Case studies
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Healthcare
Value Testing
The client
Norfolk & Norwich University Hospital NHS Trust - a large acute hospital and first-wave PFI project, reaching its first market testing point in 2006. The project co was responsible for delivering the market test, with the Trust bearing risk on final price. Value of market tested services was approximately £11 million.
The Brief
HCP was instructed by the Project Company to perform the market testing of soft fm services.
Objectives
- To manage the market test of soft-fm services from advertising for expressions of interest to the financial close of the new soft-fm contract.
- To ensure compliance with the Project Agreement.
- To ensure that the resulting contract award was satisfactory to both Project Co in terms of quality and the Trust in terms of value for money.
- To perform the market test in a transparent and auditable manner that reflected public sector procurement procedures.
Solution:
The market testing exercise was planned, delivered and concluded on behalf of the Project Company.
- HCP acted as an independent manager of the market testing process.
- HCP undertook a review of the market testing provisions and Project Agreement to identify areas of risk and sensitivity for contract parties.
- HCP arranged early meetings between the Trust and Project Co to ensure that all parties understood the contractual requirements, the risks borne by each party and to establish agreed aims and approaches.
- HCP developed and managed the timetable for the market testing process so that it would meet contractual deadlines and enable a properly conducted tendering exercise.
- HCP provided dedicated resources to plan and manage the market test in conjunction with the on-site Project Co management team.
- HCP prepared and managed the advertisement of the tender in trade journals.
- The Trust was involved in a review of service level agreements and identified those changes it felt were essential. A small number of desirable changes were managed as optional variations within the tender.
- HCP developed the Invitation to Tender package, including all requirements, relevant Project information, terms of contract, supplementary information to assist bidders and evaluation criteria.
- HCP arranged and hosted visits to bidder reference sites by Project Co and Trust representatives.
- HCP managed the receipt and responses to requests for information through the tender period.
- HCP managed the receipt of tender documents and their distribution to the evaluation team.
- HCP performed financial analyses and comparisons of the bids on behalf of Project Co and the Trust.
- HCP chaired the evaluation panel deliberations as well as arranged bidder presentations for Project Co and the Trust.
- HCP managed the award of preferred provider and negotiations to financial close.
