RFP Name: Lower Mainland Warehouse Transportation Services

RFP# 073RFP09BGK

Request for Proposals

RFP Number: 073RFP09BGK

RFP Name: Lower Mainland Warehouse Transportation Services

RFP Issued: August 19 2009

RFP Closing Date: September 23 2009, 14:00 hours Pacific Time

INTENTION TO SUBMIT A PROPOSAL

IF YOU INTEND TO SUBMIT A PROPOSAL, IMMEDIATELY COMPLETE THIS PAGE AND FAX TO THE RFP CONTACT BELOW

RFP Contact: AElena Alvarez

Address 8521 – 198A Street

Address Langley, B.C.

Phone 604-455-1301

Fax 604-455-1311

E-mail:

Table of Contents

General Information 44

Introduction 44

HEALTH AUTHORITIES SHARED SERVICES 44

Overview of Supply Chain 44

RFP Objective 55

Section 1.0 Submission Instructions 88

1.1 Intention to submit a proposal 88

1.2 Closing Date and Location: 88

1.3 Submission Format 88

1.5 Delivery Address 99

1.6 Proposed RFP Schedule 99

1.7 Award Term 99

1.8 Contact, Inquiries & Submissions 99

1.9 Lobbying 1010

1.10 Proposal Questionnaire 1010

1.11 Verbal Communication 1010

1.12 Proposal Acceptance Period 1010

1.13 Proposal Amendments/ Withdrawals 1010

1.14 Ownership of Proposals – Proponent costs 1010

1.15 Closing Date – Extension 1010

1.16 Late Proposal Submissions- 1010

1.17 Signed Acceptance Forms 1010

1.18 RFP Cancellation 1010

Section 2.0 Evaluation and Award Process 1111

2.1 Evaluation Committees 1111

2.2 Evaluation and Selection 1111

2.3 Evaluation Criteria 1111

2.4 Standardization 1212

2.5 Equivalent Alternates 1212

2.6 Unsuccessful Bids 1212

2.7 Debriefing 1212

2.8 Selection Processes 1212

2.9 Pre-Bid Meetings 1212

2.10 Prequalification 1212

2.11 Trade Shows 1212

2.12 Proponent Presentations 1212

2.13 Proponent Demonstrations 1313

2.14 Site Visits 1313

2.15 In Use Evaluations 1313

2.16 Specialist Consultants 1313

2.17 Probationary Periods 1313

Section 3.0 Proposal Questionnaire 1414

3.1 Approach and Methodology 1515

3.2 Corporate Strength 1717

3.3 Financial 1919

3.4 Value Add 202021

3.5 Environmental Considerations 212122

Section 4.0 Terms and Conditions Statement Summary 222223

4.1 Compliance to or deviation from RFP Terms & Conditions 222223

Section 5.0 Proponent Acceptance Form Conflict of Interest 232324

Section 6.0 Authorized Signature 242425

Purchasing Standard Definitions Terms and Conditions 252526

Definitions 252526

Terms and Conditions 252526

Section 7.0 Standard Contract 31

General Information

Introduction

HEALTH AUTHORITIES SHARED SERVICES

The BC Health Authority Shared Services Organization’s role is to establish a province-wide, consolidated shared services organization that will create enhanced value to the health system through the effective and efficient delivery of a range of services including Supply Chain services. The BC Health Authority Shared Services Organization (BCHASSO) is owned by its Members, the six Health Authorities (HA’s), and supported by the BC Ministry of Health. The BCHASSO will contribute to the Ministry of Health’s key outcomes of “sustaining high quality patient care through more efficient and cost-effective services and ensuring a sustainable publicly-funded health care system”.

Supply Chain Management is BCHASSO’s first business line. The current scope covers the full range of services that are provided by supply chain departments in all health authorities, including common procurement, warehousing and logistics. The BCHASSO Supply Chain function will implement a strategic Supply Chain sourcing approach that consolidates the needs of all BC Health Authorities.

This Request for Proposal is issued by the Fraser Health Authority’s Supply Chain branch office on behalf of the British Columbia Health Authority Shared Services Organization (“BCHASSO Administration Society”).

