Twelfth Report - Management of PPE contracts

Select Committee
Public Accounts Committee HC 260 20 July 2022
Report Status Government responded
Conclusions & Recommendations 21 items (15 recs)
Source View on Parliament website
Government Response (AI assessment · 21 of 21 classified)
Accepted 10
Accepted in Part 2
Acknowledged 5
Deferred 1
Not Addressed 2
Rejected 1
Clear

Recommendations

9 results
4 Accepted
The Department had insufficient due diligence checks at the outset of the pandemic to prevent...
Recommendation
The Department had insufficient due diligence checks at the outset of the pandemic to prevent potential profiteering and to identify conflicts of interest. We recognise that the Department had to act quickly at the start of the pandemic to secure … Read more
Government Response Summary
The government states that the commercial reset will ensure sufficient processes are now in place to prevent issues such as insufficient due diligence checks at the outset of the pandemic to prevent potential profiteering and to identify conflicts of interest from recurring, and highlights existing policies and guidelines.
HM Treasury
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5 Accepted
The Department has handed back responsibility for the PPE programme to Supply Chain Coordination Limited...
Recommendation
The Department has handed back responsibility for the PPE programme to Supply Chain Coordination Limited (SCCL) with many issues still to be resolved. Since October 2021, oversight of SCCL transferred from the Department to NHS England and in April 2022 … Read more
Government Response Summary
The government agreed to release its PPE strategy and update the Committee on plans for publication, aiming for Autumn 2022 implementation, while the NHS Supply Chain took over PPE supply and distribution in April 2022.
HM Treasury
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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 … Read more
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.
HM Treasury
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12 Accepted
The NAO reported that of the 176 contracts in dispute, most of these were still...
Recommendation
The NAO reported that of the 176 contracts in dispute, most of these were still in the early stages of being resolved. Eighty-three of the 176 contracts are still in the first stage of the commercial resolution process with a … Read more
Government Response Summary
The government agreed to explain its progress in resolving the 176 disputed PPE contracts and will provide a summary update on the progress of negotiations as a whole in confidence to the Committee. A Dissolution Team has been commissioned until March 2023 with quarterly targets to achieve resolution of contractual matters.
HM Treasury
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13 Accepted
We asked the Department what its assessment of fraud was amongst these contractual disputes.
Recommendation
We asked the Department what its assessment of fraud was amongst these contractual disputes. Although it conceded that some of the 176 contracts were of interest from a fraud perspective it was unwilling to give much information about any specific … Read more
Government Response Summary
The government agreed to update the committee on how it is working with relevant authorities in assessing and acting on any fraudulent cases. The department takes all allegations of fraud extremely seriously and, where appropriate, allegations are thoroughly investigated and the strongest possible civil and criminal sanctions sought.
HM Treasury
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14 Accepted
We wanted to understand the Department’s view of profits made by PPE suppliers and intermediaries,...
Recommendation
We wanted to understand the Department’s view of profits made by PPE suppliers and intermediaries, particularly on contracts that have failed to deliver adequate PPE, many of which came through the VIP referral route. Reports continue to emerge of the … Read more
Government Response Summary
The government states that the commercial reset will ensure sufficient processes are now in place to prevent issues such as insufficient due diligence checks at the outset of the pandemic to prevent potential profiteering and to identify conflicts of interest from recurring, and highlights existing policies and guidelines.
HM Treasury
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16 Accepted
One due diligence check that did not appear to be applied was a consideration of...
Recommendation
One due diligence check that did not appear to be applied was a consideration of potential conflicts of interest on PPE referrals. The Department confirmed that when signing off on these PPE contracts the accounting officer did not normally have … Read more
Government Response Summary
The government agreed to set out how its commercial reset will ensure sufficient processes are now in place to prevent issues of profiteering and conflicts of interest from recurring. The department has well-established policies, processes and due diligence systems for use outside of emergencies. All tendering activities comply with the relevant standards, processes and criteria set out in the Public Contracts Regulations.
HM Treasury
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17 Accepted
Prior to the pandemic, the role of procuring and managing PPE was largely the responsibility...
Recommendation
Prior to the pandemic, the role of procuring and managing PPE was largely the responsibility of Supply Chain Co-ordination Limited.50 In March 2020, when the Department realised that SCCL alone would not be able to procure the volume of PPE … Read more
Government Response Summary
The government agreed to release its PPE strategy, setting out the roles and responsibilities of the Department and SCCL in managing contracts and future procurement. Responsibility moved to NHS Supply Chain in April 2022. The department committed to publishing the strategy and will update the committee on plans for publication.
HM Treasury
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20 Accepted
Prior to the COVID-19 pandemic there were not many businesses in the UK that specialised...
Recommendation
Prior to the COVID-19 pandemic there were not many businesses in the UK that specialised in producing PPE with most of it coming from overseas. The pandemic saw steep rises in global prices for PPE as demand for it surged … Read more
Government Response Summary
The government agreed to explain the role of UK-based PPE suppliers going forward, noting that they have established a resilient UK-based supply chain (excluding gloves). Future procurement will include a focus on social value and environmental considerations, with NHS Supply Chain offering UK-manufactured products where possible.
HM Treasury
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7 Conclusion Accepted
Alongside reducing excess stock, the Department is also having to consider what is an appropriate level of PPE to hold as a stockpile. We asked it whether it had created another strategic reserve of PPE in preparation for the possibility of a future pandemic.11 The Department noted that it had …
Government Response Summary
Operational responsibility will transfer to the NHS Supply Chain on 1 April 2023, with the department retaining ownership of this stock for accounting purposes. The department’s current working assumption is that, subject to suitability, products held in excess will be transferred to a future stockpile.
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