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					 East Lancashire Hospitals NHS Trust

         Procurement Guide

  How to Order
Goods & Services
               June 2011

                   East Lancashire Hospitals NHS Trust

                           Procurement Department

Customer Procedures Guide – An Introduction

From identifying the need to order goods or services – to those goods and services
being available to you at point of use, can involve numerous people or stages of
activity. At each stage there is a risk of error and delay. The simple task of ordering
goods and services can become problematic, with a risk to the quality of your service
and to patient care, if goods and services are not available to you when you need

There is often a perception that the process of ordering goods and services can be
bogged down in bureaucracy, more often than not because of a lack of
understanding of the procedures that must be followed and the reasons why these
procedures exist. They exist to ensure that value for money is obtained in spending
all public funds and that this expenditure is appropriately managed.

As all members of staff are directly or indirectly affected by the Procurement
Department’s activity, this document offers guidance in the operation of procedures
which should aid understanding of the stages involved in procurement of goods and

This guide forms part of and is consistent with the Trust’s Standing Orders and
Standing Financial Instructions. All staff involved in the obtaining of goods,
works and services of any description must ensure they have read and comply
with this guide and the following documents:-

   1. Trust’s Standing Orders, Standing Financial Instructions and Scheme of

   2. NHSE HSG(93)5 – Standards of Business Conduct for NHS staff.

The guide is intended to be customer friendly whilst still incorporating the
basic rules to be complied with. I hope you find it a helpful guide – please keep
it to hand. I welcome your comments on how we can improve for any future

Linda Longton
Head of Procurement
Telephone: 01254 732519 (ext 82519)
e-mail:     linda.longton@elht.nhs.uk
website:    www.elpd.elht.nhs.uk

              East Lancashire Hospitals NHS Trust

                    Procurement Department

                  Customer Procedures Guide

Contents                                                       Page

  1.    The Procurement Department                             5

  Procurement Landscape                                        5
  Who Are We?                                                  6
  Structures                                                   8
  What Do We Do?                                               9

  2.    The Trust’s Rules                                      10

        2.1      Authorisation                                 10
        2.2      Competition                                   10
        2.3      Quotations and Tenders                        11
        2.4      Waiving of Competition                        12
        2.5      Single Tender Waiver Guidance Notes           12
        2.6      Official Orders                               13
        2.7      Delegated Ordering                            13
        2.8      Delegated Purchasing                          13

  3.    Procurement of Goods and Services from                 13

        3.1      General Background                            13
                 Service Continuity Flowchart                  16
        3.2      Ordering Arrangements                         17
        3.3      Contract Law                                  19
        3.4      Contract Law – “Do’s and Don’ts”              19
        3.5      Completing a Non Stock Purchase Requisition   19
        3.6      Expediting Orders                             20
        3.7      Purchasing Goods from Charitable Funds        20
        3.8      Visits by Companies’ Sales Representatives    20
        3.9      Trials of Equipment and Consumables           20

  4.   Obtaining Goods from NHS Supply Chain                   21
       (Runcorn Warehouse)

        4.1      General                                       21
        4.2      Delivery and Requisition Schedule             21
        4.3      Emergency Orders                              22
        4.4      On-line Ordering                              22

5.    Goods Receiving Procedure                              22

      5.1      Receiving Stock Items from NHS Supply Chain   22
      5.2      Receiving Direct Supply Items                 23

6.    Goods Return Procedure                                 23

      6.1      Returning Goods to NHS Supply Chain (Runcorn) 23
      6.2      Returning Goods to Suppliers                  24

7.    Responsibilities                                       24

      7.1      Of Procurement Staff                          24
      7.2      Of Customers                                  25

8.    Procedure for High Value Procurement                   26

      8.1      Introduction                                  26
      8.2      Authorisation                                 26
      8.3      Competition                                   27
      8.4      Audit Trail                                   27
      8.5      Procedure and Business Case submission        28
      8.6      Report to the Director of Finance             28

9.    Sponsorship                                            29

10.   Disposals                                              29

Appendix 1     NHS Supply Chain Out of Hours Service 31

Appendix 2     Bribery Act Compliance – A Guide              33

Appendix 3     Procedure for Disposal/Sale of                36
               Surplus Assets

Appendix 4     Key Performance Indicators – ELHT             43

1.         The Procurement Landscape

                                                             Regional Body, Undertake
                                                                  Contracting for
                                                             A group of Organisations

             National Body                                                                                  National Body, Undertake
             Corporate                                                                                              Contracting for
             Contracts available                                                                                     A group of
             to the NHS                                                                                             Organisations
                                                                    NHS SBS
                                              GPS                                                CMU
                                           Government                                        Commercial
                                           Procurement                                        Medicines

     Cohort of
     Acute Trusts                                                                                                              National Body,
     working to                                                                                                                  Negotiate
     standardise               SAP                                                                          NHS                   National
     product                 Cohort 10                                                                     Supply                Contracts
     /services                                                      l Operating                            Chain

          Central team             Procurement
          liaising with               Team
                                                                                                        ELFS                  Shared
          all bodies first                                                                              (P2P)                Financial
          point of                                                                                                            Service
          contact                                                                    CHT                                      Partner
                                                           ABS                    Calderdale &
                                                         Software                 Huddersfield

                                                 System Provider                        Trust Group
                                                 for Finance and                        model partner

Who We Are

The Procurement Department incorporates Purchasing/Contracts,
Customer Services, Purchase Order Processing and e - Enablement.

The Procurement service is provided to East Lancashire Hospitals NHS
Trust and to eight other Trusts by means of a service level agreement:

Lancashire Care Foundation NHS Trust (LCFT)
Calderstones Partnership Foundation NHS Trust (CPFT)
NHS East Lancashire (NHSEL)
NHS Blackburn with Darwen (NHS BWD)
NHS Blackpool (NHSBPOOL)
NHS North Lancashire (NHS NLANCS)
NHS Central Lancashire (NHSCLANCS)
NHS Northwest (NHSNW)

The department is based at Royal Blackburn Hospital.

Tel:       01254 733173 - External & 83173 - Internal
Fax:       01254 732829 – External & 82829 – Internal

82519      Linda Longton                Head of Procurement

Customer Services via Helpdesk

Jade Biggs – Procurement Assistant
Munir Rasul - Procurement Assistant
Nafeesa Patel (Stock) - Procurement Assistant

Main Helpdesk - 01254 733173 - External & 83173 – Internal
Email: procurementhelpdesk@elht.nhs.uk
Stock Helpdesk - 01254 733033 - External & 83033– Internal
Email: procurementstockhelpdesk@elht.nhs.uk

Departmental Website: www.elpd.elht.nhs.uk

The main responsibilities of Customer Services are to provide a
responsive Customer Service Helpdesk facility as the frontline for
advising, taking and resolving routine problems. They are also responsible
for all NHS Supply Chain requirements including Logistics Online (LOL)
their dedicated online ordering service accessed via

Contracts Team

Mandy Hanson – Deputy Head of Procurement - Contracts
Paul Stacey – Senior Buyer
John Nelson – Senior Buyer
Sandra Cockell – Lead Buyer/Catalogue Manager
Michelle O’Brien – Lead Buyer /Catalogue Manager
Sue Maudsley – Lead /Buyer
Shaz Azam – Procurement Analyst
Sam Whitney – Procurement Assistant

The Contracts Team manage and organise all contract activity relating to
non pay expenditure across a wide variety of goods and services.
Tasks include the management of tenders and quotations, contract
implementation and supplier management whilst ensuring compliance
with Trusts’ Standing Financial Instructions and, relevant European
Purchasing legislation.

e-Enablement & Operational Team

Diane Mitton – Deputy Head of Procurement Service Development
Samantha Crompton – e Enablement Administrator
Janet Rawcliffe - e Enablement Administrator
Lois Fitzpatrick – Quality & Standardisation Officer
Annemarie Morris – Operational Team Leader
Christine Smith – Procurement Assistant
Judith Watson – Procurement Assistant
Judith Lord – Procurement Assistant
Leah Carter – Procurement Assistant
Lynn Mitchell – Procurement Assistant

The e-Enablement Team implement and manage the electronic purchase
order module which enables trusts to select, requisition, approve, order,
receipt, match and pay for goods and services electronically.

The Operational Team process paper requisitions, police adherence to
Standing Financial Instructions and Trusts delegated limits.