The BCHASSO is a not for profit, province wide, consolidated shared services organization created to enhance value to the health system through the effective and efficient delivery of non-clinical services including Supply Chain services on behalf of all BC Health Authorities.

Of the six Health Authorities principle to the BCHASSO, five are regional Health Authorities responsible for the delivery of health care programs and services in British Columbia within their respective regions. The sixth Health Authority, the Provincial Health Services Authority, is responsible for managing the quality, coordination, accessibility and cost of selected province wide health care programs and services.

For additional information on BCHASSO and the Health Authorities please visit the following sites: http://www.healthauthoritySSO.bc.ca; http://www.fraserhealth.ca; http://www.interiorhealth.ca; http://www.northernhealth.ca; http://www.phsa.ca; http://www.providencehealthcare.ca; http://www.vch.ca; http://www.viha.ca.

Overview of Supply Chain

The Supply Chain/Materiel Management departments of the Fraser Health Authority (FHA), Vancouver Coastal Health Authority (VCH), Providence Health Care Society (PHC) and the Provincial Health Services Authority (PHSA) are responsible for management and procurement of clinical and non-clinical goods, services, supplies and equipment throughout the Lower Mainland. FHA, VCH, PHC and PHSA are collectively referred to in this RFP as the “Authorities”. The Authorities endorse the philosophy of best overall value in acquisition and supply chain management practices. Total cost considerations, service/support coverage and additional value-added services are the prime considerations of our analysis. We encourage Proponents to be creative and innovative in their Proposals. Proponents are encouraged to submit responses that challenge and re-engineer current business practices to the benefit of the Participating Facilities. Proponents should include information that may be considered additional benefits for the Authorities , other than the price alone. This document will take you through the objective, submission instructions, evaluation process, proposal questionnaire, signature document, terms and conditions and the appropriate schedules. Our intention is to fairly and objectively select the best value solution. Feel free to ask questions of the RFP contact; we want every proponent to have the opportunity to provide their best offer. Thank you for your time and investment in this process.

The structure of VCH, PHC, PHSA and FH that Supply Chain/Material Management serves is as follows:

Vancouver Coastal Health Authority (VCH):

Providence Health Care (PHC):

Provincial Health Services Authority (PHSA)

Fraser Health (FH):

RFP Objective

Our objective in issuing this RFP is to identify Proponent(s) who may become suppliers(s) by entering into an agreement with the Agencies representing the participating facilities for the supplies, services, or equipment offered in this document.

Background Information

Over the past several years there have been significant changes in the way the Health Authorities across BC manage their medical supplies. One of the most significant changes has been the creation of specialized medical supplies warehouses to support the hospitals and other healthcare facilities. Most recently, the Health Authorities have established the BC Shared Services Organization (BCHASSO), one branch of which is a provincial Supply Chain group. One of the responsibilities of the Supply Chain group is the procurement, warehousing and distribution of medical supplies throughout BC.

Within the Lower Mainland there are several warehouse locations. This RFP focuses on distribution of medical supplies from two locations located in New Westminster and Langley. The first warehouse located in New Westminster is a 54,000 sq ft facility that is managed by a 3rd party warehouse service provider. This facility supports the acute care and residential sites operated by Vancouver Coastal Health and Providence Healthcare Society. The second warehouse located in Langley is a shared services facility operated jointly by Fraser Health and the BC Shared Services Organization. Medical supplies occupy approximately 77,000 sq ft of the Langley facility and it supports acute care sites, long term care facilities and community programs operated by or on behalf of the Fraser Health Authority. The overall geographic area that this distribution service covers is from Powell River in the west as far east as Hope. A full list of delivery locations can be found Appendix 1 – Delivery Location Details

The existing distribution network has developed over time to support the operational needs of each Health Authority. This RFP represents the desire of the BCHASSO to review, re-design and optimize the entire Lower Mainland distribution network with a view to eliminating duplication and waste, leveraging it’s scale and reducing costs. Over the course of this contract there will likelybe delivery sites added to schedules. There is also the possibility that the structure of thewarehouse network will change over time.The successful Proponent will be advised of the ongoing changes within a reasonable length of time to adjust schedules/routes if need be.

