News, Policy & Media

08Jan

Department of Health Announcement 8 January 2018 Delivering the Future Operating Model for NHS Procurement – Award of Contracts for the Capital and Non-Medical Category Towers

The Department of Health is pleased to announce that the Procurement Transformation Programme (PTP) has awarded the final four contracts to procure capital and non-medical products for the NHS. The contracts, which will now become the Capital and Non-Medical Category Towers for the Future Operating Model (FOM), have been awarded to the following companies; DHL Supply Chain Ltd – Tower 7 (Large Diagnostic Capital Devices including Mobile and Consumables), Akeso & Company Limited - Tower 8 (Diagnostic Equipment and Associated Consumables), Foodbuy – Tower 10 (Food), and NHS North of England Commercial Procurement Collaborative (NOE CPC) – Tower 11 (NHS Hotel Services). The Procurement Transformation Programme is transforming the NHS Supply Chain by implementing the FOM. The FOM will include a management function called the Intelligent Client Coordinator (ICC), 11 Category Towers and new transactional, logistics and IT service providers. This is a phased programme, with the FOM fully delivered by October 2018. The FOM will reduce unwarranted price variation and work to increase product range rationalisation. It will leverage the buying power of the NHS at national level to deliver greater value extraction from procurement, which can be reinvested by NHS Trusts into frontline services. The Capital and Non-Medical Category Towers will deliver savings of £280m in the first three years of their contract. The Category Towers will work on behalf of the NHS to deliver clinical and non-clinical assured, high quality products at the best value. They will do so through a more sustainable approach, including more rigorous and responsive management of supplier accountability, as well as category strategy development. The Category Towers will be managed by the ICC, a public sector organisation that will rationalise and simplify the procurement landscape and improve responsiveness to NHS organisations. “The Future Operating Model will drive quality and value in the NHS through the future NHS Supply Chain. We have a duty to do this and to get the most from the public purse. It is our intention to make the NHS Supply Chain the best procurement organisation in Europe. The NHS, those who work in the health service, tax payers and patients deserve nothing less. I am delighted we have awarded these contracts for the final four of the 11 Category Towers. These organisations have been evaluated by the NHS and have passed quality and fiscal assessments against set criteria, including competitive pricing and credibility of their savings projections. We now look forward to working with all the Category Tower Providers to deliver products that better meet the needs of the NHS”. Jin Sahota Senior Responsible Officer, Procurement Transformation Programme, and Director of Supply Chain, Commercial Division, Department of Health Following the contract awards there now follows a six-month transition period during which time the PTP will work with the Category Tower Service Providers to ensure they become operationally live on 5 July 2018. To find out more about the Procurement Transformation Programme, and the Future Operating Model, please visit www.supplychain.nhs.uk/news/thefom or email fom@dh.gsi.gov.uk

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