Contract

Stockpile resilience for the supply of Enteral Feed and Consumables for COVID-19 Patients

  • Department of Health and Social Care

F03: Contract award notice

Notice identifier: 2021/S 000-005030

Procurement identifier (OCID): ocds-h6vhtk-029b17

Published 12 March 2021, 11:25am



Section one: Contracting authority

one.1) Name and addresses

Department of Health and Social Care

39 Victoria Street

London

SW1H 0EU

Contact

Sachin Joshi

Email

sachin.joshi@dhsc.gov.uk

Country

United Kingdom

NUTS code

UKI32 - Westminster

Internet address(es)

Main address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

Buyer's address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

one.4) Type of the contracting authority

Ministry or any other national or federal authority

one.5) Main activity

Health


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

Stockpile resilience for the supply of Enteral Feed and Consumables for COVID-19 Patients

Reference number

C16813

two.1.2) Main CPV code

  • 33692300 - Enteral feeds

two.1.3) Type of contract

Supplies

two.1.4) Short description

Stockpile resilience for the supply of Enteral Feed and Consumables for COVID-19 Patients.Four contracts awarded in preparation for the expected Winter/Spring surge in COVID-19 hospital ICU admissions.

two.1.6) Information about lots

This contract is divided into lots: No

two.1.7) Total value of the procurement (excluding VAT)

Value excluding VAT: £5,412,000

two.2) Description

two.2.3) Place of performance

NUTS codes
  • UKI - LONDON
Main site or place of performance

This contract covers NHS bodies in England, Wales, Scotland and Northern Ireland.

two.2.4) Description of the procurement

The Government must protect the health and well-being of UK citizens. The COVID-19 outbreak is a Public Health Emergency of International Concern (PHEIC) as declared by the World Health Organisation on 30 Jan 2020. The WHO Director General characterised COVID-19 as a pandemic on 11 Mar 2020. The Department of Health and Social Care (DHSC) has (on behalf of NHS bodies in England, Wales, Scotland and Northern Ireland) awarded four contracts in preparation for the expected Winter/Spring surge in COVID-19 hospital ICU admissions. The aim was to create a stockpile of Enteral Feed and the associated consumables needed to administer the feed into patients, ensuring a continuity of supply of these essential life-saving products.These four contracts were awarded to the following organisations:- Abbott Laboratories Limited;- Fresenius Kabi Ltd;- Nutricia Ltd;- Nutricia Ireland LtdThe specific goods include:- Enteral water, - High protein enteral tube feed - Enteral pumps specifically compatible for giving these specific goods. The aggregated maximum value of this contract's initial term is estimated to be £5,412,000.00 + VAT. The volumes identified are based on clinically identified and validated assumptions. The four Contracts commenced 1st October 2020 and expire on 30th June 2021 and contain an option to extend to a maximum of 30 June 2022 (in order to respond to further waves and surges).Each hospital across these NHS bodies have pre-existing contracts in place for the same product ranges procured under these contracts, with the awarded suppliers. These NHS Bodies have pre-existing capital equipment installed for the purpose of administering enteral feed to patients under their care. The manufacturer of that capital equipment also supplies the enteral feed and the associated consumables to be used with their equipment. The feed and consumables required as part of this stockpile are tied to the manufacturer of installed capital equipment (i.e., one manufacturer’s feed or consumables is not compatible with another manufacturer’s equipment). All of these products have been clinically accepted at each organisation, and the staff have already been trained on their appropriate use. DHSC has awarded contracts to three manufacturers whose installed capital equipment base provides coverage across the majority of the NHS bodies, to ensure sufficient volume of the enteral feed and consumables products. Each awarded supplier is required to: manufacture above their annual Business As Usual (BAU) volumes of products; store and manage a stockpile of those products; and distribute through each NHS bodies established procurement and logistics routes. DHSC is not purchasing the stock up front – this will be purchased by the NHS in their usual way. However, any unsold above BAU products remaining at the end of the contract will be bought by DHSC, allowing DHSC to ensure the NHS has available sufficient volume of product available when needed. Please note that:1. The Contract Award Notice will also need to be published in OJEU, as the procurement activities began prior to the UK leaving the EU on the 31st December 2020. However, the system is experiencing a technical delay in dual publishing, and the Contract Award Notice will be submitted to OJEU in the coming weeks once this issue has been resolved.2. A copy of the four redacted contracts has been published on the Contracts Finder portal.3. One of the awarded suppliers (Nutricia) required that two contracts were entered into to cover (a) England, Wales and Scotland and (b) Northern Ireland, as they operate as different businesses in theses territories.

two.2.5) Award criteria

Price

two.2.11) Information about options

Options: No

two.2.13) Information about European Union Funds

The procurement is related to a project and/or programme financed by European Union funds: No


Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Award of a contract without prior publication of a call for competition in the cases listed below

  • The services can be provided only by a particular economic operator for the following reason:
    • absence of competition for technical reasons

Explanation:

