NHS Nene Clinical Commissioning Group Procurement Policy

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1 NHS Nene Clinical Cmmissining Grup Prcurement Plicy Dcument Histry Dcument Reference: Dcument Purpse: Date Apprved: 9 July 2015 This dcument sets ut what the Clinical Cmmissining Grup, its Cmmissining Supprt Unit and assciated rganisatins will d t cmply with its bligatins under Prcurement Legislatin Apprving Cmmittee: Audit and Risk Cmmittee Versin Number: 4 Status: Next Revisin Due: Develped by: Plicy Spnsr: Date Ratified by NHS Nene CCG Gverning Bdy: Target Audience: Assciated Dcuments: Final Annual Review r in the event f significant changes t prcurement law GEM Prcurement, Greater East Midlands Cmmissining Supprt Unit (GEM CSU) and NHS Nene CCG Kathryn Mdy, Executive Directr Cntracting and Prcurement 18 August 2015 This plicy applies t any persn directly emplyed, cntracted r vlunteering t the CCG, including thse wrking under an hnrary cntract and thse authrised t undertake wrk n behalf f the CCG engaged with any Prcurement Dispute Reslutin Plicy Cnflicts f Interests Plicy Gifts, Hspitality and Spnsrship Plicy NHS Classified Page 1 f 39

2 Revisin Histry Versin Revisin date First Draft v1 June 2015 New Plicy Secnd Draft v2 June 2015 Revisin t incrprate utcme f review by K Mdy and H Pttn Third Draft v3 July 2015 Revisin t incrprate amendments required by Audit and Risk Cmmittee Furth Draft v4 July 2015 Executive Directr review by K Mdy. Prf read by M Phillips Plicy Disseminatin infrmatin Reference Number Title Available frm XXXXXX NHS Nene CCG Prcurement Plicy CCG Internet NHS Classified Page 2 f 39

3 1. PURPOSE OF THIS POLICY POLICY SCOPE AND APPLICATION GLOSSARY CONTEXT PLANNING AND DELIVERY FRAMEWORK ROLES, RESPONSIBILITIES PRE-PROCUREMENT ACTIVITIES PROCUREMENT OBJECTIVES AND GUIDING PRINCIPLES APPLICABLE LEGISLATION NENE CCG GOVERNANCE TRANSPARENCY, RECORD KEEPING AND E-TENDERING MANAGING CONFLICTS OF INTEREST RISK MITIGATION AND MANAGEMENT ETHICAL CONSIDERATIONS, ENVIRONMENTAL ISSUES AND SOCIAL RESPONSIBILITY DISPUTE RESOLUTION PROCESS ALTERNATIVE PROCUREMENT ROUTES TERMINATING CONTRACTS SUMMARY GUIDANCE ON SECTION 256 ARRANGEMENTS WITH LOCAL AUTHORITIES APPENDIX 1 - GLOSSARY APPENDIX APPENDIX NHS Classified Page 3 f 39

4 1. Purpse f this Plicy Prcurement is an all-encmpassing term t describe the activities f btaining the right gds, wrks and/r services frm the right prvider, at the right time, in the right place, f the right quality and at the right price, generally via a cntract. This dcument describes NHS Nene Cmmissining Grup s ( Nene CCGs ) Prcurement Plicy ( Plicy ). The purpse f the Plicy is t ensure that when cmmissining services, Nene CCG: cmplies with the regulatry framewrk f all relevant legislatin and guidance, its wn Cnstitutin, Standing Orders, Scheme f Reservatin and Delegatin and Prime Financial Plicies; acts with a view t securing the needs f its lcal ppulatin, and imprves the quality and efficiency f clinical services; treats prviders fairly and equally and acts in a transparent and prprtinate way; prvides best value fr mney; meets its shrt and lng term bjectives; and maintains high standards f public trust and prbity in its use f public funds. This Plicy is part f Nene CCG s gvernance structure and prvides the high level framewrk fr the detailed guidelines and ther dcumentatin in the frm f standards and prcedures, which supprt this Plicy. NHS Classified Page 4 f 39

5 2. Plicy Scpe and Applicatin This Plicy applies t all prcurement activities within Nene CCG, except the prcurement f gds unless thse gds frm part f the clinical arrangement which is being prcured. This Plicy will apply t: the members f Nene CCG; the members f its Gverning Bdy; the members f its cmmittees r sub-cmmittees and the cmmittees (including jint cmmittees) r sub-cmmittees f its Gverning Bdy; the members f its advisry panels r grups; its emplyees; and any ther individual wrking n behalf f Nene CCG. Nene CCG will ensure, when applying this Plicy that it cmplies with its duties under the Equality Act 2010 and des nt discriminate directly r indirectly against staff r ptential service prviders n the grunds f any f the prtected characteristics. 3. Glssary A glssary f the terms used in this Plicy is included at Appendix Cntext Planning and Delivery Framewrk 4.1. The Cmmissining Cycle Nene CCG plans, prcures, mnitrs and evaluates services thrugh prcesses aligned t the Cmmissining Cycle. Thrugh this Nene CCG seeks t cmmissin services in accrdance with the initiatives cntained within its annual Cmmissining Intentins and bi-annual Operatinal Plan; and in ding s supprts the delivery f the aims and bjectives set ut in the Nene CCG 5 Year Strategic Plan. NHS Classified Page 5 f 39

6 The prcurement f all services by Nene CCG is delivered within, and is a key stage f, the Cmmissining Cycle. Figure 1 belw prvides a diagrammatic representatin f the cmmissining cycle: Figure 1: 4.2. Jint Cmmissining with Nrthamptnshire Cunty Cuncil Nene CCG wrks in partnership with Nrthamptnshire Cunty Cuncil ( NCC ). Thrugh the Jint Cmmissining Bard, Nene CCG and NCC cmmissin and manage the prvisin f jint services. As part f the initial scping f a prject and the develpment f a Business Case it is necessary t make a decisin abut which rganisatin is best placed t lead n the prcurement. See Flw Chart at Appendix 2. When cmmissining services n behalf f bth rganisatins, the lead partner must cnduct such wrks in accrdance with rules and regulatins applicable t bth the NHS and Unitary Authrities. NHS Classified Page 6 f 39

