Target Operating Model for Category Tower Service Provider contracts for NHS Supply Chain

The NHS spends approximately 5 700 000 000 GBP on goods each year. The procurement and supply of this large range of products is vital to the delivery of an effective, efficient, and resilient healthcare service. There are currently 11 specialist buying functions known as category towers, delivering clinical consumables, capital medical equipment and non-medical products such as food, hotel, and office solutions. In 2018, and as part of the Future Operating Model for NHS procurement, SCCL (the management function of the NHS Supply Chain) entered contracts with 11 Category Tower Service Providers (CTSPs) to provide procurement services to any or all of the following: any NHS Trust, any NHS entity; and any government department agency or other statutory body and./or any private sector health care provider of NHS funded care. This PIN is to help inform the strategy to best meet the future procurement and supply chain needs of the NHS in England, and to inform the market that SCCL is reviewing their approach to the market for the delivery of its Category Towers. Please note that the final structure and approach to the Target Operating Model for Category Towers and the Category Tower Service Providers (including in respect of any lotting strategy) will be determined as a result of the market engagement and will be set out in the Contract Notice for any related future procurement. SCCL reserves the right to use lotting strategies as part of any future tender process. Any final contract(s) may feature multiple procurements/lots. Given the range of requirements across the 11 Category Tower Service Provider contracts and based on the current contract term of 3 + 1 + 1 years, the average Contract Year Target Open Book Cost for a Category Tower is £3.9 million (excluding VAT). Any values stated within this PIN are indicative only of the current contracts. Anticipated contract values will be included in the Contract Notice for any related future procurement. To assist with pre-tender market engagement and scoping of the procurement, interested parties are advised to express their interest in accordance with the information provided, within this PIN. Potential Providers are advised to refer to 'ADDITIONAL INFORMATION SECTION V1.3' below for further important information about Market Engagement Sessions including webinars and the pre-market engagement questionnaire.