Severally ill patients with COVID-19 may become unconscious or acutely unwell and unable to self feed to ensure sufficient calorie and nutritional intake to aid their recovery journey. These patients may as a result need invasive medical support with basic functions such as breathing and feeding. In the case of patients who are unconscious and on full time ventilation support or patients receiving significant oxygen support, hydration, calorie and nutritional requirements would be administered by enteral feeding.The specific goods procured under these four contracts include; enteral water, high protein enteral tube feed and enteral pump specifically compatible for giving the specific goods. Competition for these supplies contracts is absent for technical reasons as the NHS bodies have an established installed capital equipment base with these four providers. These suppliers account for significant proportion of the market share for enteral pumps and enteral tube feed across the NHS. Each of these NHS bodies have previously procured the Enteral Feed Giving Sets and matching Pumps from one of these four contracted suppliers and there is a lack of interchangeability between products and equipment. The NHS bodies have established staff training, prescribing and dispensing protocols for administering these products. Only the awarded manufacturers of these feeds have the production capability to produce the compatible products in the stockpile volumes to provide the resilience required for a future surge in COVID activity; have the established logistics infrastructure, and associations with the NHS bodies to maintain their supply (over and above their BAU volumes) in line with their existing installed base of equipment. The size of the proposed reserve stock with each supplier is proportionate to their current market share based on installed pump base across the NHS.

four.1.8) Information about the Government Procurement Agreement (GPA)

The procurement is covered by the Government Procurement Agreement: Yes


Section five. Award of contract

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

25 February 2021

five.2.2) Information about tenders

Number of tenders received: 4

Number of tenders received from SMEs: 0

Number of tenders received from tenderers from other EU Member States: 1

Number of tenders received from tenderers from non-EU Member States: 0

Number of tenders received by electronic means: 0

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor

Abbott Laboratories

Abbott House, Vanwall Road, Maidenhead, Berkshire

Maidenhead

SL6 4XE

Country

United Kingdom

NUTS code
  • UKJ1 - Berkshire, Buckinghamshire and Oxfordshire
National registration number

329102

Internet address

https://www.abbott.co.uk/

The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Initial estimated total value of the contract/lot: £5,412,000

Total value of the contract/lot: £1,673,000


Section five. Award of contract

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

25 February 2021

five.2.2) Information about tenders

Number of tenders received: 4

Number of tenders received from SMEs: 0

Number of tenders received from tenderers from other EU Member States: 1

Number of tenders received from tenderers from non-EU Member States: 0

Number of tenders received by electronic means: 0

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor

Nutricia Ltd

Whitehorse Business Park, Trowbridge, Wiltshire

Trowbridge

BA14 0XQ

Country

United Kingdom

NUTS code
  • UKK1 - Gloucestershire, Wiltshire and Bristol/Bath area
National registration number

00275552

Internet address

https://www.nutricia.co.uk/

The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Initial estimated total value of the contract/lot: £5,412,000

Total value of the contract/lot: £2,865,000


Section five. Award of contract

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

25 February 2021

five.2.2) Information about tenders

Number of tenders received: 4

Number of tenders received from SMEs: 0

Number of tenders received from tenderers from other EU Member States: 1

Number of tenders received from tenderers from non-EU Member States: 0

Number of tenders received by electronic means: 0

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor

Fresenius Kabi Limited

Cestrian Court, Eastgate Way, Manor Park, Runcorn, Cheshire

Runcorn

WA7 1NT

Country

United Kingdom

NUTS code
  • UKD6 - Cheshire
National registration number

2182135

Internet address

https://www.fresenius-kabi.com/

The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Initial estimated total value of the contract/lot: £5,412,000

Total value of the contract/lot: £748,000


Section five. Award of contract

A contract/lot is awarded: Yes

five.2) Award of contract

five.2.1) Date of conclusion of the contract

25 February 2021

five.2.2) Information about tenders

Number of tenders received: 4

Number of tenders received from SMEs: 0

Number of tenders received from tenderers from other EU Member States: 1

Number of tenders received from tenderers from non-EU Member States: 0

Number of tenders received by electronic means: 0

The contract has been awarded to a group of economic operators: No

five.2.3) Name and address of the contractor

Nutricia Ireland Ltd

25/28 North Wall Quay, Dublin 1, D01 H104

Dublin

D01 H104

Country

Ireland

NUTS code
  • IE - IRELAND
National registration number

106997

The contractor is an SME

No

five.2.4) Information on value of contract/lot (excluding VAT)

Initial estimated total value of the contract/lot: £5,412,000

Total value of the contract/lot: £126,000


Section six. Complementary information

six.4) Procedures for review

six.4.1) Review body

High Court

39 Victoria Street

London

SW1H 0EU

Country

United Kingdom

Internet address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

six.4.2) Body responsible for mediation procedures

High Court

39 Victoria Street

London

SW1H 0EU

Country

United Kingdom

Internet address

https://www.gov.uk/government/organisations/department-of-health-and-social-care

six.4.4) Service from which information about the review procedure may be obtained

Department of Health and Social Care

39 Victoria Street

London

SW1H 0EU

Country

United Kingdom

Internet address

https://www.gov.uk/government/organisations/department-of-health-and-social-care