Presentation by Rachael Colley, Procurement Solutions and Innovation Manager, NHS Shared Business Services: Procurement at Excel in Health: understanding the NHS as a market place on Tuesday 26 February 2019 at Vanguard House, Daresbury.
3. Department of Health & Sopra Steria
A unique joint venture
• Original shared service centres
• NHS experienced people
• Financial Support
• Oracle EWA
• Unique 50:50 joint venture
• Commercial organisation
• Joint governance
• Customer focus
• Best practice
• World class
• Management & Business Development
• Service optimisation
• Best practice
• Offshore capability
• Commercial expertise
Together we have
£350m to the
5. Increase in implementation support – recognising more support needed in
New Framework Agreements – emerging category areas
Increased legal scrutiny on our procurements
Increased project resources
Creating AI solutions to access Framework Agreements
New horizon scanning function – to research, analyse and understand what is
being developed in the Healthcare market
Changed Commercial Model – Customers can get Free Access to all
How is NHS SBS Procurement Evolving
6. Making NHS SBS Procurement easy to do
AI Enabled Framework Agreement Portal
• Phase 1 – customers can search, find and sign up to agreements on-line
• Phase 2 – customers can navigate category detail and create bespoke
Increased Implementation Support Resource
• Supporting customers in navigating and using our Framework Agreements
Customer Engagement – Geographical Expansion of Team
• Creating a national engagement strategy
• Growth of the Commercial and Clinical Engagement Team in 2018 /19 to
7. The Big Picture
• NHS spending rising as percentage of public spend.
• Aging population and increasing healthcare costs fuelling increase.
• Significant public/media/political concern over ‘spiralling’ NHS challenges
for services and costs.
• Procurement will play a more prevalent role in ensuring the NHS can
continue to deliver their services effectively.
• NHS Long Term Plan focuses on a new Service Model for the 21st century
9. The act of obtaining or buying goods and services. The process includes preparation and
processing of a demand as well as the end receipt and approval of payment. It often
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(7) price negotiation,
(8) making the purchase,
(9) supply contract administration,
(10) inventory control and stores, and
(11) disposals and other related functions.
The process of procurement is often part of a company's strategy because the ability to
purchase certain materials will determine if operations will continue.
A business will not be able to survive if it's price of procurement is more than the profit it
makes on selling the actual product.
The Business Definition of Procurement
10. Procurement – The cycle and considerations
The Case for
13. The Public Contract Regulations
The over-riding procurement policy requirement is that all public procurement must be
based on value for money
Public sector procurement is subject to a legal framework which encourages free and
The EU has adopted legislation to ensure that the EU public procurement market is
open and competitive and that suppliers are treated equally and fairly
Public Contracts Regulations 2015:
• Procurement for the wider public sector is subject to the Public Contracts Regulations
• Above set financial *thresholds, if you are buying supplies, services or works for all
• All public sector must comply with PCR 2015 and the local SFI’s that the Trusts have in
The light-touch regime (LTR) is a specific set of rules for certain service contracts that
tend to be of lower interest to cross-border competition. The list of services to which the
Light-Touch Regime applies is set out in Schedule 3 of the Public Contracts
Regulations 2015 (Annex A).
15. What is a Framework Agreement?
Definition: an agreement between a Contracting Authority (e.g. NHS SBS, an NHS
Trust, or a local council) and one or more suppliers, the purpose of which is to
establish the terms governing contracts to be awarded during a given period, in
particular with regard to price and, where appropriate, the quantity.
6-9 month procurement process
Awarded following a fully OJEU compliant process under the 2015 Public
Usually awarded for a period of 4 years
*Legal requirement for public sector procurements over the value of £118K
Approx. cost of £25,000 per tender process for a Contracting Authority
16. What are the Benefits of a Framework Agreement?
Compliance with The Public Contracts Regulations 2015 (i.e. ‘OJEU’) so lowers risk
Approved list of suppliers who have been evaluated on quality and price
Aggregation of demand leading to standardisation and improved pricing
Efficiency savings through the removal of duplication
Standard Terms and Conditions
Access to Procurement category experts who have developed collaborative relationships
18. Definition: a contract that is awarded to a Framework supplier without further
1. The supplier must already be awarded to the Lot relevant to the work being procured.
2. Make initial contact with the preferred supplier through the Capability Assessment or;
3. Contact the preferred supplier directly via the details provided within the Buying Guide
whilst quoting the Framework reference number.
4. Notify the supplier of the requirements, time frames and scope of the work.
5. Agree upon a contracted rate – where possible this should relate back to the
indicative Framework rates provided.
6. Place the order directly with the chosen supplier using framework reference number
7. Where appropriate, Sign SLA with the supplier and return to NHS SBS to complete
19. Definition: A process which re-opens competition under the Framework with a view to
awarding a contract(s) to the winning supplier(s). The competition should be evaluated on
a mixture of quality and price and not involve any pre qualification questions such as
those relating to the PQQ.
