Department of Health is a Smoke Free Workplace

Allison Grierson Department of Health

Chief Procurement Officer Northern Territory

2

What’s it all about?

3

The Northern Territory

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The Context

4

5

Old Darwin Hospital

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Royal Darwin Hospital

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Alice Springs Hospital

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Regional Hospitals and Clinics

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Mobile Dialysis

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Challenging Logistics

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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

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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

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The Agenda

1

3

Procurement Review Board – changes to role

Flexible Tender Release & Closing Times

Local Development & Value Add

Increased thresholds for procurement

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More Agenda!!

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KPI’s & Reporting Framework

Tender Assessment & Approvals Timeframe

Consolidating Functions- Procurement Network

CPOs – Chief Procurement Officers

CE Authority & Accountability

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Procurement Review Board

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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

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Procurement Review Board

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Review Agency Annual

Procurement Management Plans

Review Agency Compliance

Monitor Key Performance

Indicators

Review / audit procurement activity

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Procurement Review Board _KPIs

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• 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

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Impact on NT Department of Health

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• 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

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LDVA Guidelines

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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

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Default LDVA Questions

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Enhancement of industry and business capacity in the Northern Territory

Employment & training

Optimising indigenous opportunities

Research development and innovation

Enterprise social responsibility

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Scoring Guide – LDVA

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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.

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Health Consumables Tenders

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• 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

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eProcurement Project Objectives

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• 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

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eProcurement Project Objectives

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• 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

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The Beginning of the Journey

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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

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Single Product Catalogue - Benefits

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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

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SPC Data Consistency & Confidence

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• 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

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SPC – Industry Benefits

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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

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Supply Chain Management System (SCMS)

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• Gather, Develop and

Document

• Business requirements and

rules

• Business/Process workflows

• Data flows

• Functional requirements

• Technical requirements

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SCMS – Industry Benefits

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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

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eProcurement Industry Collaboration with DOH

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• 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

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Project TimelineProject Timeline 2014 2015

SPC Requirements

SPC RFQ

SPC Implementation

SPC Go Live

SCMS Requirements

SCMS RFT

SCMS Implementation

SCMS Go Live

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Getting it Right

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Questions