Procurement Strategy

March 2009

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Date of Publication –March 2009

Author; Mark Hayman, Associate Director for Procurement

If you need further copies of this document please telephone Mark

Hayman on 0117 900 2298

If you need this document in a different format

please telephone Mark Hayman on 0117 900 2298
Procurement Strategy 2009

Contents

1Purpose..................................................................................................................1

2Contestability Framework ...................................................................................1

3Any Willing and Qualified Provider ....................................................................2

4World Class Commissioning...............................................................................2

5Non-Pay Goods and Non Purchased Health Care Services.............................3

6Procurement Governance....................................................................................3

7Work Plans.............................................................................................................3

8South West Procurement Hub.............................................................................4

9Collaboration with Bristol City Council..............................................................4

10Market Analysis...................................................................................................4

11Voluntary Sector and Small to Medium Enterprises ......................................4

12Ethical procurement...........................................................................................5

13Sustainability and Environmental Issues.........................................................5

14Training and Awareness....................................................................................5

15Stakeholder, Carers and User Involvement.....................................................6

16Cross Reference.................................................................................................6

17References...........................................................................................................6

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Procurement Strategy 2009

1 Purpose
The purpose of the procurement strategy is to set out NHS Bristol’s approach to
achieving its service delivery objectives through the application of good
procurement practice. The strategy supports the Contestability Framework, the
framework for Any Willing & Qualified Provider and NHS Bristol’s Standing
Financial Instructions.
It covers both the procurement of health care and the procurement of non pay
goods and services.
This strategy reflects the Operating Framework for 2009/10 which sets out five
key priorities for the NHS in England:
• Improving cleanliness and reducing healthcare associated infections
• Improving access
• Keeping people well, improving health and reducing health inequalities
• Improving patient experience, staff satisfaction and public engagement
• Emergency preparedness
It provides a guide to NHS Bristol which ensures compliance with EU legislation
and works within the guidance set out by the Department of Health in the following
documents:
• Principles and rules for cooperation and competition (PRCC) (DH
• Dec 2007)
• Procurement Guide for Health Services (DH May 2008)
• Framework for Managing Choice, Cooperation and Competition
• (DH May 2008)
The strategy covers the period January 2009 – December 2010, after which time it
will be reviewed.

2 Contestability Framework
The Contestability Framework was agreed by NHS Bristol’s Board in 2008 and
describes both the benefits and risk associated with using contested approaches
to secure providers of health services and sets out the strategic context within
which all future decisions concerning the procurement of health services will be
considered.
The framework does not encompass the contesting of non-health services such
as management support or supplies which will continue to be governed by NHS
Bristol’s Standing Orders.

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3 Any Willing and Qualified Provider

In February 2009, NHS Bristol introduced an extension to the Department of

Health’s ‘Any Willing Provider’ model through the notion of the Any Willing and
Qualified Provider model to emphasise clinical assurance of the quality and
standard of service provided.

When seeking an Any Willing and Qualified Provider, NHS Bristol will need to
advertise on a service specific basis for willing providers of services it wishes to
procure. NHS Bristol will need to ensure information about opportunities are
publicised appropriately, for example on NHS Supply 2 Health. Applications will be
invited from those providers interested in being added to the Any Willing and
Qualified Provider List. NHS Bristol will need to ensure that potential applicants
have access to relevant local and national reference documentation for specific
services through the NHS Bristol procurement website.

The Any Willing and Qualified Provider Procurement Framework is flexible and
can be undertaken via an open or a closed and managed process. The AWQP
procurement process to be undertaken needs to be made clear within the
advertisement placed on the NHS Supply 2 Health procurement portal.

4 World Class Commissioning

The World Class Commissioning assurance system requires that commissioners
are proficient in a number of areas that relate to procurement activity. The
Procurement Strategy will enable NHS Bristol to evidence its performance in
relation to World Class Commissioning competencies. It is of particular relevance
to:
Competency 7 – effectively stimulate the market to meet demand and secure
required clinical, and health and well-being outcomes (provider market
management and review)
Competency 8 – promote and specify continuous improvements in quality and
outcomes through clinical and provider innovation and configuration (outcome
based specification; clinical involvement; service development)
Competency 9 – secure procurement skills that ensure robust and viable
contracts (good procurement practice)
Competency 10 – effectively manage systems and work in partnership with
providers to ensure contract compliance and continuous improvements in quality
and outcomes (contract management)
NHS Bristol recognises that World Class Commissioning is not just about
competency development and governance but more fundamentally about
sustained improvements in outcomes. However, the development of a good
procurement (and market management) strategy will support NHS Bristol in
increasing the rate of improving outcomes by creating more ‘commercial
intelligence’ to support decision making and specification setting designed to drive
improved outcomes. The organisation and governance arrangements that

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underpin the effective operation of NHS Bristol include the contestability

framework and recommended good practice for procurement governance as set
out on NHS Bristol’s procurement web site.
The procurement team will be supporting their commissioning colleagues
throughout the above.

5 Non-Pay Goods and Non Purchased Health Care Services

NHS Bristol uses the services of the Bristol and Weston NHS Purchasing
Consortium to provide the operational aspects of all Non Purchased Health care
services e g payroll, Occupational health. Goods are ordered, delivered and
receipted and, where applicable, they are tendered.
There is a Service Level Agreement between both parties with agreed annual
plans. Bristol and Weston NHS Purchasing Consortium have developed their own
Procurement strategy for the period 2008- 2013 (Appendix 3) which covers these
services.
The services received cover two key areas
• Stock- usually day to day consumable items. Bristol and Weston NHS
Purchasing Consortium use the services of NHS Supply Chain to deliver
these products from their warehouse in Bridgewater. These goods are
tendered on behalf of the NHS by NHS Supply Chain.
• Non stock items are requisitioned using the EROS system and follow due
process.

