COVID-19: Government procurement and supply of personal protective equipment
Closed
What the inquiry looked at
“In responding to the COVID-19 pandemic, public sector bodies have had to procure goods and services with extreme urgency. Under emergency laws brought in at the start of the pandemic crisis, the Cabinet Office - which oversees government’s buying policies - has changed some of the procurement rules for contracts relating to the government’s response to COVID-19. Concerns have been raised about some of these procurements, including around a lack of transparency. The NAO has now published two major reports, one on the way government has handled procurement during the COVID-19 pandemic , and one specifically on its procurement and contracts for personal protective equipment (PPE) , including: - How PPE was supplied to NHS and social care organisations before the COVID-19 pandemic started - What government did, between the pandemic emerging in other countries and arriving in the UK, to prepare for the provision of PPE in the NHS and social care organisations - How government responded when problems arose in the supply of PPE - The scale of problems in the availability of PPE throughout the emergency This inquiry will take evidence on both reports, examining the scale of Government’s COVID-19-related contracting, how procurement rules have changed and how the government is managing the risks associated with these changes. For a chosen sample of these contracts it will look specifically at who bought what, from whom, and at what cost, during the pandemic - and whether this is delivering value for taxpayers money in the crisis. In mid-December the Committee will hold two evidence hearings on the findings across both these reports. In the first hearing, the Committee will question representatives of frontline medical and care associations. In the second hearing, the Committee will question senior officials at the Cabinet Office and Department for Health and Social Care. If you have evidence on the issues raised in this inquiry please submit it here before 6.00pm on Monday 7 December.”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
The shortages of personal protective equipment at the front-line in the first wave of the pandemic was one of the biggest concerns in March and April 2020. As well as NHS front line workers there were others front-line workers who required high grade PPE – particularly in social care settings, which were mainly private businesses.
At each stage the Department for Health and Social Care maintain that no setting actually ran out of PPE. We heard compelling evidence from organisations representing front-line workers that stocks ran perilously low; single use items were reused; some was not fit for purpose and staff were in fear that they would run out.
Government thought it was well-placed to manage the COVID-19 pandemic because it had a plan and a stockpile of personal protective equipment. However, these were designed for an influenza pandemic and the plans, stockpile and PPE distribution arrangements were inadequate for a coronavirus pandemic. The NHS’s existing suppliers of PPE (mostly from overseas) could not increase supply quickly enough to meet the extreme demand and urgency of the global situation. As well as the urgent need to procure PPE, government also needed to procure a wide range of other goods and services quickly during the pandemic. By 31 July 2020, it had awarded over 8,000 contracts for goods and services, such as PPE and professional services, in response to the pandemic, with a value of £18 billion.
Government faced significant challenges in having to work at pace, using emergency procurement procedures, in a competitive international market. However, its failure to be transparent about decisions, publish contracts in a timely manner or maintain proper records of key decisions left it open to accusations of poor value for money, conflicts of interest and preferential treatment of some suppliers, and undermines public trust in government procurement and the use of taxpayers’ money. Between February and July 2020, the Department of Health and Social Care spent over £12 billion on 32 billion items of PPE. We are concerned that the Department has so far identified items worth hundreds of millions of pounds which are unusable for their intended purpose, putting the efficient use of taxpayers’ money at further risk.
Early in the pandemic, the Department of Health & Social Care lacked information on how much PPE was needed by health and social care providers and which ones had the greatest need. Its decision to prioritise hospitals meant social care providers did not receive anywhere near enough to meet their needs, leaving them exposed. Many workers at the front line in health and social care were put in the appalling situation of having to care for people with COVID-19 or suspected COVID-19 without sufficient PPE to protect themselves from infection.
The Cabinet Office is still too defensive about the lack of transparency over contract awards. We would welcome an honest understanding that, despite best endeavours in procuring vital equipment, it is necessary to be open and transparent about why decisions were made and contracts awarded.
What the government said
The government responded on 3 September 2021. The deadline was 10 April 2021.
The government states that it "agrees" with each of the Committee's recommendations on PPE procurement and supply, giving target implementation dates of April or July 2021.
- On the Boardman review, the government agrees, says work has begun on its 28 recommendations, and that the Cabinet Office published updated emergency procurement policy in January 2021.
- On stockpiling, the department says it "now holds a four-month stockpile of COVID-critical PPE" and "will make information available in due course" on its future approach to stockpile management.
- On lessons learned, the Cabinet Office and department "plan to complete the work by the end of July" so findings can be disseminated to the wider Government Commercial Function.
