Commercial Case Clause Samples
Commercial Case. The Caring for Ayrshire Programme vision to redesign and deliver health, care and wellbeing services on a whole system approach will mean procurement arrangements are likely to be wide ranging and complex. In addition to traditional procurement routes, having a wide range of partners involved in this programme of work will create and provide other opportunities and routes, allowing collaborative and joint capital funding ventures to be explored. The scale and magnitude of the programme of work is so vast and varied that at this stage it is not possible to identify preferred options on how the infrastructure investment to support the new models of health and care will be procured and delivered. Final assessments will be further undertaken in latter stages as part of the OBC and FBC development. Through our early scoping work we know that there is a commitment to look at innovative procurement arrangements, noting that the approach will not always be NHS led. Our vision on how to provide and deliver services to citizens in the future, needs to be supported by the relevant and appropriate procurement mechanisms. Procurement for health and care services may be led by partner organisations and the route will be identified prior to any formal business case submissions to stakeholders and Scottish Government. In terms of established arrangements there are a wide range of existing routes to access the required support in delivering our programme. These include: • Frameworks Scotland – to access major contractors, healthcare planning services, lead advisors, relevant consultancy etc. with likely sub-contract works locally where possible; • Hub South West – who we anticipate will continue to support a number of primary care and locality based opportunities where appropriate; • Public Contract Scotland – providing national access to vast wide range of opportunities to offer services and bid for contracts for the supply of goods, works and services to the whole Public Sector in Scotland; and • Local Authority Tendering - using existing arrangements and approaches to securing a wide range of relevant services and support.
Commercial Case. The Commercial Case assesses the possible procurement routes which are available for a project. Normally these include Frameworks Scotland, NPD and Hub revenue models. NHSGGC have consulted with Scottish Futures Trust and the advice is that the project should be developed based on the hub revenue financed model. In a letter from the Acting Director – General Health & Social Care and Chief Executive NHS Scotland issued on 22 March 2011 it stated that the Scottish Government has agreed that a range of projects are to be funded through the NPD model and hub revenue financed model. Subject to meeting the guidance and funding conditions set out in the above letter, appropriate funding will be provided to procuring bodies to support the delivery of these projects which includes the Eastwood Health and Care Centre project. The letter defines the components of the unitary charge to be supported by the Scottish Government as: • 100% of construction costs (subject to the agreed scope of the project) • 100% of private sector development costs (subject to an agreed cap) • 100% of finance interest and financing fees ( at prevailing Financial Close rates) • 100% of Special Purpose Vehicle (SPV) running costs during the construction phase (subject to an agreed cap) • 100% of SPV running costs during the operational phase (subject to an agreed cap) • 50% of lifecycle maintenance costs. This leaves the procuring authority to fund the element of the unitary charge that relates to Hard Facilities Management and the balancing 50% of lifecycle maintenance costs. Additionally, it will fully fund costs for soft FM, utilities and any equipment costs not included within the overall construction cost. A full value for money and affordability assessment will be carried out at Outline Business Case stage. It should be noted that East Renfrewshire Council will be involved as an equal partner in the project, with £8.4m of capital funding agreed in the Council’s General Fund Capital Plan. NHSGGC and ERC have previously worked in partnership on the award winning Barrhead Health and Care Centre project and wish to build on this successful collaboration by working with Hubco to develop this new integrated facility.
Commercial Case. 5.1.1. The total indicative costs for the project at this stage are including VAT. Further work will follow to develop these costs and to identify those which are one-off revenue costs and which are capital expenditure. The procurement will be led by members of the Oncology service with support from the Estates Department and Capital Finance on behalf of NHS Lothian.