7 Further infrmatin fr Nrthamptnshire Cunty Cuncil prcurement plicies and prcedures can be fund at: fault.aspx The Finance, QIPP and Cntracting Cmmittee ( FQCC ) maintain versight, and prvide rganisatinal challenge against the delivery f the Cmmissining Cycle n behalf f Nene CCGs Gverning Bdy C-Cmmissining with NHS England Nene CCG may wish t wrk with NHS England and, where applicable, ther CCGs t exercise specified NHS England functins. Nene CCG may enter int arrangements with NHS England and, where applicable ther CCGs t: Exercise such functins as specified by NHS England under delegated arrangements; and Jintly exercise such functins as specified with NHS England. Where arrangements are made fr the CCG and, where applicable, ther CCGs t exercise functins jintly with NHS England a jint cmmittee may be established t exercise the functins in questin. As part f the initial scping f a prject and the develpment f a Business Case it is necessary t make a decisin abut which rganisatin is best placed t lead n the prcurement. When cmmissining services aligned t the c-cmmissining agenda, the lead partner must cnduct such wrks in accrdance with the rules and regulatins applicable t the NHS. The Nene CCG Gverning Bdy maintain versight, and prvide rganisatinal challenge against the delivery f established C-Cmmissining Jint Cmmittees. NHS Classified Page 7 f 39

8 5. Rles, Respnsibilities 5.1 NHS Nene Clinical Cmmissining Grup Nene CCG is legally accuntable fr the cmmissining f health services fr its lcal patient ppulatin. Prcurement is a means f cmmissining clinical and nn-clinical services (including service redesign), and in this cntext Nene CCG is respnsible fr: the utcme f the prcurement prcess; and ensuring the prcess is carried ut fairly and accrding t the law whilst ensuring imprved health utcmes and value fr mney. 5.2 Senir Respnsible Owner ( SRO ) The Nene CCG Directr leading the cmmissining wrk is the Senir Respnsible Owner ( SRO ) fr bth the prcurement exercise and fr any fllw up cmmissining and/r implementatin wrk needed nce the prcurement exercise has been cmpleted. Directrs invlved in cmmissining, in cnsultatin with relevant stakehlders, are respnsible fr agreeing service and care pathway designs and drawing up the specificatin f services required. Depending n the value f the new services arrangement, the specificatin fr a service may need Nene CCG Bard f Directrs / Gverning Bdy apprval befre a cmpetitin fr the service is launched. Please refer t the Nene CCG Prime Financial Plicies and Scheme f Reservatin and Delegatin cntained within ur Cnstitutin. Wherever pssible a prcurement wrking grup shuld be established by the SRO, t prvide strategic versight fr the entire prcurement prcess. The grup is respnsible fr managing cmpliance in the fllwing areas against relevant natinal and lcal prtcls, guidance and strategies: gvernance; finance; tendering; NHS Classified Page 8 f 39

9 cntract mnitring; and cntract terminatin. If issues f a sensitive nature emerge during the curse f a prcurement prcess, the Nene CCG Chair and Accuntable Officer shuld be advised immediately. At their discretin they will infrm members f the Gverning Bdy. 5.3 Prcurement Team The Prcurement Team prvides prcurement supprt services fr Nene CCG. The Prcurement Team may be a Nene CCG in-huse team r a separate, legally distinct, cmmissining supprt prvider cntracted t prvide such services t Nene CCG. Reference in this plicy t the Prcurement Team includes bth a CCG in-huse team and a legally distinct cmmissining supprt prvider (as the case may be). The Prcurement Team is respnsible fr: the delivery f prcurement prjects in line with Nene CCG s requirements; and fr the prvisin f advice and supprt n prcurement issues t Nene CCG. The Prcurement Team has respnsibility fr the prcurement transactin nce a cmmissining need has been identified and apprval has been given by an apprpriately authrised persn / bdy t g t market. The Prcurement Team assists with market engagement (pre-prcurement) and is respnsible fr all prcurement transactinal wrk. As part f the Prcurement Team, Nene CCG s Cntract Management Team is respnsible fr preparing the cntract and c-rdinating the apprpriate assciated cntract schedules fr inclusin within the tender dcuments and cntract finalisatin with the selected bidder(s). Subsequently the Cntract Management Team will lead the service cntract management. NHS Classified Page 9 f 39

10 T supprt the Prcurement Team in carrying ut its functin the fllwing will be required t infrm the prcurement rute thrugh which required services are t be presented t the market and supprt the ppulatin f the apprpriate cntractual dcumentatin: a service specificatin cmpleted within the Natinal Standard Service Specificatin frmat where necessary; a cpy f the Full Business Case cmmissining prpsal which supprts the service specificatin; assurance that any necessary stakehlder cnsultatin has taken place; any activity and financial data relevant t the service t be prcured; any quality and reprting requirements relevant t the cntract; details f any previus r existing cntracts fr the service; and details f any applicable natinal plicy r guidelines. Wherever pssible a Prcurement Team representative shuld be invlved as early in the business case develpment prcess as is feasible. This will ensure that the Prcurement Team has a full understanding f the service requirements and can input int the develpment prcess frm a prcurement and cntract management perspective. 6. Pre-prcurement activities Prir t cmmencing any prcurement prcess, apprval t prceed t market must have been btained frm an apprpriately authrised persn / cmmittee f the CCG. This ensures that the planned prcurement will develp services in line with the aims and bjectives f Nene CCG. In preparing fr prcurement Nene CCG shuld cnsider: The need t cnsult in accrdance with its statutry bligatins (including thse under Sectin 3 f the Natinal Health Service Act 2006, the Equality Act 2010 and the Public Services (Scial Value) Act 2012). This must be assessed early in the NHS Classified Page 10 f 39

