NHS Supply Chain: Food has published a Dynamic Purchasing System (DPS) for fresh food procurement which will reduce the NHS’s carbon footprint and support SMEs to win contracts.

The DPS will be used for fresh food and aims at overcoming barriers to entry that small and medium-sized enterprises (SMEs) face when tendering to supply NHS trusts.

The process will be made simpler by not asking suppliers for any financial evaluations at the point of entering the DPS process, a request that will take place at a later stage in the process. 

The electronic system, which suppliers can join at any time encourages more competition, attracts more SMEs, along with more regional and local suppliers.

Supporting local producers

It will also speed up the approval process for suppliers and is flexible, but still ensures compliance to the Public Contract Regulations 2015.

The supplier benefits are:

• There is no deadline date for applicant submissions for the DPS, and NHS Supply Chain: Food anticipates suppliers being able to join at any point during the seven-year term, allowing the ongoing admission of suppliers throughout this period
• It allows better supply chain resilience for customers through an increased supply base.
• It encourages an increase in local suppliers who can serve the NHS, allowing collaboration with regional groups of NHS trusts and increasing competition
• It supports NHS Supply Chain: Foods to align with Green Plan objectives that trusts have set, ensuring their sustainability targets and goals remain a high priority in fresh food

The DPS will include the use of a minimum of 10% social value weighting for all competition exercises.

Phil Shelley, senior operational and policy manager at NHS England, said: “Buying fresh food from local suppliers provides a fantastic opportunity to deliver a dynamic model of procurement.

“Our menus should reflect our regions, so having flexibility and a modern approach within our purchasing systems for SMEs allows them to be added easily, enabling the NHS to obtain fresh ingredients at the right price.”

A game changer

Samantha Lee, NHS Supply Chain’s category tower manager, adds: “Implementing this procurement method to the fresh food category is a game changer for both NHS Supply Chain and NHS catering managers.

“No longer will suppliers be locked out of the marketplace for long durations of time. The tender will remain open for up to seven years and allow continuous additions of suppliers to the DPS. And this will open doors to SMEs, local farmers, and producers, together with new market entrants, and allow NHS trusts flexibility and choice.”

And Cathy Stephens, governance lead for NHS Supply Chain: Food, said: “We are very excited about the publication of our very first DPS procurement for our fresh food category.

“Our customers’ Green Plans have clearly identified the key themes of how they will meet their net-zero targets, and one of the consistent and clear themes is the need for local suppliers.

“The DPS is a significant and positive step forward to support this initiative and we are looking forward to supporting and working with the NHS to offer this solution through our Public Contract Regulations 2015-complaint route to market.”