Procurement Policy. Policy Number CP 005 (v2) Date of Policy 5 th March 2015 Next Review Date March 2018 Sponsor

Transcription

1 Procurement Policy Policy Number CP 005 (v2) Date of Policy 5 th March 2015 Next Review Date March 2018 Sponsor Head of Corporate Governance & Planning Reviewed by / on 5 th March 2015 / Board Approved by / on 5 th March 2015 / Board Version Date Comments By Whom V1 December 2014 New Policy Board V1.1 5 th March 2015 Revised Policy Board V2 January 2016 Added general statement on resolution of conflict as requested by Board. Board Secretary

2 Procurement Policy Page 2 of 28 January 2016

3 Contents Section Page No 1 Introduction 1 2 Associated policies and procedures 1 3 Aims and objectives 2 4 Scope of the strategy 3 5 Accountabilities and responsibilities 3 6 Guiding principles 4 7 Public procurement obligations 5 8 Conflicts of Interest 6 9 Procurement planning 6 10 Procurement approach for non-clinical supply and service contracts 6 11 Procurement approach for health and social service contracts 7 12 Approach to market 8 13 Tender processes Financial and quality assurance checks Principles of good procurement Contract form Sustainable procurement Use of Information Technology TUPE Training Monitoring compliance with this policy 14 Appendix A Appendix B Appendix C Appendix D Appendix E Appendix F Record of Contracting Decision Commissioning Healthcare Decision Flow Chart Non Healthcare Procurement Decision Single Tender Waiver Proforma Indicative Timescales for Different Types of Procurement Extract of Delegated Financial Limits Procurement Policy Page 1 of 28

4 Policy Statement. NHS BaNES CCG ( the CCG ) will be compliant with prevailing procurement regulations, policies and guidance and will use procurement best practice to support clinical priorities, health and well-being outcomes and wider CCG objectives such as ensuring value for money. 1. Introduction 1.1 Procurement is central to driving quality and value. It describes a whole life-cycle process of acquisition of goods, works and services; it starts with identification of need and continues through to the end of a contract or the end of the useful life of an asset, and includes performance management. Procurement encompasses everything from repeat, low-value orders through to complex healthcare service solutions developed through partnership arrangements; effectively any situation where goods and/or services are obtained in exchange for monetary consideration. 1.2 There are a range of procurement approaches available which include working with existing providers, non-competitive and competitive tenders, multi-provider models such as Any Qualified Provider ( AQP ) and frameworks. 1.3 The CCG will actively use procurement as one of the system management tools available to strengthen commissioning outcomes, whilst operating within legal and policy frameworks. It can do this through: Increasing general market capacity and meeting CCG demand requirements; Using competitive tension to facilitate improvements in choice, quality, efficiency, access, responsiveness, and value for money; Stimulating innovation. 2. Associated Policies and Procedures 2.1 This policy and any procedures derived from it should be read in accordance with the following policies, procedures and guidance. The CCG s Constitution including Standing Orders (SO) and Prime Financial Policies (PFP) The CCG s Standards of Business Conduct Policy The CCG s Delegated Financial Limits (DFL). Any other appropriate policies. 2.2 Other legislation affecting procurement includes: Section 11 of the Health and Social Care Act 2001 requires commissioners of healthcare services to ensure patients and their representatives are involved in and are consulted on planning of healthcare services. Section 242 of the National Health Service Act 2006 provides that commissioners of healthcare services have, in relation to health services for which they are responsible, a legal duty to consult patients and the Procurement Policy Page 2 of 28

5 public directly or through representatives on service planning, and consideration of service changes and decisions that affect service operation. NHS Responsibilities and Standing Rules Regulations 2012 require commissioners to take in to account commitments made to patients under the NHS Constitution. National Health Service Procurement, Patient Choice and Competition ( PPCC ) Regulations 2013 place requirements on commissioners to ensure that they adhere to good practice in relation to procurement, not to engage in anti-competitive behaviour (unless it is in the best interests of patients) and to promote the right of patients to make choices about their healthcare. Public Contracts Regulations 2006 (and subsequent amendments) place obligations on public bodies to act transparently, fairly, equitably and in a proportionate way when public funds are used to contract for goods, services and works. Bribery Act 2010: bribery is defined as occurring when a person offers, gives or promises to give a "financial or other advantage" to another individual in exchange for "improperly" performing a "relevant function or activity". Staff are reminded that bribery is a serious offence and they should be vigilant of any attempts to unduly influence a decision. Any such attempts should be immediately reported to the Local Counter Fraud Specialist or Chief Financial Officer in line with the CCG s Antifraud, Bribery and Corruption Policy. Public Services (Social Value) Act 2012: the Act requires commissioners, at the pre-procurement stage, to consider how goods and/or services being procured may improve the social, environmental, and economic well-being of the relevant area and how they might secure any such improvement. 3. Aims and Objectives 3.1 To set out the approach for facilitating open and fair, robust and enforceable contracts that provide value for money and deliver required quality standards and outcomes, with effective performance measures and contractual levers. 3.2 To describe the transparent and proportionate process by which the CCG will determine whether requirements are to be secured through existing contracts with Procurement Policy Page 3 of 28

