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Southend Day Surgery Unit Managed Services Operator

Mid and South Essex NHS Foundation Trust

This public procurement record has 6 releases in its history.

TenderCancellation

13 Aug 2026 at 09:16

UK12 - Procurement Termination Notice
Award

15 Sep 2025 at 08:38

UK6 - Contract Award Notice
Tender

02 Jun 2025 at 09:13

UK4 - Tender Notice
Planning

23 May 2025 at 10:27

UK1 - Pipeline Notice
PlanningUpdate

17 Apr 2025 at 12:29

UK2 - Preliminary Market Engagement Notice
Planning

16 Apr 2025 at 14:11

UK2 - Preliminary Market Engagement Notice
Summary of the contracting process

Mid and South Essex NHS Foundation Trust procured a fully managed service for a new Southend 23-hour Day Surgery Unit and ward. The operator’s scope covered operational management, clinical-facility equipment, installation, maintenance, medical consumables and associated services for NHS clinical teams, with potential use by independent and private-sector organisations. The 1,900m² elective-care facility was planned to include two laminar-flow theatres, an enhanced treatment or procedure room, recovery areas with eight patient pods and two ensuite side rooms, plus waiting, administration, admission, discharge and staff welfare areas. It was intended to support high-volume, low-complexity day-case and 23-hour surgery across ENT, general surgery, pain management, oral surgery, gynaecology, burns and plastics, orthopaedics and urology. Delivery is in Southend, Essex, alongside the main hospital.

The procurement was run as an open competitive flexible procedure, with evaluation weighted 70% technical quality and 30% commercial price. It had one integrated lot, valued at £85,400,000 excluding VAT (£102,480,000 including VAT) over an initial 15-year term from 1 July 2027 to 30 June 2042, with an option extending the maximum period to 30 June 2047. The contract was awarded to Medical and Diagnostic Care Group on 11 September 2025 for £78,346,600 excluding VAT (£94,015,920 including VAT). However, the contract was cancelled and the procurement abandoned under section 55 of the Procurement Act 2023 on 10 October 2025, before contract award was completed. The Trust said NHS England advised against the proposed commercial funding model and it would review simpler alternatives.

This procurement demonstrates demand for a single supplier able to run an integrated elective surgical facility rather than provide an isolated equipment or staffing package. A credible future competitor would need proven managed-services experience in NHS or comparable surgical environments, covering operational governance, clinical safety, equipment procurement and installation, planned maintenance, consumables and performance management. Capability across high-volume, low-complexity day surgery and 23-hour pathways would be relevant, including the listed surgical specialities and coordination with inpatient services and diagnostics. Suppliers would also need to manage a purpose-built facility, support NHS standards and regulatory compliance, and demonstrate continuous improvement, digital and clinical innovation, sustainability and service-development capacity. Experience of complex financial arrangements, leasing structures and collaboration with specialist developers would strengthen a provider’s position.

How relevant is this notice?

