Procurement Strategy · 10 | Page NHS National Procurement Strategy 2019-2024 V1.1 3.4. Objective 3: Increase our services impact Goals Provide value for money and maximise efficiencies

1

2019 – 2024

- 2024

Version 1.1 18 September 2019

NHS National Procurement

Procurement

Strategy

2

Table of Contents

Introduction / Executive summary ......................................................................................... 4

1. Procurement Vision / Mission Statement ........................................................................ 5

1.1. Procurement vision ................................................................................................. 5

1.2. Procurement mission .............................................................................................. 5

1.3. Procurement purpose ............................................................................................. 5

2. Strategy Rationale / Context .......................................................................................... 6

2.1. Overview ................................................................................................................. 6

2.2. NHS NSS NP procurement spend .......................................................................... 6

2.3. Legislative framework ............................................................................................. 7

3. Strategic aims, objectives & key priorities ...................................................................... 8

3.1. NHS NSS NP strategic objectives ........................................................................... 8

3.2. Objective 1: Customer at the heart .......................................................................... 8

3.3. Objective 2: Improving the way we do things ......................................................... 9

3.4. Objective 3: Increase our services impact ............................................................. 10

3.5. Objective 4: Be a great place to work .................................................................... 11

4. Spend .......................................................................................................................... 12

5. Mandatory Obligations ................................................................................................. 13

5.1. Introduction ........................................................................................................... 13

5.2. Regulated & OJEU procurements ......................................................................... 13

5.3. Achieving our purpose .......................................................................................... 13

5.4. Delivery of value for money ................................................................................... 13

5.5. NHS NSS NP Priorities for Public Procurement .................................................... 14

5.6. Engaging with our service users ........................................................................... 15

5.7. Engaging with suppliers ........................................................................................ 15

5.8. Sustainable Procurement Duty.............................................................................. 16

5.9. Community benefits .............................................................................................. 16

5.10. Food procurement................................................................................................. 17

3 | Page NHS National Procurement Strategy 2019-2024 V1.1

5.11. Scottish Living Wage ............................................................................................ 17

5.12. Compliance by contractors and sub-contractors with the Health and Safety at Work

etc. Act 1974 ................................................................................................................... 18

6. Monitoring, reviewing and reporting ............................................................................. 19

6.1. Monitoring our objectives ...................................................................................... 19

6.2. NHS NSS NP Contract Register ........................................................................... 19

6.3. Approach to framework call offs ............................................................................ 19

6.4. Annual Report ....................................................................................................... 19

7. Strategy ownership & contact details ........................................................................... 20

8. Policies, tools & procedures ......................................................................................... 21

9. Glossary ...................................................................................................................... 22

DOCUMENT CONTROL SHEET: ....................................................................................... 24


Introduction / Executive summary

NHS National Services Scotland National Procurement (NHS NSS NP), a division of

National Services Scotland (NSS), is the largest public procurement organisation in

Scotland. We support health and the wider public sector by leading in strategic procurement

services covering £1.4billion across 348 collaborative contracts. Over the last five years,

this activity has yielded savings of £268million.

We provide safe, high quality, value for money products and services enabling the delivery

of health and social care across NHSScotland. All of public sector, including health are

facing a challenge of increasing demand, against a backdrop of increased economic

pressure. Public procurement in Scotland is changing, with savings now expected as

business as usual and an emphasis on providing innovative product and services to support

the nation, the economy and the environment.

The purpose built National Distribution Centre (NDC) provides a unique logistics service for

the NHS in Scotland by consolidating supplier deliveries at the NDC for onward distribution

to the health boards. We are committed to supplying high quality and cost-effective products

to our customers and work with suppliers to ensure on-time delivery from the National

Distribution Centre (NDC) at Canderside, Larkhall

NHS NSS NP will deliver its vision through 4 strategic objectives:

Customers at the heart

Improve the way we do things

Increase our services impact

Be a great place to work

This strategy sets out the procurement objectives of NHS NSS NP over the period of 2019-

2024. We provide an outline showing how the organisation will support Scottish

Governments performance frame work aligned to NHS NSS core objectives. NHS NSS NP

want the people of Scotland to have the best possible health and care service in the world.