Departmental Structures
                                                                                                      East Lancashire Procurement Department

                                                                                                                            Linda Longton
                                                                                                                           Head of Procurement

                                     Mandy Hanson                                                                          Julie Haworth
                            Deputy Head of Procurement -                                                                 Administration Support
                          Contracts & Supply Chain Manager                                                                                                                                     Diane Mitton
                                                                              Shahzad Azam                                                                                              Deputy Head of Procurement -
                                                                                                                                                                                 Service & Business Development Manager
                                                                             Procurement Analyst

                                                                                                                                                                                              Lois Fitzpatrick
                                                                                                                                                                                       Quality & Standardisation Officer
                 Paul Stacey                         John Nelson
                  Senior Buyer                         Senior Buyer

                                                                                                   Janet Rawcliffe
                                                                                                                                                                                              Anne Marie Morris
                                                                                                   Sam Crompton                                                                               Operational Team Leader
                                                                                            e-Enablement Administrator

             Sue Maudsley                           Sandra Cockell
                                                                                                                                                                        Christine Smith
              Tony Duree                            Michelle O'Brien
                                                                                                                                                                        Judith Watson                                                Michael Prest
             Andrea Ingham                              Lead Buyer                                                                                                        Judith Lord                                              Receipts & Distribution
                  Lead Buyer
                                                                                                                                                                          Leah Carter
                                                                                                                                                                          Jade Biggs
                                                                                                                                                                         Nafeesa Patel
                                                                                                                                                                         Munir Rasul
               Sam Whitney                                                                                                                                               Husnain Sharif
             Procurement Assistant
                                                                                                                                                                      Procurement Assistant

     Linda Longton                     01254 732519 ext 82519                                                                                                  Enquiry lines:
     Mandy Hanson                      01254 733176 ext 83716
     Paul Stacey                       01254 733517 ext 83517          Diane Mitton                                  01254 733170 ext 83170                    Procurement Faxes                     01254 732829 ext 82829
     John Nelson                       01254 733006 ext 83006          Lois Fitzpatrick                              01254 733171 ext 83171
     Andrea Ingham                     01254 732738 ext 82738          Janet Rawcliffe                               01254 735954 ext 85954
     Sue Maudsley                      01254 732432 ext 82432          Sam Crompton                                  01254 732218 ext 82218                    Receipts & Dist Fax                    01254 293241 ext 42241
     Tony Duree                        01254 732430 ext 82430          Anne Marrie Morris                            01254 732433 ext 82433
     Sandra Cockell                    01254 735955 ext 85955                                                                                                  Helpdesk                               01254 733173 ext 83173
     Michelle O'Brien                  01254 732034 ext 82034          Receipts & Dist Dept                          01254 734824 ext 83074                    Stock Helpdesk                         01254 733033 ext 83033
     Shahzad Azam                      01254 732423 ext 82423
     Ssm Whitney                       01254 732436 ext 82436                                                         e-mail addresses for the whole department:-:-                                 first name + surname@elht.nhs.uk
                                                                                                                      Helpdesk e-mail address - all enquiries                                       (example: linda.longton@elht.nhs.uk)

                East Lancshire Hospitals NHS Trust, Procurement Department, Park View Offices, Royal Blackburn Hospital, Haslingden Road, Blackburn, Lancahsire. BB2 3HH

                                                                       East Lancashire Procurement Department                                       Contracts Team

                                                    Mandy Hanson - Deputy Head of Procurement - Contracts & Supply Chain Manager - 01254 733176 / Ext 83176

                                 Patient Care / Business Services                                                                                                      Diagnostics (DAT's) / Theatres
                     John Nelson - Senior Buyer - 01254 733006 / Ext 83006                                                                                  Paul Stacey - Senior Buyer - 01254 733517 / Ext 83517
                     Michelle O'Brien - Lead Buyer - 01254 732034 / Ext 82034                                                                              Sue Maudsley - Lead Buyer - 01254 732432 / Ext 82432
                     Sandra Cockell - Lead Buyer - 01254 735955 / Ext 85955                                                                                  Tony Duree - Lead Buyer - 01254 732430 / Ext 82430
                      Mark Robinson - Lead Buyer - 01254 732610 / Ext 82610                                                                             Sam Whitney - Procurement Assistant - 01254 732436 / Ext 82436

                                       Patient Care / Business Services                                                                                                    Diagnostics (DAT's) / Theatres

             Patient Care                                                 Business Services                                                         DAT's                                                                       Theatres

                   Food                                                            I.T.                                                             Capital                                                             Orthopaedics & Trauma

               Audiology                                                       Corporate                                                     Capital Planning                                                       General Surgery & Vascular

                Facilities                                                 Business Services                                                      Maintenance                                                                   Cardiology

       Medical & Ophthalmology                                             Human Resources                                                          Leasing                                                                      Urology

            Cancer Services                                                   Governance                                                           Pathology                                                      Head & Neck & Plastic Surgery

                Diabetes                                                        Finance                                                            Radiology                                                        Anaesthetics & Critical Care

                 CAMHS                                                                                                                             Pharmacy                                                             Paediatrics & Neonates

               Obstetrics                                                                                                                Therapies & Orthotics                                                             Gynaecology Theatres

     Gynaecology & Sexual Health                                                                                                           Clinical Outpatients                                               Endoscopy, Theatres & Day Surgery

Elderley Care, Rehab, Stroke & Neurology

     Emergency Dept / Urgent Care

What do we do?

Procurement has the responsibility for the purchasing of all goods and
services on behalf of its customers. The only exception is pharmacy
procurement which is managed through National and Regional Pharmacy
networks. The contact for these services would be Neil Fletcher.

This purchasing function must be carried out in accordance with each
Trust’s Standing Orders and Standing Financial Instructions. There must
also be compliance with the European Union’s Directives for the
purchasing of goods and services.

Separation of Responsibilities

The Trust must also ensure appropriate “separation of responsibilities”
in its procurement of goods and services.

This is a public sector requirement to avoid the possibility of fraud by
ensuring that the person who identifies the need to order goods and
services is not the same person who undertakes the purchase, who in
turn, is not the person who pays for them.

All of this is controlled by the Trust’s Standing Orders, Standing Financial
Instructions, Budgetary Control Policy (Authorised Signatories) and EU


Is to manage customers’ commercial activity to ensure there is
compliance with the above, optimising value for money across all
contracts and eliminating commercial and corporate risk. In so doing, we
create an Audit Trail which provides an Auditor with evidence that all
procedures have been followed and complied with.


2.       The Trust’s Rules

2.1   Authorisation

      List of Authorised Signatories
      Goods and services can only be requisitioned by a member of staff
      authorised to do so. They must be Budget Managers or specifically
      authorised by their Budget Manager to approve requisitions. A copy of
      their signature must be held in the Procurement Department on the
      finance approved ‘List of Authorised Signatories’. With regard to e-
      procurement the hierarchy and budget approval are signed off by the
      appropriate business accountant and business manager and the system
      hierarchy is built to reflect the divisions requirements.

      Authorisation Levels / Scheme of Delegation
      The Trust’s Authorised Signatory list defines expenditure levels at which
      authorisation must be given for the purchase of goods and services. Keep
      a copy of the current Authorised Signatory list for your Division. Each
      Division has the responsibility to ensure the list is kept up to date by
      informing their Finance lead of all changes required.

      The Procurement Department will obtain Quotes/Tenders on your behalf.
      Orders cannot be placed until appropriate authorisation is received.
      However, the obtaining of quotations and tenders can take place prior to
      authorisation, to help preparation of a business case – or to speed up a
      complex procurement.

      If you are unsure about the level of authorisation you hold your Divisional
      Financial Accountant or Finance Lead can provide a copy of your
      Divisions Scheme of Delegation.

2.2   Competition

      Standing Orders and Standing Financial Instructions set out the rules
      within which the Trust’s Directors and staff must operate.

      1) The Director of Finance will advise the Board regarding the setting of
         thresholds above which quotations of formal tenders must be
         These thresholds are set as follows:

         Trust                          Quote Limit            Tender Limit
         ELHT                           £5,000                 £25,000
         LCFT                           £10,000                £50,000
         CPFT                           £5,000                 £20,000
         NHSEL                          £10,000                £50,000
         NHS BWD                        £10,000                £50,000
         NHSBPOOL                       £5,000                 £50,000
         NHS NLANCS                     £5,000                 £100,000
         NHSCLANCS                      £10,000                £50,000
         NHSNW                          £15,000                £25,000

      2) Managers must ensure orders and requisitions shall not be split or
         otherwise in a manner devised so as to avoid the financial thresholds
         specified by the Board or those directed by the European Union.

      EU Directives state that adverts must be placed in the Official Journal of
      the European Union (OJEU) if the value of the goods or services is above
      £101,323 excluding vat over the lifetime of the contract. Staff involved in
      the procurement of this value need to be aware of the significant
      timescales involved in following EU Directives. Advice from the Head of
      Procurement should be sought at an early stage, failure to comply with
      these rules can result in legal challenges form external sources and
      subsequent fines imposed by the EU Commission and the efficacy and
      reputational standing of the Trust is compromised.

      All business should be advertised and competition invited to evidence and
      demonstrate value for money. A set of procedures underpin this principle.
      The Procurement Department operate an electronic contracts portal to
      advertise Trust business to the marketplace.

2.3   Quotations and Tenders


      It is not just the obtaining of quotations and tenders which is a
      requirement of the Trust, but also the procedures that surround their
      receipt and opening. To guarantee separation of responsibility and public
      accountability, the Procurement Department must invite quotations and
      tenders on behalf of Budget Managers on approved Trust documentation.
      This helps guarantee under contract law, that any orders placed are
      subject to the NHS Standard Conditions of Contract, in preference to
      supplier terms and conditions. It also allows inclusion of any special
      contract requirements that the Trust may have.

      The opening of tenders is against a time deadline and must be carried out
      by persons other than the person who has an interest in the particular
      procurement. Two people, as designated by the Chief Executive, are
      responsible for the formal opening and certifying of tenders received.

      These officers must not be from the originating Division (see Standing
      Orders – Tendering Procedure).


      In many cases, value for money will be the deciding factor for award of
      business. However, there are a number of goods and services, especially
      high value, where the evaluation criteria need to be extended to include
      other factors e.g. standardisation, technical advantage and patient quality
      issues. The evaluation criteria should be identified prior to quotations and
      tenders being issued.

