NHS Supply Chain Logistics Service Provider

  • NHS Supply Chain

F02: Contract notice

Notice reference: 2023/S 000-018444

Published 28 June 2023, 4:13pm

Section one: Contracting authority

one.1) Name and addresses

NHS Supply Chain

Wellington House, 133-155 Waterloo Road




Guy Jennings




United Kingdom

NUTS code

UK - United Kingdom

National registration number


Internet address(es)

Main address


one.2) Information about joint procurement

The contract is awarded by a central purchasing body

one.3) Communication

The procurement documents are available for unrestricted and full direct access, free of charge, at


Additional information can be obtained from the above-mentioned address

Tenders or requests to participate must be submitted electronically via


Tenders or requests to participate must be submitted to the above-mentioned address

Electronic communication requires the use of tools and devices that are not generally available. Unrestricted and full direct access to these tools and devices is possible, free of charge, at


one.4) Type of the contracting authority

National or federal Agency/Office

one.5) Main activity


Section two: Object

two.1) Scope of the procurement

two.1.1) Title

NHS Supply Chain Logistics Service Provider

Reference number


two.1.2) Main CPV code

  • 63120000 - Storage and warehousing services

two.1.3) Type of contract


two.1.4) Short description

NHS Supply Chain manage the sourcing, delivery and supply of healthcare products, services and food for NHS trusts and healthcare organisations across England and Wales. In 2018, SCCL (the management function of the NHS Supply Chain) entered contracts with 11 Category Management Service Providers (CMSPs) to provide goods and services to NHS trusts and healthcare organisations across England and Wales. Goods are delivered through two enabling services which underpin the CMSP model, these enabling services are Logistics and Fulfilment, and Supporting Technology.

NHS Supply Chain currently manages more than 8 million orders per year, across 94,000 order points and 17,465 locations and delivers over 28 million lines of picked goods to the NHS annually. Its systems consolidate orders from over 930 suppliers, saving trusts time and money by removing duplication of overlapping contracts.

As part of the future Operating Model of the NHS Supply Chain, the Authority is seeking to award a contract for the provision of a Logistics Service Provider.

A copy of the Procurement Documentation, including the Descriptive Document, can be obtained from the eProcurement Portal as described within this Contract Notice.

The contract will be for a term of Eighty-Four months (excluding an anticipated five-month initial implementation period). In addition, the contract provides for a potential extension of up to Thirty-Six months, together with a termination assistance period of Twelve months, with the possibility of extension of the termination assistance period to up to Eighteen months. The maximum potential total period of the contract (including the implementation period) is therefore One Hundred and Forty-Three months (i.e., 11 years and 11 months).

The Authority intends to enter into contractual arrangements under which it will be entitled to appoint a Logistics Service Provider to operate on behalf of NHS Supply Chain. Under this contractual agreement, the Logistics Service Provider will supply the services that are critical for the delivery of NHS Supply Chain goods procured under the CMSP frameworks which are available to 1) any NHS Trust; 2) any other NHS entity or healthcare provider (including private organisations, primary care, community settings, doctors premises, other clinical facilities and social care); 3) any government department, agency, or other statutory body (including Devolved Authorities, Crown Dependencies and/or Pandemic Planning Programmes), 4) any private sector entity active in the UK healthcare sector on behalf of a public-sector organisation listed in 1) to 4) above and/or 5) any private residence.

Supply Chain Coordination Limited is seeking a Logistics Service Provider to manage:

Warehousing at Dedicated Sites

Dedicated Fleet and Transport Operations

Inbound Logistics & Transhipment (currently a subcontracted service)

Inventory Management

Carriers and Sub-contracted Transport

Operational Finance and internal audit services 

Customer Services

Systems and applications including the implementation of a Warehouse Management System (WMS)

Facilities Management Services

International Inbound Freight Services  

A comprehensive description of the services is set out in suite of Procurement Documentation - please see ISIT Document 3, Annex 3B (Service Description).

two.1.5) Estimated total value

Value excluding VAT: £4,400,000,000

two.1.6) Information about lots

This contract is divided into lots: No

two.2) Description

two.2.2) Additional CPV code(s)

  • 42965100 - Warehouse management system
  • 66122000 - Corporate finance and venture capital services
  • 72222300 - Information technology services
  • 79993100 - Facilities management services
  • 98910000 - Services specific to international organisations and bodies

two.2.3) Place of performance

NUTS codes
  • UK - United Kingdom

two.2.4) Description of the procurement

Please refer to the suite of Procurement Documentation

two.2.5) Award criteria

Price is not the only award criterion and all criteria are stated only in the procurement documents

two.2.6) Estimated value

Value excluding VAT: £4,400,000,000

two.2.7) Duration of the contract, framework agreement or dynamic purchasing system

