BSO Board Procurement Assurance Report

Six Monthly Assurance Report

October 2016 to March 2017

BSO Business Plan 2014/15 Action:

“Establish a process by June 2014 to provide assurance to the BSO Board that the organisation has adopted and maintained good procurement practice, as specified in the Department’s Review of Procurement, or as separately promulgated by the DHSSPS. Report to the BSO Board in September 2014 and March 2015 on this matter.

(This should include consideration of DFP and Departmental requirements/guidance such as Procurement Guidance Notes as set out in HSC Finance circulars, Procurement Estates Letters (PELs) and the Ministerially approved recommendations in the Department’s Review of Procurement.)

[DHSSPS Requirement 2A.4.b]”

12 Month Horizon Tender Renewal Performance (>£30k)

Number / Percentage
Number of Tendersdue for renewal over coming 12 months / 525 / 100%
Number of Tenderstracking on target (Green) / 515 / 98.1%
Number of Tenders with risk of slippage (Amber) / 1 / 0.2%
Number of Tenders failing to meet target (Red) / 9* / 1.7%

* This includes 2 contracts from the same tender. See annex 1 for details of Tenders classified “Red”

DoH HSC Procurement Strategic Action Plan

On the 23rd October 2015 DoH wrote to HSC Chief Executives issuing the HSC Strategic Procurement Action Plan 2015 -2018. This plan contains a number of actions for HSC organisations including BSO. Many of these actions will be reliant upon BSO PaLS to support their delivery. A copy of the detailed update on progress presented by DoH to Regional Procurement Board in April 2017 is provided at Annex 2.

Target Summary at Mar 17
Due and not complete / 2
Time limited targets completed / 7[1]
Ongoing, or completed and moved to ongoing. / 17
Not due and not complete / 5
Total / 31

PaLS Tender Waiting List

There are no tenders on the PaLS Tender Waiting List.

Procurement Guidance Notes

Qtr 1
16/17 / Qtr 2
16/17 / Qtr 3
16/17 / Qtr 4
16/17
Number of New / UpdatedProcurement Guidance Notes Published / 2 / 1 / 1 / 1
Number implemented (note it may take several months to fully implement where training and amendment to procedures is required) / 2 / 1 / 1 / 0
Number Outstanding or Not Applicable / 0 / 0 / 0 / 1

Status of Extant Procurement Guidance Notes

All PGNs have been implemented in full or as directed through DHSSPS Guidance with the following exceptions:

Guidance Note / Current Position
PGN 05/16 Use of Retention in Construction Works Contracts / Construction Only
PGN-0315 Building Information Modelling BIM / Construction Only
PGN-0115 Standardisation NEC3 Engineering and Construction / Construction Only
Procurement Guidance Note 07/14 Sub-economic Tendering In Construction Professional Services Contracts / Construction Only
Procurement Guidance Note 03/14: Construction Works Procurement: Project Bank Accounts Pilot / Construction only
Procurement Guidance Note 04/13 - Insolvency in the Procurement Process / Construction only
Procurement Guidance Note 03/13 - Abnormally Low Tenders / Construction only
Procurement Guidance Note 02/13 - Construction Procurement: Selection Process Relating to Experience Time Frame / Construction only
Procurement Guidance Note 02/12 - Public Procurement: A Guide for Small and Medium Sized Enterprises (SMEs) / Not applicable
Procurement Guidance Note 01/11 - A Guide for Social Economy Enterprises / Not applicable
Procurement Guidance Note 06/10 - Procurement of Construction Works and Services / Construction only
Procurement Guidance Note 03/09: Procedures and principles for application of threshold limits as part of the Gateway Review process / Not applicable to PaLS
Procurement Guidance Note 01/09: Best Practice in Programme/Project Management / Not applicable to PaLS

Annex 1

PaLS - Supply and Delivery of Granulocyte-colony stimulating factors (GCSFs) / Pre-tender, will not renew on time due to delays with Regional Pharmaceutical Procurement Service. These delays were in the preparation of specification documents outside the control of PaLS staff.
July 2017 – Currently at advert
PaLS Supply and Delivery of Granulocyte-colony stimulating factors (GCSFs) / Pre-tender, will not renew on time due to delays with Regional Pharmaceutical Procurement Service. These delays were in the preparation of specification documents outside the control of PaLS staff.
July 2017 – Currently at advert
Healthcare Information Benchmarking Service / Pre-tender – Prior Indicative Notice published. HSCB and Trusts to prepared STAs. Delay in preparation of specification by customers
Interpreting and Translation Services - Lot 1 Face to Face Interpreting / Pre-tender – delay with Central Procurement Directorate as tender being taken forwards as cross sectoral collaboration
July 2017 – currently at advert via CPD
Interpreting and Translation Services - Lot 2 Telephone Interpreting / Pre-tender – delay with Central Procurement Directorate as tender being taken forwards as cross sectoral collaboration
July 2017– currently at advert via CPD
Multi-Functional Devices for Regional HSC Organisations / CCS framework now awarded. Pre-tender
July 2017 – now awarded.
PICC Procedure Insertion Pack / Mini comp on new framework, pre-tender, exception report completed. Buffer stock purchased
July 2017 – now awarded
Secure Facilities for the Storage of Records / Tender stood down. STAs approved by Perm Sec. Pre-tender. Market engagement has taken place. Advert closes 19 April 17
July 2017 – now awarded
Transducer Packs / No bids, 2nd tender advertised 9th March. Invasive pressure monitoring. Exception report completed. STA approved and in place.
July 2017 – sourced from NHS Supply Chain

