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PCP workshop for ENIGMA EC project Jan 2014

Innova prep

Baxendale Ltd

on 8 July 2016

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Transcript of PCP workshop for ENIGMA EC project Jan 2014

Capacity-building Training Session on
Pre-commercial procurement (PCP)

Developing a Business Case for PCP

STAVANGER, 16 January 2014

Dr Michael Wilkinson - Innova
Pre-Commercial Procurement
So is PCP Risky?
do your customers have this problem?
thank you
(…) Given that hospital cleaning costs a significant amount of money, the NHS needs to know how effective the cleaning regimes are and the impact that this has on infection control. Monitoring of cleaning efficacy is thus important. (…) The ideal test would be a test for product residue itself that gives rapid results to facilitate immediate corrective action, and is simple enough to be performed on the ward without the need for a laboratory. A number of methods have been developed over the past 20-30 years that approach these requirements. (…)

There remains, however, a need for more rapid and specific identification of bacteria/viruses on patients and in the environment so that action can be taken immediately to reduce the infection risk to the patient concerned and the risk to others within the healthcare setting.

The ideal kit would be: Inexpensive; Cover a wide area (up to 50 cm 2 at a single test); Give immediate results, providing feedback to the cleaners as they work or providing information to inform decisions to clear a room prior to occupation by a new patient; Avoid the need to apply a liquid or a gel to the surface being tested, as this will not be cleaned off a permanent coating may be acceptable but would need to be tested for bacterial adherence properties; Must be very simple so domestic supervisors are comfortable using it Infection Control Nurses would only have time to use the test infrequently; Able to distinguish between live and dead organisms.
Desired Benefits
of the Workshop

At the end of the Workshop, participants would have contributed to the making of
2 Innovation Challenges

each comprised of

- problem statement &
- sought benefits statement

Was the objective met?

Will this help solve problems?

Examples from the
About Me
25 yrs innovation experience
- PhD Warwick University
- Rush Presbyterian St Luke's Medical Center - Chicago
- National Endowment of Science Technology Arts
- London School of Hygiene and Tropical Medicine
- Cabinet Office
- NHS National Innovation Centre
Inavya - an innovation service co-owned by Innova & Baxendale
PCP Business Case
Business Case: The 'how to do it, and for whom?'
Blood Transfusion Chair

Donors falling off chair

7 yrs failed procurement

Co-created with NHS staff in months

International market
Temporary Side Room
Patients getting healthcare acquired infections

Co-created with NHS Staff
in months

Saves NHS £4,000 per avoided incidence

air curtain
hand-wash 'nudge'

clean design


9.30 -9.45
Opening & welcome (Stavanger representative)

Introduction to the ENIGMA project & Introduction to the ENIGMA’s Training Sessions (project coordinator)

Is PCP a risky project? Can Contracting Authorities check in advance whether the PCP is an affordable, viable, value-for-money initiative and have an overview of the potential risks the PCP project might incur on?

What is the Business Case for PCP? Why and When should contracting authorities develop a Business Case? Is it really necessary? Is it really useful?

Coffee break

The contents of the Business Case for PCP

13.00 -14.00

Practical exercise: completing the Contracting Authority’s Business Case Template for PCP (to carry out the exercise, participants will be split into small working groups)

Coffee break

Presentation of the results of the practical exercise by the working groups

Q&As from the audience


Business Case for PCP - important points!
PCP Basics
today's workshop

PCP is an approach for procuring R&D services
which enables public procurers to:
share the risks and benefits of designing, protoyping and testing new products and services with the suppliers, without involving State Aid;
create the optimum conditions for wide commercialisation and take-up of R&D results through standardisation and/or publication
pool the efforts of several procurers.

The PCP approach is based on:
risk-benefit sharing according to market conditions
competitive development in phases; and
separation of the R&D phase from deployment of commercial volumes of end-products
yes - but if you know the basics it is possible to mitigate most risks...
To reduce risk Contracting Authorities check in advance whether the PCP is an affordable, viable, value-for-money initiative and have an overview of the potential risks the PCP project might incur.
Resource planning for the PCP

To ensure that a PCP is properly resourced, a Contracting Authority should know in advance of each PCP the likely (
proposed in Description of Work

(i) duration;
(ii) cost and
iii) number of suppliers needed for each phase.

Concept Viability
step should provide outputs to enable Contracting Authorities to calibrate a PCP appropriately.

The PCP process outlined herewith seeks to create a sense of competition between suppliers throughout each of the three PCP phases.
This is achieved by establishing a single cohort of suppliers in phase 1, and this cohort competes to advance to phase 2, and then the phase 2 cohort competes to advance to phase 3.