We know we can play an important role in making this a reality for them. Over the next 5

years, we will support the change that is needed across health and care, while also

reforming our services so they remain integral to the on-going success of NHSScotland and

the wider health and care landscape.


1. Procurement Vision / Mission Statement

1.1. Procurement vision

To be the Centre of Expertise for Health delivering commercial and supply chain

solutions for all common goods and services to the people of Scotland.

1.2. Procurement mission

To deliver sustainable and innovative commercial solutions that have a positive

impact on patients and the Scottish economy.

1.3. Procurement purpose

To support the health and wealth of Scotland by delivering services and solutions which

stimulate equality and economic growth.

To ensure the continuity of supply, providing goods and services where they are needed,

when they are needed.

To embrace emerging technologies and digital solutions to create a commercial function

fit for the future.

To add value in all that we do, creating opportunities to deliver financial and wider

economic benefits from our services.

To ensure the impact on patients is a key factor in our commercial decision making.

To ensure the highest levels of transparency and controls for the use of the public funds

entrusted to us.


2. Strategy Rationale / Context

2.1. Overview

NHS NSS NP is a national organisation operating at the heart of NHSScotland and the

wider public sector. We lead and support or health board customers in Scotland to

deliver their services more efficiently and effectively, enabling health and care

transformation with new services, underpinning NHSScotland with operationally excellent

services and assisting other organisations involved in health and care.

The purpose of this strategy is to document how NHS NSS NP will support NHSScotland

to provide its services to its customers.

2.2. NHS NSS NP procurement spend

NHSScotland has a total trade spend of £2.5billion. Of that, the procurement spend

managed by NHS NSS NP collaborative contracts is currently £1.4billion. Achieving best

value against the expenditure is managed via comprehensive market understanding,

national contracting, bulk deals and supplier negotiation.

Figure 1 NHSScotland Total Trade Spend 2018-2019 (Spikes Cavell)

39%

12% 12%

8% 5%

4%

3%

3% 3%

2% 2% 1% 1% 1% 1%

1% 1% 0% 0% 0%

NHSScotland Total Trade Spend 18/19 £2.54b

Healthcare Facilities Management

Social Care & Services ICT

Construction Human Resources

Utilities & Energy Financial Services

Other Goods & Services Vehicles

Business Support Services Food, Beverage & Catering

Laboratory Waste & Environmental Services

Travel & Accommodation Marketing & Media

Transport Security Equipment & Services

Professional Services Manufacturing & Machinery


2.3. Legislative framework

Scottish Public Sector Procurement operates under the following legislative framework;

European Treaties and Directives and

The Public Contracts (Scotland) Regulations 2015 (Procurement

Regulations) and

The Procurement Reform (Scotland) Act 2014 (the Reform Act).

The interpretation and implementation of this legislative framework is influenced by

substantial case law from across the United Kingdom and Europe making this a

constantly evolving area within which to operate.

The legislation is reflected within the NHS NSS Standing Financial Instructions relating to

Contracts and Corporate Procurement guidance by which NHS NSS NP is governed.


3. Strategic aims, objectives & key priorities

3.1. NHS NSS NP strategic objectives

The following strategic objectives form the basis of how we will deliver against our

strategy.

Customers at the heart

Improve the way we do things

Increase our services impact

Be a great place to work

These objectives link directly to the NHS NSS NP procurement objectives:

3.2. Objective 1: Customer at the heart

Goals

Ask for feedback from customers about their experiences of dealing with us. We’ll

learn from this and use it to improve

Our product and services meet the customer needs

Promote self-reliance whilst continuing to support those who need our help

Continuously improve our products and service to meet the needs of our customers

Target Areas

Our customers are well informed about what we do

Our stakeholders are engaged and support our activity

Customer surveys and action plans are in place and deliver changes to the way we

work

Our services are clearly understood and communicated

Develop customer journey maps to coordinate focussed support as needed

Our web site provides up-to-date information to enable customers to deliver safe

patient care

Our customer performance and development of improvement plans monitored

Social media is used to provide fast and clear messages to our customers


3.3. Objective 2: Improving the way we do things

Goals

Maximise the use of digital technology and data to transform our services and

support benefits delivery

Maintain effective governance

Identify areas of best practice and lead the delivery in partnership with our customers