Commercial Case. A variety of construction procurement methods is available for the delivery of this facility including Capital-Funded either by traditional procurement or Frameworks Scotland, NPD and HUB. The NPD option was dismissed at this stage on account of project size and the required delivery programme. We consulted with the Scottish Government and with Health Facilities Scotland and were advised to proceed with the engagement of a PSCP to assist with the progression of the facility through Outline and Full Business Case. The appointment of a PSCP will allow the delivery timescales to be maintained during the exploration of the options of the ultimate delivery of the project through the NHS Frameworks route or through the HUB initiative. Initial Agreement: Mental Health Project: Argyll and Bute CHP: Rev 1.0 Page | 47
Commercial Case. Hubco were engaged to provide expert input into the potential phasing and costing of the redevelopment of a campus, as envisaged under a masterplan, as part of further investigations into the potential campus infrastructure and future requirements of its phased development. The report and recommendations have informed the approach adopted. Hubco confirmed that the first phase of the redevelopment could comprise a 90-bed unit but that this could be coupled with an element of the site-wide utilities and infrastructure upgrade and the detail of this in the report will be considered in the OBC for the first phase of the programme. The plan is that mental health acute and intensive psychiatric care services will be re-provided in this first phase.
Commercial Case. 5.1.1. The total indicative costs for the project at this stage are including VAT. Further work will follow to develop these costs and to identify those which are one-off revenue costs and which are capital expenditure. The procurement of the project will be led by members of the Oncology service with support from the Estates Department and Capital Finance on behalf of NHS Lothian.
5.1.2. The project will be subject to a competitive tender under the Framework rules for the appointment of a Principal Supply Chain Partner (Main Contractor). The Design Team will be appointed and approved via the Principal Supply Chain Partner (PSCP). The initial funds needed for this based on the Preferred Way are . These funds are being requested via this Initial Agreement document once it has been approved by both NHS Lothian and the Scottish Government. The selection process will be based on who provides the best Value for Money against the set criteria.
5.1.3. Outline of Project Programme The project construction phase is outlined below: Milestone Date Decant By 9th March 2018 OAU Construction Start Date 12th March 2018 Project Completion Date 3rd December 2018 The timetable for the Initial Agreement approval is noted below: Action Commence Complete Prepare Initial Agreement April 2016 June 2016 Lothian Capital Investment Group 14th June 2016 21st June 2016 Finance and Resources Committee 4th July 2016 13th July 2016 SGHD 2nd August 2016 30th August 2016 The full project programme is outlined below: Action Commence Complete Initial Agreement Approval by NHSL 14th June 2016 13th July 2016 Initial Agreement Approval by SGHD 2nd August 2016 30th August 2016 Appointment of PSCP September 2016 November 2016 OBC Approval stage by NHS Lothian December 2016 January 2017 OBC Approval stage by SGHD January 2017 March 2017 FBC Approval stage by NHS Lothian June 2017 September 2017 FBC Approval stage by SGHD September 2017 December 2017 Project Main Construction Start Date 15th January 2018 Project Completion Date 3rd December 2018 The full proposed target programme is attached as Appendix 1.
Commercial Case. The project will be delivered through an OJEU procurement process. The commercial strategy will ensure the Service will deliver commercial outcomes that fulfil operational requirements, provide best value for money and incorporate a continuous improvement programme covering both patient experience and Service performance. The key procurement milestones for the Project are as follows:
Commercial Case. 5.1.1. The total indicative costs for the project at this stage are including VAT. Further work will follow to develop these costs and to identify those which are one-off revenue costs and which are capital expenditure. The procurement will be led by members of the Oncology service with support from the Estates Department and Capital Finance on behalf of NHS Lothian.
5.1.2. The project will be subject to a competitive tender under the Framework rules for the appointment of a Principal Supply Chain Partner (Main Contractor). The Design Team will be appointed and approved via the Principal Supply Chain Partner (PSCP). The initial funds needed for this based on the Preferred Way are . These funds are being requested via this Initial Agreement document once it has been approved by both NHS Lothian and the Scottish Government. The selection process will be based on who provides the best Value for Money against the set criteria.
Commercial Case