Overview of NHS Procurement
The NHS procurement process is how the health service buys goods and services. It aims to get the best value for money while meeting patient needs.
You'll find the NHS uses different methods to buy things. These include:
- Open tenders
- Framework agreements
- Direct awards
The NHS follows rules to make sure buying is fair and open. All suppliers have an equal chance to win contracts.
NHS procurement teams look for:
- Quality products and services
- Good value
- Reliable suppliers
- Innovation
The Procurement Act will bring changes from February 2025. It aims to make buying simpler and faster.
As a supplier, you can:
- Check NHS websites for opportunities
- Join framework agreements
- Build good links with NHS buyers
When it comes to procuring health care services in England, the Provider Selection Regime (PSR) brought in big changes in 2024, which we detail further below and within a specific article.
NHS procurement hubs help manage buying. They can advise you on becoming an NHS supplier.
Remember, the NHS wants to build good relationships with suppliers. Your products or services could make a real difference to patient care. Do this effectively - you need to be approved (on key NHS frameworks) and a trusted name in the sector.
At T&L, we have an outsourced bid writing service designed to support NHS providers and suppliers access the NHS marketplace. The NHS spends billions each year. This means lots of chances for you to supply goods or services.
NHS Provider Selection Regime (PSR)
The Health Care Services (Provider Selection Regime) Regulations 2023 (SI 2023/1348) introduce a new procurement regime for the NHS in England called the Provider Selection Regime (PSR). These regulations came into force on 1 April 2024.
Key points about the PSR and its impact on suppliers:
- Application: The PSR applies to the procurement of healthcare services by NHS England, Integrated Care Boards (ICBs), and NHS Trusts. It does not apply to the procurement of goods or non-healthcare services.
- Procurement processes: The PSR introduces three main procurement processes: (a) Direct award, (b) Competitive award, and (c) Direct award with call for competition. The choice of process depends on factors such as the value and complexity of the services being procured.
- Transparency: NHS organisations must publish contract notices and contract award notices on the Find a Tender Service (FTS) for procurements above certain thresholds. This ensures transparency and allows suppliers to stay informed about potential opportunities.
- Selection criteria: Under the PSR, NHS organisations must consider a range of factors when selecting providers, including quality, value, integration, patient choice, and the ability to meet the needs of the population. Suppliers should align their offerings with these criteria to increase their chances of success.
- Challenges: Suppliers can challenge procurement decisions through a formal process if they believe the PSR has not been followed correctly. This provides a level of protection for suppliers and encourages fair competition.
Overall, the Provider Selection Regime aims to create a more flexible and collaborative approach to healthcare procurement in England. Suppliers will need to adapt their strategies and engagement methods to align with the new regime, focusing on demonstrating value, quality, and the ability to meet the specific needs of NHS organisations and the populations they serve.
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Contact us todayUnderstanding the Procurement Act 2023
The Procurement Act 2023 brings key changes to public sector buying. It aims to make the process more open and efficient for suppliers of all sizes.
Key Changes and Updates
The Act will take effect on 24 February 2025. It replaces older rules from 2015. The new law creates a more transparent system. You'll see tender notices for opportunities above certain values on central platforms.
The Act focuses on the "most economically advantageous tender" approach. This means buyers will look at more than just price. They'll consider factors like quality and social value too.
Small businesses, start-ups, and social enterprises will benefit. The Act aims to level the playing field and make it easier for you to win contracts.
Implications for Suppliers
You'll need to prepare for the new rules. The Act brings changes to how you bid for public contracts.
You might see more chances to work with the public sector. The Act aims to open up opportunities for a wider range of suppliers through increased transparency, which is of course good. However, for suppliers who rely on direct awards now - these will likely reduce to further maximise value for money. This means more mini competitions.
Be ready to show your social and environmental impact as these requirements will only increase. These factors may play a bigger role in contract awards. You may want to look at our article on Evergreen Assessments, which is a key requirement for NHS suppliers.
The NHS Supply Chain
The NHS Supply Chain plays a key role in the procurement process for the National Health Service. It serves as a central hub for purchasing and distributing medical supplies and equipment to NHS facilities across the UK.
Role and Functions
The NHS Supply Chain manages the procurement and delivery of healthcare products for NHS trusts. It aims to save money and improve efficiency by buying in bulk. The supply chain handles a wide range of items, from bandages to complex medical devices.