6 providers, competitive tenders, via an AQP or framework approach or through a noncompetitive process. 3.3 To enable early determination of whether, and how, requirements are to be opened to the market, to facilitate open and fair discussion with existing and potential providers and thereby to facilitate good working relationships. 3.4 To set out how the CCG will meet statutory procurement requirements, primarily the PPCC Regulations 2013, the associated Monitor guidance and the Public Contracts Regulations 2006 (and subsequent amendments). 3.5 To enable the CCG to demonstrate compliance with the principles of good procurement practice: Transparency; Proportionality; Non-discrimination; Equality of treatment. 4. Scope of the Policy 4.1 As far as it is relevant, this policy applies to all NHS BaNES CCG procurements (clinical and non-clinical). However, it is particularly relevant to procurement of goods and services that support the delivery of healthcare and certain sections relate only to procurement of health and social care services. 4.2 This Policy must be followed by all NHS BaNES CCG employees and staff, including those on temporary or honorary contracts, representatives acting on behalf of NHS BaNES CCG (including staff from member practices acting in this capacity), and any external organisations acting on behalf of the CCG including other CCGs and Central Southern Commissioning Support Unit ( Central Southern ). 5. Accountabilities & Responsibilities 5.1 Lead Manager Overall responsibility for procurement rests with the Director of Commissioning Development. 5.2 Procurement support Where it is required, procurement support will be provided by Central Southern or on occasions (e.g. in the case of certain collaborative projects) by another CCG. The CCG will have systems in place to assure themselves that Central Southern or the relevant CCG s processes are robust and enable the CCG to meet their duties in relation to procurement. Procurement Policy Page 4 of 28

7 5.3 Authority The CCG will remain directly responsible for: Approving the procurement route; Signing off specifications and evaluation criteria; Signing off decisions (or delegating to authorised officer(s) or a project group) on which providers to invite to tender; Making final decisions on the selection of the provider. 5.4 Arrangements for delegation of authority to officers are set out in the PFP/DFL. In the event of any discrepancy between this Procurement Policy and the SO/PFP/DFL, the SO/PFP/DFL will take precedence. 6. Guiding principles 6.1 When procuring healthcare services, the CCG is required to act with a view to: Securing the needs of the people who use the services, Improving the quality of the services, and Improving efficiency in the provision of the services. 6.2 For all procurements the CCG is required and committed to: Act in a transparent and proportionate way, Treat providers equally and in a non-discriminatory way, including by not treating a provider, or type of provider, more favourably than any other provider, in particular on the basis of ownership. 6.3 The CCG is required and committed to procuring services from one or more providers that: Are most capable of delivering the needs, quality and efficiency required Provide the optimum value for money in so doing. 6.4 The CCG is required and committed to act with a view to improving quality and efficiency in the provision of services. The means of doing so will include: The services being provided in an integrated way (including with other healthcare services, health related services, or social care services) Enabling providers to compete to provide the services where appropriate Allowing patients a choice of provider of the services where appropriate 6.5 There will be circumstances where a decision to procure without running a competitive tendering process will be appropriate and consistent with procurement regulations. This may include: Where there is only one provider that is capable of providing the goods or services in question. Procurement Policy Page 5 of 28

8 Where the benefits of running a competitive process would be outweighed by the costs of doing so. Where running a competitive process may result in a high risk of discontinuity or disruption to service provision during and or subsequent to the transition period 6.6 Potential conflicts of interest will be managed appropriately to protect the integrity of the CCG s contract award decision making processes and the wider NHS commissioning system. 6.7 The CCG s staff and Board Members must exercise sound judgement when procuring goods and services, taking into account the statutory framework and the provisions of this policy. 7. Public Procurement Obligations 7.1 The Public Contracts Regulations 2006 (which transpose the European Directives into UK law) place legal requirements and obligations on public bodies when awarding contracts above certain financial thresholds. 7.2 Within the EU Procurement rules, service contracts are currently divided into two categories: Part A to which the full regime of EU rules apply; and Part B where only some of the EU procurement rules apply. 7.3 Health and social care services are categorised as a Part B service There is a statutory requirement to follow the full EU Procurement rules, where legally-enforceable contracts are to be awarded, for supply of goods and/or services with an estimated full-life value above 111,676 (at January 2014), other than those specifically listed as Part B services. 7.5 Where legally-enforceable 2 contracts are to be awarded for Part B services with estimated full-life value above 172,514 (at January 2014), there is a limited statutory requirement to apply some of the EU procurement rules. 1 The distinction between Part A and Part B services will be removed through Public Contract Regulations However, for health and social services contracts this change will not apply before 18 April 2016 when a light touch regime will be introduced Further guidance is awaited. 2 Contracts with NHS Foundation Trust (FT) are treated as legally enforceable. NHS contracts made between NHS bodies (not FTs), as determined by section 9 of the National Health Service Act 2006, are not treated as legally enforceable contracts i.e. they are not enforceable in a court of law and are, therefore, outside the scope of the EU procurement obligations to tender, however, they are subject to the EU treaty principles set out in paragraph 7.7. Procurement Policy Page 6 of 28

9 7.6 The financial thresholds which determine whether the EU rules apply to a procurement are reviewed every two years. The next review is due at the end of 2015 to take effect on 1 st January Details of current financial thresholds are available via this link The EU Treaty principles of non-discrimination, equal treatment, transparency, mutual recognition and proportionality apply to all procurements, whether they are for Part A or Part B services. The CCG approach to fulfilling these requirements is described in section There is no statutory requirement to tender health and social care services and no general policy requirement for these services to be subject to formal procurement processes; however the general principles of the PPCC Regulations 2013 must still be satisfied. 7.9 CCG staff must comply with the tendering and contracting sections of SO/ PFP / DFL where these may set out further obligations. 8. Conflicts of interest 8.1 Regulation 6(1) of the PPCC Regulations 2103 prohibits commissioners from awarding a contract for NHS healthcare services where conflicts, or potential conflicts, between the interests involved in commissioning such services and the interests in providing them affect, or appear to affect, the integrity of the award of that contract. 8.2 General arrangements for managing conflicts of interest are set out in the CCG s Standards of Business Conduct Policy. 8.3 Appendix A will be completed as part of the planning process for all healthcare services. The completed templates will be used to help provide assurance to the CCG Board that proposed services meet local needs and priorities and that robust processes have been followed in selecting the appropriate procurement route and in addressing potential conflicts of interest. 8.4 Where any person on a decision-making body has a conflict of interest in a procurement decision that person will be excluded from the decision-making process. 9. Procurement planning 9.1 A procurement plan will be maintained that will list all current and known future procurements. The procurement plan will be reviewed on a regular basis taking into account local and national priorities, the CCG s commissioning intentions and nationally mandated procurements. Procurement Policy Page 7 of 28

10 10. Procurement approach for non-clinical supply and service contracts The CCG and/or its agents will follow EU public procurement rules and SO/PFP/DFL as appropriate The financial threshold and the requirements for seeking quotes or tenders are as follows; Value of Purchase /Contract Up to 20,000 PFP/DFL requirement Informal Price Testing (for value for money) 20,001 to 100,,000 Competitive Quotations (Minimum 3 written quotes) Over Over EU procurement threshold excl. VAT Formal Competitive Tendering (Minimum 5 tenders) EU Compliant Competitive Tendering (Currently 111,676) 10.3 Further information is set in Appendix C - Non Healthcare Procurement Decision Flowchart. If a purchase / contract is likely to require formal tendering and / or an EU compliant procurement, CCG staff must seek Procurement advice and support to ensure that the process undertaken is appropriate and protects the commercial interests of the CCG For requirements below the tendering threshold Central Southern Procurement team are available to CCG staff to obtain quotes and advise on specifications, marking schemes, conditions of contract and pricing. 11. Procurement approach for health and social care service contracts 11.1 The CCG will conduct health and social care service procurements, as one part of market management and development, according to priorities established in its strategic plans Decisions regarding the procurement route used will be driven by the need to commission services from the providers who are best placed to deliver the needs of its patients and population The procurement options will vary depending on whether the service is existing, new or significantly changed. Procurement Policy Page 8 of 28

11 11.4 The financial threshold and the requirements for seeking quotes or tenders apply as in section 10 above Existing Services Where it can be demonstrated that an existing service is fit for purpose, offers best value for money and continues to fit with the strategic direction of the CCG (as evidenced by a completed Record of Contracting Decision document Appendix A of this procurement policy document) the existing provider may be retained without competition. Where this cannot be demonstrated an appropriate procurement process should be undertaken New or significantly changed services The CCG s approach to securing services will (in overall terms) be the following: Determine whether the service can be accommodated through existing contracts with providers through future variations to those contracts, assuming that this is possible without contravening procurement rules and guidance, and that quality, patient safety and best value for money can be demonstrated. Consider whether there are demonstrable grounds to identify a specific provider or group of providers without competition, these may include: o o o Where a service is designated as list-based and either GP practices are practicably the only capable providers of a service or the service is of low value, the CCG will consider procuring on a non-competitive basis from GP practices. For technical reasons, or for reasons connected with the protection of exclusive rights, the contract may be awarded to only that provider i.e. there is only one provider that can meet the CCG s requirements. For reasons of extreme urgency 3, outside the control of the CCG, where it is not possible to award a contract to another provider in the time available Where the approach detailed in is not applicable an appropriate procurement route should be chosen (see Commissioning Flowchart Appendix B). 12. Approach to market 12.1 Any Qualified Provider With the AQP model, for a prescribed range of services, any provider that meets criteria for entering a market can compete for business within that market without constraint by a commissioner organisation. Under AQP there are no guarantees of volume or payment, and competition is encouraged within a range of services rather than for sole provision of them. 3 Failure to plan by the CCG would not be considered a legitimate reason for letting a contract on these grounds. Procurement Policy Page 9 of 28

12 The AQP model promotes choice and contestability, and sustained competition on the basis of quality rather than cost. Any service that is contracted through the AQP model does not need to be tendered, although it will need to be advertised (using Contracts Finder; and potential service providers will need to be qualified (see below) A standard NHS contract will be awarded to all providers that meet: Minimum standards of clinical care (implying qualification/accreditation requirement); The price the CCG will pay; The CCG will have due regard at all times to the EU Treaty principles of nondiscrimination, equal treatment, transparency, mutual recognition and proportionality when applying the AQP procedure Competitive Tendering Competitive tendering may be an appropriate procurement route where; A single or small number of providers are required to deliver the service. There is the possibility of price, quality or efficiency improvement through competition. There are multiple potential providers. It is not possible to otherwise determine who the most capable provider for a service is. It is not otherwise possible to be sure that best value is being achieved Non-Competitive process In general, competition should only be waived where there is genuine urgency, where there is demonstrably only one provider who can provide the service for technical reasons or special exclusive rights, or the existing provider is the most capable and provides best value. In these circumstances a single tender waiver form must be competed (see Appendix D) 12.4 Partnership Arrangements Where collaboration and coordination is considered essential (e.g. developing new integrated pathways or enabling sustainability of services) the CCG may wish to consider partnership arrangements. Such partnership arrangements must be formalised using the appropriate contract form and must provide; Transparency, particularly with regards to information sharing; A contribution to service re-design; Timely provision of information and performance reporting; Evidence of improved patient experience year-on-year; Evidence of value for money Partnership status must not be used as a reason to avoid competition and should only be used appropriately, regularly monitored and evidenced by completion of the Record of Contracting Decision template (Appendix A). Procurement Policy Page 10 of 28

13 For partnership services (or elements thereof) the CCG may choose to commission the service from a partner but may also choose to tender for provision of the service (e.g. where the partner cannot meet the service model requirements or costs cannot be agreed) Spot Purchasing of Health and Social Care Services There will be the need to spot purchase contracts for particular individual patient needs or for urgency of placement requirements at various times. At these times, a competitive process may be waived (subject to completion of appropriate waiver documentation). It will be expected that these contracts will undergo best value reviews to ensure the CCG is getting value from the contract. In all cases the CCG should ensure that the provider is fit for purpose to provide the particular service Framework Agreements Framework Agreements are pre-tendered agreements which are established in compliance with the EU Procurement Rules and which, once established, can be used by the CCG to purchase certain products and/or services without the need to carry out a full procurement process. The advantage of using a framework agreement is that, once established, it can be used to save both time and cost A framework can be established by the CCG for their own use; or by another clinical commissioning group, contracting authority or a central purchasing body such as the Crown Commercial Services (CCS) If the CCG wishes to use a framework agreement established by another organisation, they must ensure; that its requirements fall within the specification of goods / services covered by the framework; That it is entitled to use the framework and that the correct contracting processes are followed ( i.e. further competition with all providers invited or direct award); That the term of the framework has not expired; 12.7 Grants In certain circumstances the CCG may provide a grant to a service provider. Use of grants can be considered where: Funding is provided for development or strategic purposes; The provider market is not well developed; There is a need for innovative or experimental services; Where funding is non-contestable (i.e. only one provider) Grants should not be used to avoid competition where it is appropriate for a formal procurement to be undertaken. Procurement Policy Page 11 of 28

