PROCUREMENT: POLICIES AND PROCEDURES - SLaM

1 This policy document is subject to South London and Maudsley copyright. Unless expressly indicated on the material contrary, it may be reproduced free of charge in any format or medium, provided it is reproduced accurately and not used in a misleading manner or sold for profit. Where this document is republished or copied to others, you must identify the source of the material and acknowledge the copyright status. procurement policy , Version November 2012 procurement : POLICIES AND PROCEDURES Version: Ratified By: Trust Executive Date Ratified: 21st November 2012 Date policy Comes Into Effect: 1st January 2013 Author: Tom Medhurst, Head of procurement Responsible Director: Nick Dawe, Interim Director of Finance Responsible Committee: Trust Executive Target Audience: All staff at all levels Review Date: January 2014 Equalities Impact Assessment Assessor: Abim Olowe Date: July 2012 HRA Impact Assessment Assessor: Tom Medhurst Date: Oct.

2 2012 procurement policy , Version November 2012 Page 1 of 25 Document History Version Control Version No. Date Summary of Changes Major (must go to an exec meeting) or minor changes Author N/A N/A G. Heafield Update on policy and change of procurement limits and related PROCEDURES as well as inclusion of contract sign off limits. Major T. Medhurst Consultation Stakeholder/Committee/ Group Consulted Date Changes Made as a Result of Consultation Business Managers July 2012 No changes Equalities and Human Rights Group July 2012 Minor changes Senior Finance Managers Oct 2012 No changes Head of Contracts and Systems Design Dec 2012 Changes to cover the inclusion and sign off of Healthcare and commissioning contracts Plan for Dissemination of policy Audience(s) Dissemination Method Paper or Electronic Person Responsible All Trust Staff Email Electronic TM Business Managers meetings In person In person TM procurement policy , Version November 2012 Page 2 of 25 Contents Section Page 1.

3 INTRODUCTION 3 2. DEFINITIONS 3 3. PURPOSE AND SCOPE OF THE policy 3 4. ROLES AND RESPONSIBILITIES 3 5. POLICIES 4 6. PROCEDURES : CONTRACT TENDERS/ QUOTATIONS 5 7. PROCEDURES : NON-PAY EXPENDITURE ON GOODS AND SERVICES CHOICE, REQUISITIONING, ORDERING, RECEIPT AND PAYMENT 7 8. MONITORING COMPLIANCE 10 9. ASSOCIATED DOCUMENTATION 10 10. REFERENCES 10 11. FREEDOM OF INFORMATION ACT 2000 10 APPENDICES APPENDIX 1: TENDERING PROCEDURE 11 APPENDIX 2: SUMMARY OF procurement LIMITS AND RELATED PROCEDURES FOR TENDERS AND QUOTES 13 APPENDIX 3: CONTRACT SIGNING LIMITS AND RELATED PROCEDURES FOR CONTRACT CONCLUSION 15 APPENDIX 4: EQUALITY IMPACT ASSESSMENT 16 APPENDIX 2: HUMAN RIGHTS ACT ASSESSMENT 23 APPENDIX 3: CHECKLIST FOR THE REVIEW AND APPROVAL OF A policy 25 procurement policy , Version November 2012 Page 3 of 25 1.

4 Introduction This document includes and updates requirements previously noted in SLaM s Standing Orders ( SOs ) and Standing Financial Instructions ( SFIs ) and has the same level of authority as SLaM s SOs and SFIs. Further information and guidance is available from SLaM s Head of procurement and from the following websites, which give guidance on the legal framework and link to relevant official documentation: a) Government procurement Service: b) The London procurement Partnership: c) The Chartered Institute of Purchasing and Supply: d) EU procurement information: e) DH website - NHS contracting information 2. Definitions In this policy unless the context otherwise requires, the following terms shall have the following meanings: stakeholders includes SLaM s members, SLaM s service users, SLaM s employees, SLaM s local partners, regional and national government.