11 prcess as cnsultatin may influence the service design r the requirements fr the services t be tendered. The need t carry ut market research t understand if the CCG needs t enter int a prcurement exercise, r if the aims and bjectives can nly be delivered by a mst capable prvider. The need t carry ut market research t better understand the prvider market t infrm the prcurement rute and/r the service specificatin. Whether pre-market engagement with ptential prviders is apprpriate t prepare fr the prcurement, t seek views n the draft service specificatin, and t infrm ptential prviders f Nene CCG s prcurement plans and requirements. In carrying ut any pre-market engagement with ptential prviders, Nene CCG will ensure that this des nt have the effect f distrting cmpetitin r breaching the principles f equal treatment and transparency. Whether there are pprtunities t cllabrate with ther cmmissining rganisatins in the purchasing f services. Any pprtunities identified shuld be explred and evaluated where these are cnsistent with achieving Nene CCG s statutry and lcal bjectives (see Sectin 7 belw). Thrugh such explratin and evaluatin Nene CCG must be able t evidence that cllabratin has been apprpriately cnsidered. Any risks assciated with the planned prcurement including hw risks will be identified and managed. NHS Classified Page 11 f 39

12 7. Prcurement Objectives and Guiding Principles The Natinal Health Service (Prcurement, Patient Chice and Cmpetitin) (N. 2) Regulatins 2013 (the 2013 Regulatins ), prvide that when a CCG prcures health care services fr the purpse f the NHS, it must act with a view t achieving the fllwing bjectives: (a) securing the needs f the peple wh use the services, (b) imprving the quality f the services, and (c) imprving efficiency in the prvisin f the services. This is inclusive f when services are prvided in an integrated way (including with ther health care services, health-related services, r scial care services). 7.1 Lcal Objectives The annual Nene CCG Cmmissining Intentins 2015/16 build upn the Nene CCG 2 Year Operatinal Plan 2014/16 in setting ut the plans thrugh which the strategic aims and bjectives, as described in the Nrthamptnshire CCG 5 Year Strategic Plan, are t be delivered. Reference shuld be made t the current Plan fr further details. In carrying ut its cmmissining rle, Nene CCG will adpt the fllwing prcurement bjectives. Supprt the CCG s transfrmatin thrugh the delivery f high quality, respnsive, innvative, affrdable and sustainable services which are patient fcused and deliver better healthcare utcmes fr ur ppulatin. Supprt the CCG s visin f service integratin, with prviders wrking tgether t deliver transfrmatin alng pathways, and ensure services are seamless and cherent fr patients and prfessinals. Use the prcurement f services as a tl t facilitate the delivery f rganisatinal and system wide aims and bjectives. NHS Classified Page 12 f 39

13 Stimulate the prvider market t prvide cmpetitin t meet demand and secure required clinical, health and wellbeing utcmes. Effectively apply prcurement skills, expertise prcesses and methdlgies that ensure rbust, high quality, value fr mney cntracts. Ensure best value fr mney is achieved acrss the whle life f the cntract, and that cntracts generate the specified benefits and utcmes. All service specificatins and prcurements will be fair, transparent, equitable and nn-discriminatry, in line with the relevant legislatin and guidance. Ensure that prcurements are sustainable, ethical and in line with the CCG s visin and strategic pririties, delivering its crprate scial respnsibilities, supprting ecnmic develpment in the lcal area, and achieving sustainability targets. The CCG will be pen and transparent in the way it cnducts cmmercial relatinships with ptential prviders and existing prviders. 7.2 Guiding Principles The guiding principles which underpin Nene CCGs prcurement activities are as fllws. Where Nene CCG wrks in partnership with ther rganisatins (including supprt services), these guiding principles must be reflected within the arrangements. Purpse prcurement decisins made by Nene CCG managers shuld cntribute t the gals f the whle system, the verarching bjective and lcal bjectives. They shuld have patient interest and the wider public interest at heart. Service specificatins shuld be driven by the needs f the ppulatin. Transparency transparency is fundamental t accuntability. Nene CCG shuld cnduct its prcurement activities penly and in a manner that allws its behaviur t be scrutinised. This includes: Nene CCG will be transparent in its prcurement and cmmissining activities. We will publish ur strategy, peratinal plan and cmmissining intentins; NHS Classified Page 13 f 39

14 we will publish details f all prcurements as required, and will ntify all awards f newly cmpetitive tendered cntracts as abve OJEU limits; nce newly cmpetitive tender cntracts have been awarded, we will prvide feedback t any unsuccessful bidders and allw a standstill perid between ntifying the cntract award decisin and executing the cntract; and we will ensure an auditable dcumentatin trail that is transparent and demnstrates full accuntability fr ur decisins. Objectivity key decisins must be based wherever pssible n bjective data, infrmatin r criteria, r reasnable assumptins, and kept as public recrds fr audit purpses, allwing fr increased levels f transparency. Prprtinality actins taken will be prprtinate t the value, cmplexity, risks and benefits t patients and the services prvided. The criteria fr evaluatin f submissins will nt be disprprtinately demanding and in additin, we will ensure that bidders and prviders d nt incur unnecessary csts due t delays r changes in scpe. All prcurement prcesses will be as simple as pssible, aviding verly bureaucratic prcesses. The cntractual framewrk will be apprpriate and prprtinate t the services cmmissined. Equal treatment and nn-discriminatin we will ensure that the cmmissining, cntracting and prcurement prcesses are nn-discriminatry, neither unfairly including nr excluding any particular prvider r sectr f the market. We will make available all apprpriate infrmatin in gd time t enable ptential prviders t prperly assess whether they wish t express an interest in prviding the advertised service. We will clearly identify services t be put t cmpetitin, and in ding s ensure all prviders are subject t the same checks and perate under the same principles when respnding t any matters relating t the tender. Accuntability Nene CCG managers shuld strive t align their authrity and legal pwers with their accuntability and legal duties. It shuld be clear, in statute and in practice, wh is accuntable fr what; and what authrity thse accuntable have t cntrl their areas f respnsibility. NHS Classified Page 14 f 39

