Procurement Guiding Principles. Northwest Supply Chain Collaboration. for the. Regional Members of the Northwest Supply Chain

Transcription

1 Regional Members of the Northwest Supply Chain Guiding Principles for the Northwest Supply Chain Collaboration NSC Guiding Principles Pamphlet.pub Printed June

2 Table of Contents Introduction.. Pg 3 Policies & Procedures.. Pg 4 Governance/Structure/Operation Pg 5 Objectives Pg 6 Methods of Acquisition and Thresholds. Pg 7 NSC Authority. Pg 10 Bid Information and Purchasing Trends.. Pg 11 Local Preference and Accounts Payable process Pg 12 WSIB. Pg 13 Business Partnerships Pg 14 Questions may be directed to: Derek Gascoigne, General Manager Northwest Supply Chain 980 Oliver Road 1st Floor, Room#1480 Thunder Bay, Ontario P7B 6V4 P: (807) E: gascoigd@tbh.net BPS. Pg 15 Contacts.. Pg 16 FAQ s.. Pg

3 How do I arrange to meet with a department? Individual departments may be contacted directly via Switchboard at (807) However; all visits to the NSC require reporting to the TBRHSC Purchasing Department to obtain a visitor s badge, and sign in. Please speak with the Secretary in Purchasing for further details / orientation. Do you release tender and RFP award information? Yes. Once awarded, information is posted online at or upon written request, may be released through the NSC. Can I submit tenders and RFP s electronically? No. All submissions are to be submitted or delivered in hard copy format, with an accompanying electronic copy that contains all of the necessary documentation on a device such as USB stick or CD. The NSC is presently Investigating an electronic bid receipt/process/evaluation tool. My tender is only 1 minute late, can you accept it? No. Delivery at the stated date and time is a mandatory condition and will not be deviated at any time, no matter how uncontrollable the circumstance. Introduction The NSC collaboration is comprised of 13 member hospitals within LHIN 14 of Northwestern Ontario. We support our Members Supply Chain Management needs through a consolidated strategic sourcing model that drives cost efficiencies, while encouraging local businesses to bid and participate in a competitive procurement process regarding supplies, services, and capital. We feel we provide optimal Supply Chain Management practices and systems that result in collaborative value driven outcomes and quality health care for the patient and client. The Northwest Supply Chain (NSC) is constantly seeking new Supplier relationships while also strengthening relationships with current Suppliers. The NSC actively pursues new member opportunities and our affiliates and customers include NWCCAC, NWHA, EMS, NOSM, Lakehead University and Confederation College. The NSC s principles are to follow the Ontario Broader Public Sector Supply Chain Code of Ethics which include; Personal Integrity & Professionalism, Accountability & Transparency, Teamwork, and Compliance & Continuous Improvement; while maintaining and preserving the natural environment. Suppliers are encouraged to supply goods made by a method resulting in the least damage to the environment, while not financially impairing the NSC s ability to balance budgets. 18 3

4 Frequently Asked Questions Does the NSC maintain a bidders list? NSC Policies & Procedures Mission Statement To support Members Supply Chain Management needs through a consolidated strategic sourcing model that drives cost efficiencies. Processes and delegated authority levels are governed by a Policy and Procedure Manual and we comply with the Broader Public Sector Directive. To view the entire set of policies, please visit our office at : Northwest Supply Chain c/o Thunder Bay Regional Health Sciences Centre 980 Oliver Road 1st Floor, Room#1480 Thunder Bay, ON P7B 6V4 Or access the NSC s information at No. The onus is on the bidder to monitor the local newspaper, the NSC s website, merx.com, and to stay in contact with the NSC department through scheduled meetings. Do we have a local preference Policy? No. Under the Canadian Agreement on Internal Trade (AIT), a business cannot be prejudiced on geographic location. Why is there a fee charged for tender documents? On occasion, tender fees are charged to offset tender documents such as floor plans / architecture drawings, etc. How can we ensure a timely payment on our Invoices? Invoices which do not contain a reference P.O. number, do not reflect proper pricing, or incorrect payment terms, may delay payment due to the added processing time. Cheques are put into general mail delivery unless pre-arrangements have been made. (I.e. Suppliers will pick-up their cheque) Can I view tenders on line? All tenders over $100,000 are posted at Questions may be forwarded to (807) How are decisions made? Collaborative tenders are reviewed by an Evaluation Committee and scored as per the requirements set out in the RFX. Recommendations are brought forward to the Steering Committee for review and approval. Individual facilities then follow their specific approval signing authority process. 4 17

5 How is the NSC structured, and how do I contact them? General Manager Derek Gascoigne gascoigd@tbh.net Reg. Mgr., Strategic Sourcing Reg. Mgr., Data Management & Distribution Contract Administrator Clinical Contract Specialist Michal Giardetti Phil Thompson David Gladun, RPN Nicole Landgraff Wegner RN (807) giardetm@tbh.net (807) thompsph@tbh.net (807) gladund@tbh.net (807) landgran@tbh.net (807) Business Analyst Mark Deleo deleom@tbh.net Contract Specialist (CPS) Cindy Langen (807) langenc@tbh.net (807) CPS Mary Nucci nuccim@tbh.net (807) CPS Dave Krasnichuk krasnicd@tbh.net (807) CPS Robyn Goral goralr@tbh.net Contract Coordinator Brian Cassidy (807) cassidbr@tbh.net (807) CPS Matthew Fragale fragalem@tbh.net (807) The main phone number to the NSC is (807) Secretary Cynthia Gerolami Governance/Structure/Operation The NSC operates on a centralized collaborative model cosponsored by Thunder Bay Regional Health Sciences Centre and St. Joseph s Care Group, located in Thunder Bay. All legacy members have an equal vote at the table and a formalized monthly Steering Committee manages governance and recommendations put forth. Roberts Rules are utilized and prevail. Each organization signs their own standardized Form of Agreement for RFX collaborative initiatives. Through the use of s, and Blanket Orders; member hospitals requisition their needs through their internal purchasing departments The NSC will issue a formal tender should the goods/ services/capital required exceed the $100,000 contract term threshold or if a collaborative opportunity, approved by the Steering Committee is identified. Due to the centralized model for facilitating collaborative tenders, it is important that supply partners develop and maintain an effective relationship with both member hospitals and the NSC. Scope of Collaboration Strategic Sourcing and Administration Medical/ Surgical and Support Services requirements Regional procurement including Goods and Services upon request. Capital for Medical and General requirements. Pharmacy. Distribution and Warehousing. Data Management Regular office hours are Monday to Friday, 8:00 a.m. 5:00 p.m., EST. 16 5

6 Objectives To ensure openness, accountability and transparency while protecting the financial best interests of the NSC and its members. To encourage competition amongst suppliers To maximize savings and create value To ensure service and product delivery, quality, efficiency and effectiveness To ensure fairness amongst bidders To have regard for accessibility for persons with disabilities pertaining to Goods and Services purchased by the NSC The NSC s principles include consideration for the total lifecycle cost of: Acquisition Installation Staff Training Repair / Preventative Maintenance Operation and Supply Costs Disposal Broader Public Sector Directive The purpose of the procurement directive is to define acceptable behaviors and standards that should be common for everyone involved with supply chain activities, such as: planning, purchasing, contracting, logistics and payment. The Directive is meant to complement the existing policies, procedures, and codes; and to elevate our standards of practice. Phase I: Phase II: includes two principles which incorporate a Supply Chain code of ethics, procurement policies and procedures. (Effective April 1 st, 2011) will include additional standards incorporating a range of leading practices, standards, and metrics. (TBA) Supply Chain Code of Ethics: In order to ensure an ethical, professional and accountable supply chain, the following principles will be adhered to: Personal Integrity and Professionalism Accountability and Transparency Compliance and Continuous Improvement We do not focus entirely on the lowest invoice price as our decisions are ultimately based on the overall value proposition. 6 15

7 Business Partnerships The NSC has formed an alliance with many businesses and purchasing organizations. Methods of Acquisition and Thresholds Goods, Non-Consulting Services and Construction These include: OHA Ontario Hospital Association provides education and leading practice initiatives to the betterment of hospital practices Medbuy and HealthPro offers group buying for healthcare related facilities. The NSC represents members of both organizations which provides tendering, and offers expertise in pharmaceutical, medical / surgical, clinical, diagnostic equipment, capital and utilities. Ministry of Government Services CAHO The Council of Academic Hospitals of Ontario provides capital equipment tendering for medical / surgical, clinical and diagnostic equipment St. Joseph s Health Services Capital Equipment Other Shared Service Organizations in Ontario and abroad. Total Value (Parts and Labour) $0 up to but not including $25,000 excluding Minor Equipment. $25,000 up to $100,000 excluding Capital items. $100,000 up to $250,000 excluding Capital items. Approval Authority Manager/ Director Director Senior Manager Method Requisition, VOR and/or three written quotes Requisition and Invitational Competitive Formal Open Competitive Process through and electronic tendering system 14 7