Key functions include:
- Negotiating contracts with suppliers
- Managing inventory
- Coordinating logistics and delivery
- Ensuring quality control
By centralising these tasks, the NHS Supply Chain helps trusts focus on patient care rather than procurement details. It also works to promote innovation in healthcare products and supports sustainable practices in the supply chain.
Engaging with the Supply Chain
As a supplier, you can engage with the NHS Supply Chain through its online portal. This platform allows you to bid on tenders and manage your contracts.
To become a supplier:
- Register on the supplier portal
- Complete the required paperwork
- Meet quality and safety standards
- Submit bids for relevant tenders
The NHS Supply Chain values innovation. If you have a new product, you can submit it for review through the portal. They also offer support to help you understand the procurement process.
How to Become an NHS Supplier
Becoming an NHS supplier involves meeting specific criteria and following a set process. You'll need to understand the eligibility requirements, application steps, and legal agreements involved.
Eligibility Criteria
To be eligible as an NHS supplier, you must meet certain standards. Your company should have a solid financial standing and a track record of delivering quality products or services. The NHS looks for suppliers who can offer value for money and support their goals of patient care and efficiency.
You'll need to show that your business complies with relevant regulations and industry standards. This includes health and safety rules, data protection laws, and any specific requirements for your product or service type.
The NHS also values suppliers who can demonstrate a commitment to sustainability and social responsibility. If you have policies or practices that support these areas, make sure to highlight them.
Application Process
The application process to become an NHS supplier starts with finding the right opportunity. You can check the NHS Supply Chain website or contact NHS procurement departments directly.
Once you've found a suitable opportunity:
- Register on the NHS Supply Chain portal
- Complete the supplier questionnaire
- Submit required documents (e.g. financial records, certifications)
- Wait for the evaluation of your application
If successful, you may be invited to tender for specific contracts. This involves submitting detailed proposals and pricing information.
The NHS uses fair and transparent procurement processes. They assess suppliers based on quality, cost, and ability to meet NHS needs.
Master Indemnity Agreement
Before supplying goods to the NHS, you'll need to sign a Master Indemnity Agreement (MIA). This legal document protects the NHS against any claims arising from the use of your products.
Key points of the MIA:
- It covers liability for product defects or failures
- You agree to compensate the NHS for any losses or damages
- The agreement is ongoing and covers all your products supplied to the NHS
To get an MIA, you need to apply through the NHS Supply Chain. They'll guide you through the process and provide the necessary forms.
The MIA is a key tool for risk management in NHS procurement. Make sure you understand its terms fully before signing.
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Contracts and Tender Opportunities
The NHS offers various ways for suppliers to find and bid on contracts. Understanding how to locate opportunities and submit competitive tenders is key to becoming an NHS supplier.
Finding Contracts
You can find NHS contract opportunities on Contracts Finder, the official UK government website. This platform lists all NHS procurements over £25,000. It shows both open tenders and closed opportunities.
To search:
- Go to the Contracts Finder website
- Use keywords like "NHS" or specific product/service names
- Filter by location, value, or date
Contracts Finder also displays future procurement plans. This helps you prepare for upcoming bids.
Some NHS trusts may post opportunities on their own websites. Check local NHS trust sites for smaller contracts.
Bidding for Tenders
When you find a suitable opportunity, read the tender documents carefully. These outline the NHS's needs and bidding rules.
Key steps in the bidding process:
- Register as a supplier if required
- Download all tender documents
- Attend any briefing sessions
- Prepare your bid, following all instructions
- Submit your tender before the deadline
Make sure you answer all questions fully. Provide clear evidence of how you meet the NHS's needs.
Evaluating Criteria
The NHS uses set criteria to assess bids. These often include:
- Quality of goods or services
- Value for money
- Technical ability
- Past performance
- Sustainability
The 'most advantageous tender' approach looks at overall value, not just price. Show how your bid offers the best mix of quality and cost.
Be aware of frameworks and dynamic markets. These are pre-approved supplier lists for specific goods or services. Getting on these can give you access to more NHS contracts.
Compliance with Public Contracts Regulations 2015
The Public Contracts Regulations 2015 set rules for procurement in the NHS. These laws aim to make buying fair and open. As a supplier, you need to know your duties under these rules.
Regulatory Framework
The Public Contracts Regulations 2015 replaced older rules from 2006. They apply to all new NHS contracts since 18 April 2016. These laws cover how the NHS buys goods and services.