15 Subsidiarity decisins shuld be made by the lwest cmpetent authrity, in accrdance with the Nene CCG Cnstitutin, Scheme f Reservatin and Delegatin and the Prime Financial Plicies. Cnsistency we will apply natinal and lcal principles and rules in relatin t prcurement cnsistently. Timeliness sufficient time will be prvided t bidders t supprt the submissin f tender respnses, which will be dependent upn the value and cmplexity f the cntract. As a rule, where an OJEU advert ntice is placed, the timescales set ut in EU prcurement will be fllwed. Interdependency when assessing specific issues, Nene CCG shuld understand and minimise the ptential unintended cnsequences f any actins. Service Integratin prviders are t be encuraged t use service integratin as an enabler t ensure patients receive high quality, seamless care alng pathways. The CCG will use innvative prcurement vehicles t ensure that integratin f prvisin is maintained and enhanced, and lk t prviders t frm partnerships with each ther t deliver service transfrmatin. Lessns learnt principle n cmpletin f individual prcurements, the Prcurement Team shuld undertake a reflectin exercise f the end t end prcurement prcess. This internal prcess shall supprt rganisatinal develpment and the cntinual imprvement f gd practice thrugh the capturing f and building n lessns learnt. 7.3 Hw will the Overarching and Lcal Objectives be achieved? When prcuring services Nene CCG shuld have regard t the guiding principles set ut in sectin 7.2 abve and shuld aim t: wrk with a wide range f service prviders frm the private, public, independent, vluntary and scial enterprise sectrs wh can ffer high quality, diverse and acceptable chices fr lcal service users; stimulate the supply market where intelligence suggests that a wider prtfli f services r service prviders is needed; NHS Classified Page 15 f 39

16 cntinuusly review its existing cntracts t ensure that they deliver in accrdance with key perfrmance indicatrs, ffer maximum value fr mney and demnstrate cntinuus imprvement in the quality, efficiency and range f services n ffer, t meet the needs f Nene CCG s lcal ppulatin; and wrk with partners t ensure that buying pwer and ecnmies f scale are maximised thrugh cllabrative prcurement initiatives. 8. Applicable Legislatin 8.1 The Natinal Health Service (Prcurement, Patient Chice and Cmpetitin) (N. 2) Regulatins 2013 Nene CCG must cmply with the 2013 Regulatins when carrying ut its prcurement activities. The 2013 Regulatins impse bligatins n Nene CCG t ensure gd practice in the prcurement f services, t ensure the prtectin f patients rights t make chices and t prevent anti-cmpetitive behaviur. In particular the 2013 Regulatins require Nene CCG when prcuring services: t act with a view t securing the verarching bjective (Regulatin 2). t cmply with general requirements including t: act in a transparent and prprtinate way; treat all prviders equally and in a nn-discriminatry way; prcure services frm ne r mre prviders that are capable f meeting the verarching bjective and prvide best value fr mney in ding s; cnsider apprpriate means f imprving the quality and efficiency f the services including: thrugh services being prvided in a mre integrated way; enabling prviders t cmpete fr the services and allwing patients a chice f prviders; and maintain apprpriate recrds (Regulatin 3). NHS Classified Page 16 f 39

17 t manage cnflicts and ptential cnflicts f interest when awarding a cntract by prhibiting the award f the cntract where the integrity f the award has been r appears t have been affected by a cnflict; and t keep apprpriate recrds f hw cnflicts f interest have been managed in individual cases (Regulatin 6). nt engage in anti-cmpetitive behaviur unless t d s wuld be in the best interests f NHS health care service users, and ensure that any cntract r arrangement fr services des nt include any term r cnditin restricting cmpetitin which is nt: necessary fr the attainment f the intended utcmes which are beneficial fr the peple wh use the services; r the verarching bjective referred t in regulatin 2, as set ut abve (Regulatin 10). When advertising an intentin t seek ffers fr a services cntract, the 2013 Regulatins require Nene CCG t publish a cntract ntice n the dedicated website maintained by NHS England (Regulatin 4) NHS Cntracts Finder: The ntice must include: a descriptin f the services t be prvided; and the criteria against which any bids fr the cntract will be evaluated. Nene CCG must als have arrangements in place which enable prviders t express an interest in prviding services. The 2013 Regulatins als gvern the circumstances when Nene CCG may award a new cntract fr services withut cmpetitin (Regulatin 5). They prvide that: Nene CCG may award a new cntract fr the prvisin f health care services fr the purpses f the NHS t a single prvider withut advertising an intentin t seek ffers frm NHS Classified Page 17 f 39

18 prviders in relatin t that cntract where the relevant bdy is satisfied that the services t which the cntract relates are capable f being prvided nly by that prvider. The 2013 Regulatins als set ut the rle f Mnitr, including its investigatry and enfrcement pwers in relatin t breaches r ptential breaches f the 2013 Regulatins. Failure t cmply with the 2013 Regulatins wuld expse Nene CCG t challenge and pssible sanctins and result in cnsequential lss / damage. Where there is any dubt regarding Nene CCG s cmpliance with its bligatins, legal advice shuld be sught thrugh the Prcurement Team r Crprate Services. The full text f the Regulatins is available at: Appendix 2 prvides a summary f Nene CCG s bligatins under the 2013 Regulatins. 8.2 Eurpean and UK Prcurement Legislatin When prcuring services Nene CCG will ensure that it cmplies with EU prcurement law and the UK s implementing Regulatins t the extent that they are applicable t the services being prcured. In particular it will ensure cmpliance with the requirements f: The Treaty n the Functining f the Eurpean Unin ( EU Treaty ); Directive 2004/18/EC and the Remedies Directive 2007/66/EC; The Public Cntracts Regulatins 2006 (as amended); and Relevant EU and UK prcurement case law. The EU Prcurement Rules including any updating Eurpean and/r UK legislatin and case law which updates, amends r replaces them. The EU Prcurement Rules will apply where Nene CCG prpses t enter in t a legally enfrceable, written cntract, fr services which have an estimated full-life value abve the relevant financial threshld. Nene CCG will be fully cmpliant with bth its wn Prime NHS Classified Page 18 f 39