- On PPE quality, the department says its review of all PPE bought is "on course to complete by the end of June 2021" and it will write to the Committee by the end of July 2021 with findings.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 22 October 2020 to 10 September 2021. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 2 sessions
- Report 10 Feb 2021
- Government response 3 Sep 2021
- Correspondence 4 letters
What it recommended 11 recommendations · 18 conclusions
2While government had plans and a stockpile of PPE, this proved inadequate for the COVID-19...
3The high-priority lane was not designed well enough to be a wholly effective way of...
4The Department’s focus on supporting hospitals meant assistance to social care providers was neglected.
5The Department does not know enough about the experience of frontline staff, particularly BAME staff.
6We are concerned that the Department’s ordering of an enormous amount of PPE might compromise...
7The Department has wasted hundreds of millions of pounds on PPE which is of poor...
8It should also update us on the number of contracts (and their financial value) in...
1On the basis of two reports by the Comptroller and Auditor General, we took evidence...
9Access to the high-priority lane was based on recommendations coming from government officials, ministers’ offices,...
10The British Medical Association and the Royal College of Nursing told us that their organisations...
11Between February and July 2020, the Department ordered 32 billion items of PPE.
12Government’s PPE strategy aims to build a UK manufacturing base so that there is a...
13The Department asserted that while it had deliberately secured a significant stockpile of PPE, it...
14Not all of the PPE the Department bought can be used.
15The Department had not calculated the value of unusable or potentially unsuitable items but told...
16The Department accepted that the urgent need for PPE meant it accepted greater risks when...
17Government had a Pandemic Influenza Preparedness Programme and a stockpile of PPE for managing an...
18In March 2020, officials from NHS England & NHS Improvement publicly assured the Health and...
19The Department told us that it had not been complacent over the stockpiles, but that...
20Almost all the PPE was manufactured abroad and had to be shipped, flown or put...
21The Department explained that its formal reporting arrangements did not identify any provider organisation, in...
22We have previously noted that the COVID-19 pandemic has shown the tragic impact of delaying...
23Care England and the British Medical Association told us that the contingency planning process for...
24Witnesses from organisations representing staff working in health and social care told us that providers...
25Staff representative organisations ran surveys in which frontline staff reported not having the PPE they...
26We asked about the experience of BAME staff and whether this had been different to...
27By October 2020, employers had reported 8,152 diagnosed cases of COVID-19 and 126 deaths as...
28Witnesses representing the health and social care sectors raised a number of concerns about the...
29By the end of June, 44 Transport for London workers had lost their lives to...
Evidence
Oral evidence sessions 2
- 14 Dec 2020COVID-19: Government procurement and supply of Personal Protective Equipment5 witnesses: Alex Chisholm, David Williams, Gareth Rhys Williams, Jonathan Marron, Michael Brodieparliament.uk ↗
- 10 Dec 2020COVID-19: Government procurement and supply of Personal Protective Equipment4 witnesses: Dr Chaand Nagpaul, Dr Emily McWhirter, Gavin Edwards, Professor Martin Greenparliament.uk ↗
Who gave evidence 9 witnesses
- Alex ChisholmChief Operating Officer Civil Service and Permanent Secretary, Cabinet Office
- David WilliamsJournalist, Daily Mail
- Dr Chaand NagpaulChair, Council of the British Medical Association
- Dr Emily McWhirterRetired Nurse, Royal College of Nursing
- Gareth Rhys WilliamsGovernment Chief Commercial Officer and Non-Executive Director, Crown Commercial Service
- Gavin EdwardsSenior National Officer for Social Care, UNISON
- Jonathan MarronDirector General for Primary Care and Prevention, Department for Health and Social Care
- Michael BrodieChief Executive, NHS Business Service Authority
- Professor Martin GreenChief Executive, Care England
Correspondence 4 letters
- 10 Sep 2021Correspondence from Sir Chris Wormald KCB, Permanent Secretary, Department of Health and Social Care, re PPE Procurement and Supply, dated 27 July 2021
- 10 Jun 2021Correspondence from Public Accounts Chair Meg Hillier to Sir Chris Wormald KCB, Permanent Secretary, Department of Health and Social Care, re Following on from COVID-19: Government procurement and supply of Personal Protective Equipment, dated 28 May 2021
- 20 May 2021Copy letter sent to various PPE Suppliers in connection to the inquiry COVID-19 Government procurement and supply of protective equipmentFrom committee
- 14 May 2021Correspondence from the Department of Health and Social Care on the Committee's 42nd report of Session 2019-21 - COVID-19 Government Procurement and Supply of Personal Protective Equipment