Annex 2

HSC

STRATEGIC PROCUREMENT ACTION PLAN

2015 – 2018

Status Update

March 2017

RPB 23/2017

  1. The Action Plan was issued in Autumn 2015. The 31 targets of the action plan are monitored by DoH in more detail but reported to RPB on a high level basis.ALBs were not canvassed for this monitoring paper which represents the position as at March 2017.
  1. The status of time-limited targets will be flagged to RPB and time-limited targets that are completed will be monitored under “ongoing” i.e. with reporting by exception only.The timeframe for 17 of the 31 targets is now “ongoing” and RPB will be updated by exception on these.
  1. The following table summarises progress:

Target Summary at Mar 17
Due and not complete / 2
Time limited targets completed / 7[2]
Ongoing, or completed and moved to ongoing. / 17
Not due and not complete / 5
Total / 31

The deadlines of some targets have been adjusted by previous meetings of the RPB.

Targets that will fall due by March and April 2017 which are not complete

  1. #24 on engaging to secure supply chain arrangements has progressed for some Trusts and fell due in March 2017. The returns would suggest that most opportunities have now been discussed, although discussion with Northern and Southern Trusts may be outstanding.
  1. #22Agree training programme and delivery arrangements for appropriate DoH ALB staff - April 17 PaLS reports that90 training places were made available to Trusts in March 2017. PaLS and DoH engaging with CPD about availability of CAL commercial skills offering. This includes some online and some taught elements. Courses include market awareness and contract management.

Horizon

  1. On the horizon remain five recommendations
  • A target that is due by October 17 is #16(common risk management procurement strategy) - as one may not be needed.
  • #20 Pharmacy procurement governance review (deadline September 17) and the implementation at #21due March 18(will probably need extension).
  • As articulated in July 2016, PaLS assessment is that the practical implementation timeline associated with delivering the agreed changes in technology procurement may end slightly beyond the life of the action plan in 2018, thus #26 which relates to implementing changes in technological procurement will not be met in full at that time.
  • #8 Embed the use of social clauses in public procurement contracts including consideration of “looked after children” . Due March 18.Work with SIB continues. Further work being taken forwards as part of the Transformation Workstreams within Health.

Other points to note/exceptions

  1. Collaboration arrangements well established. The recent HSC withdrawal from the collaborative Waste project with CPD was necessary due to risk factors to health
  2. Provision of guidance on contract management is a closed recommendation. However this PaLS guidance may need updating if the contract management PGN is significantly amended as may now be the case.
  1. At the last meeting, it was agreed that #7 on refining and developing social clauses should be treated as ongoing due to the evolving policy environment. Note that a HSC reform workstream is being initiated on social value and clauses more generally and that a social value act is being considered by DoF. This would place an enforceable duty on ALBs to consider social value in procurement. Those wishing to complain would have recourse to the Ombudsman. DoF are keen to stress that fulfilment of the duty could be achievable by small tweaks to the structure of a procurement. Organisations in the HSC may be the most affected by such a change and are encouraged to engage in the consultation.
  1. Other issues reported by exception in Trusts when last canvassed in December 2016 included:
  • One Trust reports substantial work ongoing to improve contract management
  • Two Trusts raise issues around delivering proportionate business cases in renewal scenarios - one raises the issue of resources to do so and another Trust requests guidance on doing so. The appropriate vehicle for DoH input is instead that the Department will offer comment on how NIGEAE is currently being complied with through test drilling or review type activities. Another Trust has indicated that its annual budgeting process provides the proportionate appraisal of ongoing baseline requirements.
  • Several continue to report that they continue to work towards prompt payment targets
  • quasi “test drilling” work promised by DoH with respect to #14 (ongoing) in connection with business cases and procurement - Finance Policy have advised that test drilling for this year is imminent.

Recommendations

  1. All relevant members should continue to take stock of progress in implementing ongoing or time limited targets as further returns will be requested for summer RPB.

[1] The HSC has completed 14 of which 7 have moved to ‘ongoing’: Complete: 4,5,11,12,18,23,25 Ongoing 1,2,7,17, 19, 29, 31.

[2] The HSC has completed 14 of which 7 have moved to ‘ongoing’: Complete: 4,5,11,12,18,23,25 Ongoing 1,2,7,17, 19, 29, 31.