2019 Report details for project: Procurement Transformation Programme

Project name: Procurement Transformation Programme - there are 3 reports for this project: 2017, 2018, 2019
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Organisation: DHSC (D12) - see all reports for this organisation
Report year: 2019 (data is from Sept 2018)
Category: Transformation - see all reports for this category
Description: NHS Supply Chain - Future Operating Model 1. To develop strategic approach to procure services to replace NHS Supply Chain contract 2. To design the Future Operating Model (FOM) for NHS Supply Chain services with a view to delivering significant savings to the NHS by achieving the following: a) Increase compliance of NHS to purchase a standard range of clinically appropriate products b) Increase uptake/volume of product purchased via NHS Supply Chain c) Utilise increased buying power to affect purchasing behaviours d) Lower the cost of product for the NHS 3. To plan and implement the chosen operating model for NHS Supply Chain to ensure delivery of service beyond October 2018
DCA (RAG): Amber
DCA text: The IPA review resulted in two recommendations covering future communications and portfolio prioritisation. The recommendations are being addressed via 10 discrete actions and these are on schedule to complete for end of April to be returned to IPA.
Start date: 2015-03-31
End date: 2019-03-31
Schedule text: While the date of 31/03/2019 represents the date the key changes went live, since Q2 it has been agreed that the programme will not close down until 20/12/2019. This is due to remaining risks which will need to be actively managed due to EU exit preparation work and operational freeze periods as well as in-year financial pressures which resulted in some non-critical elements of the planned work to be delayed into FY 19/20. These will need to be put into place to fully realise NHS Supply Chain
Baseline: £32.21m
Forecast: £51.54m
Variance: 60.00%
Variance text: The forecast has increased to reflect the impact of the delays in approval on the Supporting Tech and Logistics Full Business Cases as well as the decision to in-source the Transactional Services function.
Whole Life Cost: £168.73m
WLCost text: The Whole Life Cost forecast, as presented in the GMPP return, has increased by 20% since Q2 17/18 to reflect the impact of the delays in approval on the Supporting Tech and Logistics Full Business Cases as well as the decision to move from an out -source to in-source model for the Transactional Services function.
Sourcefile: None

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Acknowledgement: GMPP data has been re-used under the Open Government Licence.