Ensure a quality management and continuous improvement culture across NHS NSS

NP

Target Areas

Implementation of emerging eProcurement technologies across NHSScotland as a

Centre of Expertise for Health

Successful implementation of a Service Transformation Programme across NHS

NSS NP

Develop online services that are easy to access using any device, that are quick to

use and available whenever they are needed

Full all statutory and regulatory compliance

As a Centre of Expertise for Health, leading groups in response to changes in

Scottish Government (SG) / European (EU) policies and legislation, ensuring sector-

wide compliance and providing assurance to health boards

Facilitate national user groups on behalf of NHSScotland, bringing together subject

matter experts to discuss and deliver sector wide solutions.

Development a SharePoint site under the new NHSScotland Microsoft Office 365

licence to support best practice working as appropriate

Demonstrate continuous quality improvement by learning from adverse events,

complaints, comments, concerns and feedback

Learn from audit reports

Quality Management System (QMS) health checks

Delivery of efficiency and effectiveness goals

Staff involved in formal continuous improvement activity


3.4. Objective 3: Increase our services impact

Goals

Provide value for money and maximise efficiencies for our stakeholders

Provide continuity of supply in our service delivery

Embrace, encourage and manage successful change

Encourage and stimulate economic development and growth

Understand the impact of procurement decisions in the wider health system

Target Areas

Deliver successful end to end procurement services for our customers

Achieve maximum commercial value

Support and manage change

On time delivery

Increase standardisation and reduction of variation across products and services

Deliver and maintain successful supplier management programmes

Provide the appropriate level of service for both internal and external customers

Clear method of communication

Engage with the market place on development and technological advancements

Assist in promoting and adopting change

Engage and encourage small, medium enterprises (SME), third sector and supported

business suppliers to have a presence at events such as Meet the Buyer.

Engage with local schools and colleges promoting programmes such as modern

apprenticeships.

Stimulate awareness in the local community of what we do

Engage a third party to consider measurement of economic impact of NHSS

procurement in Scotland


3.5. Objective 4: Be a great place to work

Goals

To be a welcoming and motivating environment to reduce absence and maximise

productivity

To promote NSS values to ensure colleagues feel valued and supported

To work together to shape decisions and solutions

To communicate clearly in order that colleagues are well informed

Target Areas

New colleagues have a dedicated NP and Procurement Commissioning and

Facilities (PCF) on boarding experience in addition to the NSS induction

Managers have a dedicated resource area on geNSS NP and PCF team page

Staff are included in decision making

All staff are communicated with monthly on the progress of the Great Place to Work

group

Staff are encouraged to submit ideas for inclusion in the Great Place to Work group

Role and team awareness sessions are offered to encourage cross functional team

working and promote understanding of different business areas

Website pages have clear owners and updated monthly

Regular communications meetings are scheduled with representation from each

team


4. Spend

Collaborative procurement is about achieving value for money for NHSScotland by working

in partnership with NHS Scotland Health Boards, wider sector procurement teams and

suppliers.

In the financial year 2018/19 contract coverage was valued at over £1.4billion and delivered

savings in excess of £85million. Our contracting delivers a wide range of social and

economic benefits as well as significant financial savings for NHSScotland. A breakdown of

the £1.4billion showing the spend by the categories contracted by NHS NSS NP is shown

below and further details of the contracts we have placed can be viewed on Public Contracts

Scotland (PCS) website.

