1. Procurement – What does it really mean
and working with the NHS?
Rachael Colley MCIPS
Head of Procurement Solutions and Innovation
NHS Shared Business Services

2. NHS Shared Business Services

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
delivered
audited savings
of over
£350m to the
NHS

4. Corporate Values

5.  Increase in implementation support – recognising more support needed in
complex areas
 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
Framework Agreements
How is NHS SBS Procurement Evolving

6. Making NHS SBS Procurement easy to do
business with
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
contracts online
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
cover NHS

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

8. Procurement – What’s that?

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
involves
(1) purchase planning,
(2) standards determination,
(3) specifications development,
(4) supplier research and selection,
(5) value analysis,
(6) financing,
(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
Identifying
the Market
Tender or
manage
existing
supply
Engage the
Market
Prepare the
Specification
Evaluating
Quotes and
Tenders
Award the
Contract
Implement
and Manage
the Contract
The Case for
Procurement -
Need
Public
Procurement
Cycle (EU
Regs)
Strategy
Governance
Data
Budget
Stakeholders
 Clinicians
 Patients
 Finance
 CEO /
Board
 IT
 Estates
 Supply
Chain
Partner /
Advisor
Sponsor
Exit

11. Trust Procurement Policy – an NHS example

12. The Regulations – what you need to
know

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
open competition
 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
2015
• Above set financial *thresholds, if you are buying supplies, services or works for all
public services
• All public sector must comply with PCR 2015 and the local SFI’s that the Trusts have in
place
 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).

14. Why we have Framework
agreements

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
Contracts Regulations
 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
 Preferential pricing
 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
with suppliers

17. How to procure through Frameworks

18. Definition: a contract that is awarded to a Framework supplier without further
competition.
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
the process.
Direct Award

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
assessment.
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.
Mini Competition

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
suppliers
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
and services
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
Estates
and
Facilities
Modular
Buildings
Hard FM
Soft FM
Vehicle Fleet
Management
Domestic,
Commercial
Products
Ward and
Bedside
Equipment
Audit ServicesWaste
Management
Staff Uniforms
Clothing
Consult-18:
Multidisciplinary
Consultancy
Services
Fuel Cards
Construction
Consultancy 2
Energy: Gas
and Electricity

22. IT, Digital and Business Services – Framework
Agreements
Business
and IT
Apprenticeship
Services Bill Validation
& Cost
Recovery
Communication
, Appointment,
Reminder &
Alert Services
Digital
Dictation
Solutions
Healthcare
Clinical
Information
Systems
Interpretatio
n &
Translation
Services
Travel
Management
ServicesLegal Services
Link:
Solutions IT
Managed
Print
Solutions
Medicines
Management
Prescribing
Decision
Support System
Workforce
Wellbeing
Services
Records
Management
Technology
Enables Care
Services

23. Healthcare – Framework Agreements
Healthcare
Contrast Media Cardiology,
interventional
radiology and
vascular grafts
Ophthalmology
Equipment and
consumable
Respiratory
therapy
Insourcing
Orthopaedic
Products
including power
tools, arthroscopy
products and long
bone healing
Clinical Managed
Services
Community
Equipment
Products and
Services
Orthotics and
Prosthetics
Products and
Services
Medical Imaging
and Radiotherapy
Advanced
Woundcare /
Advanced
Woundcare
Delivery
Patient
Connected
Support and
Therapy
Equipment
Point of Care
Testing: Drugs of
Abuse

24. Group Activity – 10 mins
What key things do you need to prepare in readiness
before you bring your product, service or solution to
the NHS…….

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
solves
• 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

26. Procurement Hot Topics

27. Why is it hot?
• Restructure of NHS Supply Chain
• NHS Procurement Target Operating Model tender – Deloittes work is underway
Impact
• 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
impact
• 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
Landscape

28. Why?
• Uncertainty – D1ND
• High profile
Impact
• 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

29. Why?
• 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
challenges
• Shift from product to service based contracts
Impact
• 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
based solutions
• 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
Rachael_colley@nhs.net
NSBS.newideas@nhs.net
Telephone: 07590 807355
Contact details