Agreement In Contracts

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					                     LSP AGREEMENT – CONTRACT SUMMARY

This summary has been prepared to highlight some of the key contractual areas of
significance and is not exhaustive. Key staff will have access to a more detailed contract
summary and to the full contract documentation.

   1.      Duration of Project Agreement

A nine-year agreement with an optional one-year extension

   2.      Who are the parties to the Agreement?

The agreement is between the Secretary of State for Health and Computer Sciences
Corporation (CSC). The Secretary of State is represented by NpfIT.

Core Services are provided for the benefit of NHS organizations within the Cluster.
Individual organizations can order additional services using the agreement’s call-off facility
by signing a tripartite Accession Agreement.

   3.      What services are ordered under this agreement?

These are listed in Annex 1 and include:

              13 Core Bundles of functionality
              12 Additional Bundles of functionality
              Additional Services

   4.      Is there any obligation to purchase a minimum volume or value of services?

The ‘Cumulative Minimum Commitment’ is set at 70% of the contract charges for the core
bundles in the indicative implementation plans. This is 70% of £1.024bn, which is £717m.
The cluster must purchase sufficient core and additional services to bring the cumulative
spend up to the cumulative minimum commitment in any particular year.

   5.      Does the LSP enjoy exclusivity as the provider of services?

LSP is appointed as the exclusive supplier of core services – ie. Bundles 1 to 13 – see Annex
1. The Cluster may purchase additional bundles (see Annex 1) and services from another LSP
or third party.

   6.      To what extent can individual organizations request customization? Who
           pays?

A high degree of standardization is assumed and there is an obligation on the Cluster to work
with the LSP to achieve this. Additional LSP resource for customization would be a local
cost.

   7.      Will the LSP provide training at no additional charge?

Charges are inclusive of a ‘train the trainer’ offering. Additional training can be provided and
would be charged locally.
   8.       What provisions are there to ensure the LSP continues to deliver optimum
            value through the life of the contract?

   These include:

               open book and financial audits
               gainsharing
               indexation
               benchmarking
               service levels which ramp up
               most favored customer provisions
               continuous improvement commitment
               a range of risks around data set change notices, change to technical standards,
                legislative change borne by supplier

   9.       How is the implementation plan structured?

The Implementation Plan is structured in three phases. Phases 1 and 2 are further subdivided
into Releases. Milestones are defined within Phases/Releases.

Phase 1, Release 1, runs from 30-06-04 to 31-12-04.
Phase 1, Release 2, runs from 31-12-04 to 30-06-05.
Phase 2, Release 1, runs from 30-06-05 to 30-06-06.
Phase 2, Release 2, runs from 30-06-06 to 31-12-08.
Phase 3 runs from 31-12-08 to 31-12-10.

The LSP will develop implementation plans for agreement by the Cluster as follows:

        a Draft Implementation Plan for the first release by 25th January 2004, and for each
         subsequent release no later than 90 days before the start of that release
        a Detailed Implementation Plan for the first release by 5th March 2004, and for each
         subsequent release no later than 40 days before the start of that release

   10.      What remedies exist for poor performance?

A range of remedies are provided in the agreement both in the event of missed
implementation milestones and in the event of poor operational service.

   11.      What is the approach to legacy contracts and legacy systems ?

Legacy contracts can be formally novated to the LSP, or the Authority can require the LSP to
manage any legacy contract on their behalf.

The Authority can continue to run legacy systems. Alternatively, where the function provided
by the legacy system is a core service, the authority can replace the legacy system with core
bundles from the LSP. Where the legacy system covers and additional service, the Authority
can replace the legacy system with additional bundles from the LSP, another LSP or a third
party as appropriate.
Further clarity is required over the process for determining whether legacy systems are
capable of being integrated into the LSP solution set, and the responsibilities for funding and
managing any upgrades of legacy systems required to deliver such integration.

   12.    What are the processes by which the users within the cluster can order
          services, report faults and make payments for services
   Further development of these processes is required by Cluster and LSP

   13.     Does the Cluster have any obligations to provide facilities, personnel etc

There is a defined set of Authority Responsibilities. One significant obligation is that the
Cluster must provide 50 employees to the LSP to perform the LSPs obligations, and the
LSP’s contract price has already been discounted to reflect this agreement.

Colin Bexley
15th January 2003
                                        ANNEX ONE

                    Definitions of the Authority’s proposed ‘Bundles’

(Note – the additional numbers in the descriptions – eg. ‘122’ – refer to the paragraph
numbers in Schedule 1.1 and 3.1 which describe the functionality.)


CORE BUNDLES

Bundle 1: Connectivity, Messaging and Access to PSIS and Spine Directory and eBooking
Messaging 770, 101.1, sched. 1.7

Bundle 2: ICRS Set up and Basic Patient Administration 101, 102

Bundle 3: Assessment & Clinical Documentation (including social care & elements of
NSF's) 104, 106,160,161, 162, 163, 164, 165, 166, **167

Bundle 4: Clinical Support; Requesting & Order Communication, Decision Support and
ePrescribing 113, 110, 111, 112

Bundle 5: Scheduling (including scheduling elements of NSF's) 108, 160, 161, 162, 163,
164 165, 166, 167 **

Bundle 6: Integrated Care Pathways and Care Planning (including elements of NSF's, e.g.
CPA) 105, 160, 161, 162, 163, 164, 165, 166, 167**

Bundle 7: Maternity 118

Bundle 8: Information for Secondary purposes (including elements of NSF's) 124, 160, 161,
162, 163, 164, 165, 166, 167**

Bundle 9: Emergency/Unscheduled Care 122

Bundle 10: Surgical Interventions 125

Bundle 11: Alternative Options for GP’s

Bundle 12: Prevention, screening, surveillance includes elements of NSF's 103, 160, 161,
162, 163, 164, 165, 166, 167**

Bundle 13: Ambulance


ADDITIONAL SERVICE BUNDLES

Bundle 14: PACS and Medical Imaging

Bundle 15: Pathology 111, 114-114.29
Bundle 16: Financial Payments

Bundle 17: eHealth (including elements of NSF's) 123, 160

Bundle 18: Document Management (excluding tracking) 116

Bundle 19: Dental 120

Bundle 20: RIS 114.30 - 114.40

Bundle 21: Pharmacy Stock Control 113.12-113.18

Bundle 22: Social Care

Bundle 23: eBooking

Bundle 24: Decision Support

Bundle 25: Long Term Medical Conditions 168

There are also ‘Additional Services’ which are not ‘bundled’ but are charged based on man-
day rates contained in Schedule 9. For example, programme management of legacy upgrades
are charged in this way.