Figure 2 NHS NSS NP contract spend by Category

Equipping Sourcing 3%

Estates & Facilities 19%

ICT 6%

Medical Equipment 11%

Medical Surgical 11% NDC

5%

Non Medical 7%

Paramedical 3%

Pharmacy 35%

NATIONAL PROCUREMENT CONTRACT COVERAGE BY CATEGORY TEAM (2018/19) TOTAL £1.4B

Equipping Sourcing Estates & Facilities ICT

Medical Equipment Medical Surgical NDC

Non Medical Paramedical Pharmacy


5. Mandatory Obligations

5.1. Introduction

This section documents NHS NSS NP’s approach to meeting the mandatory

requirements of the Reform Act.

5.2. Regulated & OJEU procurements

All regulated procurements which are broadly those procurement exercises with a total

contract value in excess of £50,000 to which the procurement regulations and the Reform

Act apply will be advertised on the Public Contracts Scotland (PCS) website. As NHS

NSS NP will advertise, and subsequently award, on the PCS website the functionality of

the site will automatically publish and maintain our contract register for public viewing.

5.3. Achieving our purpose

To ensure benefits are delivered effectively, the Procurement team will engage closely

with colleagues who are subject matter experts on substantive procurements. For those

regulated procurements of a value between £50,000 and the threshold value at which the

procurement regulations apply we will utilise the Procurement Journey Route 2 which

documents, in detail, how such procurement exercises should be undertaken within the

public sector in Scotland. All procurement exercises above the threshold at which the

Procurement Regulations will be delivered using the Procurement Journey Route 3. The

Procurement Journey is developed to facilitate the public procurement regulations and by

following this journey provides assurance of equal and fair treatment of all suppliers

bidding for projects.

5.4. Delivery of value for money

NHS NSS NP will obtain value for money through best practice contracting and supplier

management and through undertaking key strategic procurement activities including:

early market engagement; splitting requirements into appropriate lots to facilitate SME,

third sector and supported business participation; including community benefit clauses;

evaluating bids on the most economic and advantageous criteria; using output based

specifications; challenging the need and demand management; ensuring robust contract

management & application of effective commercial evaluation models. The Procurement

team’s skills will be developed using the Procurement Development Framework details of

which can be accessed in the Policies, Tools & Procedures section working within the

NHS Knowledge and Skills framework.


5.5. NHS NSS NP Priorities for Public Procurement

We will ensure that we work within the national context under the Scottish Government

Priorities for Scottish Public Procurement, which aligns with the National Performance

framework.

Figure 3 Priorities for Scottish Public Procurement

Basing our procurement objectives around the renewed procurement priorities outlined

above we will implement approaches within the Scottish public sector procurement

model.

Each market category of spend has a broad commercial ‘Tier 1’ strategy driven by the

type of goods or services procured and their fit to the NHS Scotland Contracting

Framework. The NHS Scotland Contracting Framework is designed to aggregate demand

across the public sector to achieve best value. The framework establishes the lead

contracting authority and allocates contracts into ‘Contracting Categories’ which define

this responsibility. The framework ‘Contracting Categories’ relevant to NHS Scotland are:


Category A – Contracted for all Scottish Public Sector bodies by Procurement Scotland.

Category B – Contracted for all NHS Scotland organisations by NHS NSS NP.

Category C – Contracted individually by NHS Scotland organisations, including NHS

NSS.

5.6. Engaging with our service users

NHS NSS NP’s work impacts service users directly in many ways; be it donor beds for the

Scottish Blood Transfusion service or management and transportation of GP patient

records. We will work with colleagues across NHSScotland to use best practice

approaches when engaging with the public.

5.7. Engaging with suppliers

We will continue to identify all service and product spend that is eligible to be subject to

regulated procurements and will place this spend on our activity work-plan to ensure all

opportunities are advertised to the market through Public Contracts Scotland.

As each contracting activity is different, market engagement strategies will primarily be

defined within the individual contracting strategy. We will continue to engage with the

wider market through events such as Procurex & Procurement 4 Health Scotland (P4H)

along with participating in smaller supplier focussed events as they arise such as those

facilitated by the Supplier Development Programme.

