Scope
Reference
175MSEFT
Description
Mid and South Essex Foundation Trust ("the Authority") invited suitably experienced managed services operators to submit Tenders for the provision of managing and operating the Southend 23 hour Day Surgery Unit. The Authority is carrying out this tender process under the competitive flexible procedure, and anticipated incorporation of limited negotiation with bidders on areas such as the contract terms, the commercial offer template and KPIs.
The Authority is developing a dedicated Day Surgery Unit and 23 hour Ward to re-provide and replace elective surgical capacity and address growing demand and waiting list pressures. The facility will be a ring-fenced, standalone elective care centre connected to the main hospital to ensure access to inpatient services and diagnostics when required.
This model will ensure the delivery of a high-quality, sustainable, and efficient elective surgical service for Mid and South Essex, aligning with national elective recovery priorities.
The Authority is seeking to commission a fully managed service offer, providing the operational management and everything from the equipment to the required minimum specification, equipment installation, maintenance and consumables for NHS clinical teams and potential to contract with the independent and private sector organisations to use.
The primary objectives of the unit is to:
• Provide a modern fit for purpose environment for day surgery theatres which supports the Authority's strategy for being at the leading edge of surgery (through cutting edge equipment and responsiveness) that allows the maximum benefit for the Mid and South Essex population.
• Implement high-volume, low-complexity surgical pathways in line with Getting It Right First Time (GIRFT) principles.
• Support recruitment and retention by providing a dedicated and purpose-built environment.
The new 1900m² facility will form a fully functional, well maintained and operational suite and will comprise:
• 2 Theatres (laminar flow enabled) for a range of elective procedures.
• 1 Enhanced Treatment/Procedure Room for outpatient-based interventions.
• Pre- and post-operative recovery areas, including 8 patient pods and 2 ensuite side rooms.
• General spaces: Waiting, administration, admission and discharge areas, and staff welfare facilities.
The expectation is that the below specialities (in the form of elective day-case and 23-hour stay surgeries) will use the facilities, but this is expected to evolve over the life of the contract:
• ENT
• General Surgery
• Pain Management
• Oral Surgery
• Gynaecology
• Burns and Plastics
• Orthopaedics (excluding complex procedures requiring a clean facility)
• Urology.
This equates to circa 4,500 procedures per annum.
In addition to providing the aforementioned services, the managed services operator will be required to enter into a separate lease arrangement for the building with a specialist developer. To enable the funding and delivery of the building, the Authority has appointed a specialist developer to deliver the whole building and the fitout of the ground floor Day Surgery Unit. The funding of the project will require an established leasing structure to be implemented. This will therefore require the managed services operator to enter into lease agreements with the developer.
Lot Information:
The Authority determined that splitting the contract into lots is not appropriate for this procurement. This decision is based on the following considerations:
• Operational Integration: The services required for the bidder encompass a comprehensive and integrated approach to managing and operating the facility. Splitting the contract into lots would disrupt the seamless delivery of services, including clinical governance, equipment management, staffing, and patient safety protocols.
• Efficiency and Coordination: The nature of the services demands high levels of coordination and efficiency across various operational areas. Dividing the contract into separate lots would lead to fragmented management, potentially compromising the quality and responsiveness of service delivery.
• Specialised Expertise: The bidder is expected to provide specialised expertise in managing a high-quality surgical facility. This includes adherence to NHS standards, regulatory compliance, and continuous improvement initiatives. A single contract ensures that the bidder can leverage its full range of skills and resources without the complications of managing multiple contractors.
• Financial and Contractual Obligations: The financial structure of the contract, including lease payments and revenue generation, requires a unified approach to ensure transparency and compliance with NHS financial governance standards. Splitting the contract could lead to inconsistencies and challenges in financial management.
• Innovation and Service Development: The bidder is tasked with implementing continuous innovation and service development, including digital health technologies, personalised patient care, and sustainability initiatives. A single contract allows for a cohesive strategy and streamlined implementation of these advancements.
