Procurement Presentation Alan Brett Contracts Officer HSE

Presentation structure HSE Procurement overview Key Principles of Public Procurement Tendering Expenditure threshold requirements and related contact points Tender process types (main) Tender evaluation options Etenders Tender documentation Case study / studies

HSE Procurement Overview Historically - health boards HSE single legal entity – procurement compliance obligations Portfolio & Category Management approach

Key Principles of Public Procurement Tendering Underpinned in EU Law in Treaty of Rome Transparency Equal Treatment Mutual Recognition Proportionality Consolidated 2004/18/EC Procurement Directive (Supplies & Services)

Expenditure Threshold requirements Supplies & Services Less than €5,000 one quote; all budget holders within HSE / supplies departments Less than €50,000 three quotes; Supplies Officers / equipping officers €50,000 to €211,000 nationwide tender HSE Procurement – More than €211,000 EU wide tender HSE Procurement –

(Main) Tender Process Types Open One stage process open to all interested parties subject to minimum standards / requirements Restricted Two stage process: Candidates are prequalified based on published selection criteria in relation to e.g. Economic & Financial Standing; Technical and/or Professional ability; Quality Assurance Standards; Suitability to pursue professional activity, etc. Prequalified candidates are invited to submit tenders based on the requirements and assessed against the published award criteria

Tender evaluation options Lowest Cost  normally subject to compliance with minimum standards / criteria MEAT – most economically advantageous tender  Ultimate Cost (Price, running costs, etc)  Technical Merit  Aesthetic & functional characteristics  Environmental characteristics  After sales service & technical assistance

Etenders

Sample tender documents Procurement Rules Document –Late tenders –Submissions by groups –Insurance requirements Tender Response Document –Exclusion Criteria –Selection Criteria –Award Criteria

Case Study One Service related tender Nationally advertised tender Minimum requirements: –At least one example of delivery of similar services in last three years –Minimum average turnover of €250,000 per annum over the last three years required Award Criteria: –Ultimate Cost 60% –Technical Merit 20% –Quality of project proposal 10% –Delivery Timeframes 10% Company awarded:Small Irish company with <10 staff Estimated value€35,000 + additional business

Case Study Two Fresh & Prepared Fruit & Vegetables Region wide contracts Lowest cost subject to compliance with minimum standards and delivery schedules Region split into several sub regions Contracts awarded to several service providers Total contract values >€200,000 per annum

National Contract Opportunities –Consortia –Sub Contractors Frameworks Thank You