Frameworks Scotland 3: Process
The NHS Board or permitted organisation and the Principal Supply Chain Partner (PSCP) follow the Frameworks Scotland 3 procurement principles and process for design and construction of the proposed works as set out in the Frameworks Scotland 3 Framework Agreement, Scheme Contract Templates and associated guidance. Training and support is available from the Frameworks Scotland 3 team throughout all stages of the scheme.
Frameworks Scotland 3 does not facilitate the provision of funding. It is the responsibility of the NHS Board or permitted organisation to ensure adequate funding for the works is available when required.
Where a NHS Board or permitted organisation is proposing to undertake a scheme and would like to learn more about the Frameworks Scotland 3 process, they should contact Health Facilities Scotland (HFS). If it is agreed that the NHS Board or permitted organisation should go ahead with the scheme, the NHS Board or permitted organisation should register the proposed scheme on the Frameworks Scotland 3 website. There is no commitment to proceed by registering the scheme, and the information stays confidential with the Frameworks Scotland 3 team until the NHS Board or permitted organisation chooses to make it more widely visible.
NHS Boards or permitted organisations can appoint a PSCP at any stage of a project and in respect of any scope of services and are able to seek advice from the HFS Capital Projects Advisor as to the most appropriate appointment time for initiating a Call-Off process in respect of their specific project. Advice will also include the potential appointment of consultants and the timing of these.
Call-Off Process
The Capital Projects Team will assist the NHS Board or permitted organisation in the preparation of a package of information, known as the High Level Information Pack (HLIP), for issue to the PSCPs and / or consultants in respect of the proposed project. The content of the HLIP will include:
- Details of the scope of the scheme;
- Appropriate selection criteria and weightings;
- Dates for submission and tender return, open day and interview;
- Option to shortlist (or not);
- Commercial weightings and requirements for tender of pre-construction activities;
- NEC4 Contract Option (if known) and Contract Data.
The tender return will typically include a ten (10) page technical quality submission, tender for preconstruction activities and capped preliminaries (if appropriate).
By following the Frameworks Scotland 3 process, appointment of a PSCP or consultant can be in as little as four (4) weeks from the initial issue of the HLIP.
Registered customers are encouraged to access the Frameworks Scotland 3 Members’ Area to find out more information on projects similar to that which they are proposing to undertake.
By issue of the HLIP, the relevant NHSScotland Organisation will invite all Framework PSCPs to which the HLIP has been issued to compete in relation to the selection of a Framework PSCP for a particular Scheme.
The HLIP identifies if the NHS Board or other permitted organisation is following a Two Stage Call-Off Process (including shortlisting) or if it is following a One Stage Call-Off Process (no shortlisting). Further information regarding Call-Off process stages can be obtained through dialogue with the Capital Projects Team.
All participating Framework PSCPs, or those Framework PSCPs shortlisted, shall be invited to participate in the Call-Off Process Tender Stage. The Call-Off Process Tender Stage will involve both a written quality submission and a commercial submission (price), together comprising the “Call-Off Tender”.
Appointment
Once a PSCP or consultant has been selected, the NHS Board or permitted organisation issues a Letter of Appointment to cover the period between selection and entering into contract. This enables the PSCP or consultant to commence work immediately.
The standard Frameworks Scotland 3 Contract Templates for the appointment of a PSCP are bespoke versions of the following contracts:
- NEC4 Engineering and Construction Contract Option C – Target Contract with Activity Schedule; and
- NEC4 Engineering and Construction Contract Option A – Priced Contract with Activity Schedule.
The Option C Contract incorporates a gainshare mechanism for the construction stage of the scheme as follows.
- If the outturn cost is below the Target Price (up to a maximum of 5%), the savings are shared 50:50 between the NHS Board or other permitted organisation and the PSCP;
- If the outturn cost is higher than the Target Price, 100% of the additional cost is payable by the PSCP; and
- Any additional savings below 95% of the Target price will be retained 100% by the NHS Board or other permitted organisation.
The standard Frameworks Scotland 3 Contract Templates for appointment of a consultant are bespoke versions of the following contracts:
- NEC4 Professional Services Contract Option C – Target Contract;
- NEC4 Professional Services Contract Option A – Priced Contract; and
- NEC4 Professional Services Contract Option E – Cost Reimbursable Contract
The Capital Projects Team will provide advice and guidance in relation to the contract options and preparation of the scheme contract documentation.
Scheme Development
Following appointment of the PSCP, the PSCP and their supply chain will develop the design solution in partnership with the NHS Board or other permitted organisation. The contract is entered into in stages which align with the Scottish Government Scottish Capital Investment Manual (SCIM) Business Case stages – Initial Agreement, Outline Business Case, Full Business case and Construction. The cost is developed alongside the design with the Target Cost built up on an open book basis on completion of detailed design at the end of Full Business Case stage.
Reserve PSCP Process:
Where two (2) or more PSCPs de-select themselves from a Call-Off Process, the reserve PSCP will be invited to participate in the Call-Off Process. The reserve PSCP will be issued the HLIP at the same time as the other five (5) PSCPs to ensure that the reserve PSCP is not at a disadvantage.
If a PSCP has failed a sanction related KPI and are suspended for the one (1) Call-Off, the reserve PSCP will be invited to participate in that Call-Off.
The introduction of new sanctionable KPI’s will result in any failures by a PSCP being suspended for the next mini-competition and the reserve PSCP stepping in to fulfil their role. The reserve PSCP will be invited to all regular PSCP meetings and will be provide anonymised feedback summary from mini-comps of successful and unsuccessful bidders.