1. The suppliers must be awarded to the Lot relevant to the work being procured.
2. Reduce numbers by making initial contact with suppliers through the capability
3. Develop tender documents including a specification, schedule of works, evaluation
criteria and any forms of contracts (such as the JCT or NEC3) or use the NHS SBS
Call Off Terms and Conditions which have already been agreed.
4. Invite interested suppliers to a Mini Competition quoting the Framework reference
number. This can be run via an online tendering portal, email or post with timescales
proportional to the bid requirements.
5. Award to the winning supplier(s) as per the evaluation criteria.
6. A standstill period is advisory but not mandatory.
7. Place the order directly with the chosen supplier(s).
8. Sign the NHS SBS SLA and return to NHS SBS to complete the process.
20. There are two options to get on a framework:
1) Bid for the live tender opportunity
2) Partner with an existing Framework supplier
Did you know:
If you find a framework with scope that fits with what you offer you can ask for a list of
If you want to know more about the Procurement process and how tenders are built and
run you can ask as part of the early engagement
We can help Suppliers get into Trusts
Where there is a genuine requirement we can build agreements around supplier products
You can ask for advice and guidance on subcontracting and partner arrangements
Once a framework agreement is let you cannot join it, you often have to wait for the
renewal cycle (light touch regime and dynamic purchasing solutions are the exceptions
How can I get on a Framework?
21. Estates & Facilities – Framework Agreements
22. IT, Digital and Business Services – Framework
Services Bill Validation
23. Healthcare – Framework Agreements
Contrast Media Cardiology,
products and long
Point of Care
Testing: Drugs of
24. Group Activity – 10 mins
What key things do you need to prepare in readiness
before you bring your product, service or solution to
25. There’s never been a better time to step forward with new solutions, product
developments and true innovation.
Be aware that Clinician’s, IT, Finance and Procurement are working closer together -
roles are changing.
NHS England and NHS Digital (NHSX) are developing and adapting to deliver new
services – new funds and schemes available that support new entrants and
innovation. The Link with your AHSN and Trusted Procurement Partners is key.
Suppliers can prepare by;
• Clearly describing what it is that you want to bring to the NHS and what problem it
• How your offer fits both with an NHS customer and the big picture – how many
people might benefit / use it etc.
• Be clear about the benefits – does it reduce patient harm, avoid litigation, is more
efficient than existing product / service, are there savings
• Remember to tell us how it is used, cleaned, lifecycle, replacement, training – don’t
assume this is known by every discipline across the NHS
How SME’s can prepare for working with the NHS
27. Why is it hot?
• Restructure of NHS Supply Chain
• NHS Procurement Target Operating Model tender – Deloittes work is underway
• Uncertainty at all levels – local, regional, national
• Costs increasing in some cases as long term deals cannot be secured
• Targets increasing for Procurement teams at Trusts as the top slicing starts to
• More scrutiny on structures and landscape
• Procurement resource getting more difficult to attract and retain, salaries being
pushed. Great for the profession, not so great for the discussion with HR!
Hot Topic 1: The Changing NHS Procurement
• Uncertainty – D1ND
• High profile
• Pressure on Procurement teams to understand and measure the risk
• DH central co-ordination
• Stock piling
• Increasing supply chain issues emerging i.e. cold storage
• Prices increasing
• Post Brexit Law: Government publishes draft Public Procurement
Regulations Amendment for EU Exit which will be of relevance to all public
sector bodies and potential suppliers in the UK.
Hot Topic 2: Brexit
• Limited Capital Fund for equipment replacement
• Increased demand in some health areas e.g. endoscopy
• VAT Recovery opportunities
• Growth in digital/tech services and markets
• Development and growth of innovative solutions in response to NHS
• Shift from product to service based contracts
• Growth in demand for Clinical Managed Equipment Services
• Increase in complex and innovative commercial models that are scalable
• Suppliers getting innovative with commercial models e.g. driving outcome
• Category expertise is often limited in these areas
• NHS Standard Terms and Conditions are not always appropriate
Hot Topic 3: Changing NHS spend profile
30. Thank you for listening
Rachael Colley MCIPS
Head of Procurement Solutions and Innovation
Telephone: 07590 807355
Notes de l'éditeur
Who are we? In 2005 we started out as the NWCCA North West Commercial Collaborative Agency. In 2006 through a Steria acquisition we became NHS SBS. In the past few years we have branched out across the UK and become a UK wide NHS partner and have seen increased growth through Wider public sector, including Universities, Police, Fire and many more organisations. With around 100 core members and 850 associate members we have seen exponential growth in the past 4 years.
Many people can get involved in a Procurement which can make the process long and protracted. Even worse when you think you have an order you have to go right back to the start and follow the policy, SFI’s or engage a stakeholder that you didn’t even know you had to.
From FOM to NOM to TOM - SBS response – Future Operating Model to National Operating Model and now a Target Operating Model for Procurement
The reality is that markets deal with geo political issues all the time. Brexit and the potential and real impact to the supply chain is no exception.