      Where the lowest price is not to be accepted, a written record must be
      provided of the reason for that decision. Any such decision must be
      approved by the Board or its nominated officer

     2.4        Waiving Competition

                Value for money is the common responsibility of Trust staff. The need to
                prove value for money is satisfied by obtaining competition and carrying
                out a full cost option appraisal. It is the Trust’s aim to avoid the need to
                waive Standing Financial Instruction and Standing Order requirements for

     2.5        Single Tender Waiver Guidance Notes for staff

                      COMPETITIVE QUOTATION

1.     It is a requirement of the trusts Standing Financial Instructions that the
       purchase / lease of all goods and services is subject to competitive Tender /
       Quotation. In circumstances where this requirement is to be set aside the
       attached application form must be completed by the requisitioning officer /
       budget holder with all supporting documentary evidence attached.

2.     Circumstances where Tender / Quotation procedures can be waived are;

           i.   Where the Chief Executive decides that formal tendering procedures
                would not be practicable or the estimated expenditure or income would
                not warrant formal tendering procedures, and the circumstances are
                detailed in an appropriate Trust record.

        ii.     Where the timescale genuinely precludes competitive tendering but failure
                to plan the work properly would not be regarded as a justification for a
                single tender.

       iii.     Where specialist expertise is required and is available from only one

       iv.      When the task is essential to complete the project and arises as a
                consequence of a recently completed assignment and engaging different
                consultants for the new task would be inappropriate

        v.      There is a clear benefit to be gained from maintaining continuity with an
                earlier project. However in such cases the benefits of such continuity must
                outweigh any potential financial advantage to be gained by competitive

3.         Waiver Procedure

           a.   The Requisitioning Officer must complete all parts of Section 1 of the
                Application Form.

           b.   The Budget Holder must sign the form where indicated. Failure to do so
                will result in the Application Form being returned unauthorised.

      c.   The Application Form along with the Requisition must be forwarded to
           the Procurement Department who will quality assess the application. Any
           application which is not fully completed or which does not provide
           appropriate supporting documentation will be returned unauthorised.

      d.   The Procurement Department will forward the Application Form and
           Requisition to the Chief Executives office for authorisation by the Chief
           Executive or Director of Finance.

      e.   The Application Form and Requisition will be returned to the
           Procurement Department for processing.

2.6        Official Orders

           Goods and services can only be ordered via the E Financials/E
           Procurement Purchase Order system and Pharmacy Ascribe system.
           Responsibility for purchasing rests solely with the following officers who
           are responsible for ensuring compliance with Standing Orders and
           Standing Financial Instructions:

           1. Head of Procurement

           2. Director of Estates

           3. Director of Pharmacy

           The placing of official orders is also a method of ensuring that NHS
           Conditions of Contract are in place.

2.7        Delegated Ordering

           The Head of Procurement can delegate the ordering of goods and
           services available on contracts agreed / formalised by the Procurement
           Department to customers in accordance with Procurements policy on
           Delegated Ordering. Certain criteria have to be met for this to be

2.8        Delegated Purchasing

           Only Procurement staff has the responsibility within the rules to undertake
           purchasing activity which requires the negotiation of prices with a supplier.

3.         Procurement of Goods and Services from Companies

3.1        General Background

           Procurement i.e. the process of obtaining goods and services includes
           several stages:

                 Identifying the need
                 Completing and authorising a requisition ( electronic)
                 Sending the requisition to Procurement ( electronic)

      Procurement activity
      Delivering the goods
      Recording the Goods Received Note (GRN)
      Payment to the Supplier

Much of the ‘pain’ that can be experienced in obtaining goods can be
avoided by requisitioning in a time frame which allows for all the above
processes to take place and allow delivery before need.

For higher value goods which require quotations and tenders, the earliest
involvement of the Procurement Department will help reduce the time
frame. Competitive quotations can add a minimum of two weeks to the
processing time of an order. Competitive tenders can add a minimum of
six to eight weeks to the processing time of an order. Tenders in line with
EU Directives will add a minimum of 16 weeks to the process of placing
an order. Therefore, early contact with your Procurement Department is
essential if the value of your contract period exceeds £101,323.

Any medical or scientific products which are to be used in patient and
laboratory areas will be subject to a pre-purchase questionnaire (PPQ)
which has to be completed by the supplier and approved by the
appropriate Technical Officer (E.B.M.E. Department), together with
statements regarding decontamination. This can add further time to the
processing of an order. Following receipt, these products are subject to
Acceptance Testing prior to being released for use.

The adherence to National / Regional / Local contracts will normally be
recommended where there are demonstrable benefits e.g. value for
money, product standardisation, expediency.
Low Value Orders

Where e-requisitioning is not available it is essential to consider that the
cost of generating an order is estimated to be approximately £75.
Customers should avoid raising purchase requisitions for goods of low
value wherever possible – especially for regularly used items. If you would
like to discuss this or have a problem in this area, please contact the
Procurement Department.

High value Orders see flowchart

                                                             AUTHORISERS RESPONSIBILITY:
           Goods and services should be ordered via a requisition, this should be fully completed with as much detail as possible.
                Ensure that it is correctly procured in line with your Standing Financial Instructions (SFIs), authorised by correct
            signatories and that there is sufficient budget to cover the total cost (delivery charges/consumables, VAT etc).
            Ensure That the correct financial code is on the request and that the delivery address is clear. On receipt of the goods
          ensurecorrect goods and quantity have been delivered. Sign the delivery note and receipt the order in e-Financials. For
               up to date prices please telephone ELPD, as often the NHS will receive a discount on the printed price

                                                          NonStock Ordering of Goods and Services

  Value of Contract/Spend                          Value of Contract/Spend                                 Value of Contract/Spend
      £5,000 - £25,000                                -
                                                     £25,000 - £100,000                               OJEU (currently £101,323) - £199,999

                                   Contact East Lancs Procurement Department (ELPD) for advice and assistance on quotes and tenders
Check with ELPD for a NHS Shared Business Services Commercial Procurement Solutions (SBS CPS)), NHS Supply Chain (NHSSC), Office of Government
      Commerce (OGC) or local agreement already in place. And if so, request to procure your requisition quoting the contract/framework number.

Formal tender procedures may be waived by officers to whom powers have been
                                                                                                   In line with European Procurement Law, tenders above the OJEU threshold may
delegated by the Chief Executive under certain circumstances. Please refer to the
                                                                                                    need to be advertised within the EU. ELPD will advise on a case by case basis.
                         Breach and Waiver procedure.
                                                                                                                       Please note YOU CANNOT WAIVER OJEU.

Obtain 3 written quotes to
                                                                   Obtain minimum of 3 formal tenders to find best value supplier
 find best value supplier

            Once best value supplier has been established raise an requisition via the ELPD attaching supporting evidence of your contracting process and award

Send your requisition to ELPD in plenty of time (there is a 5 day processing time at ELPD)
Plan large tenders well in advance - EU procurement exercises can take 4 - 6 months to
                                                                                             Ask Suppliers to supply goods or services without having an official order from ELPD
complete and should ideally be brought to ELPDs attention in the prior fiscal year to
facilitate work planning
                                                                                             Submit a requisition without the full requirements of the order
                                                                                             or the correct authorisation
Be aware when wavering, the requisitions must have the waiver attached (see
                                                                                             Commit the Trust to expenditure without following the SFIs
Sign and return delivery notes and receipt goods orders onto e-Financials
                                                                                             Sign delivery notes/invoices without first checking the goods have been delivered and
                                                                                             are as per the order
Annotate the requisition with the contract, framework or capital scheme number, where


                                                                            ELPD Non - Stock Helpdesk
                                                                                 01254 733173

           Business Continuity Process

           The flowchart below describes how to order goods and service via the
           procurement dept in the case of system or telephone failure or other
           unforeseen event whereby service disruption has occurred.

Emergency service continuity flowchart:

                                 DURING A MAJOR INCIDENT
                                                                       STEP 1
                                               Are electronic ordering systems operational?

         YES – Continue with automated process                                   NO – Liaise with Procurement in person or via
                                                                                    mobile phone number 07921 373394

                                                             STEP 2
                               Is your requirement available via the NHS Supply Chain Catalogue?

