Public procurement notice: Contract Notice
Published: 2017-05-06
Buyer: Kingston Hospital NHS Foundation Trust
Country: UK
Region: LONDON
Contract type: Services
Procedure: Competitive procedure with negotiation
CPV classification: 85111000: Hospital services
Submission deadline: 2017-06-12
Award criteria: The most economic tender

Technical requirements: The Trust is seeking a partner to operate a Private Patient Unit (PPU) on its site in Kingston-Upon-Thames. The Trust has an existing PPU at the site and the contract with the current provider ends in 2018.
The Trust is considering 2 options for the future operation of the PPU. These options are set out in Lots 1 and 2 below. Under Lot 1 the partner will develop a new PPU facility on the site. Under Lot 2 the partner will operate the existing facility. The Trust intends to proceed with one of these options only and will discontinue the other option.
Under both options the partner will be responsible for all capital costs and will be granted a lease by the Trust, under which it will pay to the Trust a rent and revenue share.
The partner will need to demonstrate experience and expertise in the provision of private healthcare services and economic and financial standing to meet the capital costs of the PPU and the financial commitments under the lease.
Under Lot 1 (‘Option A’) the successful partner will build a new Private Patient Unit on the Trust's site at the ‘Command Centre’. The partner will be responsible for all capital investment required for the development.
The development proposals are to include the possibility of building additional floors (shell and core only) which are not required by the partner and may be used by the Trust for its own purposes under a lease back arrangement. The Trust will confirm as part of negotiations whether it requires those floors or not.
The Trust will grant a lease of the site to the successful partner. The Trust will consider financial proposals for 3 possible lease durations (25 year, 50 year and 99 years). Under the lease the partner will pay to the Trust a guaranteed baseline rent and a revenue share. All bidders must submit a tender on the basis of the 25 year lease duration. Bids for the 50 year and 99 year lease duration are optional and must demonstrate the additional commercial advantage offered to the Trust in return for a lease duration of longer than 25 years. It should be noted that the Trust will (at the initial ITT stage) make a decision as to which lease duration it intends to proceed with. This will be a strategic decision based on the balance of risk, commitment and financial benefits to the Trust. If a bidder has not therefore submitted a bid for the Trust's chosen lease duration, they will be unable to proceed to the next stage. Bids for the chosen lease duration will then be negotiated and evaluated in accordance with the award criteria.
During the development of the new facility, the successful partner will be required to operate the private patient unit from the existing facility to ensure continuation of the private service.
The partner will have an exclusive right to provide private patient services at the Trust's site. This is subject to certain carve outs as detailed in the procurement documentation. Clinical areas which may not form part of the exclusivity agreement are; cardiology, ophthalmology, maternity/obstetrics and assisted conception. The Trust will consider proposals for the inclusion of these clinical areas in the exclusivity agreement but does not guarantee that these will form part of the agreement. These proposals may include the provision of certain clinical services or facilities by the successful partner to the Trust (for example, allowing the Trust the use of facilities in the PPU for NHS assisted conception and the subsequent transfer of NHS assisted conception services to the partner, subject to funding).
The partner will be expected to purchase key support services from the Trust. If it elects not to, this will be taken into account in the financial evaluation.
It is envisaged that staff of the current operator of the existing private patient unit will transfer under TUPE to the successful partner. Staffing and pension details will be provided as part of the procurement documentation.
Under Lot 2 (‘Option B’), the Trust will grant a lease of the existing Private Patient Unit (the Coombe Wing) to the successful partner.
The lease will be for ten years and under the lease the partner will pay to the Trust a guaranteed baseline rent and a revenue share.
The partner will have an exclusive right to provide private patient services at the Trust's site. This is subject to certain carve outs as detailed in the procurement documentation. Clinical areas which may not form part of the exclusivity agreement are; cardiology, ophthalmology, maternity/obstetrics and assisted conception. The Trust will consider proposals for the inclusion of these clinical areas in the exclusivity agreement but does not guarantee that these will form part of the agreement. These proposals may include the provision of certain clinical services or facilities by the successful partner to the Trust (for example, allowing the Trust the use of facilities in the PPU for NHS assisted conception and the subsequent transfer of NHS assisted conception services to the partner, subject to funding).
The partner will be expected to purchase key support services from the Trust. If it elects not to, this will be taken into account in the financial evaluation.