Provider PreTender Workshop Kindle Centre, Hereford 28 Aug 13 Agenda – – – – – – Introduction Programme Scope & Services Tender programme timescales eMarketplace - options? How to Tender guidance AOB Wayne Welsby Head of Commercial Services Important Information • Important Dates: – Further PreTender Event – 12th Sept @ Kindle Centre • Important Info – https://www.herefordshire.gov.uk/businessopps – Proactis Portal https://tenders.herefordshire.gov.uk Commissioning Principles • Broadly looking at framework approaches • User and Carer experience and involvement • Proportionate tendering exercises and qualification criteria dependent on complexity • Safeguarding and Quality • Outcome based with a strong focus on enablement • Supplier Diversity and Support Local Economy where we can • Promote Choice and Control – range of access for Personal Budgets • Encourage partnerships and joint ventures to maximise benefits of volume linked price reductions and capability of market • Flexible contracting Services 1. 2. 3. 4. 5. 6. 7. Integrated Community Equipment Store (ICES) – aids and equipment to help people remain at home Reablement – short term 6 week support service to enable Sensory Impairment resources – dedicated support service to people with a sensory impairment Home & Community Services – Dom Care + Rapid Response Norfolk House – care and support service for the tenants within the scheme Shared Lives Scheme and Homeshare – Formerly known as Adults Placement Scheme, the function is to support the ‘carers’ who deliver the service and enabling homeowners to have a ‘homesharer’ living with them with no support Day Opportunities – wide mix of services to support vulnerable people Service User eligibility will be subject to ‘substantial and critical need’ Projected Start & Award Dates Likely Process START DATE AWARD DATE ICES Restricted 13th Sept 2013 31st Jan 2014 Reablement Restricted 13th September 2013 31st Jan 2014 Norfolk House Open 20th September 2013 20th Dec 2013 Adult Placement Scheme Open 20th Sept 2013 17th Dec 2013 Home & Community Services Open 11th Oct 2013 9th Jan 2014 Day Opps Open 11th Oct 2013 24th Dec 2013 Sensory Impairment Open 22nd Nov 2013 7th Feb 2014 PROCUREMENT Social Care eMarketplace Paul Griffiths Social Care eMarketplace Current examples include options to: • Inform service users and carers of available providers • Provide location, available services and contact details of providers • Rate providers and see how others rate them • Order and pay online for services and/or equipment Subject to timing and demand, potential regional approach?? Social Care eMarketplace eMarketplace – scalable functionality for Provider and service users Tier 0: Tier 1: Tier 2: Tier 3: Tier 4: Provider web presence Provider Directory with provider profile management Provider Directory with Catalogue Functionality Provider Directory with Catalogue Functionality (Payment options within solution and advanced reporting) Provider Directory with Catalogue Functionality (Payment options, Advanced Reporting, Additional functionality) Social Care eMarketplace Discussion points • Business & Client benefits • Engagement and participation of Providers and Clients • Required functionality Paul Griffiths firstname.lastname@example.org How to Tender Wayne Welsby Proposed Procurement Processes • Procurements to be conducted by either a single stage (Open) or a two stage (Restricted) process. • Currently the ICES and Reablement procurements have been identified as using the Restricted Process; other procurements are envisaged as using the Open Process, but this is subject to final confirmation. Proposed Procurement Processes • Restricted process involves the completion of a PreQualification Questionnaire (PQQ) which will be scored by the council. Only the highest scoring candidates being shortlisted and invited to submit a tender for the services (likely shortlist length of 5 – 8). • Open Process involves submission of a selection questionnaire at the same time as a tender for the services, however only the tenders from candidates who meet all of the selection criteria will be evaluated. What is a PQQ? • PQQ stands for “Pre-Qualification Questionnaire”. • PQQ’s typically are the start of any public procurement process. • The purpose of the PQQ is to enable the buyer to move from a long-list of suppliers down to a short-list. • In public sector this is done using an evaluation criteria which covers: • Capability (experience). • Capacity (volume/quantity). • Economic and financial standing (solvency/integrity). Where does the PQQ sit in the Tender process? Specification Advertise PQQ Tender Auction Award • PQQ is the first evaluation point in the tender lifecycle. • Questions asked at PQQ give the Council confidence that organisations are suitably qualified for the opportunity and subsequent round. • PQQ’s are focus on organisational capability and historical evidence. Contract What is asked for (1 of 2): • • • • “BASIC DETAILS OF YOUR COMPANY” – We want to know who we are dealing with e.g. company name, parent company details, VAT registration. “REFERENCES” – Purchasers need to validate claims. References are a test of capability and capacity. – Proof often sought from more than one client. “INSURANCE” – We seek (proportional) insurances for our protection should something go wrong. “FINANCIAL INFORMATION” – We need evidence of solvency and to evaluate financial risk including over reliance. What is asked for (2 of 2)? “EQUAL OPPORTUNITIES”, “ENVIRONMENTAL MANAGEMENT” AND “QUALITY ASSURANCE” • The Council operates these policies and it seeks to work with organisations sharing same values and controls. “HEALTH & SAFETY”, “EQUALITY & DIVERSITY” • The Council complies with H&S and E&D legislation. • Through its policies and procedures, it seeks to contract with organisations matching its aspirations. “BUSINESS AND COMPANY STANDING” • These are statutory questions which all public bodies must ask. • Public Services Contracts Regulations 1993 (www.legislation.gov.uk). Future approach • Aims