A guide on how to do business with Stockport NHS Foundation Trust Procurement Buying In to Buying Locally
Contents Page Introduction 3 Aim of the guide 4 Corporate Citizenship more than a hospital 4 The Procurement Department 4 What do we buy? 5 How do we buy it? 5 EU Procurement Thresholds 5 How can we work with you? 7 Supplying other NHS organisations 7 Contract de-briefing 7 Product trials 7 Seminars and presentations 7 Prompt payment 7 Building and Estate Work/Contracts 8 General arrangements for the appointment of contractors and consultants 8 Procure 21 9 General day to day maintenance and other related works 9 Restrictions in working for the hospital 9 How we allocate work 10 Points of contact 10 Appendix 1 11 2
Introduction Stockport NHS Foundation Trust (SNHSFT) has an outstanding record of providing excellent health care services to the communities it serves and we are committed to maintaining and improving those services. One way we can do this is by maximising the benefits we provide locally and minimising any negative impacts we may create in the provision of the care we deliver. For example, we believe that it often makes sense to buy locally, and that considering the full economic, environmental and social impacts of what and how we purchase, we can contribute to achieving a better quality of life and healthier communities. That means we re not only looking after people - your family, your friends, your neighbours or your employees - when they need us, we re helping look after them before they need to come to us. We want to help create vibrant, healthy communities and we want to work with local businesses to do it. Increased local employment Vibrant communities Better standard of living Healthier, happier people Improved life chances 3
Aim of the guide The guide is aimed at assisting businesses, of whatever size, who want to work with the NHS but who need support and guidance in understanding how purchasing is conducted by the NHS and in particular by Stockport NHS Foundation Trust. The Trust is dedicated to developing what is known as Corporate Citizenship. This is a way of thinking that considers the Trust s wider role in the community. A role which means we need to consider not just what care we provide but how we can provide it in the most sustainable way. A way that recognises that there are other ways that we can help improve the well being of people in the local area and elsewhere across Greater Manchester and the North West by being more than a hospital. Corporate Citizenship more than a hospital The Trust has established a more than a hospital initiative within the organisation. This is overseen by a number of representatives from key areas and functions including: The Board of Governors Service Development Facilities Procurement Estates These individuals are charged with overseeing a range of activities aimed at delivering positive benefits for the people and communities of Stockport whilst meeting the Trust s core objective of supporting the provision of excellent healthcare. Benefits include: Providing employment opportunities Improving waste management Maximising energy management Better health promotion Focused stakeholder communications Local procurement The reason for the involvement of our Procurement team is threefold: Defining what is meant by the phrase 'local' for SNHSFT Tracking the spend and the number of local companies contracted with Making it easier to do business with us It is our desire to work with local businesses to provide excellent healthcare services and deliver this agenda that has encouraged us to provide this introductory guide. The Procurement Department The Procurement Department is based in Aspen House on the Stepping Hill site. Its aim is to ensure best overall value is achieved in procuring goods and services for Stockport NHS Foundation Trust, in order to maximise the funds available for direct patient care. 4
What do we buy? SNHSFT spends 38m on goods and services each year. In order to provide patient care the Trust requires an immense range of products and services from electricity and fuel to bandages and needles; from food and beverages to complex x-ray equipment and from window cleaning services to taxi services. How do we buy it? As a public sector organisation, SNHSFT must meet the requirements of European Union Public Procurement Directives, which ensure open and fair competition (see European Procurement Procedures on page 11). The Trust also has internal procedures, which it must adhere to, thus ensuring that valuable public resources are spent in the most effective and efficient way these are detailed on Page 6 of this guide. Under these Directives we must advertise all contracts exceeding the thresholds detailed below in the Official Journal of the European Union (OJEU). EU Procurement Thresholds Thresholds applicable from 1st January 2008. Thresholds are inclusive of VAT and subject to currency variation as the EU thresholds are specified in Euros. Supplies 90,319 Services 90,319 Works 3,497,313 OJEU is issued daily. To subscribe free of charge contact http://ted.europa.eu There are a number of commercial organisations that, for a subscription fee, will search OJEU for you and provide regular lists of contracts in which you may be interested*. www.bipsolutions.com www.tenders.co.uk Business Information Solutions Ltd, provides public sector contract information Tenders is a searchable database of European public sector contracts *This information is intended for reference purposes only and is not an endorsement of any organisation. Stockport NHS Foundation Trust does not accept responsibility for the content of any external websites. 5
