Given the NHS spends more than £30 billion annually on goods and services, it’s not surprising that it’s becoming increasingly attractive to public sector suppliers. Even small businesses can get in on the action through relatively small, accessible, low-value contracts from local NHS organisations.
There are also plenty of collaboration opportunities for SMEs that form consortiums to bid on a broader range of projects, and many subcontracting opportunities for small and medium-sized enterprises to join key prime suppliers to round out their comprehensive array of services.
This post looks at how all suppliers, regardless of size, can maximise their chances of winning NHS contracts through government initiative by capitalising on available procurement opportunities.
NHS Procurement Ecosystem
The NHS procurement ecosystem is diverse, with several contracting authorities providing contract opportunities in different contexts. Here are the top four frameworks and platforms for NHS tenders.
1) NHS Trusts
NHS Trusts spend nearly £8 billion annually on medical equipment and consumables, great for suppliers who provide products like PPE, cleaning solutions, and components for things like wheelchairs and surgical instruments.
2) NHS Supply Chain Frameworks
The NHS Supply Chain spends more or less £5 billion annually on healthcare products, services, and food for Trusts and local authorities other healthcare organisations in England and Wales.
3) Integrated Care Systems (ICSs)
ICSs are partnerships of healthcare organisations that typically provide health and care services to their local communities. They replaced Clinical Commissioning Groups (CCGs) in 2022 when the Health and Care Act 2022 was established.
4) NHS Shared Business Services
NHS Shared Business Services comprise an array of framework agreements. It manages £1 billion of NHS spend annually.
Step-By-Step Guide to Winning NHS Contracts
Now, let’s move on to the four practical steps you can take to grab your share of the NHS procurement market.
Step 1: Set Up Your S2G Profile
Register on our platform and upload all the required details, including VAT, Public Liability Insurance and Employer’s Liability Insurance documents. Find out which NHS-specific accreditations apply to your products or services, for example, ISO 9001, Cyber Essentials, and Medicines Procurement and Supply Chain frameworks (which replaced Commercial Medicines Unit (CMU) frameworks).
Use our advanced filters to refine your search requirements. Filters include NHS categories, regions, exact-phrase match, and Boolean search parameters, for example, quotation marks for “exact match,” AND for multiple terms, and NOT to exclude terms.
You can also search by contract value and open/close dates.
Step 2: Understand PQQ and ITT
A PQQ is a Pre-Qualification Questionnaire, which many NHS contracting authorities use to pre-approve suppliers suitable enough to officially bid on the tender. Questions usually cover financial status, technical ability, experience, capacity, regulatory compliance, insurance certificates, accreditations, and social value initiatives, etc.
Typically, shortlisted suppliers are sent an ITT (Invitation to Tender). ITTs provide more comprehensive information regarding the contract concerned, including full specs, contract terms, evaluation criteria, and submission requirements. Suppliers submit tender documentation that includes more details regarding their services, products, pricing, and solutions, which provide outstanding value.
Step 3: Writing a Winning Tender Response
An ITT response matrix, along with guidance, is one of the most effective tools available to help suppliers ensure they have everything required to submit a valid tender response. For example:
- A comprehensive risk management strategy
- Client testimonials
- Work methodology and project implementation plans
- Health and safety protocols
If they don’t provide them, ask the buyer for the criteria weightings. This is the importance attached to each requirement, for example:
- Experience: 30%
- Compliance: 10%
- Social value 15%
NHS England has some specific compliance requirements not found in other industries.
Equipment suppliers must have MHRA-certified devices. Basically, the Medicines and Healthcare Products Regulatory Agency (MHRA) assesses and approves certain devices for healthcare in the UK.
Data security and protection must comply with the NHS Data Security and Protection Toolkit (DSPT). The DSPT sets standards for data safety across the board, including suppliers’ systems, processes, and policies.
Social Value Initiatives
Social value has a minimum weighting of 10%, but that doesn’t mean product or service providers can give it cursory attention and spend a disproportionate period on other contract criteria. Social value encompasses environmental initiatives, which are very important because they help meet the UK’s sustainability targets and take practical steps to reach the net zero goal.
It’s worth spending some extra time on initiatives, especially ones that cover more than one pillar (economic, social, environmental).
Technical Details
The technical details and practicalities must be detailed properly, including:
- Unit costs
- Maintenance fees
- Logistics
- VAT (20%)
- Payment terms
- Training
These are essential considerations when evaluating bid proposals, so suppliers must put in a lot of work to ensure everything is included in their tender documentation and all calculations are accurate.
Step 4: Post-Submission and Implementation
The procurement process doesn’t, technically, end when the contract is awarded. Public sector buyers are required to provide all suppliers, regardless of their success, with feedback regarding their proposals. The aim is to show suppliers where they went wrong or what was lacking, so they can strengthen their tender process for the next opportunity.
Successful suppliers can also use feedback to build on their strengths and address weak spots to further enhance their chances of success when it comes to procurement in the NHS.
Contract winners can get started with onboarding and training employees to become familiar with new business processes and policies. This is when system integration is carried out, with training if necessary.
This is also when stakeholders are introduced to social value initiatives, including KPIs and milestones, and performance management practices. They are given their roles and responsibilities and trained to operate ethically and transparently.
Next Steps
What else can you do to enhance your chances of winning NHS contracts? First, remember to keep your S2G profile up to date. So, add new accreditations and certificates as you earn them.
Create and add new case studies for contracts similar to the contracts in question. This will stand you in good stead when bidding on new NHS tender opportunities.
Set up a calendar with important dates, including NHS supplier roadshows and engagement sessions. These are essential for networking, as well as learning more about key NHS contracting authorities and their typical requirements.
It’s strongly recommended to have the foundations of a social value plan (or plans), which can be adjusted to suit specific contracts and align with the public sector buyer’s values.
UKCA & CE Marks
UKCA – UK Conformity Assessed – is not a mark of quality or certification. Instead, it indicates that products comply with UK laws and British conformity assessment procedures. It applies to medical devices, construction products, and more.
CE marks apply to products in Europe and the European Union. The EU doesn’t recognise UKCA marks, so manufacturers and brand owners need CE marks if they want to operate in the European market.
Work With Supply2Gov
We have a range of tools, including a central digital platform, to support your business as you make your mark in the NHS procurement market, for example, you can download our free “NHS Tender Readiness Checklist” with a profile audit, PQQ templates, and social value scorecard.
Register on our platform, complete your profile, and access procurement opportunities in the NHS immediately.