Requirement specifications for regulated procurements will maintain the core philosophy

of being ‘outcome based’ to ensure participation is as wide as possible with clear, concise

wording to minimise misinterpretation. Where possible, administration burden will be

reduced for suppliers by use of electronic procurement systems which promote data re-

use. Concepts such as the European Single Procurement Document (ESPD) mean

suppliers can enter details once and then re-use for all further competitions.

Using procurement procedures such as Dynamic Purchasing Systems (DPS) can also

greatly reduce supplier administration burden and speed up tender procedures for

individual contracts under the DPS, and open up the opportunity to as wide a range of

suppliers as possible.


5.8. Sustainable Procurement Duty

Our organisation will meet our Sustainable Procurement Duty through the use of the

following Scottish Government tools:

Scottish Public Procurement Prioritisation Tool

The Sustainability test

Life Cycle Impact Mapping

Scottish Flexible Framework.

All regulated procurements now incorporate the sustainability test, with whole life costing

being applied where suitable.

5.9. Community benefits

In support of our commitment to the Sustainable Procurement Duty, we will commit to

identify opportunities to embed community benefits within our contracts. A summary of

these are:

• Community Activity (investment in building, resource, facilities (new or repair), human

resources)

• Employment (apprenticeships, employing unemployed, training, skills development

and supporting return to work)

• Supporting Education (school visits, presentations, factory or site visits, education,

training and learning)

• Economic (supporting SMEs, third sector and supported businesses (indirectly,

directly or via sub-contracting)

• Environmental wellbeing of the authority’s area in a way linked to the main purpose

of the contract in which the requirement is included.

The primary approach we will use to identify opportunities will be to run the sustainability

test at contract strategy stage and will be completed in full consultation with our expert

user group. This exercise will highlight priority areas that could be included within the

contract to deliver associated community benefits.


5.10. Food procurement

We will ensure the highest levels of standards are maintained in both the obtaining of

food supplies and the onsite preparation of food to ensure the wellbeing of our staff and

visitors. The skills, knowledge and experience of procurement professionals within the

commodity team will provide assurance that the highest standards of animal welfare are

maintained at all times and that we are aware of and are operating to the latest legislative

requirements. We are fully engaged and participate in the public sector food forum to

ensure compliance with legislation.

5.11. Scottish Living Wage

As a responsible procurement organisation, we understand that public procurement is a

key driver of policy development and service delivery which supports sustainable

economic growth. As such we take seriously the need to balance value for money with

fair and equal pay for those employed in delivering our goods and services.

It is not possible to set payment of the Living Wage to staff as a mandatory requirement

within a competitive procurement process where the Living Wage is greater than any

Minimum Wage set by or in accordance with law.

We support the Scottish Government’s position that:

employers whose staff are treated fairly, who are well-rewarded, well-motivated, well-

led, have access to appropriate opportunities for training and skills development, and

who are a diverse workforce are likely to deliver a higher quality of service. Further,

we hold that good relationships between employers and their workforce contribute to

productivity and ultimately sustainable economic growth.

Further, we support the Scottish Government’s belief that it considers:

the payment of the Living Wage to be a significant indicator of an employer’s

commitment to fair work practices and that payment of the Living Wage is one of the

clearest ways that an employer can demonstrate a positive approach to its workforce.

Our Procurement team have all received training in sustainable procurement and have

developed an understanding of the Procurement Reform (Scotland) Act 2014 and its

associated implications. We have used the available tools to identify services at risk in

this regard through the prioritisation tool and sustainability tests and have begun

evaluating fair working practices in associated regulated tenders.


5.12. Compliance by contractors and sub-contractors with the Health and Safety at

Work etc. Act 1974

All non-NHS NSS NP personnel working on site are expected to adhere to NSS facilities

management policies, tools and procedures.


6. Monitoring, reviewing and reporting

6.1. Monitoring our objectives

The strategic objectives presented within this strategy will be measured and shared with

the NSS Finance and Performance and Procurement Committee on a regular basis.

