The OJEU PACS Procurement Process

A recent exampleNovember 2011

Example Timeline

Week 1     Week 8   week 16   week 36  week 40   week 41+

OBC FBC Implemetation

OJEU/PQQ Negotiations / Competitive Dialogue

Contract complete

• Open Procedure; under which all those interested may respond to the advertisement in the OJEU by tendering for the contract

• Restricted Procedure; under which a selection is made of those who respond to the advertisement and only they are invited to submit a tender for the contract. This allows purchasers to avoid having to deal with an overwhelmingly large number of tenders

• Competitive Dialogue Procedure; following an OJEU Contract Notice and a selection process, the authority then enters into dialogue with potential bidders to develop one or more suitable solutions for its requirements and on which chosen bidders will be invited to tender

• Negotiated Procedure, under which a purchaser may select one or more potential bidders with whom to negotiate the terms of the contract. An advertisement in the OJEU is usually required but, in certain circumstances, described in the Regulations, the contract does not have to be advertised in the OJEU. An example is when, for technical or artistic reasons or because of the protection of exclusive rights, the contract can only be carried out by a particular bidder. 

OJEU Routes

• Traditional route – useful when requirements are very clear– Build specification (OBS)– Issues OJEU notice– Issue PQQ– Longlist– Issue OBS– Evaluate responses– Enter contract negotiations– BAFO and preferred bidder

Restricted Route

Competitive Dialogue Route

・ New route – useful when requirements are not fully known・ Issues OJEU notice・ Issue PQQ・ Longlist・ Issue IPCD・ Evaluate responses・ Shortlist・ Issue IPDD・ Enter contract negotiations・ BAFO and preferred bidder

• Procurement support• Sufficient resources• Suggested teams:

– Project Board– Evaluation Team

• Commercial Team• Site Visit Team• Clinical Team• Technical team

What you will need

• OJEU Notice– Try and keep options open on:

• Who to include as organisations• What you are looking for• If you will break it in to lots / multiple suppliers

– You can ask some questions at this stage to rule out suppliers (legal and financial)

Competitive Dialogue Phases - OJEU

• Pre‐Qualification Questionnaire– Set out your timetable– Set out clearly that you will reject or disqualify at this stage

– State costs are at supplier risk– Consider FOI / COI / warranty– Selection matrix and how you will score the responses 

Competitive Dialogue Phases – PQQ

Example PQQ Scoring MatrixPQQ Section (andsub-questions)

Information Weighting (%)

Section A Background InformationQuestions 1-7 Organisation details Information only

(not scored)Section B Financial and economic informationQuestion 1 Banker’s details Pass/FailQuestion 2 Accounts information Pass/FailQuestion 3 Financial Turnover (minimum annual turnover of £xxm) Pass/FailQuestion 4 Insurance Details (Please note that Candidates are required to demonstrate, for each type of insurance (i.e. employers’

liability, public liability and professional indemnity insurances), a minimum cover of £xx millionPass/Fail

Question 5 Litigation/legal proceedings Pass/FailSection C Technical informationQuestion 1 Experience in delivering relevant services 35Question 2.1 Experience of integration and neutral archive 22

Question 3 References Pass/FailQuestion 4.1 Support resources & location 10Question 4.1 Staff resources 13Question 4.2 Out of hours support model 10Question 4.3 State the products that you are seeking to provide and state which ones will be through a sub contractor Information only

(not scored)Question 4.4 Confirm your commitment to performance standards linked to a performance/payment regime. Pass/Fail

Question 4.5 Provide in outline the significant product developments you have released over the last 2 years and what you areplanning for the next 2 years

10

Question 5.1 Deductions for damages Pass/FailQuestion 5.2 Contract/employment termination Pass/FailQuestion 5.3 Failed contract renewal Pass/FailQuestion 5.4 Legal proceedings pending Pass/FailQuestion 6.1, 6.2 Unlawful discrimination finding Pass/FailSection D Statement relating to Good Standing Pass/FailSection E Checklist Information only

(not scored)Total weighting 100

• The aim is to reduce the number of candidates to a manageable number – you can suggest how many in the OJEU notice

• The PQQ needs to be built around what you are trying to achieve and are able to manage

• Debrief 

Outcome of PQQ

• Invitation to Participate in Competitive Dialogue– Background to the project– Rules on completion, pricing (recommend you do not use costs for shortlisting) and procedure

– Evaluation criteria– Timetable– Offer site visit to see the Trust– High level requirements– Example of the contract – Formal response date

Competitive Dialogue Phases - IPCD

• Keep it high level• What are the key areas that you need addressed

• Provide the detail that will help the suppliers:– Key systems and functional needs– Activity– Equipment– Technical– Approach to implementation

Competitive Dialogue Phases – IPCD - requirements

• Enter into dialogue with the suppliers• Discuss

– Initial responses / questions– Consider demonstration days– Reference site visits– Presentations

• The Trust is seeking to understand what the supplier can offer and how it can solve the needs as much as the supplier is seeking to understand the Trust needs

This is a dialogue!

Competitive Dialogue Phases – IPCD - dialogue

• Issue the scoring criteria– You can include:

• Site visits• Demonstrations• Dialogue responses• Contract comments• Presentations

– Use a team based approach to scoring and be consistent

Competitive Dialogue Phases – IPCD - evaluation

• The aim is to reduce the number of candidates to a manageable number – suggest how many in the OJEU notice, e.g. 3

• The IPCD needs to be built around what you are trying to achieve and are able to manage

• Debrief suppliers• (some may withdraw on their own if they realise that they cannot deliver what you need)

Outcome of IPCD

• Invitation to Participate in Detailed Dialogue– Key here is to build out the specification– As your needs become clearer and you can see what is available on the market

– It is an iterative process – But be consistent– Keep a record of actions and who is delivering them by when

Competitive Dialogue Phases – IPDD

• Key here is to build out the specification• As your needs become clearer and you can see what is available on the market

• It is an iterative process • But be consistent• Keep a record of actions and who is delivering them by when

• Start to firm up the costs

Competitive Dialogue Phases – IPDD - Dialogue

• Issue the scoring criteria– You can include:

• Site visits• Demonstrations ‐ scripted• Dialogue responses• Contract comments• Presentations

– Use a team based approach to scoring and be consistent

Competitive Dialogue Phases – IPDD - evaluation

• Are the remaining suppliers capable of meeting your detailed needs and contract terms?

• Confidence to issue BAFO

Outcome of IPDD

• Best and Final Offer• Formal Document• Needs to be issued and received under Trust SFIs for OJEU tenders

• Issue contract schedules –– One will be the specification– One will be the best and final offer price

Competitive Dialogue Phases – BAFO

• Issue the scoring criteria and be consistent with IPCD– You can include:

• Site visits• Demonstrations ‐ scripted• Dialogue responses• Contract comments• Presentations

– Use a team based approach to scoring and be consistent

– Then look at price and see which supplier offers the best score per £

– Ensure that you are comparing apples to apples

BAFO – Scoring

• Once decision made and approved by Trust• Enter Alcatel period, e.g.10 days• Complete final tidy up of contract• Sign contract• Debrief all unsuccessful bidders

• The hard work then begins – implementation….

Preferred Bidder

Example Timeline

Stage Days / Weeks

OJEU 30 days

PQQ 3 weeks

IPCD 10 weeks

IPDD 12 weeks

BAFO 2 weeks

Total 32 weeks – (~8 months)

Tony Corkett

Tony CorkettHealth Business Unit DirectorAmor Group

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