                                 YES                                                                           NO

                              STEP 3                                                                       STEP 3
     The following information must be provided in full. Failure to                        ORDERING GOODS
     comply with these instructions could result in failure to place              The following information must be provided in full. Failure to
                    your order/receive your goods                                 comply with these instructions could result in failure to place
     o    Correct Organisation/Trust                                                             your order/receive your goods
     o    Correct transfer point and department name                              o    Correct Organisation/Trust
     o    Full details of your requirements – NPC code (catalogue                 o    Correct transfer point and department name
          number) unit of issue, quantity required                                o    Correct financial code
     o    Name and contact details of the requisitioner and                       o    Full details of your requirements (item description, price,
          authoriser.                                                                  quantity, unit of issue, and name of supplier - if known)
                                                                                  o    Name and contact details of the requisitioner. Correctly
                                                                                       authorised by the authorised signatory/budget holder
                                                                                  o    Preferred Delivery Date (delivery is typically 3-6 weeks
                                                                                       for non-stock items. This could be longer at financial
                                                                                       year end therefore a lengthy notice period is advisable)
                                                                                  o    Please provide/attach copies of quotations/samples etc.
                                                                                       if applicable. Liaise with Procurement if you require

                                                                                                           STEP 4
                                                                                   ENSURE COMPLETED REQUISTION IS DELIVERED TO
                                                                                          THE PROCUREMENT DEPARTMENT
                                                                                 Send/Take the request to Procurement. Retain a copy for your
                                                                                                         own records

**Please be aware of Standing Financial Instructions
        relating to the value of your order**                                                           STEP 5
  STANDING FINANCIAL INSTRUCTIONS                                                           PROCUREMENT PLACE ORDER
  Value              Process Required               Return information to
  >£5,000            Verbal Quotation               Procurement                 Once Procurement have placed your order with the supplier,
  £5,000 - £25,000   Minimum 3 Quotations           Procurement                  you will receive notification, including any order number.
  £25,000 - £100,000 Minimum 3 Tenders              Trust                   If notification is received via e-mail, please retain this e-mail for
                                                                            your records and quote the purchase order number if you need
                                                                                                  to speak to Procurement
                                                                                             regarding any aspect of your order.

3.2   Ordering Arrangements

        1. Routine Purchase Requisition

           The majority of orders fall into this category. ELHT and NHS Blackpool
           now use electronic ordering via E procurement to raise its purchase
           orders/requisitions, where possible all goods and services should be
           ordered via E Procurement via your log on.

           If you don’t have a user name and password for E Procurement then
           please contact Sam Crompton (01254 732218 ext 82218) or Janet
           Rawcliffe (01254 735954 ext 85954)

           A requisition for goods or services must be raised via the Trusts
           purchase order system. For Trusts not using eProcurement paper
           requisitions must be raised and sent to Procurement for processing

        2. Computer Equipment

           All requests for any type of computer equipment must be forwarded to
           the relevant IT department. Any request received in the Procurement
           Department will be returned to the Division. IT can be contacted by
           ringing 83135 (01254 733135) alternatively Trust employees can
           access a template e-mail ‘mail IT helpdesk’ via the ELHT Mail
           Shortcuts folder on their desktops.

        3. Capital Expenditure >£5,000 for East Lancashire Hospitals NHS

           In general all equipment over £5,000 is defined as Capital
           expenditure. Successful bids at the Medical Equipment Committee
           should be followed up early by contacting the Procurement
           Department to agree the most appropriate purchasing process and
           timescales. Approval for funding does not mean approval to purchase.
           Capital expenditure is still subject to competitive quotations and
           tenders. Requests to League of Friends for funding medical
           equipment must be forwarded to the Procurement Department and not
           be submitted independently. (Please refer to the Trust Finance Policy
           reference F18 Financial Investment/Disinvestment Policy for further

                   4. Maintenance Contracts

                      The Trust has assigned the maintenance quotes system to

                   Agreed process

                                          Contract Expiry Date Approaches

                                   Leaseguard will contact the named Technical
                                 contact to discuss contract requirements. If you are
                                 not the Technical contact please refer back to Sue

                                    Leaseguard then Negotiate and write Contract

                                  Leaseguard then send Contract Proposal to Trust

                                              To agreed all Approvers

Approver queries proposal                    Approver accepts proposal                  Approver rejects proposal

                                    Budget Holder to organise for requisition and
                                            purchase order to be raised

                                  Copy of Purchase Order to be sent to Leaseguard

3.3   Contract Law

      Official orders, in line with Standing Financial Instructions, contain the
      NHS Standard Conditions of Contract for the Purchase of Goods. All
      commercial activity is covered by contract law. Conditions of Contract lay
      out the rules which govern a transaction and offer protection in law should
      there be a problem in the transaction. All orders placed on behalf of the
      Trust must be subject to the NHS Standard Terms and Conditions, or any
      specific Terms and Conditions which the Trust wishes to impose. Any
      variance to these conditions must be agreed in writing prior to an official
      order being placed.

      Suppliers will try and impose their own Conditions of Sale which may
      disadvantage the Trust both financially and in law. Care must be taken to
      ensure that Trust Terms and Conditions remain in force.

      Formal invitations to submit tenders and quotations on Trust stationery
      ask suppliers to submit prices subject to NHS Standard Conditions of
      Contract. An order placed against this submission will maintain our
      advantage. However, the receipt and acceptance, even by reference, of a
      company’s acknowledgement of order can negate the Trust’s rights.
      Acceptance of a quotation on a company’s letterhead can also
      disadvantage the Trust.

3.4   Contract Law – “Do’s and Don’ts”

      Standing Financial Instructions and Standing Orders contain sufficient
      protections but to help here is a quick guide.

      1. Never give a verbal or written commitment to a company for the
         provision of goods or services.

      2. All goods and services should be obtained on an official order
         following completion and appropriate authorisation of a requisition.

      3. Never sign a company lease or contract. The signing of a lease or
         contract may in fact commit the Trust to expenditure and potentially
         unfavourable terms and conditions of contract. Such documents
         should be referred to the Head of Procurement or Director of Finance.

3.5   Completing a Non Stock Purchase Requisition, electronic or

      The process of obtaining goods and services can be greatly enhanced by
      you providing good quality and timely information. The minimum
      information which you must provide on a non-stock purchase requisition
      or e requisition is:

      1. The quantity of the goods you require
      2. A full specification of the goods required including catalogue or part
         number where appropriate.

       3. When you require the goods
       4. The budget code
       5.Any special requirements / delivery arrangements

       Please ensure you include or attach any other information with the
       requisition which you feel is important for Procurement staff to be aware

3.6    Expediting Orders

       The Procurement Department can expedite your orders on request. You
       will need as a minimum the following information, a requisition number or
       an official purchase order number.

       Serious delivery problems should always be notified to Procurement to
       assist in effective supplier management.

3. 7   Purchasing goods from Charitable Funds

       Requisitions for purchase of goods or services from charitable funds must
       have the relevant budget code on them. If you are unsure of the correct
       code please seek advice from you relevant finance lead.

3.8    Visits by Company Sales Representatives

       Numerous Sales Reps visit hospital staff in all disciplines. Their visits can
       be time consuming, distracting and a cause of pressure. Sometimes they
       may have useful information to share but more often than not they will be
       wishing to heavily promote their products and achieve a sale.

       Only Procurement staff are authorised to conduct purchasing on behalf of
       the Trust. No commitments to companies should be made by any other

       Visits by Sales Reps should be discouraged and only conducted when the
       following apply:

       1. An appointment has been made

       2. Some perceived benefit from the appointment will result

       3. There is no intention to commit the Trust to a purchase – Procurement
          staff should be involved in all such discussions.

       East Lancashire Hospitals NHS Trust staff should also refer to Policy
       (Draft Policy awaiting approval)

3.9    Trials of Equipment and Consumables

       All equipment required for loan or trial purposes should be arranged by
       the Head of Procurement or his / her nominated officer. Goods shall not
       be taken on trial or loan in circumstances that could commit the Trust to a
       future uncompetitive purchase. Companies will often be keen for the Trust
       to undertake trials of their products – such trials can appear attractive in

       the short term but can prove costly to the Trust in the longer term. For a
       trial to be accepted the following considerations should be made:
       1. No commitment to the supplier should be given

       2. Is the trial in the genuine interests of the Trust?

       3. Is there genuine interest in what is being offered by the supplier?

       4. Can I ensure the Trust is fully indemnified against any accidents which
          may occur due to a fault with the equipment

       5. Is there already a standard product available in the Trust?

       6. Are there Risk Management issues to consider in use of the product?

       7. Are there ethical considerations?

       8. Can the Trust fully resource the trial in the manner required by the

       9. Are there any hidden costs associated with an equipment trial e.g.

       10. Involve Procurement to undertake procurement process where serious
           intention to purchase a product / system.

Note   Please refer to the Trust intranet to view policy reference C17: Medical
       Devices Management Policy for further information.

       A more comprehensive guide on loans/trials can be found on the
       Procurement Intranet site under ‘Master Indemnity’

4.     Obtaining Goods from NHS Supply Chain

4.1    General

       This Trust obtains goods from NHS Supply Chain warehouse at Runcorn.
       There are over 600,000 product lines available in a catalogue which is
       issued twice yearly in April and October.

       Just because a product is in NHS Supply Chain catalogue, there is no
       obligation to order it if it can be purchased at a lower cost elsewhere.
       However, that lower cost must take into account not only the price but all
       other costs attached in purchasing the item non-stock e.g. purchasing,
       receiving, distribution and invoice processing i.e. the total supply chain
       costs. Seek advice from your procurement department if required.

4.2    Delivery and Requisitioning Schedule

      NHS Supply Chain delivers to the Trust and each requisition transfer point
      will have designated times to submit an on line order and to receive the
      goods requisitioned.

      NHS Supply Chain warehouse operates on a 48 hour delivery cycle.
      When you log onto LOL (on line ordering), your allocated delivery day
      appears after selection of your Trust and the highlighting of your
      requisition Transfer Point Number.

      Input and authorisation must be actioned 48 hours prior to your delivery
      day. For example if your delivery day is Wednesday your order must have
      been input and authorised by 4.30pm on Monday.

