• Tech giant DXC secures six year deal to deliver major NHS Supply Chain IT contract
  • Deal part of major project to transform the NHS’s procurement arm
  • New Supply Chain “will deliver £2.4bn savings over seven years”, says DHSC

The company that supplies the Lorenzo patient records system has won a major IT contract, which underpins a restructure of the health service’s procurement and logistics arm, NHS Supply Chain.

Technology giant DXC Technology won the six year contract to deliver the IT infrastructure services for NHS Supply Chain’s new management function, Supply Chain Coordination Limited, as the arm’s length body continues its major transformation project.

The Department of Health and Social Care said: “The supporting technology and IT Infrastructure service is an enabling function that will form part of the infrastructure to support the NHS to generate savings of £2.4bn over seven years through the new Supply Chain operation.”

The DHSC announced the deal yesterday, ahead of its existing contract with long time strategic partner DHL expiring in September. It did not state the value of the contract, but the tender notice issued last year indicated a value of around £250m.

It added: “[Services under the six year contract] will include; the management, support and maintenance of the internal IT systems infrastructure, hardware and software applications across the business as well undertaking a significant programme of IT modernisation and transformation to support the evolution and growth of the service.”

The DHSC pledged that “trusts and healthcare providers will continue to receive a like for like service through NHS Supply Chain. This will not change in the near term. All IT services will continue to operate through the existing IT infrastructure”.

The contract officially begins in early 2019, but the department said NHS Supply Chain would be working with the company in the preceding six months to “smoothly transition” the services from DHL.

The supplier won the contract after a protracted competitive process involving five other bidders which began last summer. The contract term is four years with an option to extend for a further two year period.

DXC was created by the merger between CSC, the company which developed the controversial Lorenzo patient record system, and the Enterprise Services division of Hewlett Packard Enterprise in April 2017.

It follows news last month that four trusts will receive additional national support to improve the Lorenzo IT system, five years after a senior MP branded it a “hopeless system” supported by a government bribe.

The company will receive about £10m to fund a national “digital exemplar” programme for the National Programme for IT era electronic patient record, with the trusts involved supported to develop “digital blueprints” for other trusts to follow.

What Supply Chain Coordination Limited will deliver:

  • The central service delivery management function for the future operating model
  • The “focal point, co-ordinator and main driver of the commercial objectives for the future operating model”
  • A key enabler for delivering better service, quality and savings under the future operating model
  • A central co-ordination point for customer and supplier interface.

Source: DHSC frequently asked questions document June 2018