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How will the Procurement Act 2023 affect NHS and other public sector tenders?

NHS procurement

The Procurement Bill received Royal Assent on 26th October and is now known as the Procurement Act 2023 and is likely to come into force in 2024.

But what exactly is it? And what does it mean for NHS and public sector contract tenders?

What is the Procurement Act?

The new Procurement Act aims to reshape the way public sector contracts, including those in healthcare, are awarded. The overarching goal is to streamline processes, increase transparency, and promote fair competition among suppliers.

It is expected that further guidance will be released in March 2024, with a view to the Act ‘going live’ in October 2024.


What will change?

It is likely that any tender processes that have started before the Act comes into effect won’t be affected. Although, there is a question at the moment whether or not this includes Prior Information Notices (PINs) as these are information-only notices and are not actively inviting organisations to tender for a contract and, therefore, have not officially started the procurement process.

Between now and October 2024, legislation needs to be drafted and guidance will be published during the course of 2024. A six-month notice period will also implemented to allow suppliers, local authorities and other commissioners ample opportunity to prepare and embed any new or improved internal processes before the Act becomes law.

How will the Procurement Act change NHS tenders?

The Procurement Act 2023 will replace current procurement rules in relation to NHS and health and social care contracts.

According to the gov.uk website, ‘the new Procurement Act will benefit suppliers of all sizes, particularly start-ups, scale-ups and small businesses’ by creating ‘a central digital platform for suppliers to register and store their details so that they can be used for multiple bids, and see all opportunities in one place. Simplified bidding processes will make it easier to bid, negotiate and work in partnership with the public sector’.

It is also hoped that commercial frameworks will be more flexible and accessible and it will remove some of the bureaucratic barriers currently in place that prevents smaller businesses from competing for contracts. Prompt payment in public sector supply chains has also been cited as a benefit of the new system.

What next?

The Procurement Act 2023 is a significant change to the process of bidding for and winning public sector contracts and we will continue to educate ourselves as this moves forward.

In fact, on Wednesday 22nd November, we attended the Procurement Reform Supplier Conference in Manchester which covered the forthcoming changes at length with speakers from the Cabinet Office and PASS Procurement.

One key thing we took away from this conference that people need to prepare for these changes now or face not making supplier lists.

Other key, recurring themes were the importance of demonstrating sustainability and social value in tender bids. These are likely to be of great significance to commissioners going forward so we would urge potential suppliers to carefully think about what they are doing in these areas and how can they do more and demonstrate their activities in 2024 and beyond.

If you are looking to win more public sector contracts through tenders, or are worried about the impact The Procurement Act 2023 could have on your ability to win lucrative contracts in the future, contact us on 0330 1331 041 or info@klowconsulting.com.

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What is the NHS System Oversight Framework and what does it mean for procurement going forward?

NHS procurement

At the end of June, NHS England (NHSE) announced plans to transform the way integrated care systems (ICSs) buy non NHS goods and services in a document entitled NHS System Oversight Framework 2021/22.

But what is the significance of this framework? And what will it change for companies and organisations looking to land NHS contracts?

What is the NHS System Oversight Framework?

The NHS System Oversight Framework for 2021/22 replaces the NHS Oversight Framework for 2019/20, which brought together arrangements for provider and Clinical Commissioning Groups (CCGs) oversight in a single document.

The purpose of the document/framework is to reinforce the system-led delivery of integrated care, in line with the vision set out in the NHS Long Term Plan, the White Paper Integration and Innovation: Working Together to Improve Health and Social Care for All, and aligns with the priorities set out in the 2021/22 Operational Planning Guidance.

This framework applies to all Integrated Care Systems (ICSs), Clinical Commissioning Groups (CCGs), NHS trusts and foundation trusts and focuses on five key metrics:

  1. Quality of care
  2. Access and outcomes
  3. Preventing ill health and reducing inequalities
  4. People; finance and use of resources
  5. Leadership and capability

The approach to oversight is characterised by the following key principles:

a. working with and through ICSs, wherever possible, to tackle problems

b. a greater emphasis on system performance and quality of care outcomes, alongside the contributions of individual healthcare providers and commissioners to system goals

c. matching accountability for results with improvement support, as appropriate

d. greater autonomy for ICSs and NHS organisations with evidence of collective working and a track record of successful delivery of NHS priorities, including tackling inequality, health outcomes and access

e. compassionate leadership behaviours that underpin all oversight interactions

Implementation of the framework

While the scope of this framework reflects the role of NHS England and NHS Improvement as a national regulator of NHS provided and/or commissioned  services, it also recognises that ‘the vision for ICSs is based on the core principles of equal partnership across health and local government: subsidiarity, collaboration and flexibility’ and that ‘delivering the priorities for the NHS depends on collaboration across health and care, both within a place and at scale’.

But implementing the framework won’t be easy and straight forward.

NHS leaders are looking for specificity in how oversight will operate within a system context and there will need to be a high degree of flexibility to design approaches that best reflect local circumstances and maintain ownership and engagement across the full range of system partners.

But implementing the framework won’t be easy and straight forward.

NHS leaders are looking for specificity in how oversight will operate within a system context and there will need to be a high degree of flexibility to design approaches that best reflect local circumstances and maintain ownership and engagement across the full range of system partners.

When will the framework be implemented?

The existing statutory roles and responsibilities of NHS England and NHS Improvement in relation to trusts and commissioners remain unchanged for 2021/22. The framework sets out how NHS leaders and organisations will be required to operate with their partners in ICSs from April 2022.

The oversight framework will be updated further for 2022/23. The updated document is expected to confirm ICSs’ formal role in oversight including:

bringing system partners together to identify risks, issues and support needs and facilitate collective action to tackle performance challenges

and

leading oversight and support of individual organisations and partnership arrangements within their systems.

What does it all mean going forward?

The thinking behind the framework is that local NHS procurement teams will be able to change the way they buy non-NHS goods and services and move towards a more system-level way of working, and away from procurement teams dedicated to single organisations.

ICSs will be able to “tailor their procurement organisation structure based on their respective level of maturity, spend profiles, associated phasing of roles and local considerations” but the lack of data harmonisation at local, regional and national level and clarity around best practice approach could make implementation difficult.

With regards to companies who are looking to supply the NHS at a local level, they will have to keep an eye on how this framework develops between now and April 2022 and establish relationships with the ICSs who will soon be in charge of their own procurement and spending.

If you are looking for help with securing NHS contracts, contact the K Low Consulting team on 0330 1331 041 or info@klowconsulting.com.