4.3   Emergency Orders

      NHS Supply Chain operates an emergency order system that can
      guarantee delivery within 24 hours or less. Their definition of an
      emergency is a patient related medical emergency and is provided free of
      charge. However, emergencies brought about by the Trust’s inefficiencies
      are chargeable and therefore need to be avoided.
      (Please refer to Appendix 1, NHS – Supply Chain)

4.4   On Line Ordering

      When placing an order on line it is particularly important to ensure that the
      correct quantity (unit of issue) is ordered. For instance if you require 100
      envelopes and the unit of issue is 50, your requisition should have 2 in the
      quantity column. Should you put 100 in the quantity column you will
      receive 5000.

5.    Goods Receiving Procedure

5.1   Receiving Stock Items from NHS Supply Chain

      It is the responsibility of Receipts & Distribution to check that the delivery
      quantity details in terms of the number of roll cages and the number of
      tote boxes received are correct. Receipts & Distribution will check the
      delivery to ensure the correct number of roll cages and tote boxes have
      been received.

      It is the responsibility of the ward or department to check that what is in
      the cages and tote boxes is what was ordered. If there are any
      inaccuracies the errors must be reported to Procurement within 48
      hours of receipt, using the discrepancy report form available via the
      Procurement Website www.elpd.elht.nhs.uk Failure to report within
      that time can result in being unable to obtain the appropriate credit. The
      appropriate value is credited to your transfer point within a few weeks.

      The return of roll cages and tote boxes is important and every effort
      should be made to ensure they are available for collection. The Trust’s
      performance in returning them is measured weekly by NHS Supply Chain.

5.2   Receiving Direct Supply Items

      The Receipts & Distribution Department receives the majority of deliveries
      to the Trust direct from suppliers and ensures they are formally “Goods

      Some departments are the exception to the above as they can be very
      specialist / technical in nature and are resourced to receive goods direct.
      They should receipt the delivery on E Financials in a timely manner.

      It is the responsibility of every delivery point to ensure that:

      1. The goods received match the Supplier’s Delivery / Advice Note.

      2. The goods received match those on the Purchase Order re: the
         quantity and specification.

      3. The goods are not damaged or incomplete. If there is a discrepancy
         the Procurement Department should be asked to assist in remedying
         the situation..

      4. A Goods Received Note (GRN) entry is made on the E Financials
         system within 24 hours of receipt.

      5. No signature should be provided for Goods Received which are
         inaccurate or damaged. If insufficient time is available then the
         Delivery Note should be clearly marked as “UNCHECKED” adjacent to
         a signature.

6.    Goods Return Procedure

6.1   Returning Goods to NHS Supply Chain (Runcorn)

      The return of goods to Runcorn is usually for one or two reasons, a
      mistake in ordering or an error in delivery. The two must be considered
      separately as a mistake in ordering can result in a 15% return charge
      whilst a delivery error is dealt with free of charge. Goods to be returned
      must exceed a value of £10. Returns must be submitted on the Return
      of Goods to NHS Supply Chain form available on the Procurement
      Website www.elpd.elht.nhs.uk

      For goods to be returned to Runcorn they must be resalable which means
      they must:

                         Be well within their sell by date
                         Have unbroken packaging
                         Not have writing on the packaging
                         Be a complete unit of issue

      Where the reason for return is due to error by NHS Supply Chain it is
      important you notify the Procurement Department within 48 hours of
      receipt by completing the discrepancy form available on the Procurement
      Website www.elpd.elht.nhs.uk

      The following procedure must be followed to ensure that credit is

      1. Complete the Return of Goods form with the following information:
            Reason for return
            Your requisition number against which delivery was received
            Catalogue number (NSV Code)
            Description of product
            Quantity to be returned

      2. Forward the form to the Procurement Stock Helpdesk
         procurementstockhelpdesk@elht.nhs.uk for validation by the
         Procurement team. This will then be forwarded to NHS-Supply Chain.

      3. You will then be notified of a Returns number and an indication of
         when to return the goods to Receipts & Distribution. Under no
         circumstances should the goods be returned to Receipts &
         Distribution until you have received authorisation to do so.

      4. Once the goods have been collected by NHS Supply Chain, the
         details verified and the goods returned to stock, the appropriate value
         is credited to your transfer point.

6.2   Returning Goods to Suppliers

      Returning goods to suppliers can be more problematic because of the
      variety of methods they may use to deliver and collect goods. If you have
      goods to return you should contact the Procurement Department. You will
      be advised of what action to take. Under no circumstances should the
      goods be returned to Receipts & Distribution until you have spoken
      to Procurement.

      It should be noted that returns due to requisitioning error are likely to incur
      a cancellation or collection charge by the supplier.

7.    Responsibilities

7.1   Of Procurement Staff

      Procurement staff are experienced and professional. They take pride in
      striving to provide excellence and value for money in all aspects of the
      supplies service.

      The following performance targets are those we adhere to during normal
      working conditions:

      1. Purchase requisitions will be processed to purchase order from
         receipt into the department subject to competitive tendering and
         quotation procedures and the approval of Pre-Purchase
         Questionnaires (PPQ’s) for all medical and scientific equipment.

      2. Telephone queries to Procurement will be dealt with within one
         working day.

      3. Non-stock deliveries will be distributed within 48 hours of receipt at

      4. NHS Supply Chain deliveries will be distributed within 24 hours of
         receipt at the Stores.

      5. Patient emergencies will be dealt with immediately.

      These are targets which we set ourselves and are dependent in part to
      the quality and timeliness of information received from you the customer.
      Should you identify problems in any of these areas please contact the
      Procurement Department.

7.2   Of Customers

      Your Requisitions:
      It will greatly aid Procurement staff to satisfy your requests accurately and
      promptly if you can ensure that your requisition contains:

            A budget code
            The product code
            A clear specification and quantity
            Supplier details where known
            Reasonable delivery date (ASAP or URGENT is not at all helpful)
            All relevant background information / quotations obtained
            Any special instructions e.g. pre-payment, charitable funds etc
            Special nature of goods / services e.g. COSHH items

      e-Procurement Requisitions will require the same information to be
      entered into the system. Please ensure that header and footer are
      completed before submitting the e-requisition.

      Your Business Case Submissions

      Involve the Head of Procurement or Buyer at the outset wherever
      procurement of goods and services form part of the Business Case.

      Let us work together to complete the procurement process at an early
      stage rather than at the end of what may be a protracted period prior to
      approval of the Business Case.

      General Enquiries to the Procurement Department
      1. Be brief and concise during your enquiry (other callers may be

      2. Have all the relevant details to hand e.g. requisition number, relevant
         dates, supplier information.

      3. Check that your call is really necessary – you may already have the
         answer e.g. copy order details, picking ticket for Runcorn, local stock

      4. Ensure you record the name of the person you speak to – in case you
         need to follow up your call for any reason.

      5. Ensure we have your contact details and agree with them their
         timescale to respond back to you if your query cannot be resolved

8.    Procedure for High Value Procurement

8.1   Introduction

      This guidance is reproduced elsewhere in this guide but is included here
      to provide a complete procedure.

      The spending of public funds is governed by two main principles.

      Public Accountability defines the need to be able to prove to the public,
      usually through an Auditor, that their money is being spent in an open,
      honest and economical way.

      The Separation of Responsibilities requires that the person who wants
      or defines a need to order goods or services, is not the same person who
      carries out those activities relating to their purchasing, and is not the
      person who pays for them.

          “He who wants shall not order, he who orders shall not pay”

      All of this is controlled through Standing Orders, Standing Financial
      Instructions, EU Directives, Delegated Financial Limits (Authorised
      Signatory Lists) and the e-Procurement authorisation hierarchy.

      These notes exist to help smooth the process of defining need, complying
      with both legislation and internal regulations in the procurement of goods
      and services.

8.2   Authorisation

      Your attention is drawn to your Trust’s Standing Orders, Standing
      Financial Instructions, Scheme of Delegation / Authorised Signatories List
      and e-Procurement authority hierarchy. All those customers involved in
      the requisitioning of goods and services should be familiar with these.

      NB 1.      Equipment Committee Requisitions – are subject to
                 authorisation in accordance with the procedure for completion
                 of such requisitions.

      NB 2.      Requisitions for Charitable funds – should be clearly marked
                 as such.

      NB 3.      Computer Hardware and Software – all requests should be
                 forwarded to relevant IT Department.

      NB 4.      Medical and Scientific Equipment – procurement will involve
                 satisfactory authorisation by EBME of a pre-purchase
                 questionnaire (PPQ) which the supplier has to complete.

      NB 5.      Capital Expenditure – requires the approval of the Director of
                 Finance or his nominated officer.

      Authorised Signatory List

      This is maintained by Finance who is reliant on customers within each
      Directorate / Department notifying them of any changes – including
      deletions. Procurement activity will not normally commence until an
      authorised requisition has been provided. Requests via e-Procurement
      must be compliant with the authorising hierarchy.

8.3   Competition

      Formal competitive quotations must be obtained for purchases over the
      trust’s threshold (see page for thresholds). Formal competitive tenders
      must be obtained for purchase valued over the trust’s thresholds (see
      page for thresholds). Advertisements must be placed in the Official
      Journal of the European Union (OJEU) for all orders valued at £101,323
      or over prior to issue of a competitive tender. All of these values exclude

      Informal written competition is sought for purchases below trust’s
      quotation thresholds.