19 Financial Plicies and EU threshlds which may vary, with the crrect level being applied at the cmmencement f the prcurement. The EU Prcurement Rules divide services in t tw categries: Part A services: t which the full extent f the EU Prcurement Rules apply; and Part B services: t which the EU Prcurement Rules nly apply in part. Clinical services fall within Part B. The bligatins applicable t clinical (Part B) services, and which Nene CCG will ensure it cmplies with include: treating prviders equally and in a nn-discriminatry way; acting transparently (including the duty t advertise a cntract where there is a likely crss-brder interest); cmplying with the rules n technical specificatins, including that they d nt favur particular prviders r present unjustified bstacles t cmpetitin; publishing a cntract award ntice in the Official Jurnal f the Eurpean Unin ( OJEU ); and the prvisin f statistical and ther reprts. 8.3 Equality Act 2010 The Equality Act 2010 sets ut a number f prtected characteristics upn which peple are nt allwed t discriminate against. The Act sets ut the Public Sectr Equality Duty ( PSED ) which applies t Nene CCG. This is a cntinuing duty and applies at each stage f the clinical prcurement lifecycle (including when planning the prcurement, develping the specificatin and cntract, cnducting the prcurement prcess and fllwing the cntract award). NHS Classified Page 19 f 39

20 When making relevant decisins and at each stage f the clinical prcurement lifecycle, Nene CCG will meet its bligatins under the Equality Act by cnsciusly cnsidering the need t: eliminate unlawful discriminatin, harassment and victimisatin and ther prhibited cnduct; advance equality f pprtunity between peple wh share prtected characteristics and thse wh d nt; and fster gd relatins between peple wh share a prtected characteristic and thse wh d nt. 8.4 Public Services (Scial Value) Act 2012 The Public Services (Scial Value) Act 2012 (the Scial Value Act ) applies t Nene CCG when it carries ut its clinical prcurement activities. In accrdance with its bligatins under the Scial Value Act, Nene CCG will cnsider, at the pre-prcurement stage: hw the services t be prcured may imprve the scial, envirnmental and ecnmic well-being f its area; and hw in cnducting a prcurement prcess Nene CCG might act with a view t securing that imprvement, including whether t undertake a cnsultatin n these matters (r as part f Nene CCG s wider statutry bligatins t cnsult). 8.5 Relevant Guidance In meeting its bligatins under the 2013 Regulatins (the EU Prcurement Rules, the Equality Act 2010 and the Scial Value Act) and t ensure it adpts best prcurement practice, Nene CCG will have regard t any relevant Guidance prduced by Mnitr, NHS England, the Department f Health, the Equality and Human Rights Cmmissin, and the Cabinet Office. Further details f current guidance can be fund at: NHS Classified Page 20 f 39

21 Mnitr guidance: NHS England guidance: Equality and Human Rights Cmmissin: r_utcmes_final.pdf Cabinet Office: Prcurement Plicy Ntes 9. Nene CCG Gvernance 9.1 Nene CCG s Cnstitutin, Standing Orders, Scheme f Reservatin and Delegatin and Financial Plicies When prcuring services, Nene CCG will ensure that it cmplies with its duties under its Cnstitutin (including its Standing Orders, Scheme f Reservatin and Delegatin and Nene CCG s financial plicies). These include the infrmatin required t be included in the Cnstitutin by Schedule 1A t the NHS Act 2006 (as amended by Schedule 2 f the Health and Scial Care Act 2012). The CCG Standing Orders and the Scheme f Reservatin and Delegatin ( ensure that decisin-making is infrmed by intelligent infrmatin cvering the full range f crprate, financial, infrmatin and research gvernance and are central t Nene CCG's gvernance framewrk and t sustaining the highest standards f crprate and persnal prbity, accuntability and penness. Gd gvernance prvides the bedrck fr effective perfrmance and assuring better health and health services fr the ppulatin served by Nene CCG. Prime Financial Plicies ( PFPs ) are included within Nene CCG's Cnstitutin fr the management f Nene CCG's financial affairs. In supprt f these PFPs, Nene CCG has adpted mre detailed financial plicies, referred t tgether with the PFPs as " Nene CCG s financial plicies" - These detail the financial respnsibilities, plicies and prcedures adpted NHS Classified Page 21 f 39

22 by Nene CCG t ensure that Nene CCG s financial transactins (including prcurement transactins) are carried ut in accrdance with the law and with Gvernment plicy. They are used in cnjunctin with the Schedule f Matters Reserved t the Clinical Cmmissining Grup and Scheme f Delegatin adpted by Nene CCG and included within the Cnstitutin s Scheme f Reservatin and Delegatin. Nene CCG's financial plicies identify the financial respnsibilities which apply t everyne wrking fr the Nene CCG and its cnstituent lcalities. Shuld any difficulties arise regarding the interpretatin r applicatin f any f Nene CCG's financial plicies then the advice f the Chief Finance Officer must be sught befre acting. The failure t cmply with Standing Orders and PFPs may be regarded as a disciplinary matter. 9.2 Nene CCG Scheme f Reservatin and Delegatin and Authrisatin Limits When authrising and apprving prcurement decisins Nene CCG will cmply with its Scheme f Reservatin and Delegatin as set ut in its Cnstitutin. While cnducting any prcurement prcess Nene CCG will adhere t relevant financial rules and regulatins in ensuring that it des nt enter int any practices that may be deemed as the artificial splitting f a single cntract r purchase rder. 9.3 Standards f Business Cnduct Nene CCG members, members f its Gverning Bdy, members f its cmmittees r subcmmittees and the cmmittees (including jint cmmittees) r sub-cmmittees f its Gverning Bdy, members f advisry panels r grups, emplyees and any ther individual wrking n behalf f Nene CCG will at all times cmply with Nene CCG s Cnstitutin and be aware f the respnsibilities utlined in it. They shuld act in gd faith and in the interests f Nene CCG and shuld fllw the Seven Principles f Public Life set ut by the Nlan Principles. They must cmply with Nene CCG s Standards f Business Cnduct, and the requirements set ut in the plicy fr managing cnflicts f interest. NHS Classified Page 22 f 39