Notice Information

Notice Title

Southend Day Surgery Unit Managed Services Operator

Notice Description

Mid and South Essex Foundation Trust ("the Authority") invited suitably experienced managed services operators to submit Tenders for the provision of managing and operating the Southend 23 hour Day Surgery Unit. The Authority is carrying out this tender process under the competitive flexible procedure, and anticipated incorporation of limited negotiation with bidders on areas such as the contract terms, the commercial offer template and KPIs. The Authority is developing a dedicated Day Surgery Unit and 23 hour Ward to re-provide and replace elective surgical capacity and address growing demand and waiting list pressures. The facility will be a ring-fenced, standalone elective care centre connected to the main hospital to ensure access to inpatient services and diagnostics when required. This model will ensure the delivery of a high-quality, sustainable, and efficient elective surgical service for Mid and South Essex, aligning with national elective recovery priorities. The Authority is seeking to commission a fully managed service offer, providing the operational management and everything from the equipment to the required minimum specification, equipment installation, maintenance and consumables for NHS clinical teams and potential to contract with the independent and private sector organisations to use. The primary objectives of the unit is to: * Provide a modern fit for purpose environment for day surgery theatres which supports the Authority's strategy for being at the leading edge of surgery (through cutting edge equipment and responsiveness) that allows the maximum benefit for the Mid and South Essex population. * Implement high-volume, low-complexity surgical pathways in line with Getting It Right First Time (GIRFT) principles. * Support recruitment and retention by providing a dedicated and purpose-built environment. The new 1900m2 facility will form a fully functional, well maintained and operational suite and will comprise: * 2 Theatres (laminar flow enabled) for a range of elective procedures. * 1 Enhanced Treatment/Procedure Room for outpatient-based interventions. * Pre- and post-operative recovery areas, including 8 patient pods and 2 ensuite side rooms. * General spaces: Waiting, administration, admission and discharge areas, and staff welfare facilities. The expectation is that the below specialities (in the form of elective day-case and 23-hour stay surgeries) will use the facilities, but this is expected to evolve over the life of the contract: * ENT * General Surgery * Pain Management * Oral Surgery * Gynaecology * Burns and Plastics * Orthopaedics (excluding complex procedures requiring a clean facility) * Urology. This equates to circa 4,500 procedures per annum. In addition to providing the aforementioned services, the managed services operator will be required to enter into a separate lease arrangement for the building with a specialist developer. To enable the funding and delivery of the building, the Authority has appointed a specialist developer to deliver the whole building and the fitout of the ground floor Day Surgery Unit. The funding of the project will require an established leasing structure to be implemented. This will therefore require the managed services operator to enter into lease agreements with the developer. Lot Information: The Authority determined that splitting the contract into lots is not appropriate for this procurement. This decision is based on the following considerations: * Operational Integration: The services required for the bidder encompass a comprehensive and integrated approach to managing and operating the facility. Splitting the contract into lots would disrupt the seamless delivery of services, including clinical governance, equipment management, staffing, and patient safety protocols. * Efficiency and Coordination: The nature of the services demands high levels of coordination and efficiency across various operational areas. Dividing the contract into separate lots would lead to fragmented management, potentially compromising the quality and responsiveness of service delivery. * Specialised Expertise: The bidder is expected to provide specialised expertise in managing a high-quality surgical facility. This includes adherence to NHS standards, regulatory compliance, and continuous improvement initiatives. A single contract ensures that the bidder can leverage its full range of skills and resources without the complications of managing multiple contractors. * Financial and Contractual Obligations: The financial structure of the contract, including lease payments and revenue generation, requires a unified approach to ensure transparency and compliance with NHS financial governance standards. Splitting the contract could lead to inconsistencies and challenges in financial management. * Innovation and Service Development: The bidder is tasked with implementing continuous innovation and service development, including digital health technologies, personalised patient care, and sustainability initiatives. A single contract allows for a cohesive strategy and streamlined implementation of these advancements. * Governance and Performance Monitoring: Effective governance and performance monitoring are critical to the success of the bidder. A single contract facilitates clear accountability and consistent reporting, ensuring that all aspects of service delivery are aligned with the Authority's strategic objectives.

Lot Information

Lot 1

Options: Service Development and Innovation: The managed services operator should acknowledge the expectation of the Authority that the managed services operator shall make reasonable efforts to maintain a level of service that aligns with new service developments, including advancements in clinical processes and technology. The managed services operator shall proactively review and consider relevant industry developments, innovations, and best practices to ensure that the services provided remain efficient, effective, and aligned with evolving clinical and operational needs. Any service enhancements or technology upgrades shall be sought to be undertaken within the financial limits of the pre-agreed financial envelope, ensuring value for money and sustainability of the service. Where any proposed developments require investment beyond the agreed financial envelope, the managed services operator shall engage with the Authority to review potential funding options, impact assessments, and feasibility considerations. The managed services operator and the Authority shall engage in regular service review meetings to assess ongoing service alignment with industry advancements and identify opportunities for continuous improvement within the contractual framework. The Authority may therefore wish to introduce additional requirements ("Contract modification(s)". Such contract modifications will be contemplated where additional requirements are similar and or complementary to the services already included in the specification, at any given time. To this end, providers should be aware that after the award of contract, there is a possibility that the successful Bidder may be offered a variation to the contract to accommodate for the additional/changed requirements in accordance with Sections 74 to 77 and Schedule 8 of the Procurement Act 2023.

