are channeled towards national or local formal contract arrangements. NHS Highland shall also adopt the Scottish Government Procurement Journey methodology for its contract developments to ensure that sustainable procurement considerations are included where relevant. Procurement policy documents on the Scottish Government website provide further guidance on the processes to be applied. Annual plans shall therefore also include activity that seeks to grow and maintain formal contract coverage and compliance. Stakeholder engagement and management Efficient and effective supplier engagement and management is vested in those staff responsible for defining, specifying, approving, tendering and implementing contracts. NHS Highland recognises that supplier engagement will be a key part of meeting our sustainability objectives bus so is ensuring engagement across the Board. Procurement will continue to take a leading role in the NHS Highland Sustainability Group to ensure procurement aspects are discussed and considered at a high level. Minimising waste All staff who use externally procured products and services in the course of carrying out their duties have a responsibility to ensure that they reduce/reuse/recycle and that they seek to identify and eliminate waste where possible. NHS Highland has adopted and shall apply continuous service improvement (CSI) methodologies across its processes in the Procurement supply chain. Specific objectives and activities shall be incorporated into business as usual activities within the department. Ethical procurement NHS Highland requires the highest standards of business and professional conduct to be applied by all staff involved in its procurement and supply chain activity in accordance with Scottish public sector procurement regulations and best practice codes of conduct and practice as detailed in the Scottish Procurement Policy Handbook. NHS Highland s product, services, works and utilities needs shall therefore be acquired in accordance with its Standing Financial Instructions and all of its related approved Procurement Strategies, policies and procedures. Designated officers in the Procurement department, in devolved procurement areas shall ensure compliance with these standards at all times. NHS Highland s definition of needs, specification of requirements, supplier selection and tender criteria shall include compliance with all procurement regulations including the requirements of the Equality Act 2010. 6
Flexible Framework NHS Highland has been working towards an ever increasing score within the Framework since first undertaking the assessment in 2013. Improvements have been made and an action plan is developed on an annual basis as a result of the most recent annual assessment undertaken. The action plan, is updated on an annual basis and the delivery of these actions will be undertaken throughout the course of the year as business as usual. 7