Key points include:
- Set spending limits that decide which rules apply
- Make sure all suppliers get fair treatment
- Require open competition for most contracts
- Allow for quick buying in emergencies
The rules change based on contract value. Bigger contracts have stricter rules. You should check which ones apply to your deals.
Supplier Obligations
As an NHS supplier, you have duties under these laws. You must:
- Give true and up-to-date info about your business
- Follow the right steps when bidding for work
- Keep records of your dealings with the NHS
- Treat subcontractors fairly if you use them
You also need to:
- Show you can do the work safely and well
- Prove you follow laws on things like equality
- Be clear about your prices and what they cover
Breaking these rules can get you in trouble. You might lose contracts or be banned from future ones.
Collaboration and Development Opportunities
NHS procurement offers many ways for suppliers to work together and grow their businesses. These include joining trade groups, creating new products, partnering with councils, and supporting social enterprises.
Trade Association Engagement
Trade associations can help you connect with NHS buyers. Join industry groups related to your products or services. They often run events where you can meet NHS staff and learn about upcoming needs.
Many associations have special NHS programmes. These teach you about healthcare procurement rules and trends. You'll gain insights into what the NHS looks for in suppliers.
Some groups also lobby the government on behalf of their members. This can shape future NHS buying policies. By taking part, you can have a say in these discussions.
Innovation in Products
The NHS is always looking for new ways to improve patient care. You can help by developing innovative products.
Work closely with NHS staff to understand their needs. Visit hospitals and clinics to see how things work on the ground. This will help you spot gaps in current offerings.
Consider joining NHS innovation hubs. These bring together suppliers, clinicians, and researchers. You can test your ideas and get feedback from potential users.
The NHS also runs 'dragon's den' style events. These let you pitch new products directly to decision-makers. It's a great way to get your innovations noticed.
Working with Local Authorities
Local councils often work with the NHS on joint projects. These can cover areas like social care, public health, and community services.
Look for opportunities to supply both the NHS and councils. This can help you win bigger contracts and reach more users.
Attend local government networking events. You'll meet key people and learn about upcoming plans. Some areas have special health and care partnerships. These bring together NHS, council, and other local services.
Keep an eye out for council tenders that mention NHS collaboration. These can be good ways to start working with both organisations.
Supporting Social Enterprises
The NHS is keen to work with suppliers that have a positive social impact. If you're a social enterprise, make sure to highlight this in your bids.
Look for NHS contracts that include social value requirements. These often favour businesses that create local jobs or support community projects.
Consider partnering with existing social enterprises. They may need your expertise to deliver NHS contracts. This can help you both grow and win more work.
Some NHS trusts have special programmes to help social enterprises become suppliers. These can offer training, mentoring, and introductions to key buyers.
Dynamic Purchasing Systems and Frameworks
Dynamic Purchasing Systems (DPS) and frameworks are key tools for NHS procurement. They offer different approaches for suppliers to work with the NHS. Each has unique features that can benefit both buyers and sellers.
Advantages of Dynamic Systems
A DPS is an electronic system that allows new suppliers to join at any time. This creates an 'open market' for NHS organisations. You can apply to join a DPS throughout its lifespan, which often runs for several years.
DPS benefits include:
- Flexibility for suppliers to enter the market
- Simpler approval process
- Increased opportunities for small and medium-sized enterprises
The NHS uses DPS for various goods and services. It's a good fit for fast-moving sectors where new suppliers often emerge.
Participating in Frameworks
Frameworks are fixed-term agreements with selected suppliers. You must apply when the framework is first set up to be included.
Key points about frameworks:
- Set duration, often 2-4 years
- Pre-agreed terms and conditions
- Can offer quicker buying process for NHS trusts
To join a framework:
- Look for opportunities on NHS procurement websites
- Submit your bid when frameworks are being established
- If successful, you'll be able to compete for contracts within the framework
Frameworks can provide a steady stream of work if you're selected. They're used for a wide range of NHS purchases, from medical equipment to consulting services.
The NHS will often work with Crown Commercial Services for key national requirements.
Bid Resources and Support for Suppliers
At Thornton & Lowe, we offer a comprehensive range of services to help suppliers succeed in winning NHS contracts. Our expert team provides guidance and support throughout the entire procurement process, from identifying opportunities to submitting winning bids.
