US logistics giant GXO will replace Unipart as NHS Supply Chain’s logistics services partner, despite a bitter, ongoing legal dispute which has seen all three rival bidders for the lucrative £1.9bn, ten-year contract challenge the procurement process.
According to court documents the claims, from incumbent Unipart and bidders DHL and Wincanton, included “allegations of bias”; conflicts of interest; “undue influence” by one of the evaluators; manifest errors and undisclosed criteria in the evaluation of the initial tenders; and the “failure to exclude an abnormally low tender”.
NHS Supply Chain has admitted to some breaches in the case of Wincanton, although it continues to dispute Wincanton’s claim for damages.
The legal dispute resulted in the automatic suspension of the procurement process last year. However in February this year NHS Supply Chain successfully applied to the court for the suspension of the procurement process to be lifted, while the legal challenges continued.
The court explained that its ruling in favour of NHS Supply Chain prioritised the public interest and the implications of national infrastructure over the potential injustices faced by the claimants.
The court also found no compelling evidence to support Unipart’s claim that it would suffer irreparable harm or that its ability to secure future contracts would be significantly impacted.
However it also noted that further proceedings may be necessary to address the claims for damages and any potential breaches of the Public Contracts Regulations 2015.
Announcing GXO as the successful bidder today (6 May) NHS Supply Chain said the company will be taking over the contract for storing and delivering healthcare products to the NHS on behalf of NHS Supply Chain from October this year, when Unipart’s contract expires.
GXO will manage eight NHS Supply Chain distribution centers and a dedicated fleet of more than 300 NHS Supply Chain vehicles to provide modern end-to-end logistics solutions to the NHS.
The contract is for an initial period of seven years, with a possible extension of up to 36 months.
NHS Supply Chain chief executive officer, Andrew New said: “We’re pleased to announce GXO as the new service provider for our logistics services.
“Running our eight distribution centres across England and keeping our significant fleet of more than 300 delivery vehicles on the road is a key part of what we do to supply the NHS with more than 35 million healthcare products every year. We’re an important part of the healthcare system, ensuring the NHS can put patients first.
“As well as running our normal logistics services, looking forward to the future, we will be developing our logistics services with GXO to best meet the growing needs of the NHS.”
GXO hailed the award as marking a major step in its expansion into the healthcare market.
Gavin Williams, GXO UK & Ireland MD, said: “We are extremely proud to have been selected to serve the NHS, through NHS Supply Chain as its new logistics partner.
“Combining our sector experience with the technology expertise that supports many of the UK’s leading businesses will optimise the NHS’s logistics services for healthcare providers and taxpayers.
“We are committed to an excellent quality of service to hospitals and patients at home, increasing productivity and supporting our NHS so that it can focus on patients, its ultimate priority.”
GXO chief revenue officer Richard Cawston added: “Our successful expansion in the health sector is the result of a multi-year disciplined commercial and M&A strategy to diversify into high growth verticals and geographies.
“This landmark agreement with the NHS in the UK will serve as a springboard to further grow our healthcare footprint in the UK, as well as in the US and Europe as more healthcare organisations and suppliers recognise the benefits of a trusted logistics partner and a tech-enabled supply chain.”
GXO will be contracting with Polar Speed to provide NHS Supply Chain’s Home Delivery Services.
NHS Supply Chain said there will be a transition period over the next few months to ensure a smooth handover of sites and teams from the current logistics provider to GXO and Polar Speed, ensuring the NHS continues to receive the service it needs.
A Unipart spokesman told Motor Transport the company is continuing its legal action. He said: “We are proud to have consistently delivered an exceptional level of service to NHS Supply Chain for more than six years and throughout the pandemic, our 2,000 valued colleagues showing increased engagement and satisfaction levels over that period.
“Unipart remains committed to supporting our people to continue delivering this exceptional level of service throughout the transition. We continue to support the wider NHS and healthcare sector as their supply chain performance improvement partner.
‘We can confirm that legal proceedings continue against SCCL over the tender process. We are unable to share any further information until legal proceedings have been concluded.”
GXO referred Motor Transport to NHS Supply Chain for comment.
NHS Supply Chain confirmed today the legal challenges from Unipart, Wincanton and DHL are still active.
Wincanton declined to comment.
A request for comment from DHL has yet to receive a response.