      In line with the requirements of Separation of Responsibility, the obtaining
      of tenders and quotations must not be carried out by the person who
      identifies the need. It is not just the obtaining of tenders and quotations
      which is important, but the procedures which surround them which include
      their timed receipt and opening by an independent person. These
      procedures exist to protect both the public purse and the public person in
      commercial activity. The seeking of tenders and quotations is the role of
      the Procurement Department for all goods and services with the exception
      of Pharmacy products.

8.4   Audit Trail

      This is the need to make available to an auditor proof that all procedures
      have been followed and where applicable, written authorisation not to
      follow these procedures exists.

      An “Audit Trail” must be provided for each purchase to include the
      appropriate authorisation to purchase, quotation or tender activity where
      required, appropriate approval of the purchase order, the receipt of the
      goods and services and payment, usually in that order. Authorisation to

      waive competition should be able to be supported by documentary
      evidence to be kept as a permanent record by Budget Manager and the
      Procurement Department. The Budget Manager effectively accepts
      responsibility for the recommendation to waive the need for competition
      by virtue of their knowledge and experience.

8.5   Procedure and Business Case Submission

      The following procedure is to be used for high value procurement and
      should be read in conjunction with the procedure note on Business Cases.

         A statement of need should be presented taking into account the
          service benefit and availability of funds. This statement of need should
          be approved by the Clinical Director.

         The functional requirement should be defined precisely and with as
          much detail as possible.

         At this stage the Procurement Department should be involved. They
          can comment on the appropriateness of the specification, if required
          and will be able to advise on and agree with you the proposed sources
          of supply. They will advise you on the likely timescale for the
          procurement and any implications of the EU Directives and advise on
          the correct Procurement Landscape options available.

      On receipt of formal quotations or tenders Procurement staff will ensure
      an evaluation process is undertaken in which all Trust staff who need to
      be involved can participate fully.

      Procurement staff is committed in seeking to achieve Value for Money on
      behalf of the Trust and will encourage customers to consider “whole life
      costs” including maintenance and consumables costs as well as the
      equipment purchase costs.

      Customers are advised to consult with Procurement staff at an early
      stage, prior to Business Case submission (where this is appropriate).

8.6   Reports to the Director of Finance

      All procurement undertaken which is in excess of £5,000 excluding VAT is
      reported by the Head of Procurement to illustrate that the Trust’s
      procurement has in all cases been in conformance with Standing
      Financial Instructions and Standing Orders. The reports will also
      demonstrate that value for money has been achieved and will illustrate
      any incidence where non-competitive quotations and tenders have been
      sought and the reasons for this.

      All non-competitive procurement activity is referred by the Director of
      Finance to the Audit Committee for their information.

      Please see appendix 4 for detailed General KPI’s information.

9.    Sponsorship

      Detailed guidance is provided in HSG(93)5 – Standards of Business
      Conduct for NHS Staff – which all staff should have a copy of and be
      familiar with. Significant extracts from the guide are:

      1. NHS Staff must - Ensure that acceptance of commercial sponsorship
         will not influence or jeopardise purchasing decisions.

      2. Refuse “Linked Deals” whereby sponsorship of staff posts is linked to
         the purchase of particular products or supply from particular sources.
         However, where sponsorship is accepted on the basis that the
         sponsorship will have no effect on purchasing decisions, monitoring
         arrangements should be established to ensure that purchasing
         decisions are not, in fact, being influenced by the sponsorship

      As a general guide:

      Do not:

            Accept any gifts, inducements or inappropriate hospitality (7-9)

            Abuse your past or present official position to obtain preferential
             rates for private deals (15)

            Unfairly advantage one competitor over another (17) or show
             favouritism in awarding contracts (18)

            Misuse or make available official “commercial in confidence”
             information (29)

      NB:    References in brackets are from NHS HSG(93)5 – Standards of
             Business conduct for NHS Staff.

      3. You may make reference to the Bribery Act introduced on the 1st July
         2011 which is the overarching statute with regard to correct practices.
         (*Appendix 2) If you are still unsure you should contact either the
         Head of Procurement or the Director of Finance for appropriate

10.   Disposal of Surplus / Obsolete / Redundant

      Please refer to Appendix 3 to view the Trust Policy on Disposal of

      Directorates / Departments should regularly review their assets and
      identify any items which have become surplus to requirements.
      Directorates / Departmental Management should satisfy themselves that

     items are genuinely surplus. Once satisfied you should then notify
     Procurement of all surplus equipment, ensuring you provide the following
     basic information:

           Description - quantity, make, model, age
           Condition – good, average, poor – working or not working
           External organisations who may be interested in purchasing the
           Electrical equipment needs to have a report from the Estates
           Suitable for sale to staff
           Suitable for spares only or scrap
           Budget code to be credited if income generated from sale

     The EBME department will notify Procurement of all medical equipment
     for disposal which is identified on their Equipment Management System.
     You are advised to contact that department initially for all items of medical
     equipment which are considered suitable for disposal.

     Procurement staff will endeavour to obtain the best possible price for sale
     outside the Trust. Competitive quotations will normally be invited except
     for such circumstances as described in Standing Orders. Transfers within
     the Trust will not normally be subject to internal re-charge.

     All sales to staff should be handled by the Procurement Department.

     Asset registers must be updated to reflect the disposal of equipment.

And Finally…

     Anyone involved in any aspect of the above is welcome to come and visit
     the Procurement Department to discuss further. Please contact either
     Linda Longton, Diane Mitton or Mandy Hanson or Lois Fitzpatrick re:
     specific training requirements.

Appendix 1                                                                        NHS SUPPLY CHAIN

NHS Supply Chain - consistently reliable, flexible, convenient
NHS Supply Chain provides a national warehousing and distribution service for consumable healthcare
products across
the English NHS. We take pride in ensuring that we deliver a high standard of service upon which
customers can rely.
We deliver the right products to the right place at the right time, whether in support of an individual NHS
trust, Primary
Care Trust (PCT), a confederation of organisations working together or to private customers who
provide services in
support of the NHS.

Our emergency service - there when you need it...
The NHS is a 24/7 organisation that is in constant demand, so when things go wrong it needs 24/7
emergency back up.
NHS Supply Chain’s emergency service means that we will always be there when you need us - 365
days a year, 24 hours
a day, 7 days a week.
Under our emergency service arrangements, we guarantee that we will respond to any major incident or
circumstance efficiently and rapidly, getting a new or replacement product to you as soon as we possibly
One phone call to our teams and we will do everything we can to support your organisation, protecting
continuity of your
service to your patients.
In response to an emergency call, we commit to getting any stocked product to you within 5 hours and
aim to get
 Non-stocked products to you by the next working day if not before. (See blue diamond and e-direct in
box). All you need
to do is give us a call as soon as you become aware of the problem:

                 Non stock products in our catalogue will be marked with a blue diamond or our e-
                  direct logo.
                 Blue diamond products are non-stock items but can be consolidated and sent out with
                  your NHS Supply Chain delivery.
                 e-direct products are delivered separately, direct from the supplier

Out of hours emergency telephone numbers
Runcorn 01928 858531
Normanton 01924 328757
Bridgwater 01773 724221
Alfreton 01773 724048
Rugby 01773 724039
Maidstone 01622 402669
Bury St Edmunds 01622 402662
How to use our emergency service

Our emergency service operates in support of your own trust’s emergency response.
Office hours
If your emergency occurs within normal office hours (i.e. 9am to 5pm), your first point of contact should
be your own trust
Supplies/Procurement manager/team who will respond to your emergency in the most appropriate way
in line with your
authorisation procedure. Any need to engage NHS Supply Chain can be done through the normal
customer service contact.
Out of hours
If your emergency happens outside of normal office hours, or at the weekend or on a bank holiday, you
must obtain the
appropriate permission from an authorising Officer within your trust and follow your trust’s
authorisation/on-call procedure.
Once authorisation has been obtained, you (or your Supplies/Procurement team depending on your
trust’s procedure)
should contact NHS Supply Chain using the emergency contact telephone numbers.
Our duty security officer will answer and you must clearly state that it is an EMERGENCY SITUATION
and that you require
an urgent delivery.

Before you call, make sure you have the following
• Authorising officer’s name
• Location name and telephone number
• Requisition point details
• NPC code for each commodity required
• Description of product with issue pack size
• Quantity required
• Delivery point if different from normal delivery location
• Precisely when the item(s) are needed.

Our distribution centre staff will let you know the details of the transport to be used and estimated time of
Our full emergency service procedure and commitment is detailed on our website,

What do customers think of our emergency service?
The 2005 London bombings caused uproar for hospitals in the area, and NHS Supply chain had to hit
the ground running:
‘On the day in question, obviously we went into overdrive. The Royal London Inventory management
team effectively
stopped all other work and ordering to assist with the major incident. We were extremely well supported
by all at the
Maidstone DC, who assisted to our requests without question. Our emergency orders were delivered
into the hospital within
four hours, under police escort, which the driver seemed to enjoy! Our thanks go out to the team for their
continuing support
and assistance.’
Neil Cadywould, Materials Co-ordinator,
Royal London Hospital.

‘This morning we had an urgent requirement for our Intensive care unit. We rang NHS Supply Chain
and, to our delight, the
delivery arrived one hour later. This was an exceptionally quick service by anyone’s standards. Thank
you for this excellent
customer service.’
Steve Begley, Supplies Manager,
Royal Liverpool Children’s NHS Trust, Alder Hey

Appendix 2
                         BRIBERY ACT COMPLIANCE – A GUIDE


An organisation can be found guilty of an offence under the new Bribery Act in two broad

1.    A bribe is given or received directly by the organisation. The offending activity needs to
      be carried out by a senior person. There is no defence available.