Only suppliers present in phase 1 can advance to phase 2, and only those present in phase 2 can advance to phase 3.

Ultimately, the Contracting Authority should seek to have at least two successful solutions able to enter the market.
The exact number of suppliers needed for the initial phase 1 cohort is

For example:
if the technical challenge is very difficult, or the sector is very prone to low start-up innovation type success rates, then there is likely to be a number of suppliers not able to progress due to failure.

if it is likely that the need can be met rather easily by suppliers, then the Contracting Authority may decide to reduce the allocated time for each phase; and, they may also choose to reduce the number of suppliers contracted to deliver in each phase.

In contrast,

if the need is very challenging and complex, then the challenge to suppliers may be significant.

In such circumstances, and in order to reduce risk, the Contracting Authority may choose to lengthen the allocated time for each phase and also to increase the number of suppliers contracted to deliver in each phase.

In order to estimate the overall amount of resources that can reasonably be spent on the PCP, the Contracting Authority should create a Business Case before starting a PCP to answer the question:

“What percentage of the estimated economic value that the innovation can bring to the public authority – in terms of cost saving and/or public service quality improvement - can the public purchaser afford to spend on the development of solutions that are needed to realize this innovation, given the R&D risk of that particular project and the time it takes for the R&D trajectory?"
-Commission Staff Working Document SEC(2007)1668 p.5

Joint Ambition
Business Case Structure:
the 'what to do'
Rapid thought small-group exercise -

Break into groups of 2-3 people
minutes to draft as much as possible
per section
Do first Section and then return
Enigma Projections
Context of PCP

A large part of the funding is coming from the EC and has an aim that is wider than fulfilling the needs of the cities, namely:
• creating/accelerating innovative solutions and
• stimulating the creation of a new market for the industry.

European Dimension
should be reflected in the business case.

PCP requires cooperation amongst stakeholders.

Recommendation to Contracting Authorities:

Create a decision making unit, comprising of all stakeholders for the project, what in Enigma
be the Steering Committee.

In PCP, most stakeholders have different interests or objections (if we look at Enigma’s deep dives; they are very diverse)

Cooperation can be enhanced by using the following techniques:

Stakeholder Mapping:
engaging key stakeholders optimally.

Inverted SCOTSMAN Analysis:
Business Case for PCP from perspective of the Contracting Authorities/Cities- which will include

SCOTSMAN Analysis:
Business Case/Opportunity for PCP Solution from the perspective of industry/supply chain


Contracting Authorities:
enables good management of joint PCP projects

very clear communication of requirements from Contracting Authorities:
lowers the barriers to entry into the PCP competition.
encourages more parties to compete with the right intentions.

SCOTSMAN Technique
(perspective of industry/supply chain)

• e.g. Are potential suppliers able to develop ideas for a step-change innovation that can meet the PCP outcome specification?

• e.g. Are potential suppliers aware of how PCP competitions support industry to develop R&D solutions for Contracting Authorities?

• e.g. Are potential suppliers able to make ideas new-to-the-market?

• e.g. Are potential suppliers aware of the PCP timescales?

• e.g. Do potential suppliers see the value of engaging in PCP, as developed solutions could be sold to many markets

• e.g. Do potential suppliers know what the budget allocations are for the PCP?

• e.g. Are potential suppliers aware of how they can develop and exploit IP emerging from PCP contracts?

• e.g. Are potential authorities aware that PCP contracts are issued to industry with the view that industry will develop new solutions to meet pressing societal needs?

Note -
This information is used to make a compelling invitation to compete in the PCP.
Suggest using trade association to test msg.
Why have a PCP
Business Case?
The main objective of a business case for PCP
is to assist contracting authorities/public procurers
in making informed decisions regarding
the viability of a proposed PCP project
Inverted SCOTSMAN Technique
(perspective of Contracting Authorities/Cities)

Are you aware of the PCP solution requirement?

Are you aware of how PCP competition will be run?

Are you aware that PCP requires a Step-change innovation?

Are you aware of the timescale for PCP?

Are you aware of the size of the PCP project?

• Is there a budget allocated?

• Do they have the authority to make the decision?

• Are you aware of all the need the PCP solution is targeting to solve?

SCOTSMAN areas map very well with PCP Business Case areas
As the value of the PCP service develops, the depth of the qualification should increase proportionally.
Remember that stakeholder management is an ongoing process. It is not a single event!
Full transcript