Source · Select Committees · Public Accounts Committee
Recommendation 6
6
Accepted
The future of the UK-based supply chain for PPE is unclear.
Recommendation
The future of the UK-based supply chain for PPE is unclear. The global demand for PPE at the start of the pandemic pushed up the prices from suppliers around the world. In an effort to create a more resilient UK-based supply chain, the Department encouraged some UK manufacturers to repurpose their businesses to supply PPE. It signed 37 contracts under its “UK Make” programme and collectively, these contracts helped deliver 3.9 billion items of PPE. However, now that demand for PPE has reduced and with the Department holding a large amount of excess stock, it is unclear what role these suppliers might play going forward. Only seven of them have been moved onto SCCL’s procurement frameworks enabling them to bid for future PPE contracts. In the event of a future pandemic, it is unclear what role these suppliers might be expected to play to meet the renewed demand. Recommendation: The Department should explain in its Treasury Minute response what the role of UK based suppliers of PPE is expected to be going forward. This should include what role UK-based suppliers can expect to play in ongoing procurement activity and what the expectation is for capacity to be increased in the event of future pandemics. 8 Management of PPE contracts 1 The management of PPE stock
Government Response Summary
The department has established a resilient UK-based supply chain and contracts have been signed with around 30 UK-based companies. The department is working with NHS Supply Chain to help offer UK manufactured products to the health and care sectors where possible.
Government Response
Accepted
HM Government
Accepted
6.1 The government agrees with the Committee’s recommendation Recommendation implemented 6.2 Over the course of the pandemic, the department has established a resilient UK-based supply chain for all items of COVID-19 critical PPE, excluding gloves. Contracts have been signed with around 30 UK-based companies for 3.9 billion units of PPE, all of which has now been delivered. 6.3 Current analysis of stock levels shows that there are sufficient volumes of all categories of PPE to maintain the central provision until the end of March 2023. If demand were to change, any new buying requirement would be undertaken through NHS Supply Chain framework contracts. The department is working with NHS Supply Chain to help offer UK manufactured products to the health and care sectors where possible. Whilst procurement will continue on the open market in compliance with the UK’s international commitments, future exercises will include a focus on social value and environmental considerations, against which UK manufacturers should be well placed to compete. 6.4 A number of the companies that the department established contracts with continue to actively manufacture PPE. The department is continuing to work with NHS Supply Chain to help ensure UK manufactured products are marketable to the health and care sectors.