NHS decision to scrap preferred supplier list costs recruitment industry thousands

The Recruitment and Employment Confederation (REC) has reacted with dismay to the announcement that that the NHS has scrapped the current tendering process for the supply of medical locums and locum GPs - a decision which has cost the recruitment industry thousands of pounds in wasted tendering costs and time.

The framework, which had been developed by the NHS Purchasing and Supply Agency (NHS PASA), would have created a new preferred supplier list of approved recruitment consultancies providing locums. The aim is to streamline recruitment costs and administration for the NHS, but the whole process has seen a succession of problems. As a result NHS PASA has been forced to accept that the proposed framework is unworkable and that the procurement process has failed to meet the principles of the EU law: Transparency, Proportionality and Equal Treatment.

Earlier this year, recruitment agencies were asked to tender for admission on to the framework, but a number of problem areas were soon apparent. The REC has been in regular contact with PASA in order to highlight the concerns of members - in particular the lack of consultation, the short timescales and a number of serious administrative problems.

The process has involved considerable time and administration, but agencies have now been left in the lurch. REC member agencies have reported that their individual costs incurred range from 5,000 to 25,000. This is a huge sum for smaller agencies and may even threaten their livelihood. Now that plans for the framework have been shelved, these costs cannot be recovered. Once again, the effective resourcing of the NHS has been put at risk rather than enhanced by an increasingly bureaucratic and burdensome procurement process.

Gareth Osborne, Managing Director of the REC, said: ìThe fact that a workable framework for the supplier list was not achieved is of major concern and we are pressing NHS PASA for more details on the specific reasons behind the announcement. We are convinced that proper consultation with the recruitment industry at the outset could have prevented this situation, which has wasted taxpayersí money, as well as the time and money of various recruitment agencies. A number of REC members have been left frustrated ñ not to mention out-of-pocket - by the decision.î