6 Procurement Governance
The Procurement team will ensure that NHS Bristol staff:
• Follow NHS Bristol Standing Financial instructions, the contestability
framework and the framework for Any Willing & Qualified provider.
• Operate in line with European and UK procurement rules and regulations.
• Ensure services are advertised widely using the official European Journal
and/or the NHS Supply2 health
• Ensure procurement processes are deemed open, transparent and fair.
• Take advantage of the many NHS or Office of Government Commerce
frameworks to speed up the process times.
• Follow due process and ensure that the correct contract documentation has
been signed off by the appropriate Authorised Officers

7 Work Plans
Annually, (between October and December), NHS Bristol will develop a work plan
for the following:
• Purchased Health Care to be carried out by NHS Bristol Procurement team

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• Other non pay expenditure to be carried out by Bristol and Weston NHS
Purchasing Consortium
• Plans will be agreed by the end of December to enable planning for the
work to be carried out in the new financial year.

8 South West Procurement Hub

At present the NHS organisations in the South West have declined the opportunity
to create a single Procurement Hub. Agreement has been reached to maintain
the three. existing Consortia but to have a shared Information system hosted by
the Peninsula Procurement team. It is anticipated that this system will enable
NHS Bristol to use the contract management functions to enhance our market
knowledge and improve contract management.

9 Collaboration with Bristol City Council

NHS Bristol and the Bristol City Council Directorates are increasingly working
together to jointly commission services and this will increase over the next three
years. Both have their own Purchasing teams and it will be necessary to take
advantage of each other’s specialist skills and differing contracts approaches.
The procurement team of NHS Bristol will actively seek, share, learn and advance
the use of Best Practice and Value for Money with the Bristol Council to enhance
this collaborative working.

10 Market Analysis
NHS Bristol Procurement team will work with Commissioners to develop and
stimulate the markets for existing and forthcoming tendering exercises. The
approach that will be adopted can broadly be defined as “strategic sourcing” and
will include the following activities:
• segmenting services for sourcing
• understanding change levers, using collaboration and
• competition and engaging clinicians
• conducting market analysis
• creating sustainable and efficient markets
• building capacity
Likewise NHS Bristol will work across the South West area as part of any
collaborative market analysis project.

11 Voluntary Sector and Small to Medium Enterprises

NHS Bristol wishes to engage wherever possible with the voluntary and other
small to medium sized enterprises. NHS Bristol’s procurement team have been
charged over the next three years with identifying local providers who fall into
these categories and activity communicate with them about the forthcoming

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business plans and opportunities and if necessary to provide training on how to

complete the tendering documentation.

12 Ethical procurement
NHS Bristol wishes to develop an ethical procurement strategy and work towards
the Purchasing and Supply Agency- Guidelines on Ethical procurement which
covers 5 areas:
• Policy
• People
• Process
• Supplier engagement
• Measurement and results

13 Sustainability and Environmental Issues

The sustainability agenda “Triple Bottom Line” factors state that an organisation
must not only be responsible for profitability, through economic sustainability, but
also its social and environmental responsibilities.
NHS Bristol wishes to work towards sustainable procurement activities. These
include:
• Meeting current Waste Electrical and Electronic Equipment Regulations for
areas such as equipment disposal
• Safe disposal of any packaging of waste, use of re-useable containers
• Reduction of travel miles of people, goods and services including raw
materials.
• Ensuring that all contract terms and conditions are compliant for
sustainable procurement activities.
• The development of a local sustainability policy reflecting the environmental
considerations and social responsibilities of good procurement practice.
• Reducing both our own and our contractors’ carbon footprint
All tender and contract documents will emphasise these requirements.

14 Training and Awareness

Procurement advice
NHS Bristol has an in house procurement team to provide commissioners and
other NHS Bristol staff with current procurement advice and to ensure appropriate
process governance is adhered to:
Training on the purchasing process and routes to be followed
This training will be co–ordinated and/or provided by NHS Bristol’s Finance and
Procurement teams.

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15 Stakeholder, Carers and User Involvement

NHS Bristol has underpinned and made explicit within all its procurement
processes and guidance templates, the need to consult with users, staff and other
interested parties.

16 Cross Reference
This document is part of a suite of documents and must be read in conjunction
with:
• NHS Bristol’s Contestability Framework,
• NHS Bristol’s –Commissioning and procurement of ‘Any Willing and
Qualified Provider’ services
• Bristol and Weston NHS Purchasing Consortium- Procurement Strategy
2008- 2013

17 References
Audit Commission Report 1996
District Audit Report 1997
HSC 1999/143.
Auditors’ Local Evaluation 2007-8
Purchasing and Supply Agency and the Commercial Directorate Environmental
and sustainable purchasing
Principles and rules for cooperation and competition (PRCC) (DH Dec 2007)
Procurement Guide for Health Services (DH May 2008)
Framework for managing Choice, Cooperation and Competition (DH May 2008)
Department of Health (2007) – World Class Commissioning – Adding Years to Life
and Life to Years.

Mark Hayman
11th March 2009

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