8 Methods of Acquisition and Thresholds Capital Equipment, Building and/or Building Service Equipment Total Value (Parts and Labour) $0 up to but not including $25,000. $25,000 up to $100,000. $100,000 up to $250,000. $250,000 up to $500,000 $500,000 up to $1,000,000 $1,000,000 or more Approval Authority Manager/ Director and Executive Director Capital Planning & Operations. Director and Executive Director Capital Planning & Operations. Senior Manager and Executive Director Capital Planning & Operations. Senior Manager and EVP Corporate Services & Operations. EVP Corporate Services & Operations and President and CEO EVP Corporate Services & Operations & President & CEO per Board motion. Method Requisition, VOR and/or three written quotes. Requisition and Invitational Competitive. Formal Open Competitive Process through an electronic tendering system. Formal Open Competitive Process through an electronic tendering system. Formal Open Competitive Process through an electronic tendering system. Formal Open Competitive Process through an electronic tendering system. WSIB, Insurance and Bonding As part of the NSC s risk mitigation program, contractors and consultants must furnish proof that they have (or will obtain) the required insurance and WSIB coverage. This protects the NSC from being held liable if there is a claim filed by a contractor if injured while conducting work on the NSC membership s property. The NSC may request additional protection, often on large construction tenders, by requesting bidders to provide bonding. This may be in the form of a bid, payment and or performance bond. Bonding is not exclusive to construction and may be used in any areas where unacceptable risk is perceived. 8 13

9 Local Preference Consideration Preference to local Suppliers is not permitted under the Canadian Agreement on Internal Trade (AIT) which states that businesses cannot be discriminated by geographic location. The NSC recognizes the value of local suppliers and has initiated processes such as: Encouraging local Suppliers to participate in bid lists via Supplier of record. Provide a guiding principles handbook to potential future Suppliers. Increased issuance of RFP s posted on merx.com Accounts Payable Process The NSC respects the need to ensure suppliers are paid timely and accurately. The Accounts Payable Department assists us in fulfilling this objective, and in turn suppliers need to provide us with: Invoices which contain an accurate description of the price and quantity of the services rendered. Invoices which reference a purchase order, or credit card number. Invoices delivered to Northwest Supply Chain can be addressed to: Attn: Accounts Payable 980 Oliver Road, Thunder Bay, ON P7B 6V4. Hospitals holding the signed contract will normally be the payer of the invoice. Total Value $0 up to but not including $25,000. $25,000 up to but not including $100,000 Total Value $0 up to but not including $100,000 $100,000 up to but not including $250,000 $250,000 up to but not including $500,000 Professional Services Approval Authority Manager/Director Director Consulting Services Approval Authority Director Senior Manager Senior Manager and EVP Corporate Services and Operations Method Requisition, VOR, and/or three written quotes Requisition and Invitational Competition. Method Requisition and Invitational/ Open Competition Open Competition Open Competition Audit and Legal Services Any Value EVP Corporate Open Competition Services & Operations, Audit Committee and/or Senior Director Quality & Risk Management (legal services) Other Contracts and Transactions please consult with NSC Personnel for the appropriate Policy and Procedure 12 9

10 NSC Authority Total Purchase Amount $0 up to $25,000 Competitive Approval Authority Schedule For Approved Budget Requests Member Delegate Purchasing Authority Level Manager NSC Delegate Purchasing Authority Level Steering Commit- Lowest Bid The NSC shall be under no obligation to accept the lowest bid, or any bid that is submitted verbally or via . The NSC may remove or eliminate a Supplier from consideration for contract awards at our discretion, on the basis of documented poor past performance or failure for Supplier to comply with mandatory requirements. Late Submissions Submissions received after the specified closing date and time, or submissions that do not have a signed Form of Offer, will not be accepted. Purchasing Trends $10,000 up to but not including $100,000 Greater than $100,000 Director/G.M. G.M/Chairperson Steering Committee Steering Committee INDIVIDUAL HOSPITAL SIGNING AUTHORITIES AND THEIR RESPECTIVE POLICIES AND PROCEDURES GUIDE OUR PRACTICES. Increased collaboration amongst hospitals in the region and province. Increased electronic commerce (merx.com) with specific focus on reducing ordering, delivery and payment transaction costs (ghx.com). Supplier consolidation and leveraging increases discount levels through increased purchase volumes. Moving away from annual tenders to multi year business awards (3 5 years) plus optional extensions. Increased use of RFP s vs. RFT s. Moving towards a focus on total lifecycle cost vs. purchase cost. Increased focus on education and training, of both internal staff and business community. Increased focus on Supplier accountability. This includes monitoring performance through post contract management and safety records. Increased consideration in decision making of both social and environmental responsibilities