Contract award notice
Results of the procurement procedure
Section I: Contracting
entity
I.1) Name and addresses
Suffolk and North East Essex Integrated Care Board
QJG
Aspen House, Stephenson Road
Colchester
CO4 9QR
UK
Contact person: Jane Garnett
Telephone: +44 1473770195
E-mail: jane.garnett@snee.nhs.uk
NUTS: UKH3
Internet address(es)
Main address: https://suffolkandnortheastessex.icb.nhs.uk/
I.4) Type of the contracting authority
Body governed by public law
I.5) Main activity
Health
Section II: Object
II.1) Scope of the procurement
II.1.1) Title
Primary Care Pathology Services
II.1.2) Main CPV code
85100000
II.1.3) Type of contract
Services
II.1.4) Short description
NHS Suffolk and North East Essex Integrated Care Board have reviewed pathology services delivered within the Suffolk and North East Essex Integrated Care System.
The ICB has awarded the contract for the delivery of these services to NHS West Suffolk NHS Foundation Trust and East Suffolk and North Essex NHS Foundation Trust working together to deliver Pathology needs within SNEE ICB.
East Suffolk and North Essex NHS Foundation Trust and NHS West Suffolk NHS Foundation Trust will be awarded the contracts as they are uniquely placed to continue to deliver the primary care pathology services for the locality.
The acute trusts have an integrated provision which includes delivery of pathology services for all acute divisions, community services and primary care. It is believed that retaining this configuration is in the best interest of the patients and the Integrated Care System.
II.1.6) Information about lots
This contract is divided into lots:
No
II.1.7) Total value of the procurement
Value excluding VAT:
34 000 000.00
GBP
II.2) Description
II.2.3) Place of performance
NUTS code:
UKH14
UKH34
Main site or place of performance:
The service will cover the Suffolk and North East Essex Integrated Care Board locality.
II.2.4) Description of the procurement
This notice is made by the Contracting Authority; NHS Suffolk and North East Essex Integrated Care Board (hereinafter referred to as "the Authority") in compliance with their local standing financial instructions (SFIs) to notify the market of the award of a contract to deliver a Primary Care Pathology Service to NHS West Suffolk NHS Foundation Trust and East Suffolk and North Essex NHS Foundation Trust.
The total contract value is forecasted to be £34,000,000 over the two year term (excluding VAT).
NHS West Suffolk NHS Foundation Trust will receive a contract over two (2) years with a total value of £13,800,000. East Suffolk and North Essex NHS Foundation Trust will receive a contract over two (2) years with a total value of £20,400,000.
The two year contract will start on the 1st April 2023, ending on the 31st March 2025.
The Contracting Authority is yet to agree appropriate inflation and uplift for this contract for the period of 2023/24 through to 2024/25. These will be dealt with as Contract Variations in accordance with the NHS Standard Contract Terms and Conditions. The Authority deems any such variations are not substantial or material changes, as they occur due to external causes beyond the Authority's control, including changes in contract value driven by changes in patient volume. The Authority will publish appropriate Notices accordingly to communicate any such future changes to the market, once final.
The Authority is to retain the provision within the Acute Trusts named in this notice to ensure the following risks (list is not exhaustive) are not realised:
-Clinical risks of involving different clinical IT systems within one pathology system - negative impact on patient safety
-Clinical risks and cost brought about from duplicate tests
-Reduction in economies of scale when integrated care systems are tasked with being more efficient.
-Risk of losing skilled staff or needing more skilled staff across multiple providers when recruitment for skilled pathology staff is difficult.
-Destabilising the core pathology function within the acute Trusts
II.2.5) Award criteria
Price
II.2.11) Information about options
Options:
No
II.2.13) Information about European Union funds
The procurement is related to a project and/or programme financed by European Union funds:
No
II.2.14) Additional information
The Service to which this procurement relates fall within Schedule 3 of the Public Contracts Regulations 2015 as amended by as amended by The Public Procurement (Amendment etc.) (EU Exit) Regulations 2020, (the "Regulations"). As such, the Contracting Authority does not intend to hold itself bound by any of the Regulations, save those applicable to Schedule 3 Services.
Section IV: Procedure
IV.1) Description
IV.1.1) Type of procedure
Award of a contract without prior publication of a call for competition
Justification for selected award procedure:
The works, supplies or services can be provided only by a particular economic operator for the following reason: absence of competition for technical reasons
Explanation
There are significant risks, particularly around the splitting of a single pathology service.
-Patient Safety risk due to split services and multiple records
-Patient Safety risk due to duplication of tests
-Financial risks around duplication of tests, exit costs from current service delivery
The proposed contractual term is for a period of 2 years, the services covered by the arrangement may change and expand as the integrated model develops.
The providers are core alliance partners and already deliver all pathology services. Retention of the Primary Care Pathology Services within the wider Pathology service will retain continuity of provision for the Authority's population.
There are significant risks associated with discontinuity of provision.
-Patient Safety
-Financial risks
-Workforce disruption
-Service disruption
-Destabilisation of core acute pathology services and impacts upon core acute services
The Authority is to retain the provision within the Acute Trusts named in this notice to ensure the risks (list is not exhaustive) are prevented.
The Authority believes competition is absent for the technical reasons outlined above and the potential for patient harm and disruption.
IV.1.8) Information about Government Procurement Agreement (GPA)
The procurement is covered by the Government Procurement Agreement:
No
IV.2) Administrative information
IV.2.1) Previous publication concerning this procedure
Notice number in the OJ S:
2023/S 000-001424
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/10/2023
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
East Suffolk and North Essex NHS Foundation Trust
RDE
Trust Offices, Colchester Hospital, Turner Road,
Colchester, Essex,
CO4 5JL
UK
NUTS: UKH34
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
Total value of the contract/lot:
: 20 400 000.00
GBP
V.2.5) Information about subcontracting
Section V: Award of contract
A contract/lot is awarded:
Yes
V.2 Award of contract
V.2.1) Date of conclusion of the contract
30/10/2023
V.2.2) Information about tenders
Number of tenders received: 1
The contract has been awarded to a group of economic operators:
No
V.2.3) Name and address of the contractor
West Suffolk NHS Foundation Trust
RGR
Hardwick Lane
Bury St Edmunds, Suffolk
IP33 2QZ
UK
NUTS: UKH14
The contractor is an SME:
No
V.2.4) Information on value of the contract/lot (excluding VAT)
Initial estimated total value of the contract/lot:
Total value of the contract/lot:
: 13 800 000.00
GBP
V.2.5) Information about subcontracting
Section VI: Complementary information
VI.4) Procedures for review
VI.4.1) Review body
Suffolk and North East Essex Integrated Care Board
Aspen House, Stephenson Road
Colchester
CO4 9QR
UK
VI.5) Date of dispatch of this notice
29/11/2023