Duration in months


This contract is subject to renewal


two.2.9) Information about the limits on the number of candidates to be invited

Envisaged minimum number: 5

two.2.10) Information about variants

Variants will be accepted: No

two.2.11) Information about options

Options: Yes

Description of options

Further details on the scope of future requirements are set out in the procurement documents.

two.2.13) Information about European Union Funds

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

two.2.14) Additional information

Please refer to the suite of Procurement Documentation (including Document 1: Descriptive Document) for further detail

Section three. Legal, economic, financial and technical information

three.1) Conditions for participation

three.1.1) Suitability to pursue the professional activity, including requirements relating to enrolment on professional or trade registers

List and brief description of conditions

As stated in the suite of Procurement Documentation

three.1.2) Economic and financial standing

Minimum level(s) of standards possibly required

Parent company or other guarantees may be required in certain circumstances. Further details will be in the Procurement Documentation.

three.1.3) Technical and professional ability

Minimum level(s) of standards possibly required

Selection criteria as stated in the procurement documents

three.2) Conditions related to the contract

three.2.2) Contract performance conditions

As stated in the suite of Procurement Documentation

The Contracting Authority reserves the right to require groupings of entities to take a particular form or to require one party to undertake primary legal liability, or to require that each party undertakes joint and several liabilities.

Section four. Procedure

four.1) Description

four.1.1) Type of procedure

Competitive procedure with negotiation

four.1.4) Information about reduction of the number of solutions or tenders during negotiation or dialogue

Recourse to staged procedure to gradually reduce the number of solutions to be discussed or tenders to be negotiated

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

The procurement is covered by the Government Procurement Agreement: Yes

four.2) Administrative information

four.2.2) Time limit for receipt of tenders or requests to participate


18 August 2023

Local time


four.2.4) Languages in which tenders or requests to participate may be submitted


four.2.6) Minimum time frame during which the tenderer must maintain the tender

Duration in months: 6 (from the date stated for receipt of tender)

Section six. Complementary information

six.1) Information about recurrence

This is a recurrent procurement: No

six.2) Information about electronic workflows

Electronic ordering will be used

Electronic invoicing will be accepted

Electronic payment will be used

six.3) Additional information

The contracts resulting from this procurement will be executed by Supply Chain Coordination Limited ('the Authority'). The contract value estimates provided in Sections II.1.5 and II.2.6 are estimates based on historical cost data and anticipated Savings, KPI and Business Objective Fees, through an Eighty-Four month contract term (plus an initial implementation period of up to Five months, a potential extension to the term of up to Thirty-Six months. The estimated contract value does not include any termination assistance required by the Authority.

The Authority is publishing a suite of Procurement Documentation including the Descriptive Document, Selection Questionnaire Instructions, a draft of the Invitation to Submit an Initial Tender (ISIT), and the draft contract/draft contract summary (to include relevant annexes) through its eProcurement Portal with this notice. However, in accordance with the selected procurement procedure, the final form of the ISIT documents (with supporting annexes) will be issued at the appropriate point in the procurement (as defined in the Descriptive Document).

Submission of expression of interest and procurement specific information:

This procurement exercise will be conducted on the NHS Supply Chain eProcurement Portal at https://nhssupplychain.app.jaggaer.com/ The eProcurement Portal reference number for this exercise is Project_1135. Candidates wishing to be considered for this contract must register their expression of interest and provide additional procurement-specific information through the NHS Supply Chain eProcurement Portal using the URL https://nhssupplychain.app.jaggaer.com/ to access the portal. Applicants are encouraged to download the Supplier Handbook located within the eProcurement Portal by following the 'Supplier Help centre ' link within the Useful Links section of the Dashboard. For any technical help with the portal please contact: Tel: 0800 069 8630 or email: help_uk@jaggaer.com Please refer to Section III.1.1 for additional information.

six.4) Procedures for review

six.4.1) Review body

NHS England

Wellington House,133-155 Waterloo Rd,




United Kingdom

six.4.3) Review procedure

Precise information on deadline(s) for review procedures

The Authority will incorporate a standstill period following its contract award decision. The Public Contracts Regulations 2015 (as amended) provide remedies under statute for aggrieved parties.