14 12.8 Pilots A pilot is a temporary scheme (typically lasting no longer than a year) designed to test a new way of working, where the intention is to continue with the service in the event that the pilot is successful. Pilots have no special legal status and are subject to the same procurement regulations as any other service. As such particular care must be taken when deciding who will run the pilot, especially if there is more than one possible provider. Pilots must not be used to avoid running a competitive process Indicative timescale for the different types of procurement is set out in Appendix E 13. Tendering Process 13.1 If a decision is taken to pursue a competitive tender process, there are a range of further issues that will be taken into account in the design of the process to be followed; these are not considered in detail in this policy but include: Market analysis (e.g. structure, competition, capacity, interest); Tendering routes; Procurement timescales; Affordability; Impact on service stability; Procurement resource, including responsibilities and accountabilities; Consultation and engagement requirements; Outcome-based specifications; Evaluation methodology Existing related contractual arrangements; Contract management; Provider development; and Value for money Confidentiality Staff involved in tendering processes are likely to have access to a range of commercially sensitive information and are reminded of the need to maintain confidentiality at all times This can be in respect of information belonging to the CCG (e.g. specifications, budget information, timescales etc.) or bidders (service models, pricing proposals, intellectual property etc.). Members of tender evaluation panels should not discuss any element of the tender (and in particular the contents of bids or the scoring process) with anyone outside of the panel without approval of the procurement lead Where evaluation panels include members who are not employees of the CCG or Central Southern (such as patients, members of the public or external advisors) they must be asked to sign a confidentiality agreement before being given access to any sensitive data. Consideration should be given as to whether any additional support or training may be necessary in order to help them undertake their role Procurement Policy Page 12 of 28

15 14. Financial and quality assurance checks 14.1 The CCG will require assurance about potential providers. Where, exceptionally, this is not achieved through a formal tender process, the following financial and quality assurance checks of the provider will be expected to be undertaken before entering into a contract: Financial viability Economic standing Corporate social responsibility Clinical capacity and capability Clinical governance Quality/accreditation 15. Principles of good procurement 15.1 The key principles of good procurement are: Transparency: Making commissioning intentions clear to the market place. This might include the use of sufficient and appropriate advertising of opportunities, transparency in making decisions not to tender and the declaration and management of conflicts of interest; Proportionality: Making procurement processes proportionate to the value, complexity and risk of the services contracted; Non-discrimination: Having documentation or processes that do not favour one or more providers. Ensuring consistency of procurement rules, transparency on timescale and criteria for shortlist and award; and Equality of treatment: Ensuring that all providers and sectors are treated equally and that no one provider or group of providers (e.g. NHS trusts) is treated more favourably than another The CCG will ensure compliance with these principles in the following ways; Transparency; Maintaining on its website for public view a record of contracts held and information about what services are to be procured and when they will be presented to the market; Determining as early as is practical whether and how services are to be opened to the market, and sharing this information with existing and potential providers; Using the most appropriate media in which to advertise tenders or opportunities to provide services, including using the Contracts Finder procurement portal established by the Government; Robustly managing potential conflicts of interest and ensuring that these do not prejudice fair and transparent procurement processes; Procurement Policy Page 13 of 28

