DHSC International Freight and Logistics Solutions

A Contract Award Notice
by DEPARTMENT OF HEALTH AND SOCIAL CARE

Source
OJEU
Type
Contract (Services)
Duration
1 year (est.)
Value
£96M
Sector
TRANSPORT
Published
23 Apr 2021
Delivery
23 Feb 2021 to 22 Mar 2022 (est.)
Deadline
n/a

Concepts

Location

London

Geochart for 2 buyers and 5 suppliers

2 buyers

3 suppliers

Description

The Department for Health and Social Care has awarded contracts for the provision of international freight and logistics solutions to support the importation of medical products into the UK from international sources. Contracts have been awarded following a competitive, open procedure and having observed the minimum 10-day standstill period. The contracts are zero-volume commitment contracts. Each contract will be for an initial 12-month period with an option to extend for up to a further 12 months in multiples of 3 month increments. The authority will inform the successful supplier no less than 3 months before end of contract term on any decision to extend the Contract. The total value across all contracts will be GBP 96 000 000 in year 1.

Lot Division

1 Air Freight Charters

The Department of Health and Social Care (DHSC) is awarding this contract to provide air freight charter activity. Air Freight Charter in this procurement lot refers only to the management of charter bookings. All wraparound services required as part of the end-to-end solution including ground handling, customs services and further freight movement will be delivered by the Lot 2 Supplier. The successful organisation will provide outsourced managed services for international air freight charter. The successful organisation’s primary objective is to manage the end to end process of securing and booking air charter to be utilised by DHSC and their suppliers, not including wraparound services. The successful organisation will hand over charter booking to the authority’s selected air freight and ground handling service. Both Lot 1 and 2 providers will work to the authority’s given schedule to optimise import of freight into the UK. The successful organisation will be required to mobilise a fully staffed operation, running on a 24/7/365 basis, working in direct contact with DHSC’s freight teams, producers and other third party organisations as required.

Award Criteria
Mobilisation 7.0
Service delivery 21.0
Scalability, flexibility and business continuity 10.5
Organisation and supply chain structure 7.0
Reporting and data management 3.5
Social value: increase supply chain resilience and capacity 5.0
Social value: effective stewardship of the environment 5.0
PRICE 20.0
2 Air Freight and Ground Handling Services

The Department of Health and Social Care (DHSC) is awarding this contract to provide outsourced managed services for international air freight, incorporating fully managed ‘end-to-end’ air freight logistics solutions, not including air charter operations. The successful organisation will work with the Authority’s Air charter service under lot 1 and carriers from any destination the authority requires chartered aircraft. They will work to given flight schedule to optimise import of freight into the UK. The successful organisation will also be responsible for ad-hoc worldwide air freight imports. Again, providing a full end to end solution, but inclusive of securing air capacity where volumes are not significant or regular to require charter services. The successful organisation will be required to mobilise a fully staffed operation, running on a 24/7/365 basis where required, working in direct contact with DHSC’s freight teams, producers and other third party organisations as required. The Departments logistical arrangements in some countries may utilise intermediary warehousing facilities. The successful organisation may be responsible for the ex works and/or ex warehouse collection of goods to the warehouse and then separately later arranging container loading and collection from the warehouse and transportation to the airhead upon receipt of a shipping instruction from the Authority.

Award Criteria
Mobilisation 5.0
Service delivery 17.5
Scalability, flexibility and business continuity 15.0
Organisation and supply chain structure 7.5
Reporting and data management 5.0
Social value: Increase supply chain resilience and capacity 5.0
Social value: Effective stewardship of the environment 5.0
PRICE 40.0
3 Sea Freight Services

The Department of Health and Social Care (DHSC) is awarding this contract to provide outsourced managed services for international sea freight, incorporating coordination of ‘end-to-end’ sea freight logistics solutions. The successful organisation will work to the Departments given schedule to optimise import of freight into the UK, and will be required to mobilise a fully staffed operation, running on a 24/7/365 basis where required, working in direct contact with DHSC’s freight teams, manufacturers and other third party organisations as required. The successful organisation must have partner logistic companies or established presence in China and SE Asia and scope to provide global logistics solutions. The Departments logistical arrangements in some countries may utilise intermediary warehousing facilities. The successful organisation may be responsible for the ex works and/or ex warehouse collection of goods to the warehouse and then separately later arranging container loading and collection from the warehouse and transportation to the port upon receipt of a shipping instruction from the authority.

