Agenda item

Report of the Portfolio Holder for Adult Care and Local Transport

Steve Oakley, Acting Director of Commissioning and Procurement, presented the report outlining the proposal to procure a framework of suppliers of a range of Personal Protective Equipment (PPE) to the Council in line with UK and EU standards. The framework is intended to provide a stable and cost effective supply to meet the Council’s requirements both for routine supplies and for specialist products as and when needs arise. It is proposed that it will be available for use by other local and regional partners for their PPE purchasing needs.

Resolved to

(1)  undertake a procurement process to establish a framework for the supply of Personal Protective Equipment, for use by Nottingham City Council and a number of named partner organisations;

(2)  delegate authority to the Director of Commissioning and Procurement to approve the outcome of the procurement process and for the award of call off contracts under the framework;

(3)  approve a maximum NCC spend under the framework of £2m per annum for up to 10 years (maximum £20m in total).

Reasons for recommendations:

·  Since the start of the Covid 19 outbreak in March 2020, the Council’s need for a range of PPE supplies has increased dramatically. At the same time, the market for these products has become more competitive and it has become apparent that a supply source is needed which reflects this changing context.

·  It is expected that the Council will have ongoing needs for both routinely used and specialist PPE products beyond the current Covid 19 outbreak, although the nature and scale of the potential need in future years is difficult to project. The proposed framework will provide a compliant mechanism for the ongoing purchase of PPE supplies through an open procurement process in accordance with Council’s Financial Regulations and Contract Procedure Rules and EU and UK Procurement regulations.

·  The proposed framework is intended to provide a stable and cost effective supply of PPE for the Council – enabling specific products to be sourced in the quantities required as and when needs arise. The process will enable the appointment of a number of suitably qualified and skilled suppliers able to supply and deliver PPE in line with EU and UK quality standards.

·  The framework will be broken down into categories of product types, with approved suppliers listed under each. There is potential for elements such as item specific suppliers and suppliers for both routine and emergency needs. When purchasing needs arise, a mini competition can be undertaken between suppliers listed for each product to secure the best value on each occasion.

·  It is intended to make the framework available for use by other East Midlands Authorities and potentially to a wider audience. This pooling of purchasing power will increase the economies of scale and should maximise the interest from the market, securing the most competitive offers.

·  This proposal presents opportunity to generate income through a rebate charged on all expenditure under the framework. This may be as a levy charged at a set percentage rate on all purchases and would be used to cover the Council’s costs in managing the framework and associated contracts.

·  Establishment of a framework offers potential efficiencies through:

o  competition between suppliers for each call off to secure best price for each requirement at the time of purchase

o  Economies of scale through the joint purchasing arrangements with a number of partners – pooled purchasing power

o  A streamlined products list, removing administrative burden and risks of duplication of purchasing and contracting for each separately.

·  The proposed duration of the framework for up to a maximum of 10 years aims to ensure long term security of these supplies. A Dynamic Purchasing System is being considered which will allow for the inclusion of new suppliers over the duration of the framework.

Other options considered in making recommendations:

·  Do nothing. This was rejected as this does not address the need for an efficient and compliant arrangement for the ongoing purchase of PPE and will not secure the benefits of ensuring supplies are maintained to meet all future needs and to secure best value for money.