Renewal: The contract will have an initial term of 15 years, with an option to extend for an additional 5 years, resulting in a maximum contract duration of 20 years. Please note that the values of PS85,400,000 (excluding VAT) and PS102,480,000 (including VAT) pertain to the full 20-year period (15 years plus the 5-year extension option). The maximum contract value for the initial 15-year term is PS64,050,000 (excluding VAT) and PS76,860,000 (including VAT). The above figures are indicative and exclusive of annual population growth, inflation, efficiency and convergence. Furthermore, the figures are based on approximately 4,500 procedures per year.

Planning Information

The Authority invites interested providers to attend a virtual market engagement event for the Southend Day Surgery Unit Managed Services Operator contract opportunity, which will be broadcast via Microsoft (MS) Teams on Friday 2nd May 2025. All organisations wishing to attend the event must complete a booking form via the eProcurement portal no later than 12pm on Monday 28th April 2025. The link to enable you to access the Live Event will be provided via the eProcurement Portal Message System, 48 hours prior to the event. A Microsoft Live Event - Instructions on how to Access' document can be found in the Buyer Attachment area within the Portal. To access the booking form please go to the eProcurement Portal at: https://attain.bravosolution.co.uk. Click on 'Register here' and follow the on-screen instructions. You can access ''sq_123 – Southend Day Surgery Unit Managed Services Operator - Market Engagement Event’ by clicking on the link called 'View current opportunities' on the Home Page. Please note that a Booking will not be accepted by any means other than through the e-Procurement Portal.

Notice Details

Publication & Lifecycle

Open Contracting ID
ocds-h6vhtk-05041d
Publication Source
Find A Tender Service
Latest Notice
https://www.find-tender.service.gov.uk/Notice/077034-2026
Current Stage
Award
All Stages
Planning, Tender, Award

Procurement Classification

Notice Type
UK6 - Contract Award Notice
Procurement Type
Standard
Procurement Category
Services
Procurement Method
Open
Procurement Method Details
Competitive flexible procedure
Tender Suitability
Not specified
Awardee Scale
Large

Common Procurement Vocabulary (CPV)

CPV Divisions

31 - Electrical machinery, apparatus, equipment and consumables; lighting

33 - Medical equipments, pharmaceuticals and personal care products

51 - Installation services (except software)

CPV Codes

31211110 - Control panels

31524110 - Operating-theatre lamps

33100000 - Medical equipments

33111000 - X-ray devices

33140000 - Medical consumables

33162000 - Operating theatre devices and instruments

33167000 - Surgical lights

33168000 - Endoscopy, endosurgery devices

33192000 - Medical furniture

33192160 - Stretchers

33195000 - Patient-monitoring system

33661100 - Anaesthetics

51400000 - Installation services of medical and surgical equipment

Notice Value(s)

Tender Value
£85,400,000 £10M-£100M
Lots Value
£85,400,000 £10M-£100M
Awards Value
£78,346,600 £10M-£100M
Contracts Value
Not specified

Notice Dates

Publication Date
13 Aug 20261 weeks ago
Submission Deadline
2 Jul 2025Expired
Future Notice Date
2 Jun 2025Expired
Award Date
11 Sep 202511 months ago
Contract Period
1 Jul 2027 - 30 Jun 2042 Over 5 years
Recurrence
Not specified

Notice Status

Tender Status
Complete
Lots Status
Complete
Awards Status
Active
Contracts Status
Cancelled

Buyer & Supplier

Contracting Authority (Buyer)

Main Buyer
Mid and South Essex NHS Foundation Trust
Contact Name
Available with D3 Tenders Premium →
Contact Email
Available with D3 Tenders Premium →
Contact Phone
Available with D3 Tenders Premium →

Buyer Location

Locality
BASILDON
Postcode
SS16 5NL
Postcode Area
Southend-on-Sea
Country
England
Major Region (ITL 1)
TLH East (England)
Basic Region (ITL 2)
TLH3 Essex
Small Region (ITL 3)
TLH37 Essex Thames Gateway
Delivery Location
TLH31 Southend-on-Sea
Local Authority
Basildon
Electoral Ward
Langdon Hills
Westminster Constituency
South Basildon and East Thurrock

Supplier Information

Number of Suppliers
1
Supplier Name

Medical and Diagnostic Care Group

Further Information

Notice Documents

Open Contracting Data Standard (OCDS)

View full OCDS Record for this contracting process

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The Open Contracting Data Standard (OCDS) is a framework designed to increase transparency and access to public procurement data in the public sector. It is widely used by governments and organisations worldwide to report on procurement processes and contracts.

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