Purpose
The purpose of this paper is to seek Programme Board approval to negotiate with a single supplier to act as prime contractor for the delivery of a Radiology Information System (RIS) and a Picture Archive and Communication System (PACS) that will integrate with the wider solution offered by InterSystems in order to create the Integrated Care Record.
Background
The scope of the Output Based Specification for the ICR required a Prime Contractor to provide the total solution. This included provision for digital imaging for the Radiology department namely a PACS. PACS will require RIS to be in place and the existing rudimentary RIS is part of the EDS suite of products which requires urgent replacement.
As has been reported to the Programme Board previously the preferred bidder, InterSystems, has through the dialogue phase of the procurement shifted their position in a number of areas with regard to Prime Contractor status and this has impacted on their position with the third party providers of RIS (HSS) and PACS (GE)
On 10th July InterSystems confirmed that they would not pursue their offer of a RIS system from a third party (HSS). They did however return to their previous offer of their own, TrakCare RIS. This RIS had been evaluated previously as part of the shortlisting process and rejected in the early stages of the procurement on the basis that it lacked the functionality required by radiology and there were insufficient reference sites (documented separately). HSSD has subsequently re-considered and rejected the TrakCareRIS offered by InterSystems for the same reasons as before.
As InterSystems linked the provision of the GE PACS to the provision of TrakCare RIS they have decided not to provide the PACS system.
The consequence of this is that the provision of the RIS and PACS no longer forms part of the current ICR procurement with Intersystems. These elements will need to be sourced under a separate procurement.
Procurement Options
This is a capital purchase. Bid costs for GE PACS and HSS RIS are known as they have been provided by InterSystems as part of the wider ICR procurement.
GE PACS £895 capital £1.046M revenue over 10 years
HSS RIS £266 capital £ 655 revenue over 10 years
The total cost of RIS/PACS including HSSD purchases is £2.3M see appendix A.
There are two options:-
- Conduct a full competitive process
This is expected to deliver little value for the following reasons:-
Technical Considerations
There is an absolute requirement for integration between the PACS / RIS and the TrakCare PAS product. As part of the competitive dialogue process InterSystems were asked to identify suppliers that they were able to work and integrate with. They confirmed that both GE PACS and HSS RIS were suitable suppliers. Hence their inclusion in the original bid.
The combination of the suppliers GE and HSS working together is already an established partnership and there are many reference sites.
Functional Capability
HSS have already conducted extensive due diligence with regard to the suppliers of PACS and RIS as part of the shortlsiting process of the wider procurement. The results are fully documented and both GE PACS and HSS RIS were selected as part of this process.
Market Analysis
In terms of technical solution it is considered that there has been sufficient market analysis and due diligence to support the decision to nominate GE for the PACS and HSS for the RIS with GE acting as prime contractor.
Value for Money
As part of the wider ICR procurement costs for GE PACS and HSS RIS have been presented to HSS by InterSystems. It is understood that these costs have been inflated by 5% to include an administration fee. HSSD therefore has a benchmark upon which to base any “negotiated process”. Thus the VFM aspect of tendering can be achieved by an alternative approach.
- Negotiated process with a single supplier to act a prime
The second option will require the Accounting Officer to waiver Financial Code of Direction 5.6 Control of Capital Expenditure. An extract of the relevant FD is attached for information. Any decision not to seek competitive tender must be endorsed by the project group and the sponsoring minister, such decision supported by a report that clearly documents the reasons for departure from a competitive process.
This is the preferred option and would represent a continuation of the current procurement except that HSS would be negotiating directly with the supplier GE instead of dealing with a third party, InterSystems.
As this would essentially be an extension of the current process there are savings in terms of time, resource and administration. As stated above HSS have knowledge of the current costs via a third party and will be well positioned to negotiate with the suppliers directly.
Recommendations
It is recommended that the Programme Board supports option 2 which is for a negotiated contract with GE PACS as the prime contractor and HSS for the RIS component on the basis that:-
It can be demonstrated that a negotiated contract with a known contractor, whose services have previously been engaged through a competitive process on a similar project, provides material advantage.
Caroline Hastings
Director of Corporate Procurement – States of Jersey
Appendix A
Contract cost at ISC prices | Total |
HSS RIS | 266 |
GE PACS | 895 |
Subtotal | 1161 |
Additional costs to HHSD | |
Distributed PACS network & monitors | 289 |
CR/DR modality adaptations to imaging equipment | 830 |
Subtotal | 1119 |
Total | 2280 |
Appendix B
Extract of the Financial code of Direction Capital:
5.7.4 list of tenderers - prospective tenderers should be invited to reply to express interest in the project and a shortlist of tenderers drawn up. When selecting the shortlist, the following issues should be considered:
• the company’s financial standing and record;
• the size of the contract in terms of the company’s turnover;
• the company’s experience and reputation in the area of the contract;
• the company’s management structure;
• the ability of the company to resource the project in accordance with the proposed programme; and
• the number of companies to be included.
Only in exceptional circumstances may a competitive tendering process not be followed, for example:
• where there is a single specialist contractor;
• in an emergency, where there is insufficient time to undertake the tendering process; and
• where it can be demonstrated that a negotiated contract with a known contractor, whose services have previously been engaged through a competitive process on a similar project, provides a material advantage.
Any decision not to seek competitive tender must be endorsed by the Project Group and the Sponsoring Minister, such decision supported by a report that clearly documents the reasons for departure from a competitive process. The Accounting Officer of the Sponsoring Department must be able to demonstrate that any variation from a competitive tendering process is in the best interests of the States and provides best value.
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