5 Spend shall mean all non-pay spend within SLaM. contract an agreement containing consideration between SLaM and another party tendering formally and competitively seeking responses from the market for SLaM requirements using formal tender documentation. contract value the value of expenditure of goods, services or works across the Trust including associated maintenance or spend on consumables for the life of the contract. For contracts with an uncertain period the contract value shall be measured by multiplying the annual Trust expenditure on the category of goods or services by four. procurement - the purchasing of goods and non healthcare services to support delivery of care across SLaM. commissioning - the purchasing of healthcare services to support or supplement the delivey of care across SLaM 3.

6 Purpose and Scope of the policy The main purpose of the rules in this document is to ensure that all SLaM spend is managed in a way that ensures SLaM achieves: Best possible value for all SLaM stakeholders Abidance by European Union (EU) procurement law, EU regulations and the principles of EU regulations, Government guidelines, Department of Health guidelines, Standing Orders, Standing Financial Instructions, and other related POLICIES . The furtherance and support of SLaM s strategic objectives procurement policy , Version November 2012 Page 4 of 25 Ethical standards which as a minimum will be in accordance with the CIPS ethical code of conduct and SLaM s gift policy . Compliance with any overarching national requirements, such as the quality requirements flowing to subcontractors from the NHS standard contract.

7 4. Roles and Responsibilities The Head of procurement shall have ultimate responsibility for the implementation of this policy Directors: have primary responsibility within their Directorates for ensuring that this policy is adhered to in all respects and will ensure effective communication with managers with budgetary responsibility. Should there be any doubt with regard to the interpretation of the policy Directors should contact the Head of procurement for further guidance on procurement and the Head of Contracts for guidance on commissioning healthcare services. Business and Service Managers, Supervisors, and Team Leaders: are responsible and accountable to their line manager for the implementation this policy within their area of responsibility. In particular this will include but not be limited to taking all reasonable steps to ensure the effective day to day management of this policy and that the contents of this policy is effectively communicated to all employees within their designated work environment.

8 All Staff employed by SLaM whether substantive or agency have a responsibility to be properly conversant with the procurement rules and regulations and guidance, any persons with budgetary responsibility must be aware of the impact of these rules and must abide by this policy when managing Trust spend. Staff who breach this policy will be reminded of the policy and asked for an explanation as to why the breach occurred. All breaches where appropriate will be reported to the Audit Committee. 5. POLICIES Directives by the Council of the EU promulgated by the DH prescribing PROCEDURES for awarding all forms of contracts shall have effect as if incorporated in this document. In particular these Directives specify EU procurement thresholds, which SLaM cannot waive or alter. Contracts, the values of which exceed these thresholds are subject to the full European regulations.

9 The thresholds (excluding VAT) applicable from 01 January 2012 to 31 December 2013 are: 113,057 for supplies and services contracts; and 4,348,350 for works contracts. As a Foundation Trust SLaM is not bound by, but has regard to, the provisions of the DH s: a) Capital Investment Manual and Estatecode as regards capital investment and estate and property transactions; and b) The procurement and management of consultants within the NHS as regards management consultancy contracts. The Chief Executive is responsible for ensuring that SLaM can demonstrate best value for money for all goods and services provided under contract or in-house. SLaM therefore awards contracts by obtaining and evaluating appropriate quotations or formal procurement policy , Version November 2012 Page 5 of 25 tenders based on specifications or terms of reference prepared by or on behalf of SLaM.

10 It is important to note that: a) Appendix 2 includes rules about whether quotations or tenders are required; b) Correct use of NHS or Government national contracts meets SLaM s tendering requirements and those of the European Union; c) All spend, unless otherwise agreed by Head of procurement /Head of Contracts (for healthcare commissioning) will be made, according to the following terms and conditions: - goods and services Standard NHS terms and conditions of contract. - healthcare services - SLaM subcontract flowing down the the terms and conditions of the current NHS standard contract - works and building services NEC form of contract - where a contract is let under a framework the framework terms will prevail. Waiver of formal tendering PROCEDURES in specific limited cases In exceptional circumstances formal tendering PROCEDURES may be waived, without reference to the Chief Executive, but only: a) in certain specific cases(noted below); and b) by those officers stated in Appendix 2 to whom powers have been so delegated by the Chief Executive; and c) where it can be demonstrated that waiver is not being used to avoid competition, or for administrative convenience, or to award further work to a consultant originally appointed through a competitive procedure; and d) all waivers and the reasons for it are documented and reported to the Audit Committee.