2.    A bribe is made by an "Associated Person" on an organisation's behalf. The Associated
      Person (e.g. an employee or agent) performs services for the organisation and intends
      to obtain or retain business for the organisation. There is a defence if "Adequate
      Procedures" are in place to prevent bribery.

Therefore, organisations need to put in place procedures to deal with these two situations:

1.    So that no-one immediately connected with the organisation makes or receives bribes
      on the organisation's behalf. This is not a defence per se, but an attempt to ensure that
      offending activity does not occur in the first place.

2.    Putting in place Adequate Procedures to prevent bribery carried on by an Associated
      Person on an organisation's behalf.

These two sets of procedures can be effected in one.

Adequate Procedures

The following need to be considered:

1.       Risk Assessment.

Before an organisation puts procedures in place, it needs to understand the risk it faces from
bribery. Factors to be taken into consideration include:

Internal risks:

     Do employees understand the new law and what conduct is acceptable / unacceptable?
     Does a bonus / reward program incentivise employees to engage in inappropriate
     Does the financial controlling system operate to identify any payments or patterns of
       payment that may be suspicious?

External risks:

     Operating in a high risk industry (e.g. defence, construction) or a country where bribery
      is perceived to be a risk (e.g. in Europe, Greece, Italy).
     Dealing with third parties that perform services on an organisation's behalf e.g.
      subsidiaries, agents, sub-contractors, joint ventures.
     Payment of commissions, referral fees, success fees etc whether contractual or not.
     Payments made to public officials to accelerate an administrative process, sometimes
      known as facilitation payments.
     Any other payments made to public officials
     Payments made by way of political donations, charitable donations, lobbying and
     Hospitality / gifts given and received.

"Payments" includes not just monetary payments, but payments in kind e.g. gifts,
entertainment, travel, holidays etc.

In assessing those risks, information should be gathered on:
     Historical payments, hospitality and gifts.
     The amount and nature of those payments.
     To whom those payments were made.
     The timing of those payments e.g. was a payment made to a public official at the same
      time a company was applying for a permit?

The organisation may also wish to conduct a review of its supplier contracts in order that it
can ascertain whether payment terms are sufficiently clear and whether appropriate
termination provisions are in place.

2.        Top-Down Commitment

The organisation should demonstrate its commitment not to participate in activity that could
be construed as bribery or corruption. This can be demonstrated by means of a Board
resolution. In some circumstances, a Compliance Officer can be tasked to deal with anti-
bribery and corruption issues. Further advice can be obtained by contacting the Company

3.        Anti Bribery and Corruption Policies and Procedures

Once the risk assessment is completed, the organisation can start to draft its Policy. Actions
must be proportionate to the risks faced.

The starting point will be an expression of the organisation's commitment re bribery and
corruption and a clear explanation of bribery.

The Policy may include guidance on:

     Corporate Hospitality and Gifts, for example:

            Before hospitality / gifts are offered, consideration is given to whether it can be
             demonstrated that this is bona fide e.g. is it for profile raising, to demonstrate
             products / services, to maintain relationships.
            Is the hospitality reasonable and proportionate? As opposed to lavish.
            Is Board sign off required before invites are sent out?
            Will the organisation require that employees get written permission before
             accepting hospitality / gifts?
            What hospitality / gifts are permitted?
            Is a register kept of such gifts?

     Advice to employees who may travel overseas on business.

     The carrying out of enhanced verification checks and other research before engaging in
      new business relationships.

     Terms and conditions to be imposed required in contracts in order to protect the
      business e.g. immediate termination on discovery of corrupt activity.

     The taking of local professional advice before any agreements are entered into in which
      services may be engaged outside of the UK jurisdiction.

4.        Due Diligence

An organisation needs to be sure with whom it is dealing – whether that person is a potential
employee or a supplier of services – to ensure that the person can be trusted not to engage in
bribery on the organisation's behalf.

Suitable pre-contract checks can include obtaining references, carrying out credit checks and
engaging in an enhanced anti-money laundering process.

The organisation may wish to be satisfied that a supplier has similar anti-bribery controls in

Contractual provisions may include a requirement to comply with the organisation's anti-
bribery policy, clear provisions on when payment will be made and termination provisions.

5.      Policy Implementation

The organisations' policies must be communicated to employees and also to those carrying
out services on the organisation's behalf.

The organisation should consider providing basic training to its employees and even to e.g.
contractors where this is identified as being appropriate.

Certain employees may require a higher level of training e.g. those who travel abroad for

Refresher training at intervals may be appropriate in the same way that health and safety
training is repeated.

Employees and service providers need to be clear about the consequences of engaging in
appropriate conduct e.g. immediate termination and referral to the Serious Fraud Office.

6.      Monitoring and Review

Procedures should be monitored and reviewed to ensure that they remain effective and
relevant to the organisation's business.

Monitoring take place alongside existing compliance systems and may include a "red flag"
whereby unusual activity is highlighted e.g. a request for a large amount of petty cash.

Appendix 3

Table of contents

1. Introduction........................................................................................................4

2. Disposals General.............................................................................................4

3. Disposal of IT Assets……………………………………………………………….6

4. Billing Procedures..............................................................................................7

Appendix 1 - REQUEST TO DISPOSE OF EQUIPMENT....................................8

Appendix 3

1. Introduction

1.1 This procedure relates to Sales; Part Exchanges and Condemned Items.

1.2 Responsibility for the notification of proposed disposals is with each
Departmental Manager who will liaise with the Director of Operations or the Head
Estates regarding any temporary storage or security requirements.

1.3 Specific guidance applies to the Disposal of IT assets and is detailed in Section

2. Disposals- General

2.1 The Departmental Manager must in all instances of disposal complete the form at
Appendix I. He/She must be an authorised officer on the Trusts Delegation List which
is maintained by the Technical Accounts Section in Trust Finance.

2.2 The form requests the following information to be completed:-

       a description of the item, including its size, weight, age etc.
       date of purchase
       the serial number
       the name of the manufacturer
       the asset tag number/bar code (EBME Code)
       the condition of the item, whether it has been checked for safety, details of its
        maintenance history, hazard notices, or whether it is being condemned *
     the net book value of the item (obtained from the Capital Accountant) &
        estimated proceeds at disposal
     financial coding of the Capital /Revenue or Charitable Fund Item
     the location of the item
     details of potential buyers
     the name of the contact name & requesting the disposal
     authorization by a delegated officer
     action by the Procurement Manager (PM)(for PM use only on the reverse of
        the form)
*Liaison with the EBME Electronics Manager is essential and must be followed at all
times. (Electronic Items only). The EBME Manager will report relevant condemned
items to the Capital Accountant in Finance.

2.3 On completion of the Form (accompanied by a complete inventory of items of
applicable) the form will be forwarded to the Deputy Director of Finance. (Not the PM)

2.4 The Deputy Director of Finance, or the Financial Controller (in the DDF absence)
will ensure that the form is date stamped on receipt; checked for authorized signatory
and request confirmation of the item from the Capital Accountant regarding its Asset

2.5 Upon satisfactory completion of the checks the Deputy Director of Finance or the
Financial Controller, will authorize the recording of the Disposal. A copy will be sent
to ELFS the original will be passed to the Procurement Manager (PM) for formal
disposal proceeding to commence.
2.6 The PM must ensure that the process of disposal is in accordance with the Trusts
Standing Financial Instructions. Section 24 and the Scheme of Delegation.

2.7 Where it is practical to do so the PM should inspect the goods where possible
and determine the most appropriate means of disposal in consultation with
specialised officers e.g. Health & Safety Officer, EBME Officer. The PM will ensure
that any Part Exchange deals with suppliers provide the best value for money.

2.8 When an item is declared surplus to requirements the PM will circulate across the
NHS Trust Network any Equipment or Goods must have a full service/maintenance
records and the recipient or purchaser must arrange the collection process and bear
the transportation risk. An indemnity for Equipment or Goods will be required on

2.9 If no offers are received the PM will either:-

      in the case of manufacturing or trading sell the item(s) back to the original
       supplier on mutually acceptable terms
      arrange for the item(s)to be offered at public auction(possibly on site)via the
       Contracted Auctioneer
      use a broker or contractor for scrap etc

2.10 Under no circumstances should items of even negligible value be given away to
a third party, and no item should be sold without ascertaining if there is an alternative
use for it.

2.11 In the event of any sale of equipment or any other items, the PM will notify the
Deputy Director of Finance the Capital Accountant and the EBME Manager by
copying the form at App I to all officers.

2.12 The Capital Accountant will ensure that any Profit and Loss or Exchange is
promptly and correctly accounted for through the Trusts General Ledger System and
the Trusts Fixed Asset System.

2.13 In any event a part exchange of equipment to a manufacturer or supplier
requires the completion of the form at App I and must make reference to the
purchase of the new goods, the requisition number, date of exchange etc. The form
should be sent to the Deputy Director of Finance as normal, with a copy being
attached to the Purchase Requisition for processing in the Procurement Department.