23 They must als cmply with all current relevant guidance and plicies including: the Cde f Cnduct fr NHS Managers; Nene CCG Fraud and Bribery Plicy: Nene CCG Gifts, Hspitality and Spnsrship Plicy; Nene CCG Disciplinary Plicy; and Nene CCG Raising Cncerns at Wrk (Whistleblwing) Plicy. 10. Transparency, Recrd Keeping and E-Tendering 10.1 Transparency and Publicity Obligatins Transparency is fundamental t accuntability and, as set ut in Sectin 7 f this Plicy - Nene CCG has a legal duty, when cnducting its clinical prcurement activities, t act in a transparent way. Nene CCG shuld cnduct its prcurement activities penly and in a manner that allws its behaviur t be scrutinised. In additin t its legal bligatins t act transparently, Nene CCG will als cmply with current Gvernment guidance n transparency t publish infrmatin n cncluded cntracts and Nene CCG expenditure Dcumentatin & Recrd Keeping As set ut elsewhere in this Plicy, Nene CCG will cmply with its statutry bligatins t keep and maintain apprpriate recrds. Accurate recrd keeping and dcumentatin is als fundamental t any prcurement prcess and is als cnsistent with Nene CCG s bligatin f transparency. A rbust audit-trail shuld be maintained which recrds all steps and decisins taken (and the reasns fr thse steps / NHS Classified Page 23 f 39

24 decisins). This enables Nene CCG t have cnfidence that its decisins can be scrutinised, and that it can apprpriately respnd t frmal cmplaints r challenges. Frmal dcument versin cntrl shuld als be implemented and all dcument versins retained in case f future need E-Tendering & Evaluatin Systems Future changes t the current EU prcurement Directive (2004/18/EC) will require (subject t a limited number f exceptins), that all cmmunicatin and infrmatin exchanges fr prcurements falling within the scpe f the Directive, be carried ut electrnically using prducts which are generally available, are interperable and which d nt restrict ptential prviders access t the prcurement prcedure. In readiness fr the new Directive, and subject t the exceptins set ut belw, Nene CCG will use electrnic systems when carrying ut any prcurement exercise. Tenders, tender dcumentatin and cmmunicatins with ptential prviders and bidders will be held and managed using a single e-prcurement system prtal. Tenders will be evaluated using an apprpriate web based system, which is accessed via the single e-prcurement prtal. These electrnic resurces will be managed by the Prcurement Team. The electrnic systems are currently prvided t Nene CCG by the Greater East Midlands ( GEM ) Cmmissining Supprt Unit. In sme circumstances, it may be necessary fr Nene CCG t carry ut a prcurement prcess, including cmmunicatins with ptential prviders and bidders and / r the evaluatin f requests t participate and / r tenders, using nn electrnic methds. Where the use f nn-electrnic methds is prpsed fr a prcurement and prir t the cmmencement f the frmal prcurement prcess this shuld be: discussed with the Prcurement Team, including the prcesses and measures which will be put in place t ensure accurate and auditable recrds can be kept and any risks assciated with the use f nn-electrnic means addressed; and NHS Classified Page 24 f 39

25 apprved by the Executive Directr Cntracting and Prcurement. 11. Managing Cnflicts f Interest A cnflict f interest arises where an individual s ability t exercise judgement r act in ne rle is r culd be impaired r therwise influenced by his r her invlvement in anther rle r relatinship. The individual des nt need t explit his r her psitin r btain an actual benefit (financial r therwise). A ptential fr cmpeting interests and/r a perceptin f impaired judgment r undue influence can als be a cnflict f interest. The management f cnflicts f interest is essential in the prcurement f services and managing them apprpriately is paramunt t the prbity and accuntability f Nene CCG s decisin making and will ensure that the principles f transparency, fairness and nndiscriminatin are upheld. As an rganisatin led by GPs, Nene CCG will be particularly subject t cnflicts f interest, ptential cnflicts f interest, r perceived cnflicts f interest when prcuring services. Nene CCG will therefre adpt rigrus standards in the identificatin and management f cnflicts r ptential cnflicts f interest t ensure that the abve principles can be upheld. Such a cnflict culd arise: in carrying ut a cmpetitive tender: where GP practices r ther prviders in which Nene CCG members have an interest are amngst thse bidding; r when prcuring services thrugh Any Qualified Prvider where ne r mre GP practices (r ther prviders in which Nene CCG members have an interest) is amngst the qualified prviders frm which patients can chse. In managing cnflicts f interest Nene CCG will: cmply with its statutry bligatins in relatin t the management f cnflicts f interest; have regard t relevant Guidance published by NHS England and Mnitr in relatin t the discharge f its statutry bligatins (including NHS England Managing Cnflicts f Interest: Statutry Guidance fr CCGs [December 2014], Annex 4 - NHS Classified Page 25 f 39