Current State Overview

This section provides an overview of the current state of outbound distribution from the New Westminster and Langley warehouses.

A. Current Service Providers

Transportation services to the Health Authorities are currently provided by several different service providers.

A range of different fleet vehicles are used to provide the services. These include dedicated 48 foot trailers, 28 foot trailers, 5 tons and one ton vans as well as LTL services. Distribution of goods is generally palletized; some rolling cages are used to ship goods from the Langley warehouse. Limited parcel distribution takes place using one ton vans.

B. Nature of Goods

The goods shipped from both warehouses are general medical and surgical supplies. Some products are classified as Dangerous Goods under the terms of the Transportation of Dangerous Goods Act. The BCHASSO will therefore require any future transportation service provider to be qualified to distribute dangerous goods.

C. Volumes & Delivery Points

The total volume of goods shipped on a daily basis from each warehouse varies, but is approximately 75 full pallets from the New Westminster warehouse and 135 full pallet equivalents (pallets and rolling cages) from the Langley facility.

The Health Authorities and the BCHASSO operate outside of normal business hours. The delivery schedules indicate (as attached Appendix 4) the delivery requirements per site for each day of the week. This schedule will apply to all statutory and public holidays. It is important that this operational need is factored into the prices submitted to provide the services.

Goals / Objectives

The BCHASSO is seeking to establish long term partnerships with transportation service providers that have a demonstrated track record of excellence in their industry. The BCHASSO will expect potential service providers to demonstrate their organizations track record of excellence through their response to this RFP in a number of areas. These will include, but not be limited to, the following attributes:

·  Efficiency

·  Reliability

·  Cost control

·  Innovation

·  Environmentally responsibility

Guiding Principles

This section outlines the guiding principles the BCHASSO is following in releasing this RFP and an overview of the expected outcomes.

The preference of the BCHASSO is to establish a long term partnership with a single partner to provide transportation services across the Lower Mainland. This could result in an exclusive committed volume contract over a term of approximately five years. It is expected that this long term commitment will allow potential partners to make the necessary investments in people and fleet to ensure an outcome that has the greatest benefit for the BCHASSO. If the BCHASSO can realise more value by splitting the award, this course of action will be followed.

The BCHASSO does not wish to be prescriptive in how the services should be provided. Instead we will provide as much information as possible regarding the scope of the services, known constraints and service level expectations. Within these guidelines, we are looking for respondents to submit innovative solutions that demonstrate how they envisage meeting the needs of the BCHASSO.

Further to the above point, the BCHASSO’s vision is a transportation network that minimises the number of trips to each delivery point on a daily basis. To align with the required turn around time on orders and the operational schedules of the warehouses, the BCHASSO requires that the majority of goods will be distributed overnight to reduce congestion and reduce travel times.

The BCHASSO will require any partner to demonstrate a commitment to continuous improvement in operational standards as well as increased value for money. In return, the BCHASSO will offer mutual gain share opportunities.

Any partner must demonstrate that they understand the critical nature of the role they may play in the Lower Mainland Healthcare Supply chain and that they are able to provide the services accordingly.

Given the nature of the Transportation industry the BCHASSO will consider subcontracting of the services, subject to restrictions. In all circumstances, the BCHASSO will hold the primary contractor solely responsible for performance standards and compliance.

The BCHASSO will require a phased implementation to any potential new service provider. This is partly to reduce risks and ensure continuity of service but is also as a result of existing contractual commitments. At a high level, services from the Langley facility would form the first phase of the implementation; services from the New Westminster facility would be implemented in mid-2010.

Instructions

In developing this RFP the BCHASSO has attempted to fully explain the nature of the services it is seeking and how it will assess responses. This section of the document sets out our recommended approach to reviewing and assessing the various supplementary documents and information that are included as part of this RFP.

In each Proponent’s response, the BCHASSO is expecting two key sets of documentation: