Analysing the UK Covid-19 Procurement (Module 5) Inquiry Report

The Covid-19 Procurement Inquiry Report scrutinised the public sector’s spend on personal protective equipment (PPE) and health equipment during the pandemic, with nearly £10 billion deemed ‘wasted’ due to ‘[clear] risks of waste caused by overbuying and large sums of public money being lost.’

We analyse the results of the report, ‘lessons learnt’ going forward and outcomes to inform the next large stressor on pipelines, and the importance of the tender process in providing fair, transparent outcomes.

Summarising findings from the Covid-19 Procurement Inquiry Report

The PPE industry represented £14.9 billion of spend during the time period the report scrutinised – meaning 66% of spend was wasted through procuring substandard equipment and wastage.

The report concluded that there were several major flaws in the procurement process which led to poor outcomes, including (but not limited to) a pronounced lack of:

• Management and oversight systems for PPE pandemic stockpiles, including outdated technology and data systems
• Readiness for a pandemic amongst bodies responsible for emergency procurement and distribution
• Adequate advice for complex regulated PPE equipment and products available for public sector buyers
• Skills, expertise and experience specifically for procurement of PPE and healthcare equipment, creating bottlenecks in resource
• Fairness with regards to the High Priority or VIP Lane, which favoured suppliers with existing connections and access to UK government contracting authorities.

The VIP Lane created by the government was particularly singled out as undermining transparency and adequate processes for controlling spend – further contributing to waste of public purse.

Lessons learnt from the report

Although the report cleared government officials of cronyism or corruption through the procurement of substandard or wasted PPE, the executive summary contains key lessons learnt and actions to be taken in future.

Although 11 recommendations were made in total, headline guidance comprises:

• Establishing systems for emergency procurement and distribution of healthcare equipment, including ‘radical’ supply chain resilience overhaul and separate emergency/distribution systems
• Creating a bespoke emergency international trade and domestic strategy as part of standard pandemic planning, with key healthcare equipment identified as a strategic asset
• Setting specific objectives for international trade and domestic industry during a pandemic, encouraging investment, research and development of advanced healthcare equipment
• Deploying technology and effective use of real-time data which is interoperable with the UK government and devolved administrations.

The government published a Pandemic Preparedness Strategy in March of this year, which mentions in future that ‘existing procurement routes’ will be drawn upon in a pandemic to support access to priority sectors, where possible.

Reflections on the tender process

Ultimately, the tender process functions as a method of procuring works, services or goods which not only represents value for money, but is also fair, open and transparent.

When stressors – such as broken supply chains – emerge, the tender process should support solutions rather than exacerbate existing issues. Recent changes to how UK public procurement operates can achieve this, including:

• Greater use of framework agreements and dynamic markets, increasing access to pre-approved, pre-assessed suppliers
• Increased number of combined authorities and purchasing organisations (such as YPO and NEPO) which allow multiple sub-central authorities to call off suppliers
• More scrutiny on underperforming suppliers as outlined under the Procurement Act 2023, with suppliers not meeting targets triaged via debarment list
• Strengthening and diversifying supply chains, which serves to both reduce over-reliance on certain suppliers and ‘reshore’ supply chains with British businesses – particularly relevant to PPE, with the majority of goods manufactured overseas.

The above measures align with the broader objectives of the changes introduced by the Procurement Act 2023 – including simplification, greater supplier accountability and consolidating regulations.

Bid and tender support

Since our inception in 2009, Executive Compass have supported with thousands of complex public procurement bids and tenders, including in highly regulated industries such as PPE and healthcare equipment.

Our expert bid and tender writers confidently help you navigate procurement legislation, regulation and major changes to the sector, such as new PPNs, the Procurement Act 2023, and the National Procurement Policy Statement.

Book a free 30-minute bid consultation today to find out more about how we can provide consultancy and support navigating UK public sector tenders.