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Procurement tower contracts may go to existing providers

Which providers are most likely to win procurement tower contracts?

Up to six large ‘procurement towers’ contracts for procuring of everyday and high value healthcare consumables worth £112m may be awarded to two current purchasing providers.

Sources are said to have told Health Service Journal editors that the Department of Health is likely to name DHL and the NHS Collaborative Procurement Partnership (CPP) winners of three contracts each.

The procurement tower contracts are part of a major shakeup of NHS purchasing following publication of the Carter report.

Some 10 contracts are to be put out for tender in December for the procurement of goods in categories of medical equipment, capital equipment and other areas of NHS expenditure including food and hotel services.

Of the health service’s £5.7bn annual expenditure on the equipment covered by the 10 contracts, 40% goes through the NHS Supply Chain, which is currently operated by DHL.

Further information

HSJCurrent providers set to win major new procurement contracts

NHS Employers: Carter report