• Governance and Performance Monitoring: Effective governance and performance monitoring are critical to the success of the bidder. A single contract facilitates clear accountability and consistent reporting, ensuring that all aspects of service delivery are aligned with the Authority's strategic objectives.
Contract 1. Southend Day Surgery Unit Managed Services Operator
Supplier
Contract value
- £78,346,600 excluding VAT
- £94,015,920 including VAT
Above the relevant threshold
Award decision date
11 September 2025
Date assessment summaries were sent to tenderers
15 September 2025
Standstill period
- End: 24 September 2025
- 8 working days
Earliest date the contract will be signed
29 September 2025
Contract dates (estimated)
- 1 July 2027 to 30 June 2042
- Possible extension to 30 June 2047
- 20 years
Description of possible extension:
The contract will have an initial term of 15 years, with an option to extend for an additional 5 years, resulting in a maximum contract duration of 20 years.
Main procurement category
Services
Options
The right to additional purchases while the contract is valid.
Service Development and Innovation
The managed services operator should acknowledge the expectation of the Authority that the managed services operator shall make reasonable efforts to maintain a level of service that aligns with new service developments, including advancements in clinical processes and technology.
The managed services operator shall proactively review and consider relevant industry developments, innovations, and best practices to ensure that the services provided remain efficient, effective, and aligned with evolving clinical and operational needs.
Any service enhancements or technology upgrades shall be sought to be undertaken within the financial limits of the pre-agreed financial envelope, ensuring value for money and sustainability of the service.
Where any proposed developments require investment beyond the agreed financial envelope, the managed services operator shall engage with the Authority to review potential funding options, impact assessments, and feasibility considerations.
The managed services operator and the Authority shall engage in regular service review meetings to assess ongoing service alignment with industry advancements and identify opportunities for continuous improvement within the contractual framework.
The Authority may therefore wish to introduce additional requirements ("Contract modification(s)". Such contract modifications will be contemplated where additional requirements are similar and or complementary to the services already included in the specification, at any given time. To this end, providers should be aware that after the award of contract, there is a possibility that the successful Bidder may be offered a variation to the contract to accommodate for the additional/changed requirements in accordance with Sections 74 to 77 and Schedule 8 of the Procurement Act 2023.
CPV classifications
- 33100000 - Medical equipments
- 33661100 - Anaesthetics
- 33195000 - Patient-monitoring system
- 33111000 - X-ray devices
- 33168000 - Endoscopy, endosurgery devices
- 33192160 - Stretchers
- 33162000 - Operating theatre devices and instruments
- 33167000 - Surgical lights
- 31524110 - Operating-theatre lamps
- 31211110 - Control panels
- 51400000 - Installation services of medical and surgical equipment
- 33140000 - Medical consumables
- 33192000 - Medical furniture
Contract locations
- UKH31 - Southend-on-Sea
Information about tenders
- 2 tenders received
- 1 tender assessed in the final stage:
- 0 submitted by small and medium-sized enterprises (SME)
- 0 submitted by voluntary, community and social enterprises (VCSE)
- 1 supplier awarded contracts
- 0 suppliers unsuccessful (details included for contracts over £5 million)
Submission
Submission type
Tenders
Procedure
Procedure type
Competitive flexible procedure
Supplier
Medical and Diagnostic Care Group
- Public Procurement Organisation Number: PYYL-7982-HPCN
90-96 Victoria Road
Chelmsford, Essex
CM11QU
United Kingdom
Region: UKH36 - Heart of Essex
Small or medium-sized enterprise (SME): No
Voluntary, community or social enterprise (VCSE): No
Supported employment provider: No
Public service mutual: No
Contract 1. Southend Day Surgery Unit Managed Services Operator
Contracting authority
Mid and South Essex NHS Foundation Trust
- NHS Organisation Data Service: RAJ
Basildon University Hospital, Nether Mayne
Basildon
SS16 5NL
United Kingdom
Email: maninder.dulku@attain.co.uk
Website: https://www.mse.nhs.uk/
Region: UKH37 - Essex Thames Gateway
Organisation type: Public authority - central government