Procurement in a Nutshell: Covid-19 Procurement (Model 5) Inquiry Report

The inquiry report outlines waste will only be avoided if, in the future, investment in high-quality information systems and modern technology are placed at the heart of emergency procurement and distribution.

Summary of report findings

The PPE industry spent £14.9 billion on resources and £10 billion of this spend was wasted through procuring substandard equipment and wastage.

The report outlines there were several major flaws in the procurement process which led to poor outcomes, including the following:

• Failures in management and oversight of systems for PPE pandemic stockpiles for example, outdated technology and data systems.
• Lack of readiness for a pandemic amongst bodies responsible for emergency procurement and distribution.
• Inadequate advice for complex regulated PPE equipment and products available for public sector buyers.
• Lack of skills, expertise and experience specifically for procurement of PPE and healthcare equipment, creating bottlenecks in resource.
• Unfairness with regards to who constituted High Priority (VIP lane), which favoured suppliers with existing connections and access to UK government contracting authorities.

Report recommendations

1. Improvements to the composition, management and inspection of pandemic stockpiles.
2. Pandemic response exercises to include emergency procurement and distribution.
3. Updated emergency procurement and distribution systems for the UK.
4. New emergency healthcare requirement regulations.
5. An emergency healthcare equipment plan.
6. Blueprints for critical care medical technology.
7. Emergency international trade and domestic industry to form part of the whole-system civil emergency strategy.
8. A programme of training in emergency procurement and distribution of healthcare equipment.
9. A commercial framework agreement for the emergency procurement and distribution of healthcare equipment.
10. Improved transparency, governance and accountability in an emergency.
11. Placing data and technology at the centre of emergency procurement and distribution of healthcare equipment.

Stay up to date with:

• Trending Topics
• Latest Insights
• Upcoming Events
• Company Updates

Follow us on LinkedIn

Take Me There

Key reflections and lessons learnt for future procurements

All suppliers should be assessed using the same objective criteria

The report was highly critical of High Priority Lane (VIP Lane) because it gave certain suppliers faster access based on government political referrals. The report concluded there was no evidence of corruption in contract awards but that the system favoured treatment for some suppliers. Future procurements should not include a similar mechanism and all offers should be assessed against objective and consistent criteria.

Transparency must be built into the process

During COVID-19, the speed of procurement was prioritised over openness. The report notes that this damaged public trust.

Better preparation should reduce the need for emergency direct awards

Procurements in the pandemic were largely unprepared and had no scalable procurement systems ready to operate in a pandemic, As such, the report recommends that future planning should include:

• Pre-established emergency procurement frameworks.
• Pre-approved specialist suppliers and advisers.
• Scalable procurement and distribution systems that can be activated rapidly.

For further information, please contact Tim Care or Melanie Pears in our Public Sector team.