allison grierson department of health chief procurement ... grierson.pdf · allison grierson...
TRANSCRIPT
Department of Health is a Smoke Free Workplace
Allison Grierson Department of Health
Chief Procurement Officer Northern Territory
11
NT Government Procurement Reforms
Independent review of procurement processes conducted late 2012
Red tape reduction program conducted throughout 2013
Two stage reform package approved by
Government December 2013
Stage 1 implemented 1 July 2014
Focus on simplified streamlined processes and improved governance
12
Better Procurement Outcomes
Internal Improvements
Streamlined processes
Better quality documentation
Greater clarity & guidance on key issues
External Improvements
More opportunity for local industry
Timeframes followed -Makes planning simpler
Higher quality documentation – easier to respond
13
The Agenda
1
3
Procurement Review Board – changes to role
Flexible Tender Release & Closing Times
Local Development & Value Add
Increased thresholds for procurement
14
More Agenda!!
14
KPI’s & Reporting Framework
Tender Assessment & Approvals Timeframe
Consolidating Functions- Procurement Network
CPOs – Chief Procurement Officers
CE Authority & Accountability
15
Procurement Review Board
15
Pre July 2014
Appeals
Approvals to negotiate and award contract
Approval for Select tender
Post July 2014 – functions devolved to Agency Chief Executives
Admissibility issues determined by Chief Executives Appeals referred to PRB
Appointment of Independent Chair
Membership of key Agency Chief Executives
Strategic role
16
Procurement Review Board
16
Review Agency Annual
Procurement Management Plans
Review Agency Compliance
Monitor Key Performance
Indicators
Review / audit procurement activity
17
Procurement Review Board _KPIs
17
• Agency Procurement Management Plans
• Tender assessment and award processes that
exceed benchmark timeframes
• Results of audits
• Number of addenda issued
• Quotations and tenders cancelled / declined
• Contract variations
• Issue of select quotations and tenders
• Contracts awarded to NT and interstate
businesses
• Compliance with Future Tender Opportunities
18
Impact on NT Department of Health
18
• Admissibility review by Agency (Tenders
Unit and Delegate)
• Principles and Guidelines
• Admissible – proceed with assessment
• Inadmissible – tenderer has right of
appeal to PRB
• Approval to negotiate
• Approval to Award
• Independent review of performance by
PRB
19
LDVA Guidelines
19
Commitment to the Northern Territory
• Can tenderers demonstrate contributions to local economic capacity?
• Have they proposed future local economic & social & environment contribution to the NT?
Procurement planning
• Consultation with industry & ICN
• Advanced publication of Future Tender Opportunity
• Framing procurement activities to allow small business opportunities
Industry Participation Plan –required >$5m
• Where required developed in consultation with successful tenderer
20
Default LDVA Questions
20
Enhancement of industry and business capacity in the Northern Territory
Employment & training
Optimising indigenous opportunities
Research development and innovation
Enterprise social responsibility
21
Scoring Guide – LDVA
21
Score Description
9
The Tenderer has demonstrated a commitment to the Northern Territory and (if relevant) has
proposed additional local commitments and the panel is confident that the Tenderer will deliver on its commitment.
7
The Tenderer has demonstrated a commitment to the Northern Territory (without proposing additional local commitments)
OR
The Tenderer has demonstrated a commitment to the Northern Territory and has proposed additional local commitments and the panel has reservations that the Tenderer will deliver on its
commitment.
5
The Tenderer has no current commitment to the Northern Territory but has committed to actions
to benefit the Northern Territory and the panel is confident that the Tenderer will deliver on its commitment.
3
The Tenderer has no current commitment to the Northern Territory but has proposed a commitment to the NT and the panel has reservations that the Tenderer will deliver on its
commitment.
0
The Tenderer has no current commitment to the Northern Territory and has not proposed future
commitment to the Northern Territory.
22
Health Consumables Tenders
22
• Panel Contract
(Prequalification)
• Regular opportunities for
vendors to join panel
• Release of RFI to refine
categories
• Focus on local warehousing
capability
• Enhancement of supplier
relationships and contract
management
23
eProcurement Project Objectives
23
• Delivering better patient outcomes at lower costs
• Implement improvements in the supply chain from end
to end
• Enable a Single Product Catalogue, for the selection of
consumables, with links to the National Product
Catalogue (NPC) in line with NEHTA guidance on
improving Purchasing
• Create the opportunity for all NT Public Hospital
Consumable Purchasing to originate from one system
24
eProcurement Project Objectives
24
• Easier integration and interfacing to internal and
external entities
• Improve availability and accessibility to Supply Chain
reporting
• Facilitate access to accurate data to support timely
Business decisions
25
The Beginning of the Journey
25
DOH Single Product Catalogue (SPC)
Gather, Develop and Document
Business requirements and rules
Business/Process workflows
Data flows
Functional requirements
Investigate current market capabilities and
other Health Care institutions
26
Single Product Catalogue - Benefits
26
Replaces current Stores Catalogue
spreadsheets, Supplier Catalogues (Books),
internet Searches
Ease of access for DOH employees via Intranet
Visibility of Contracted Items
Awareness of Stores Items
Common National Health Data Standards
New Interstate Staff familiar with Products
Underpins the synchronisation of product and
pricing data for accuracy in Supply Chain
Continuous and automated exchange of data
Within and Between Organisations
27
SPC Data Consistency & Confidence
27
• NT Department of Health
collaborating with HealthShare
NSW to leverage the NSW
Catalogue data• Non Pricing related data fields
• NT Department of Health has
started a data cleansing exercise
to ensure the catalogue is loaded
with accurate baseline data
28
SPC – Industry Benefits
28
Increased accuracy of
Product Identification
during Ordering ProcessReduced returns of incorrectly
ordered products
Increased awareness of
Contracted Items by DOH
Staff
Increased awareness of
Products Supplied by
Vendors
29
Supply Chain Management System (SCMS)
29
• Gather, Develop and
Document
• Business requirements and
rules
• Business/Process workflows
• Data flows
• Functional requirements
• Technical requirements
30
SCMS – Industry Benefits
30
NT Department of Health Supply Chain processes
aligned to Industry standards
Faster order-to-cash cycles through Electronic
Data Interchange (EDI)
Accurate Product Identification and Usage trends
Reduction in returns = Cost Savings
Forecasting accuracy = Reduced stock holdings
Increased order fill rates
Enhanced profitability via Supply Chain
collaboration
31
eProcurement Industry Collaboration with DOH
31
• Industry assistance to NT Department of
Health based on previous experiences
• Lessons Learned
• Initial Partners for Electronic Purchasing
via EDI
• NT Department of Health working with
suppliers
• Provide input into metrics to measure
supply chain efficiencies
32
Project TimelineProject Timeline 2014 2015
SPC Requirements
SPC RFQ
SPC Implementation
SPC Go Live
SCMS Requirements
SCMS RFT
SCMS Implementation
SCMS Go Live