Delivering £1m in savings by tendering Endoscope maintenance contract

Client
York Teaching Hospital NHS Foundation Trust

The challenge
The Trust has a large annual spend on flexible scope maintenance, all of which were manufactured by Olympus. Maintenance had always been provided by Olympus’ own maintenance provider, Keymed.

End users were reluctant to move away from the OEM for maintenance and a result, no competitive market testing had been carried out. However, with the Trust facing significant financial pressures, we were asked to manage a competitive, compliant procurement to attempt to reduce costs, yet ensure that the resulting service was fit for purpose.

The approach

  • Process commenced nine months prior to expiry to ensure all options could be reviewed
  • Interviews with clinical and management stakeholders to determine requirements
  • Data-led market research to evaluate options
  • Development of detailed Route to Market proposal recommending tendering the contract
  • Preparation of detailed Technical Specification to meet the needs of stakeholders
  • Development of Lot strategy to deliver the most flexible, best-value outcomes
  • Development of enhanced Terms and Conditions to protect the Trust’s interests
  • Creating appropriate questions and scoring methodology to meet the Trust’s priorities
  • Developing detailed, compliant tender documentation
  • Management of the process, including answering clarification requests from suppliers
  • Evaluation (with the Trust) of all supplier responses
  • Identification of winners for each lot, based on scoring methodology
  • Drafting detailed report to respond to internal concerns about potential supplier switch
  • Compliant award of contract to (different) winners of each Lot

The outcome
The Trust awarded both Lots to different suppliers, neither of which was the OEM. In addition to satisfying the concerns of internal stakeholders, the Trust has been able to report total savings of over £1M over the five-year contract term.

We had a large annual spend on flexible scopes which were previously maintained by the OEM. Lifecycle came in, challenged the status quo and persuaded nervous end users to consider alternative suppliers. They worked with the Trust to review and address concerns raised surrounding a 3rd party maintainer and even produced a report addressing each of the points raised. We proceeded with the award and were able to report total savings of over £1M across the five-year contract term.”

Peter Hickton – Asset Maintenance / Capital / MERG – York Teaching Hospital NHS Foundation Trust