State of the NHSScotland Estate 2011

A review of asset management performance in NHSScotland, identifying the current state of the estate, highlighting areas of best practice and areas for improvement.

Annex D: National Procurement, Strategic Sourcing for Facilities Management

Background & Purpose:

NSS National Procurement has circa £1bn spend covered by National Contracts and has delivered over £200m of savings against this portfolio to date. The accelerated Procurement Savings group identified significant opportunity to increase the scope and coverage of contracts and deliver further benefit. One area identified was £100m of Facilities Management related spend. National Procurement are conducting an opportunity assessment to put in place National framework agreements to deliver value and to ensure that NHS Boards have contact coverage in these business areas.

Approach & Timescale:

Following liaison and initial scoping with the Strategic Facilities Group of Health Facilities Scotland (SFG); National Procurement will initiate a Procurement programme with different "streams" of activity to include:

  • Conduct a mini competition from the OGC Buying Solutions Framework to award a non-exclusive sole supplier agreement for a bundle of FM services including:
  • Maintenance - Fabric / M&E
  • Waste Management
  • Refurbishment
  • Lift Maintenance
  • Fire / Intruder Systems
  • Asbestos
  • Pest Control
  • AV Equipment & Cabling
  • Benchmarking of service rates and exploring other value improvement with Current Suppliers of these services.
  • Identify and segment categories of spend & hold supplier meetings to ensure NHS boards receive the best available price on commonly bought FM goods (such as plumbing & electrical supplies).
  • Contract Management Programme to explore additional value improvements in existing collaborative contracts (such as clinical waste).
  • Identify areas for National Framework agreements and agree future workplan for contracting areas.

Activity has already commenced in each of these streams; conducting a mini-competition is likely to take 6-8months, benchmarking and supplier meeting activities are expected to run through till November 2011.

Anticipated Benefit:

  • NSS National Procurement anticipates that Spend under contract management will grow in the short term by £70m and are targeting delivery of £2m savings to NHS Boards.


Email: James H White

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