6.2. NHS NSS NP Contract Register

We support the requirement of the Reform Act to publish and maintain a public facing

contracts register and will use the functionality available on the Public Contracts Scotland

(PCS) website. All our public contracts of value above £50,000 shall appear on this

register. In practice we will publish many contracts below this threshold, further

evidencing our commitment to transparency.

6.3. Approach to framework call offs

Any call off from a framework agreement with a single supplier that does or is expected to

exceed (in the case of multiple call offs) a value of £50,000 over the lifetime of the

framework will have an associated contract award notice placed on PCS.

6.4. Annual Report

Our annual report will be published in the first quarter of the following financial year in line

with statutory guidance and will be approved by the Director of Procurement,

Commissioning and Facilities and the NSS Chief Executive prior to publication on our

website nhsscotlandprocurement.scot.nhs.uk. The annual report will contain the following

information as a minimum:

A summary of the regulated procurements that have been completed during the year

covered by the report.

A review of whether those procurements complied with the NHS NSS NP strategy.

To the extent that any regulated procurements did not comply with the Reform Act,

reasons for this and a statement of how NHS NSS NP intends to ensure that future

regulated procurements do comply.

A summary of any community benefit requirements imposed as part of a regulated

procurement that were fulfilled during the financial year covered by the report.

A summary of any steps taken to facilitate the involvement of supported businesses

in regulated procurements during the year covered by the report.

A summary of the regulated procurements NHS NSS NP expects to commence in

the next two financial years.


7. Strategy ownership & contact details

In line with the Reform Act and to ensure our Annual Procurement Report details our

performance against strategy, this strategy will be subject to formal annual review by the

NSS Finance Performance and Procurement Committee. This will take account of any

changes to organisational objectives and in NHS and Scottish Government policies and

strategies. This review will also take account of the key targets and National Framework

objectives under development by the Procurement Steering Group.

Strategy Owner: Martin Street

Designation: Strategic sourcing Director

Email: [email protected]

mailto:[email protected]


8. Policies, tools & procedures

National Policies, Tools and Legislation: -

Scottish Model of Procurement

Changes to European Directives

Public Procurement Reform Programme

Procurement Reform Act Statutory Guidance

The Procurement and Commercial Improvement Programme

Suppliers Charter

EU Procurement Thresholds

Procurement Journey

PCIP

Public Contracts Scotland

Public Contracts Scotland – Tender

Information Hub

The Construction (Design and Management) Regulations 2015.

The Sustainable Public Procurement Prioritisation Tool

http://www.zerowastescotland.org.uk/

http://www.resourceefficientscotland.com/

The Scottish Health Council

The Procurement Competency Framework

NHSS Additional Terms and Conditions of Supply (Food) 2015

NHS NATIONAL Control of Contractors

NHS NATIONAL Corporate Policies and Statements can be located here.

http://www.gov.scot/Topics/Government/Procurement/about/spd-aims

https://www.gov.uk/guidance/transposing-eu-procurement-directives



http://www.gov.scot/Topics/Government/Procurement/about/Review



http://www.gov.scot/Topics/Government/Procurement/policy/ProcurementReform/ProcReformAct/statutoryguidance

https://www.procurementjourney.scot/node/221/

http://www.gov.scot/Topics/Government/Procurement/Selling/Supplierscharter2

http://www.gov.scot/Topics/Government/Procurement/policy/10613



https://www.procurementjourney.scot/

https://www.procurementjourney.scot/procurement-and-commercial-improvement-programme

http://www.publiccontractsscotland.gov.uk/



https://www.publictendersscotland.publiccontractsscotland.gov.uk/esop/pts-host/public/pts/web/login.html



http://www.gov.scot/Topics/Government/Procurement/eCommerce/ScottishProcurementInformationHub

http://www.gov.scot/Topics/Government/Procurement/eCommerce/ScottishProcurementInformationHub

http://www.legislation.gov.uk/uksi/2015/51/contents/made

http://www.gov.scot/Topics/Government/Procurement/policy/corporate-responsibility/Sustainability/ScottishProcess/SustainableProcurementTools/SustainablePublicProcurementPrioritisationTool

http://www.zerowastescotland.org.uk/

http://www.resourceefficientscotland.com/

http://www.scottishhealthcouncil.org/patient__public_participation/patient__public_participation.aspx

http://www.gov.scot/Topics/Government/Procurement/Capability/proccompfw

https://nhsnss.org/how-nss-works/policies-and-statements/


9. Glossary

Term Definition

Commodity Classification for NHS NSS NP to provide the ability to

accurately describe the primary business activities of their

suppliers.