Award Criteria
Social value: effective stewardship of the environment 5.0
Mobilisation 5.0
Service delivery 17.5
Scalability, flexibility and business continuity 15.0
Organisation and supply chain structure 7.5
Reporting and data management 5.0
Social value: increase supply chain resilience and capacity 5.0
PRICE 40.0
4 Rail Freight Services

The Department of Health and Social Care (DHSC) is awarding this contract to provide outsourced managed services for international rail freight, incorporating coordination of ‘end-to-end’ rail freight logistics solutions. The successful organisation will work to the authority’s given schedule to optimise import of freight into the UK. The successful organisation will be required to mobilise a fully staffed operation, running on a 24/7/365 basis where required, working in direct contact with DHSC’s freight teams, manufacturers and other third party organisations as required. The Departments logistical arrangements in some countries may utilise intermediary warehousing facilities. The successful organisation may be responsible for the ex works and/or ex warehouse collection of goods to the warehouse and then separately later arranging container loading and collection from the warehouse and transportation to the terminal upon receipt of a shipping instruction from the authority.

Award Criteria
Mobilisation 5.0
Service delivery 17.5
Scalability, flexibility and business continuity 15.0
Organisation and supply chain structure 7.5
Reporting and data management 5.0
Social value: increase supply chain resilience and capacity 5.0
Social value: effective stewardship of the environment 5.0
PRICE 40.0
5 Road Freight Services

The Department of Health and Social Care (DHSC) is awarding this contract to provide outsourced managed services for international road freight, incorporating fully managed ‘end-to-end’ road freight logistics solutions. The scope of this procurement may also include goods movement from an origin within the United Kingdom. The successful organisation will work to the Authority’s given schedule to optimise import of freight into the UK. The successful organisation will be required to mobilise a fully staffed operation, running on a 24/7/365 basis, working in direct contact with DHSC’s freight teams, manufacturers and other third party organisations as required.

Award Criteria
Organisation and supply chain structure 7.5
Mobilisation 5.0
Service delivery 17.5
Scalability, flexibility and business continuity 15.0
Reporting and data management 5.0
Social value: increase supply chain resilience and capacity 5.0
Social value: effective stewardship of the environment 5.0
PRICE 40.0

Award Detail

1 Kuehne Nagel (Uxbridge)
  • Contract for the Provision of Air Freight Management Services
  • Reference: c25717
  • Num offers: 6
  • Value: £26,000,000
  • Subcontracting opportunities are expected.
2 Kuehne Nagel (Uxbridge)
  • Contract for the Provision of Road Freight Management Services
  • Reference: c25719
  • Num offers: 6
  • Value: £1,000,000
  • Subcontracting opportunities are expected.
3 Ceva Logistics (Ashby de La Zouch)
  • Contract for the Provision of Sea Freight Management Services
  • Reference: c25718
  • Num offers: 6
  • Value: £34,000,000
  • Subcontracting opportunities are expected.
4 Kuehne Nagel (Uxbridge)
  • Contract for the Provision of Air Charter Services
  • Reference: c29949
  • Num offers: 8
  • Value: £34,000,000
5 Uniserve (Essex)
  • Contract for the Provision of Rail Freight Management Services
  • Reference: c25716
  • Num offers: 4
  • Value: £1,000,000

CPV Codes

  • 60000000 - Transport services (excl. Waste transport)
  • 63000000 - Supporting and auxiliary transport services; travel agencies services
  • 60100000 - Road transport services
  • 63520000 - Transport agency services
  • 60423000 - Air-charter services
  • 60200000 - Railway transport services

Indicators

  • Options are available.
  • Award on basis of price and quality.

Other Information

The DHSC competed for 5 Lots under this procurement. Under Lot 1 the Freight Manager will be acting as an air charterer only, Lot 2 is for freight management for DHSC Goods to be carried by air, Lot 3 is for freight management for DHSC Goods to be carried by sea, Lot 4 is for freight management for DHSC Goods to be carried by rail and Lot 5 is for freight management for DHSC Goods to be carried by road. The Freight Managers in Lots 2-5 will be providing a fully managed end-to-end service responsible for: — collection of DHSC Goods from manufacturers (supplied Ex Works); — handling (and potentially storage, apart from air freight) pending carriage of the Goods internationally, which the Freight Manager will have arranged, by the relevant carrier using the relevant mode of transport; and — final delivery from the relevant terminal, port or airport to the nominated delivery location in the UK. The Freight Manager for Lots 2-5 will also be responsible for clearing the shipment of goods for export/import with the customs authorities and making the appropriate returns/filings with the authorities for payment of VAT/sales tax. The Lot 1 provider will be chartering planes on behalf of the DHSC, but not dealing with the delivery, handling or clearance of shipments beyond arranging for a plane to be available at the appropriate times from the appropriate airport to the relevant destination airport in the UK. It will be entering into charter agreements with airlines as agent on behalf of DHSC. DHSC will pay to the Lot 1 provider the costs incurred in chartering the plane following DHSC instructions (and prior approval of the charter costs) together with a Management Fee. All Freight Managers, under all Lots, have an obligation to co-operate and liaise with all relevant parties in the supply chain.

Reference

Domains