26 Prcurement Template fr Cmmissining Services where General Practice has an Interest [Gateway 02726]) (see appendix 3); and cmply with its Cnstitutin in relatin t the management f cnflict f interests including its: Cnflicts f Interest Plicy Gifts, Hspitality and Spnsrship Plicy Dispute Reslutin Plicy requirement t maintain and publish n the CCG website the prcurement register, inclusive f infrmatin regarding the gvernance prcess thrugh which decisins were made and the management f cnflicts f interest Standards f Business Cnduct Nene CCG will als ensure that individuals cntracted t wrk n behalf f Nene CCG r therwise prviding services r facilities t Nene CCG will be made aware f their bligatin with regard t declaring cnflicts r ptential cnflicts f interest, and that this requirement is written int their cntract fr services. 12. Risk Mitigatin and Management In carrying ut its prcurement activities Nene CCG will ensure that it has adequate measures in place t mitigate against and manage risk. Such measures may include ensuring: prcurements are adequately prepared and planned; each prcurement prject has an SRO and that rles, respnsibilities, reprting lines and channels f cmmunicatin within the wider cmmissining and Prcurement Team are clear; the individuals invlved have the necessary expertise, experience and training t match the requirements f the rle and its respnsibilities (and that these are kept up t date); NHS Classified Page 26 f 39

27 each prject has a pre-agreed and end t end prcurement strategy and timetable, tailred t the requirements f the prject; the resurces available, the business bjective and which has identified and sught t minimise any risks invlved; adequate and apprpriate recrds are kept t cmply with Nene CCG s statutry bligatins and t prvide a rbust audit trail f decisins and actins taken; a risk identificatin and escalatin prcess is established at the utset, t include a risk register which is regularly reviewed and updated with apprpriate risk management strategies t address each risk identified; the use f rbust and up t date prject and prcurement dcuments, which are legally cmpliant, clear and unambiguus, and subject t a strict plicy f versin cntrl; and the cnduct f the entire prcess is in accrdance with the law and key prcurement principles namely: transparency; equal treatment; nn-discriminatin; prprtinality and sund administratin. 13. Ethical Cnsideratins, Envirnmental Issues and Scial Respnsibility 13.1 Ethical Cnsideratins When carrying ut its prcurement activities, Nene CCG will ensure that any prvider that has the necessary abilities t be f service t the rganisatin has a fair pprtunity t cmpete. When wrking with its prviders, and when prblems arise with a prvider s perfrmance r behaviur Nene CCG will, wherever pssible, wrk with the rganisatin cncerned t help them meet the expected requirements. Nene CCG will strive t behave ethically and with integrity in all f its activities and t wrk with cmpanies that uphld similar ethical standards and d nt: explit child r sweated labur; NHS Classified Page 27 f 39

28 pirate the intellectual prperty f thers; wilfully and avidably damage the envirnment; r therwise act in cntraventin f applicable laws. Nene CCG will encurage its prviders t cnfrm t the Ethical Trading Initiative Base Cde ( ETI Base Cde ) Sustainability Issues Mre than half f the carbn ftprint f the NHS in England is assciated with the prducts and services it prcures. Carbn emissins assciated with the extractin, prcessing, assembly, packaging, transprt, strage and handling f prducts and materials that are cnsumed directly and indirectly by service prvider s accunt fr 60% f the ttal carbn ftprint Nene CCG will aim t wrk with rganisatins that share a cmmitment t preserving the wrld s natural resurces. When carrying ut its prcurement activities, insfar as is reasnably practicable and is cnsistent with prcurement law and guidance, Nene CCG will fllw its: Nene CCG Sustainability Plicy and Actin Plan; and the principles set ut in the NHS Carbn Reductin Strategy. 14. Dispute Reslutin Prcess Where disputes arise we wuld hpe that in mst cases these culd be reslved infrmally withut recurse t a frmal prcess. If hwever the dispute cannt be reslved infrmally, the Dispute Reslutin Prcess shuld be referred t as set ut in the Nene CCG Dispute Reslutin Plicy. NHS Classified Page 28 f 39

29 15. Alternative Prcurement Rutes 15.1 Mst Capable Prvider and Single Tender Where determined thrugh analysis f the market and prprtinate and transparent engagement with ptential prviders that the services are capable f being prvided nly by ne particular prvider, r grup f prviders, Nene CCG may cnsider it apprpriate t prceed with a single tender actin, where a cntract(s) is awarded t a single prvider r a limited grup f prviders withut cmpetitin. In this instance these prviders are referred t as the mst capable prvider(s) Where Nene CCG is in need f securing the prvisin f services due t an urgent need, it may cnsider securing the shrt term prvisin f services by using a single tender actin withut cmpetitin. Where Nene CCG cmmissin such a shrt term service via a single tender actin, a further market assessment shuld be undertaken t determine the future rute t market fr services. The law with regard t the mst capable prvider test and the single tender actin is cmplex. It is therefre imprtant that where Nene CCG pts nt t enter a cmpetitive prcess, a recrd f the ratinale and decisins made must be maintained. It is gd practice and prudent t advertise a mst capable prvide r/ single tender pprtunity in the same way as fr any ther cntract pprtunity t demnstrate transparency and equality f treatment and t determine that there really is nly ne capable prvider (grup f prviders). Nene CCG shall ensure that it has in place evidence f the review and ptins appraisal prcess that led t the decisin that a single tender actin was apprpriate and all such awards will be reprted t the NHS Nene CCG Audit and Risk Cmmittee Framewrk Agreements Framewrk Agreements are pre-tendered agreements which are established in cmpliance with the EU Prcurement Rules and which, nce established, can be used by Nene CCG t purchase certain prducts and/r services withut the need t carry ut a full prcurement prcess. The advantages f using a framewrk agreement is that, nce established, it can be used t save bth time and cst. NHS Classified Page 29 f 39

