Using Dynamic Purchasing Systems for Children s Services Adam

Using Dynamic Purchasing Systems for Children’s Services Adam Sargent, Category Specialist

What is a Dynamic Purchasing System (DPS)? E U Directive 2004/18/EC Article 33 “A dynamic purchasing system is a completely electronic process for making commonly used purchases for a period of up to four years. ” European Commission, Practical Guide 4. 2. 5. 2 2

The Procurement Angle • OJEU Notice (Establishment) – the notice is standard but must include information on the establishment of a DPS for the organisation • Four Year Period • Open Market – A DPS allows any supplier to enter contract throughout its lifetime, only when they pass the accreditation. • Accreditation (PQQ) – These are the Pass and Fail questions (i. e. insurance levels, financial etc) • Enrolment (Technical Questions) –Your general quality questions to ensure compliance with the overall contract • Mini-Competition – Every requirement is sent to the open market for quotation • Bidding – after initial evaluation, suppliers get a second chance to reduce their price only. • MEAT – The final list of suppliers will have a rank, based on the merged score of their quality and price weighting. 3

The Commissioning Angle • Set out in Service Categories (i. e. Health Care, Respite, Short Breaks – Overnight / residential) • Few Limitations – Changes in circumstance – Changes in ability – Location • Requirement Specific – at each requirement is specific to the clients need, also variable to the following • Outcome Focused – Can state an outcome needed, allow supplier to return with the solution. 4

Personalisation • What if the client prefers a specific supplier? • What if the clients preferred supplier is not top of the final list? – If a service is brokered, the organisation must appoint the number 1 ranked supplier. Where a client wishes not to use said supplier, the organisation can provide the final listing to the client along with a direct payment. This allows the client to use the organisations accredited suppliers, reducing the risk to them. • The future? – The future may hold a client facing portal (if a DPS Specific system used), allowing them to use the DPS for personal allowance. This means all management information is captured in one place and reducing the risk / increasing client savings. 5

Shared Added Benefits • Market Shaping – showing the market what is being procured, allowing • Market Share – can help to spread the demand around the marketplace • Payment function (if a DPS Specific system used), where the supplier can • Service Level Agreements (SLA) created automatically (if a DPS • Interfaces with Care Management Systems (if a DPS Specific • Auditable • Feedback against suppliers available • Management information available • Value for Money!! them to develop into different services or collaborating to meet demand be paid directly through the system. Specific system used), inputting the spend and SLA’s directly against the clients profile. 6

Overall Limits and Myths • 15 days for each requirement – legislation states 15 days from point of • Bidding is on price only – as stated, based on quality and price scoring • Too much to evaluate (if a DPS Specific system used), a large majority of • The project specification will need to be detailed and precise to limit pointless responses. • Make each requirement large enough to provide over period to avoid multi low value projects. (if not using a DPS Specific system) • A register of members will need to be kept – challenging if done • A process to check admitted suppliers qualifying criteria will need to be put in place - challenging if done manually, DPS specific advert before award. Precedent set is an ‘open framework’ with a view of no challengers due to marketplace consistently available. the scoring is automated, minimum scoring needed on quality in requirement. manually, DPS specific system will keep up-to-date supplier profiles. system will allow for automatic criteria. 7

System Used • • Matrix SCM YPO Framework Call-off • Pan-London agreement which includes – No implementation fee – Low percentage gain share – All paid from savings made – No savings made, no payment. • More details / Matrix contact details – email me 8

Useful Links • • http: //ec. europa. eu/europeaid/prag/document. do? chapter. Id=4. 2. 5. 2. &id=41 http: //eurlex. europa. eu/Lex. Uri. Serv. do? uri=CELEX: 32004 L 0 018: en: NOT 9

Questions? Adam Sargent, Category Specialist adam. sargent@newham. gov. uk 10