16 Providing feedback to unsuccessful bidders; Proportionality Non-discrimination Ensuring that procurement processes are proportionate to the value, complexity and risk of the goods and/or services to be procured. Defining and documenting procurement routes, including any streamlined processes for low value/local goods and services, taking into account available guidance. Ensuring that tender documents are written in a non- discriminatory fashion e.g. generic terms will be used rather than trade names for products. Informing all participants of the applicable rules in advance and ensuring that the rules are applied equally to all. Reasonable timescales will be determined and applied across the whole process. Ensuring that shortlisting criteria are not discriminatory Equality of Treatment Ensuring (as far as is possible) that no provider is given an unfair advantage during the procurement process. This includes ensuring that all bidders are given the same information at the same time. Taking particular care to avoid unfair influence on the requirement when involving providers in helping to draw up a specification i.e. not shaping the specification in their interests and / or to the exclusion of others. Ensuring that basic financial and quality assurance checks apply equally to all providers. Recording and retaining an auditable documentation trail regarding all key decisions. Holding all providers to account, in a proportionate manner, through contractual agreements, for the quality of their services. 16. Contract Form 16.1 The CCG will ensure that the NHS Standard Contract will be used for all contracts commissioned for NHS funded health and social care services, where appropriate. In exceptional circumstances, such as where a joint contracting arrangement is led by a local authority, the CCG may agree to be party to a different form of contract The CCG will ensure that the NHS Standard Conditions of Contract for Goods and Services are used for all non-clinical requirements unless a Framework Agreement of another organisation is being appropriately used; in which case the Framework Agreement conditions of contract will prevail. Procurement Policy Page 14 of 28

17 17. Sustainable Procurement 17.1 The NHS is a major employer and economic force both in the local and wider geographical area. The CCG recognises the impact of its purchasing and procurement decisions on the regional economy and the positive contribution it can make to economic and social regeneration The CCG is committed to the development of innovative local and regional solutions, and will undertake a range of activities as part of its market development plan to support this commitment. 18. Use of Information Technology 18.1 Wherever possible appropriate systems (e.g. eprocurement) will be used. These are intended to assist in streamlining procurement processes whilst at the same time providing a robust audit trail. These solutions provide a secure and efficient means for managing tendering activity particularly for large complex procurements. 19. Transfer of Undertakings and Protection of Employment Regulations (TUPE) 19.1 These regulations apply when there is a change of service provider. Under the law there may be a requirement for existing staff to transfer to the new provider Commissioners need to be aware of TUPE and engage HR support and, where necessary, external legal advice if there is likely to be a TUPE issue. Additionally, NHS Bodies must follow Government guidance contained within the Cabinet Office Statement of Practice 2000/72 and associated Code of Practice 2004 when transferring staff to the Private Sector also known as COSOP. 20. Training 20.1 The CCG will ensure that employees and staff, including those on temporary or honorary contracts, representatives acting on behalf of the CCG and others working with the CCG are aware of this policy and its implications It is not intended that staff generally will develop procurement expertise, but they will need to know when and how to seek further support Help and assistance on procurement matters is available from Central Southern s procurement team cscsu.purchasing@nhs.net. By prior agreement the procurement team is also available to run procurement familiarisation sessions for CCG staff. 21. Complaints and Resolution 21.1 The CCG's approach to contestability means that it may pursue a wide range of competitive procurements to secure new and existing services. Procurement Policy Page 15 of 28

18 21.2 The CCG has existing processes that will be followed within the CCG that enables any potential dispute relating to a procurement process or outcome from any procurement to be resolved in an open and transparent manner The CCG will utilise the above mentioned dispute resolution process to address and resolve any complaint received from either: Bidders/contractors, A member of the public. 22. Monitoring Compliance with this Policy 22.1 This policy will be reviewed every three years or as appropriate in light of changing regulation and guidance Failure to comply with this policy may result in serious consequences both for the CCG and individual members of staff, including being investigated by Monitor, legal action through the courts, the award of damages to disadvantaged providers and/or significant reputational damage. It may also be the case that processes, where undertaken incorrectly, may have to be abandoned and re-started; resulting in significant costs and delays All members of staff have a duty to comply with this policy, and are reminded that failure to do so may result in formal disciplinary action or in certain circumstances such as cases of suspected bribery or corruption, police action. Procurement Policy Page 16 of 28

19 Appendix A RECORD OF CONTRACTING DECISION Introduction There are various regulations, policies and guidance that apply to the commissioning of healthcare services by Clinical Commissioning Groups (CCGs). This document is designed to allow CCGs to create a record of their decision making process that ensures that the key obligations of these requirements have been considered. Under The National Health Service (Procurement, Patient Choice and Competition) (No. 2) Regulations 2013, when procuring health care services for the purposes of the NHS, a relevant body must: 1) act with a view to: a) securing the needs of the people who use the services; b) improving the quality of the services, and c) improving efficiency in the provision of the services, including through the services being provided in an integrated way (including with other health care services, health-related services, or social care services). 2) a) act in a transparent and proportionate way, and b) treat providers equally and in a non-discriminatory way, including by not treating a provider, or type of provider, more favourably than any other provider, in particular on the basis of ownership. The relevant body must procure the services from one or more providers that a) are most capable of delivering the objective referred to in regulation 2 in relation to the services, and b) provide best value for money in doing so. 3) In acting with a view to improving quality and efficiency in the provision of the services the relevant body must consider appropriate means of making such improvements, including through a) the services being provided in a more integrated way (including with other health care services, health-related services, or social care services), b) enabling providers to compete to provide the services, and c) allowing patients a choice of provider of the services. Regulation 3(5) of the National Health Service (Procurement, Patient Choice and Competition) (No. 2) Regulations 2013 requires CCGs to maintain a record of how in awarding the contract they comply with their duties relating to effectiveness, efficiency etc, improvement in quality of services and promoting integration. The questions below will assist with meeting this requirement.