In addition to this, goods and services are obtained by the Trust via the following routes: National Framework Agreements negotiated on behalf of NHS Purchasing and Supply Agency Where a National, Governmental or Regional agreement exists and offers best overall value, the Trust will purchase via that agreement National Framework Agreements negotiated on behalf of NHS Supply Chain Government Framework Agreements negotiated on behalf of the Office of Government Commerce (OGC) Buying Solutions Where no agreement exists, local agreements will be negotiated by the Trust. The following procedures will apply Regional Agreements negotiated by, or on behalf of, NHS Regional Collaboratives Local Agreements negotiated by Stockport NHS Foundation Trust Procurement Department Threshold excluding VAT 5,000-25,000 25,001 to 50,000 > 50,001 > 90,319 Procurement Procedure for Goods and Services Potential supplier completes Quotation Form. Minimum of three quotations will be sought where markets permit Potential supplier completes Quotation Form. Three or more competitive quotations will be sought where markets permit Potential supplier completes Tender package. Three or more competitive tenders will be sought where markets permit Potential supplier completes European Union Tender package. OJEU procedures apply (Appendix 1). All contracts must be advertised in the Official Journal of the European Union Note: Building and Engineering works quotes will be sought by Estates - see page 8 6
How can we work with you? Free Advice Members of our Procurement team will be happy to discuss any aspect of supplying to the Trust, this can be done via the telephone or alternatively through face to face meetings. If a meeting is required, dedicated time has been set aside each week on Friday afternoons (excluding Bank Holidays) between 13:30 and 15:30. If you wish to book one of these sessions please contact: Telephone: 0161 419 5308 Tracey.stockwell@stockport.nhs.uk During this time the Head of Procurement or Deputy Head of Procurement will explore any issues you may have relating to the tender process or deal with any specific questions or queries connected to supplying SNHSFT. We can also assist you to improve your understanding of the supply process and how to navigate it smoothly. Supplying other NHS organisations If you have a general enquiry regarding supplying to the NHS, we will provide advice on how suppliers can supply not only to SNHSFT but also to the NHS in general. We can explain what you need to do to reach the level of service, quality and consistency required to become an NHS supplier and who you need to talk to. Contract de-briefing If you tender for a contract and are unsuccessful in your bid, we can offer constructive feedback to you via the telephone, e-mail or face to face meetings. Product trials Subject to appropriate risk assessments and where suitable opportunities exist, we can make arrangements to trial products and report the feedback of end users to you. Seminars and presentations In addition to the above, we would be pleased to attend meetings and seminars held by local and regional trade associations, chambers of commerce and others to speak to potential suppliers on a collective basis. Prompt payment We know cash flow is the lifeblood of small and medium-sized businesses and so we are committed to paying suppliers of goods and services within 30 days from receipt of invoice or as other agreed payment terms. If you think you can provide a product or service which Stockport NHS Foundation Trust could use, please feel free to get in touch with us. 7
Building and Estate Work/Contracts The Estates Directorate is based on the Stepping Hill site and employs its own internal workforce. In support of the internal team we appoint a number of external services in conjunction with our colleagues in the Procurement Department. There are a number of ways in which we award contracts to service providers and these are set out as follows: General arrangements for the appointment of contractors and consultants The Trust is a member of the North West Consortium. The purpose of the Consortium is to maintain and manage on behalf of all its members an Approved list of Contractors and Consultants. Whenever the Trust wishes to procure services related to both construction and maintenance works for the NHS it will refer to the Consortium list, inviting tenders or quotes in line with the Trust s Standing Financial Instructions. As part of these arrangements the Trust proactively considers any Consortium contractors within the local vicinity. Firms/companies wishing to work at the Trust should apply to be a member of the Consortium. To be considered for membership you should download the appropriate application form from the Consortium website www.nwconsortium.com and return it to them together with any supporting documents requested. Alternatively if you require any general information please contact: Mrs Hazel Hillen General Manager Telephone: 0161 487 4527 Old Grove House 13 Vine Street Hazel Grove Stockport Greater Manchester SK7 4JS 8