Bid Writing Services
Our specialist bid writers have extensive experience in creating compelling and compliant bids for NHS contracts. We can help you:
• Identify suitable NHS opportunities
• Understand the tender requirements and evaluation criteria
• Develop a winning bid strategy
• Write and review your bid responses
• Ensure compliance with NHS procurement regulations
• Maximise your quality and social value scores
• Manage the online portal submission process
Whether you need support with a specific bid or ongoing assistance, our flexible bid writing services can be tailored to your needs.
Bid Training and Mentoring
We offer a range of training and mentoring services to help you up-skill your in-house bid team and improve your chances of success. Our courses cover topics such as:
• Understanding the NHS procurement landscape
• Developing a compelling bid strategy
• Writing effective bid responses
• Showcasing your social value and innovation
• Mastering online portal submissions
Our courses can be delivered online or in-person and can be customised to your specific requirements. We also offer one-to-one mentoring for bid managers and writers, providing expert guidance and support throughout the procurement process.
Procurement Consultancy
Our procurement consultancy services help you navigate the complex world of NHS procurement and develop a winning strategy.
We can:
• Analyse the NHS market and identify growth opportunities
• Develop a targeted sales and marketing plan
• Review and optimise your bid processes and templates
• Provide bid library management and knowledge transfer
• Conduct mock evaluations and provide detailed feedback
• Advise on contract mobilisation and management
With our understanding of NHS procurement and our proven track record of success, we can help you win more business and grow your presence in the healthcare sector.
NHS Framework Support
We have extensive experience in helping suppliers secure places on key NHS frameworks, such as the NQC framework for permanent recruitment. Our services include:
• Identifying suitable framework opportunities
• Providing bid writing and submission support
• Advising on framework contract management, call-offs and mini-competitions
• Helping you maximise your framework sales and revenue
By securing a place on an NHS framework, you can open up new opportunities and streamline your sales process.
To learn more about how Thornton & Lowe can help you succeed in NHS procurement, please visit our website at or contact our team for a free consultation. Hello@thorntonandlowe.com
Frequently Asked Questions
The NHS procurement process involves several key steps and regulations for suppliers. Here are answers to common questions about becoming an NHS supplier and navigating the procurement cycle.
How can we become an approved supplier for the NHS?
To become an NHS supplier, you need to win a contract or a place on a framework. To do this, you will need to register on relevant procurement portals. Check the NHS Supply Chain website for current opportunities or Find a Tender. Submit required documents like financial records and quality certifications. Meet NHS standards for quality, safety, and value for money.
We have free tender alert and competitor analysis tool - Tender Pipeline.
What are the stages involved in the NHS procurement cycle?
The NHS procurement cycle typically includes:
- Needs assessment
- Market research
- Tender preparation
- Supplier selection
- Contract award
- Contract management
Each stage aims to ensure fair competition and best value for the NHS.
What regulations must be adhered to during NHS procurement in 2024/2025?
NHS procurement follows UK public sector rules. Key regulations include:
- Public Contracts Regulations 2015
- The Procurement Act
- NHS (Procurement, Patient Choice and Competition) Regulations 2013
- Modern Slavery Act 2015
Suppliers must comply with these rules throughout the tender process.
How does a supplier get onto an NHS procurement framework?
To join an NHS framework:
- Look for framework opportunities on NHS procurement websites.
- Check if you meet the criteria and can supply required goods or services.
- Submit a bid when the framework is open for applications.
- Pass the evaluation process, which may include quality and financial checks.
We complete a lot of NHS frameworks - from recruitment to APMS to medical supplies. Contact us - and we can advise! Hello@thorntonandlowe.com
Which online portal is used for NHS tender submissions?
The NHS uses various portals for tenders. Common ones include:
- NHS Supply Chain website
- Contracts Finder
- Tenders Electronic Daily (TED)
Check the specific tender notice to find the correct submission portal.
Direct links to NHS sites:
- NHS NHS England Commercial Pipeline
- NHS England Commercial Pipeline
- NHS England - Bravo Solutions
- NHS Trusts across Scotland can use PCS
- NHS Wales E-tendering - via Bravo
- Find a Tender Service
What strategies does the NHS employ in its procurement process?
NHS procurement strategies focus on:
- Value for money
- Quality and safety standards
- Sustainability and social value
- Innovation in healthcare products and services
- Collaboration with suppliers
The NHS aims to balance cost-effectiveness with high-quality patient care in its procurement decisions.