2.14 The Director of Operations will ensure that goods for disposal are kept secure at
all times pending physical sale.

3. Disposal of IT Assets

3.1 The Head of IT Services will ensure that all IT assets are disposed of in
accordance with:

       a) Trust’s policy for the Disposal/Sale of Surplus Assets,

       b) Directive 2002/96/EC on Waste Electrical and Electronic Equipment
           (WEEE), and
       c) Best practices on ensuring logical assets are irretrievably destroyed
           during the disposal process.
3.3 The term ‘IT asset’ is used as defined in BSI Code of Practice for Information
Security Management BS ISO/IEC 27002:2005 (BS7799).
The main types of assets include:
       a) Physical: e.g. computer equipment, comms equipment, removable media;
       b) Logical: e.g. databases and data files, application software, systems
Note that an IT asset can be both physical and logical (e.g. data cd containing a

3.4 When a local IT asset (e.g. printer, PC, monitor, etc) is identified as surplus to
requirements, it should be returned without delay to IT Services for reuse or disposal.
The ‘owner’ should initially notify the IT Helpdesk x83135 and agree method of
collection/delivery. The local asset register should be updated accordingly.

3.5 All unused, redundant and outdated equipment should be returned to IT Services
where it will be disposed of in the appropriate manner. Some will be used for spares,
with the remainder being deemed as regulated ‘WEEE scrap’ and handled

3.6 All physical components containing or suspected to contain logical assets
(including storage devices such as hard disks and media such as tapes, cds) will be
removed from the WEEE scrap and handled separately (see below).

3.7 WEEE scrap will be disposed of through a third party company which is certified
by the Environmental Agency under the Control of Pollution Act as registered
carriers/disposers of controlled waste. Prior to collection all physical assets will be
stored securely. At collection time the processes will be overseen by a senior
member of IT Services ensuring a full and complete asset register is compiled.
Following collection, the company will supply a Certificate of Disposal identifying
each item of equipment by its asset/serial number confirming that the waste has
been treated appropriately and disposal/destruction has been carried out in an
environmentally sound and correct manner.

3.8 Where it is the Trusts interest to do so kit to be disposed of that was purchased
after 13 August 2005,will be returned back to the ‘producers’ rather than through a
third-party – similar procedures as those outlined above will be used.

3.9 IT assets will not, under any circumstances, be sold or donated to third parties
(e.g. schools, employees, local businesses, etc.) nor will the physical assets be
placed in the general rubbish stream (e.g. skips) for disposal in landfill.

3.10 In special circumstances the Trust will dispose of redundant specialist IT
equipment through computer brokers, in which case the processes as defined in
section 2 must be carried out to determine whether the asset is recorded on the
Trust’s capital asset register or not, and the form at Appendix 1 must in all cases be
completed. No logical assets must be included in the sale. Additionally assurances
must be obtained from the buyer that they will take full responsibility for future correct
disposal of the equipment under the WEEE regulations.

3.11 To ensure prevention of unauthorized access to data, all physical components
containing or suspected to contain logical assets will be processed according to the

intended future use. If a storage device is to be reused outside the IT Services
Department, it will be reformatted and overwritten at least 10 times using appropriate
software before being prepared for reuse. If a storage device is to be scrapped it will
be processed as per WEEE scrap as detailed above but with the additional
guarantee that it will be shredded and never reused.
3.12 If in doubt of the status of any IT related equipment regarding disposal please
contact the IT Services Helpdesk x83135 who will be pleased to advise.

4. Billing Procedures

4.1 In accordance with the Trusts Standing Financial Instructions the Director of
Finance is responsible for designing, maintaining and ensuring compliance with
systems for the proper recording, invoicing, collection and coding of all monies due,
and for taking appropriate recovery action on all outstanding debts.

4.2 Where the sale of an asset has been agreed, the PM or the IT Manager will be
responsible for raising a standard ‘Request for Invoice Form’, the form must be
promptly sent to the East Lancashire Financial Services (ELFS) Credit Control
Section. The detail on the form must include the Fixed Asset Number when

4.3 The price will be the agreed Market Price plus VAT between both parties and
acknowledged by signature of the buyer and seller on the inventory/contract of sale
drawn up by the PM, a copy of which will be given to the buyer.

4.4 Under no circumstances must the goods leave the premises until the buyers
account has been credited and the funds have cleared the Trusts Bank Account. The
PM or the IT Manager will verify this with the Credit Controller, Technical Accounts
Section. Notification will then be given to the purchaser where an organization
handover of goods will take place.

4.5 Debt Recovery procedures will be applied in accordance with the Finance
Directorates Policy.

                              REQUEST TO DISPOSE OF EQUIPMENT

This form must be forwarded to the Deputy Director of Finance, Strategy and
Governance, Park View Offices, RBH on completion


 Directorate                                           Speciality/Ward/Dept.
 Description of Equipment

 Date of Purchase                                      Serial Number
 Manufacturer                                          Current Location
 Condition       (Please )            Very Good       Good               Fair               Poor
 Part Exchanged for the purchase of       Requisition No.                 Value of P.Ex.£
 Nature of Disposal if not Part Ex ?           RESALE               SCRAP               CONDEMNED

 If resale, any potential buyers suggested?
 Date when Disposal required:                       Please allow at least 4 weeks for arrangements to be
 Arrangements to view           Name                                                             Please print
              Tel. No. / E mail Address
 Are Service Records/Instruction
                                                        YES                                 NO
 Manuals available?
 Capital Asset                YES             NO       Donated Asset             YES                NO

 Capital Asset Number:                                 Net Book Value £
 Estimated Proceeds on Disposal £
                                                                  COST CENTRE /
                                                                     FUND                    ACCOUNT
 Income Codes for Proceeds:                     CAPITAL
 * To be completed by the Budget/Fund         * REVENUE
 Holder                                       ITEMS
                                              * DONATED

 Disposal requested by:
                                                                  SIGN             PRINT NAME & DATE
 Authorised by Departmental
 Manager                                                          SIGN             PRINT NAME & DATE

 Authorised by Director of Finance
                                                                  SIGN             PRINT NAME & DATE

For East Lancs Procurement and Trust I.T. Department Use Only

Date Request Received

Signed – Procurement /IT Manager

Finance Book Value
Month to advertise in Aspel’s Gazette

Circulate within Division                        YES                     NO

Deadline for Offers

Disposal Arrangements:

Invoice Request Actioned to Finance By:-                        Date:-
Payment Confirmed Date
Date arranged for the Collection of Goods

     Appendix 4                         KEY PERFORMANCE INDICATORS - ELHT

No     KPI                          MEASURE COMPARES                    INDICATES                                BENEFIT

1      % of spend by PO.            Value of invoices paid to           Level of expenditure under procurement   Supports need for roll out of order
                                    Purchase Orders raised.             control (ie without PO).                 system and demand management
                                                                                                                 to drive improved cost control and
                                                                                                                 management information.
2      % of maverick spend.         Value of purchase orders after      Incorrect processes, and potential for   Improved control and compliance
                                    invoice receipt.                    ordering of non catalogue items.         to contract.

3      % of spend under contract.   Value of PO items with or without   Use of goods and services outside of     Identifies lost volume and
                                    Contract Reference.                 contracts. Potential non compliant       aggregation opportunities.
                                                                        procurement.                             Ensures legally compliant
                                                                                                                 procurement process undertaken.
4      % 3 way match (volume        Volume and value of invoices        Effectiveness of procurement controls    Enables prompt payment.
       and value).                  matched with PO and Goods           and goods receipt processes.             Identifies issues with Goods
                                    Receipt.                                                                     Receipts process.

5      % of spend mapped to         Value of spend allocated to         Purchase from catalogue and approved     Provides visibility of spend profile
       eClass.                      category area.                      suppliers. Ability to baseline spend.    for ongoing commitment to
6      % of spend via P2P           Number of Requisitions received     Level of automation and control          Drives process efficiency by
                                    electronically, and processed via   reached.                                 automation throughout the
                                    auto create to supplier.                                                     process chain.
7      Procurement Return on        Cost of procurement vs value of     Contribution of procurement to the       Supports for procurement
       Investment (ROI).            processed transactions and          Authority.                               controls.
                                    savings delivered.
8      Procurement Steering         RAG status.                         Maturity of Authority to progress        Enable visibility of procurement
       Group in place.                                                  procurement agenda.                      opportunity to senior
                                                                                                                 management team.
9      Local Workplan agreed.       RAG status.                         Maturity of Authority to progress        Enable Authority to drive CPS
                                                                        procurement agenda.                      procurement strategy as well as
                                                                                                                 local needs.
10     Formal Benefits sign off     Dialogue on process principles.     Maturity of Authority to progress        Ensures Authority has visibility of
       process in place.            Recorded by RAG status.             procurement agenda.                      regional contracts and ability to

No   KPI                           MEASURE COMPARES             INDICATES                           BENEFIT

11   Use of Magic.                 RAG status.                  Maturity of Authority to progress   Enables Authority to monitor
                                                                procurement agenda.                 delivery of procurement projects.

12   Authority                     RAG status                   Maturity of Authority to progress   Ensures Authority senior
     commercial/procurement                                     procurement agenda.                 management team are engaged
     strategy agreed.                                                                               with procurement.
13   Savings benefit.              Savings target.              Non pay trading gap.                Cost Improvement Delivery.

14   Systems efficiency savings.   Invoice transaction costs.   Supply chain improvement.           Cohesive supply chain


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