to minimise resourcing requirements for providers and evaluators • Use existing accreditation standards where applicable – but not mandatory! • Identify min standards and best practice policy requirements Financial Standing New Approach, as used in used authorities including Birmingham, Cambridge, etc. • Replaces the historical requirement of assessing 3 years accounts • Apply a more risk approach for assessing bids • Enable providers to self populate spreadsheet • User friendly approach with guidance attached • Recognise voluntary, social enterprise orgs Financial Standing – new model Date of Financial Statements Business Type 31/12/2011 Current Year Limited company (Ltd, Plc) Contract Value: £ 120000 Current Year £ Prior Year £ Profit & Loss Account (or Statement of Financial Activities) Revenue 301000 299009 Gross Profit (if available) 60005 100001 Operating Profit (or Net Incoming Resources) 61662 50500 Interest Payable 12000 11000 Fixed Assets 750000 199000 Current Assets 105000 98000 Stock 12500 11000 Current Liabilities 98000 82000 505000 101000 Dividends (Owner Managed Businesses only) 0 0 Drawings (Partnerships & Sole Traders Only) 0 0 Balance Sheet Long Term Liabilities Other Financial Standing – new model Date of information 31/12/2011 Prior year Latest year Score Ratio Part 1 Revenue Multiple 2.508333333 Ratio 2 2.491742 Score 2 OK to proceed to Part 2 Proceed to Part 2 but be aware of potential capacity constraints on the supplier Don't proceed to Part 2 Part 2 Operating Margin Return on Capital Employed Interest Cover Gearing Quick Ratio Overall Score 20.49% 3 16.89% 3 8.15% 3 23.49% 3 5.14 3 4.59 3 66.71% 2 46.98% 3 0.94 1 1.06 2 12 14 Good score of over 12 out of 14. Basic financial position acceptable. Score of between 11 & 7 out of 14. Financial position questionable. Score of 6 or less out of 14. Poor financial position. Other requirements • Insurance – commitment to provide required cover subject to contract • Quality Management – accreditation (ISO9001) or evidence of policy • Business Continuity - accreditation (ISO22301) or evidence of policy • Equal Opps – compliance with min standards identified & additional marks for ‘best practice’ criteria. • H&S – accreditation with appropriate standards or evidence of policy • Environmental - accreditation with appropriate standards or evidence of policy What is a Tender? Specification Advertise PQQ Tender Auction Award Contract • The tender is a formal document issued by the buying organisation which sets out the detailed requirements of work to be done. • Tenders are forward looking asking questions around how requirements will be fulfilled. • The objective of the tender is to identify a bidder with whom to contract. Responding to Tenders PLAN YOUR RESPONSE • Early on thoroughly read tender documents (including T&C’s). • If the tender is unclear, seek clarification. • Know the tender timetable and deadlines. • Plan for sub-contractor input to your tender response. • Determine the evaluation methodology as early as possible. • Know how to respond (labelling, formats, attachments and templates). Responding to Tenders PREPARE AND SUBMIT YOUR RESPONSE • Tenders are evaluated based on content not ‘gloss’. • Keep responses concise and to word limits where specified. • Use affirmative language not conditional phrases (“subject to”, “however”, “might” etc.). • If you guaranteeing an aspect of delivery – clearly say so. • Prepare your own checklist and tick-off what you have completed. • Keep up-to-speed with buyer’s messages (e.g. tender amendments). How Buyers Will Evaluate Bids • Whilst a standard approach is followed to evaluate tenders, this will be adapted to meet the needs of each procurement process. For this set of tenders: • Tenders will be first checked to make sure that they are compliant. • Compliant tenders will then be evaluated individually by specialists who will then meet to agree a consensus score. • There will be a scoring regime against which evaluators will mark tenders - this will be shared with bidders. • Tenders will be evaluated on a MEAT (Most Economically Advantageous Tender) basis combining quality and price. • Evaluator comments are captured throughout the process and bidders will be fully debriefed on the reasons for the scores. What the Council Will Do •Whilst the timescales for tendering are tight, (when relevant) the council will seek to time the procurements in a programme which maximises the preparation and tendering time available for bidders, to allow for such factors as the formation of consortia. •Design services so that the largest range of potential providers are able to compete. •Tenders will be provided in a Microsoft format and no hard copies of responses will be requested. •Information requirements will seek to be minimised e.g. copy of insurance certificates required prior to contract award only. •Moving towards outcome focused specifications wherever possible and to allow for innovation. What the Council Will Do • Sufficient flexibility will be built into contracts, in order to more easily cope with any changing requirements. • As far as is possible, visibility will be given of the council’s long term strategic commissioning approach to assist bidders in tailoring their approach. • Transparency will be improved to support bidders in the completion of a compliant tender which showcases their capabilities. • Specific marking guidance will be provided for each question, with the key points to be addressed highlighted. What the Council Will Do • Maximum word counts of between 500 and 1500 words will be adopted for answers; length being dependent upon the question complexity. PQQ question length will be restricted to a maximum of 500 words. • There will be a deadline by which clarification questions must be received from bidders. The council will also publish all answers to clarification questions by a set date, no later than 6 calendar days before the closing date. • The council will also be flexible in accepting non-material enquiries by telephone. Thank You Questions?