Category A collection of similar commodities grouped together to

support category management

Category

Management

a process which relies on cross functional teamwork to

generate procurement outcomes that fully satisfy agreed

business needs

European Single

Procurement

Document (ESPD)

A single common document intended, by the European

Commission, to reduce the administrative burden on

bidders and remove some of the barriers to participation in

public procurement, especially for small to medium-sized

enterprises (SMEs)

Freedom of

Information

A public "right of access" to information held by public

authorities

Invitation to Tender A call for bids, call for tenders, or invitation to tender (ITT,

often called tender for short) is a special procedure for

generating competing offers from different bidders looking

to obtain an award of business activity in works, supply, or

service contracts.

Supported Business An establishment where more than 50% of the workers are

disabled persons who by reason of the nature or severity

of their disability are unable to take up work in the open

labour market

Standing Financial

Instructions

Details the financial responsibilities, policies and

procedures adopted by NHS NSS NP. They are designed

to ensure that financial transactions are carried out in

accordance with the law and government policy in order to

achieve probity & accuracy.

Whole Life Costing A technique used to establish the total cost of acquisition

and ownership. It is a structured approach which


addresses all the elements of cost and can be used to

produce a spend profile of the product over its anticipated

lifespan.

Circular Economy A circular economy is an alternative to a traditional linear

economy (make, use, dispose) in which we keep

resources in use for as long as possible, extract the

maximum value from them whilst in use, then recover and

regenerate products and materials at the end of each

service life

Community Benefits Community benefits are requirements which deliver wider

benefits in addition to the core purpose of a contract.

These can relate to social- economic and or environmental

benefits.

Cost Avoidance The act of eliminating costs or preventing their occurrence

in the first place. It tends not to show up on, but materially

impacts, the bottom-line cost and is normally referred to as

a “soft” cost saving i.e. negating supplier requests to

increase costs, procuring services/goods/ works under

budget, obtaining prices lower than the market

average/median

Small and Medium

Sized Enterprises

Enterprises which employ fewer than 250 persons and

which have an annual turnover not exceeding Enterprises

(SMEs) 50 million euro, and/or an annual balance sheet

total not exceeding 43 million euro


DOCUMENT CONTROL SHEET:

Key Information:

Title: NHS NSS NP Strategy

Date Published/Issued: 20 September 2019

Date Effective From: 20 September 2019

Version/Issue Number: V1.1

Document Type: Strategy

Document Status: Final

Author: F. Livingstone

Owner: Martin Street, Director, Strategic Sourcing Directorate

Approver: PCF Director

Approved by and Date: As Above, TBC

Contact: fionalivingstone@ nhs.net

File Location:

Revision History:

Version: Date: Summary of Changes: Name:

V0.1 02./05/2019 Initial Draft Fiona Livingstone

V0.2 31/07/2019 Updating 2018/19 financial data and

2019-2024 5 year objectives

Fiona Livingstone

V0.3 01/08/2019 Further edits and formatting Fiona Livingstone

V1.0 15/08/2019 Final Version Fiona Livingstone

V1.1 20/09/2019 Revised Final Version Marie-Claire Miller

Approvals: This document requires the following signed approvals.

PCF Director

Distribution: This document has been distributed

toName:

Title/Division: Date of

Issue:

Version:

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Procurement Strategy · 10 | Page NHS National Procurement Strategy 2019-2024 V1.1 3.4. Objective 3: Increase our services impact Goals Provide value for money and maximise efficiencies