Frequently Asked Questions (FAQ)
NHS Supply Chain Capital Equipment Service.
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Is there a DH fund (sum of money) that I access as an NHS organisation to help
me purchase capital equipment? Am I bidding against other NHS
Organisations?
No. There is a Department of Health working capital fund that NHS Supply Chain have
access to in order to gain significant discounts through bulk purchasing deals with
suppliers under the terms of existing framework agreements for the purchase of Capital
Equipment, any Trust can access these saving releasing arrangements.
The fund does not currently go direct to an NHS Trust as this is seeking a long term solution
to the issues in simplifying equipment procurement and getting the best price and value
across the NHS.
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How does it save me (NHS Organisation) money?
The feast to famine nature of NHS order patterns creates costs in the supply chain. Using
this fund, NHS Supply Chain works with suppliers to remove these costs to pass on the
subsequent saving to the NHS.
An example of this would be we (NHS SC) forward commit to 10 MRI systems using a base
specification that allows the supplier to have confidence in pre- booking the manufacturing
and delivery process which releases significant costs to pass on to the NHS as savings. The
risk is then taken from the supplier to NHS SC.
The NHS still has flexibility over final specification depending on the specific requirements
of the Trust.
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Why should I use NHS Supply Chain?
To access a streamlined service which can save your Trust time, money and uncertainty
that can ultimately result in increased resource for patient care.
We create legally compliant National Framework agreements that negate the need to tender
and thus reduce clinical time spent on completing paper work; this also means the
procurement timescale is significantly reduced along with the risk to the Trust.
We offer support to Departments in their clinical and procurement evaluation if required.
Our buying team are experienced in the wide and varied needs of Capital Equipment
procurement and have a holistic view of equipment management, from planning,
procurement, finance, maintenance to disposal.
We put in place a number of commitment deals that utilise the buying power of the NHS on
behalf of individual Trusts.
NHS SC also have teams who are able to support the trust in other aspects of equipment
ownership which include equipment replacement, planning and maintenance contracting.

Do NHS Supply Chain have specific examples of where they have saved an NHS
Organisation money?
Yes, we have a number of case studies where customers have been happy to promote the
benefits of our service and we are currently promoting these, however it is also worth
noting that as a contract to the Department of Health NHS SC are managed by the BSA
(Business Service Authority) who review any statement we make on savings to ensure they
are accurate and compliant.
The DH Fund is currently delivering on average 14% savings additional to the standard
Framework agreement savings. In 2012 the Capital portfolio alone delivered over £30
Million in savings to the NHS.
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Is there a list of imaging products that I can choose from?
Yes, and as we increase the deals in place and new product ranges come to market this
changes, we recommend you contact our buying team to discuss your requirements and we
can shape the information we provide to be specific to your needs.
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How has NHS Supply Chain decided on products on their lists?
Every Framework agreement (list) seeks to have a comprehensive cover for the equipment
type.
Take the example of MRI Scanners that is part of our Imaging Framework Agreement. (This
is a summary of the process and is not exhaustive to the level of detail we need to provide a
service fit for the NHS.)
We assessed the market and using a clinical consultation group formed the headings that
we would ask suppliers to enter a bid for the below, we refer to these as modalities:
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Standard 1.5T
Shortbore 1.5T
Widebore 1.5T
Open MRI Scanner
Standard 3T
Extremity Scanner
Each of the above has a standard core specification that allows each supplier to enter a
specific product at a level that make this comparable to each alternative offer.
A price is then requested for this (that represents a national demand from NHS SC) and this
is then matched to a range of none financial questions relating to the specifics of the
equipment but include for example training, warranty support. We then use a legally
recognised process called MEAT: most economically advantageous tender to assess who
will then be successful to award on the agreement. If a supplier is successful the product
range that fits within the modality they have been awarded is then available to the NHS

I am interested in a specific piece of equipment not on the imaging list, can I
still procure that through NHS Supply Chain?
We refresh the availability of products on our agreements using standard legally recognised
processes’ and as such if you do not see an item in the Catalogue or previous literature
please contact the relevant buyer who will discuss this with you.
We are also gathering, through our Capital planning team, a range of requirements that can
support our business to provide relevant Framework Agreements for the NHS. We also fully
support and work actively with the Department of Health on brining Innovation to the
market and would welcome the support of the clinical teams in the NHS to bring these to
our attention.

What if I want to purchase a product from the imaging products list with a
slightly different specification?
Our specifications are only meant to be a base line to set your needs against, we work daily
with Trusts to define your output based requirements and then find the best value product
to fit this.
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How long does the process take?
If, following a clinical evaluation process or your own Trust due diligence you have a clear
supplier and product requirement and this is on agreement you can procure equipment in
days rather than weeks or months. The length of the process depends on the requirements
of the Trust but we aim to identify these to you when we are clear on your requirements.

Can I defer payments over a period?
We recognise that even when our service can deliver the best possible value for equipment
procurement you may not have the Capital funds. We have in place a Framework agreement
for leasing to provide this as an option; we also work the FTFF (Foundation Trust Finance
Facility) that provides loan arrangements to NHS Foundation Trusts at preferential rates.
We also work with the various stakeholders in a Trust such as procurement and finance
teams to support access and evaluation of these as part of the procurement process.
Part of our work with the various stakeholders in the NHS and across the Department of
Health is to identify what is needed to allow effective planning and procurement of
equipment in the NHS and are constantly seeking ways to improve this.

Is there a fee?
NHS Supply Chain is operated by DHL under the terms of a commercial contract (the Master
Services Agreement), which is governed by NHS Business Services Authority. NHS Supply
Chain’s returns on this arrangement are managed within the terms set out in the MSA.
There is no fee for an NHS Trust to purchase goods or services via one of our Framework
Agreements. NHS SC operates on a management fee basis which is chargeable to suppliers
but this does NOT add an on cost for Trusts. Suppliers make efficiency gains within their
back office administration, due to working through the National Framework as opposed to
responding to direct OJEU tenders (which typically take 9 – 18 months to operate).
NHS Supply Chain is incentivised to drive best price deals for NHS trusts, on the DH Fund
our returns contains elements of our standard % management fee and an element of a
share of the savings this model is in response to the PAC findings and is agreed by the BSA
and DH.
Full contact details are available on: http://www.supplychain.nhs.uk/capital/
Or contact [email protected] should you have any further question on
the Capital Service.