20 Project Title and Background (Include brief description of services under consideration and explanation of why this service is being commissioned). Maximum Annual Contract Value: Duration of Contract (express any options to extend separately): Maximum Total Contract Value: SECTION I COMMISSIONING CONSIDERATIONS 1) Please describe the reasons for specifying the services in this particular way, including how the needs of patients will be met, an assessment of the current approach (if applicable) and the rationale behind the bundling of any services. Has consideration been given to splitting the contract into lots in order to allow Small & Medium Enterprises (SMEs) to better compete? 2) Please provide details of: a) any engagement with patients, community groups, carers and other relevant third parties (e.g. Health & Wellbeing board) before awarding the contract and how their views have been taken into account by the commissioner; b) any engagement that has taken place with potential providers of the service. Assurance should be provided that no provider has been given a more extensive role in service design that would give them an unfair advantage; c) the range of health professionals that has been involved in designing the proposed service?

21 3) Please describe the measures taken to improve quality and efficiency, including by (where applicable): a) the services being provided in a more integrated way (including with other healthcare services, health-related services, or social care services). Please explain how the service will be provided in a joined-up way with other services to ensure a seamless patient experience; b) enabling providers to compete to provide the services (either for a contract or for patients, where they have the choice of provider); c) allowing patients a choice of provider of the services. 4) The Public Services (Social Value) Act 2012 places a requirement on commissioners to consider the economic, environmental and social benefits of their approaches to procurement before the process starts. Commissioners also have to consider whether they should consult on these issues. Please briefly describe the measures taken to comply with this requirement. 5) Has an Equality Impact Assessment (EIA) been conducted? If so, please reference. If not, please explain why not. 6) Please state what contracting/procurement route has been chosen and the reasons for this choice (i.e. the reasons for any decision to procure the services through a single tender waiver, through a formal tender process, on an Any Qualified Provider (AQP) basis or otherwise) and how this approach best meets the needs of patients. 7) Please demonstrate how the contract award decision will meet the requirement (Regulation 3(3) of the Procurement, Patient Choice and Competition Regulations 2013) to commission services from those providers that are most capable of securing the needs of healthcare service users and that provide the best value for money in doing so.

22 8) Are there any actual or perceived conflicts of interest in the commissioning of this service? If so, how have/will they be managed to ensure that they do not affect or appear to affect the integrity of the contract? (Regulation 6(2) of the Procurement, Patient Choice and Competition Regulations). 9) Please demonstrate how the CCG has acted in a proportionate manner, commensurate with the value, complexity and clinical risk associated with the provision of the services in question and consistent with commissioning priorities. 10) What steps have or will be taken to address any potential impact that the chosen contracting route may have on the continued availability of other services (e.g. whether or not it is viable for a provider to provide a particular service without also providing a related service)? SECTION II: CONTRACT AWARD After completion of Section I please review the below questions. Any questions that can be completed now should be completed. 1) Please explain how potential providers have been given the opportunity to express an interest in providing the service (Regulation 4(4) of the Procurement, Patient Choice and Competition Regulations 2013). Please also provide details of how many providers expressed an interest. 2) Please describe the rationale for key terms of the contract (e.g. quality requirements that the provider must satisfy, how performance will be assessed during the contract, the consequences of breaches and the rationale for duration of the contract). If applicable, this could include a comparison with the existing approach and a review of how the new approach will make things better. Where appropriate, please also consider how effective performance management in the past has been and how this can be improved in the future. 3) Please provide details of the due diligence that has been undertaken on the provider to whom the contract is to be awarded. Basic financial and quality assurance checks could include: financial viability, economic standing, clinical capacity, capability, governance, affordability / value for money.