Procure 21 Procure 21 is a procurement method for publicly funded NHS Capital Schemes offering a partnering method of construction under the NEC Contract Option 2. The Trust can select a Principal Supply Chain Partner (PSCP) from the Procure 21 framework without having to go through the OJEU tender process. The PSCP will offer a full range of services that will help the Trust plan, design, approve and construct its scheme. Once a final design is agreed both parties agree a Guaranteed Maximum Price before construction starts. Procure 21 offers rapid mobilisation of projects with supply-chains with excellent NHS experience. It provides joint incentives, long-term relationships, performance measurement and complete support from the Department of Health. NHS Trusts enjoy more certainty of time, cost and quality than the NHS has experienced before for which there is no cost premium. As part of the development of a Procure 21 partnership the Trust encourages the selection of local suppliers to be part of the Principal Supply Chain Partner. General day to day maintenance and other related works On rare occasions the Estates Directorate appoint suppliers and contractors for specialist works. The nature of the work is often deemed as not being cost effective to be included on the North West Consortium list and is usually small in nature. It is expected under our rules that the majority of the suppliers/contractors will be appointed from the local community, by recommendation and/or from the local Yellow pages, Thompson Directory etc. Restrictions in working for the hospital Any contractor wishing to operate on the hospital site is expected to demonstrate: 1. Competence to undertake the identified work 2. They carry the appropriate employer and public liability insurance this will be proportional to the risk but is expected to be a minimum of 1,000,000 for each occasion 3. They understand the basic Health and Safety requirements, including completion of written method statements and risk assessments prior to commencing on site 9
How we allocate work Table 1 below, indicates how we allocate our workload. Table 1 Allocation of Capital and Operational Works Type of Investment Type of Work Method of Procurement Taken From Major Capital Schemes Large Capital builds Medium Capital builds Procure 21 or FT OJEU Procure 21 Network or North West Consortium OJEU North West Consortium Major Refurbishment North West Consortium Operational Capital Schemes Minor Capital and Minor Refurbishment Specialist Work or Quote or Quote North West Consortium Direct to a range of suppliers Programmed Work i.e. painting or Term Contracting or Quote North West Consortium General Maintenance Service Contracts Day to day maintenance or Quote Quote North West Consortium or direct to a range of suppliers North West Consortium or direct to a range of local suppliers Electronic Bio-Medical Engineering (EBME) Service Contracts Day to day maintenance or Quote Quote North West Consortium or direct to a range of suppliers North West Consortium or direct to a range of local suppliers Points of contact To discuss undertaking work within the Trust on behalf of the Estates Directorate your points of contact are set out within Table 2. Table 2 Points of Contact and Areas of Responsibility Title Contact Type of Work Assistant Director of Estates Estates Manager Capital & Design Operational Manager EBME Manager 0161 419 5311 0161 419 5396 0161 419 5318 0161 419 5300 Procure 21 & Major Capital Schemes Minor Capital Schemes General Maintenance EBME Works 10
Appendix 1 European Procurement Procedures (Contract) Procedure Text Days Open Minimum time for receipt of tenders from date contract notice sent 52 Restricted Reduced when Prior Information Notice (PIN) published (subject to restrictions) to, generally and no less than 36 22 Minimum time for receipt of requests to participate from the date contract notice sent 37 Minimum time for receipt of tenders from the date invitation sent 40 Reduced when PIN published (subject to restrictions) to, generally and no less than 36 22 Restricted Accelerated Minimum time for receipt of requests to participate from the date contract notice sent 15 Minimum time for receipt of tender from the date invitation sent 10 Competitive Dialogue and Competitive Negotiated Minimum time for receipt of requests to participate from the date contract notice sent 37 Competitive Negotiated Accelerated Minimum time for receipt of requests to participate from the date contract notice sent 15 11
Printed February 09 Stockport NHS Foundation Trust Stepping Hill Hospital Poplar Grove Hazel Grove Stockport SK2 7JE This publication was produced using paper which is FSC certified.