Procurement
underlying performance data public. In addition, the bill requires the publishing of additional notices from planning through to contract expiry. Specifically, KPIs will need to be reported on in the public domain for contracts over £5m. These new requirements will provide more
transparency to contracting authorities that will be able to analyse more closely how suppliers are performing. The latter will be able to access tender opportunities more openly and, critically, tax payers will be able to see exactly how their money is being spent over a period of time. Procurement will therefore need to ensure they set up systems to continuously monitor and track performance to reveal how suppliers are delivering against contractual obligations over the period of their contract. Another contributor to additional transparency,
which also doubles up as a deterrent against poor performance and fraud, is the establishment of a Public Disbarment List, which will literally “name and shame” those companies that fail to honour their obligations to the British public. Suppliers that are not performing on contracts will risk being excluded them from future procurements. Suppliers who have committed an ‘excludable offence’ could even be disbarred indefinitely. The new suppliers that the bill opens the
market up to will typically be smaller businesses with less history on the market and no track record of Public Sector tendering, which is often regarded as excessively time consuming for companies with fewer resources. Unlike larger “known entities”, these suppliers come with more potential risk, which NHS buyers will need to manage to ensure they are both compliant with the new regulation’s objective to open up the market to new businesses, and also managing tax payer funds carefully. To do so, they will need to leverage more data sources than ever before, calling for more in-depth and predictive analysis tools. For example, automation-enabled access to real-time information retrieval and analysis
can support buyers in reporting and decision- making. Digitalisation and automation will play a key role in managing the larger volumes of data from diverse sources required to make new types of value assessments based on the MAT rather than the MEAT principle. Weighting will therefore no longer be dominated by price, but will also take greater account of social value and other criteria. One of the key obstacles to full and effective compliance with the new bill may prove to be the fear of litigation. In fact, as the market is opened up to more players and numerous factors are weighed and taken into account, the points on, which buyers may be queried could appear to multiply. Any climate of doubt between suppliers and buyers must be overcome if the bill is to be successful, as the increased transparency will hold all parties to a greater degree of accountability. Unfortunately, however, the cheapest choice
is not always the optimum solution, so the new system has been developed to actively promote a more complex evaluation, rewarding those that apply it with compliance. In practical terms, following the path of least resistance does a disservice to the public and could limit access to medication or therapy for people suffering, impact the speed at which new wards are built or automated, and continue to abandon far too many people to overcrowded under-staffed facilities. Operationalisation of the new bill into
procurement for NHS bodies will require a definite mindset change. There needs to be a recognition that the system needs to support all of its individuals that are now having to deal with these new regulations. This will mean giving people the chance to understand the new process and its objectives and learn how to operate within its framework. Many will be learning on the job, literally doing this with tax payer money. They will be trying to do the best job they can, with the possibility
of unsuccessful suppliers looking for reasons to challenge award decisions, thereby adding pressure to the procurement community. To support staff in this transition, the Cabinet Office has announced it will be rolling out a comprehensive programme of learning and development for procurement and commercial teams and even extending it to other staff whose work is adjacent to procurement. The training covers a review of commercial strategies including planning, governance, assurance and resources, while change makers and senior stakeholders will be encouraged to help in sharing the objectives of the reform. Another critical consideration is that the
bill was not developed with wide-scale tariff implementation in mind. The premise of free trade was probably an underlying principle, but the new protectionist climate globally, with tariffs and counter-tariffs appearing daily, will impact the cost of materials and eventually services that employ those materials. One example could be the NHS Hospital Build Programme. This programme was announced in October 2020 to deliver 40 new hospitals by 2030. A review of the programme led the confirmation on 20 January 2025 of newly confirmed funding and a “realistic timetable”. The new plan will be backed with £15 billion
of new investment over consecutive five-year waves, averaging £3 billion a year, and delivered in three waves. Schemes in wave one are expected to begin construction between 2025 and 2030 and include hospitals constructed primarily using reinforced autoclaved aerated concrete (RAAC), and have been prioritised. RAAC is a cement containing steel reinforcing bars and, given the latest tariffs on critical construction material like steel, prices in this critical construction material may increase significantly. Hospitals in later waves should be supported on their development and early construction work, to ensure that they are ready for major works, but scarcity in materials may prove an issue when it comes to allocating funds. The demands on commercial procurement
April 2025 I
www.clinicalservicesjournal.com 45
phonlamaiphoto -
stock.adobe.com
h368k742 -
stock.adobe.com
t
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100