30 Any Qualified Prvider is a frm f framewrk agreement. A framewrk can be established: By Nene CCG fr its wn use; r By anther clinical cmmissining grup, cntracting authrity r a central purchasing bdy such as the Gvernment Prcurement Service ( GPS ). If Nene CCG wishes t use a framewrk agreement established by anther rganisatin, it shuld check that that the framewrk agreement has been established crrectly, in accrdance with any applicable bligatins under the EU Prcurement Rules; that Nene CCG is entitled t use the framewrk and that it is fit fr Nene CCG s purpse. In particular, Nene CCG shuld check: that it has been identified as a bdy which is entitled t use the framewrk; that its requirements fall within the specificatin f gds / services cvered by the framewrk; that the term f the framewrk has nt expired; that the terms and cnditins applicable t call-ffs made under the framewrk are acceptable t Nene CCG (as Nene CCG will be unable t make substantial mdificatins t these); and that the pricing under the framewrk is acceptable. When cmmissining services, Nene CCG shuld in the first instance establish whether an apprpriate framewrk agreement exists. Where an apprpriate framewrk is identified, Nene CCG shuld seek t use this framewrk t cmmissin the required service(s). NHS Classified Page 30 f 39

31 16. Terminating Cntracts Any decisin either t vary a cntract r terminate a cntract prir t its expiry date must be carefully cnsidered (including the cnsequences f ding s) and must be apprved in accrdance with the Nene CCG s Scheme f Reservatin and Delegatin as set ut in its Cnstitutin and the Authrisatin Limits. Advice shuld als be sught prir t taking r apprving such a decisin as the legal and practical cnsequences need t be apprpriately cnsidered. 17. Summary Guidance n Sectin 256 Arrangements with Lcal Authrities 17.1 Backgrund t Sectin 256 Agreements Sectin 256 f the Natinal Health Service Act 2006 (as amended by the Health and Scial Care Act 2012) enables clinical cmmissining grups t make grants t lcal authrities twards expenditure n specified cmmunity services, The Better Care Fund and any f the lcal authrity functins specified belw. Cmmunity Services and Better Care Fund - Nene CCG may make payments t: a lcal scial services authrity in cnnectin with any scial services functins; a lcal educatin authrity fr the benefit f disabled persns; r a lcal husing authrity in cnnectin with the prvisin f husing. Lcal Authrities Functins - Nene CCG may make payments in cnnectin with the perfrmance f any f the lcal authrity s functins prviding that in the pinin f Nene CCG the functins: have an effect n the health f any individuals; NHS Classified Page 31 f 39

32 have an effect n, r are affected by, any NHS functins; r are cnnected with any NHS functins. Nene CCG bligatins in respect f Sectin Nene CCG must als meet a number f cnditins when making a grant under Sectin 256; these are set ut in the NHS (Cnditins Relating t Grant Payments by NHS Bdies t Lcal Authrities) Directins 2013: Nene CCG is satisfied that the payment is likely t secure a mre effective use f public funds than the deplyment f an equivalent amunt n the prvisin f health services; where the grant payment is t meet all r part f the capital csts f a prject, the grant amunt must be determined befre the prject begins; where the grant payment will be used by the lcal authrity t fund part f a prject, Nene CCG must be satisfied that the lcal authrity intends t meet the remaining csts f the prject. Nene CCG must als be satisfied that this will cntinue fr as lng as bth Nene CCG and the lcal authrity cnsider the prject t be necessary r desirable; Nene CCG must ensure, s far as is practicable, that the payment is used by the lcal authrity in such a way as will secure the mst efficient and effective use f the amunt paid; if during the curse f the grant perid, the lcal authrity reduces the level f service it prvides belw the level riginally agreed then Nene CCG may reduce accrdingly the amunt f any further payments; and s far as is practicable, ensure that the payment is used by lcal authrity in such a way as will secure the mst efficient and effective use f the amunt paid. T ensure financial prbity and a clear audit trail Sectin 256 specifies tw prescribed dcuments must be cmpleted when making a grant: NHS Classified Page 32 f 39

33 A Certificate f Expenditure (Annual Vucher) - The Certificate f Expenditure must be cmpleted by the recipient lcal authrity. The auditrs must certify that expenditure in relatin t the prject funded is fairly stated and in accrdance with the relevant terms and cnditins. A Memrandum f Agreement - This must include: a statement f hw the Sectin 256 transfer secures mre health gain than an equivalent expenditure f mney in the NHS; a descriptin f the scheme. In the case f revenue transfers, the services fr which mney is being transferred shuld be specified; financial details and timescales. This shuld detail the ttal amunt f mney t be transferred under the grant and the amunt that is t be transferred in each year. If this subsequently changes the Memrandum f Agreement must be amended and then re-signed; and details f the evidence that will be used t indicate that the purpses f the grant, as utlined in the Memrandum, have been secured. The Memrandum f Agreement must then be signed by bth the CCG and the lcal authrity. NHS Classified Page 33 f 39

34 Appendix 1 - Glssary Term Meaning 2013 Regulatins The Natinal Health Service (Prcurement, Patient Chice and Cmpetitin) (N. 2) Regulatins 2013 Authrisatin Limits Nene CCG Nene CCG Cmmissining Intentins Nene CCG Operatinal Plan Nene s CCG Strategy Nene CCG s authrisatin limits as referred t at Sectin 9.3 NHS Nene Clinical Cmmissining Grup Nene CCG s annual plan which sets ut the Nene CCG s visin and annual plans t imprve the health and well-being f the lcal ppulatin Nene CCG s bi-annual plan which sets ut the Nene CCG s visin and bi-annual plans t imprve the health and well-being f the lcal ppulatin Nene CCG s 5 year strategy sets ut the Nene CCG s visin t imprve the health and well-being f the lcal ppulatin Nene CCG s financial plicies Nene CCG s Prime Financial Plicies tgether with the detailed financial plicies which Nene CCG has develped in supprt f its Prime Financial Plicies Cnstitutin Cntract Management Team Nene CCG s Cnstitutin which sets ut in detail the arrangements Nene CCG has in place t discharge its functins efficiently and effectively n behalf f ur ppulatin Nene CCG s cntract management team (jint with Crby CCG) whse respnsibilities include thse set ut at Sectin 5.3. EU Prcurement Rules The Treaty n the Functining f the Eurpean Unin ( EU Treaty ); Directive 2004/18/EC and the Remedies Directive 2007/66/EC; The Public Cntracts Regulatins 2006 (as amended); and NHS Classified Page 34 f 39

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