23 4) Please explain the rationale for deciding to award the contract to the provider(s) in question, including an overview of the process followed and any relevant evaluation criteria. 5) Please provide details of any analysis carried out of other potential providers. 6) Has a contract award notice been published? If so, where?

24 Appendix B Commissioning Healthcare Decision Flowchart Appendix B Commissioning Healthcare Decision Flowchart

25 Non Healthcare Procurement Decision Flowchart Appendix C

26 Appendix D Single Tender Waiver Proforma Request for Waiver of Formal Tendering & Contracting SECTION 1: NOTES This form is to be completed in all circumstances where any requirement of the CCG s tendering and contracting procedure are to be waived. All sections of the form must be completed in full by the requisitioning officer before submitting for approval in accordance with delegated financial limits. The authorized waiver form should be forwarded to the Procurement Team to enable the order to be raised. All waivers will be reported to the Audit Committee. SECTION 2: DETAILS OF REQUEST Department: Requisition Number: Requisition Date: Requisitioning Officer: Description of Goods or Services requested: Purchase value VAT Total value SECTION 3 : INFORMATION TO SUPPORT WAIVER REQUEST (Insert rationale/explanation of the Waiver request further documents may be attached if necessary) SECTION 4 : SUBMISSION OF WAIVER REQUEST Request submitted by (PRINT NAME) Signature: Date:. SECTION 5 : APPROVAL OF WAIVER REQUEST Request approved by : (PRINT NAME) Signature: Date:. To be signed by Chief Financial Officer (or nominated deputy) as confirmation of approval in line with delegated financial limits, once approval evidenced DELEGATED FINANCIAL LIMITS Up to 100,000 - Chief Officer and Chief Financial Officer Up to 250,000 - Joint Commissioning Committee (JCC) 250,000 Up - Board

27 Appendix E Indicative Timescales for Different Types of Procurement Value Up to 10k Framework Agreement One Quote Procurement Route Three AQP Open Quotes Tender Restricted Tender Competitive Dialogue Up to 50k Up to EU threshold Over EU threshold By exception Goods Inception / service specification Pre- Qualifying process Quotes Tenders or Mini Competition Assessment & Award Mobilisation 1-2 Up to 1 week 1-2 Indicative Timescale N/a N/a N/a N/a N/a N/a 6 8 Up to 1 week Up to 6 months 6 8 Up to 1 week 1-2 N/a N/a N/a N/a N/a N/a N/a days 1-2 N/a 6-8 Supplier Lead Time Services Inception / 1-2 Up to 8- service specification 1 week Pre- Qualifying process 11- Quotes Up to Up to 12-1 week 1 week Tenders, 2 4 mini competition or AQP proposal Assessment 1-2 & Award Mobilisation N/a N/a N/a N/a N/a N/a N/a days Up to 6 months 6 8 N/a N/a N/a N/a

28 Appendix F Delegated Financial Limits The table below is an extract from the CCG s Delegated Financial Limits at December This is refreshed on an annual basis so please check the latest published document for confirmation of limits. Business cases for investment within the annual planning process Business cases for investment in year, subject to funding availability BUSINESS CASES FOR INVESTMENT FOR LIFETIME OF INVESTMENT Board on recommendation No limit of Review Panel as specified in Prioritisation Framework Chief Officer and Chief Financial Officer Joint Commissioning Committee Board 50, , ,000 up Includes cases for use of investment reserve, headroom and QIPP investment Use of headroom in year may require additional NHS England approval Once the investment has been approved, the relevant budget holder will then have the delegated authority to enter into a contract up to the total value of the investment, subject to the authorisation limits set out below. Again, this may be subject to change so please consult the most recent published Delegated Limits. Agreeing contracts for the provision of healthcare services, within existing budget COMMISSIONED SERVICES EXPENDITURE (HEALTHCARE) Designated Budget Holder 250,000 Financial limits reflect the value of the total commitment being Chief Financial Officer (in absence of Chief Financial Officer and in urgent circumstances Chief Officer will sign) 250,000 up entered into by the agreement Includes authority to sign contract documentation to the given value Special cases In some instances, investment decisions may be deemed novel, contentious or repercussive in nature. Where this is the case the decision to award a contract will be made at Board level, regardless of financial value. Examples of such contracts include. Novel: A radically redesigned service or use of a new contracting model e.g. Accountable Lead Provider. Contentious: Decisions with high risk of challenge likely or adverse provider, media or public reaction. Repercussive: Decisions which may have an unintended consequence or risk of setting a precedent.