Logistics and Courier Services

DHL is the incumbent provider of a strategically important and clinically critical logistics service across Oxford Health NHS Foundation Trust (OHFT). The service operates seven days per week and supports the timely transportation of pathology specimens, pharmaceuticals, sterile services equipment, clinical supplies, post, parcels and other essential items required for the safe and effective delivery of patient care and operational services. Any disruption to this service could have a significant adverse impact on clinical operations, patient pathways and organisational performance but DHL have the contingency to manage. DHL fully meets our requirement for this service and there have been no performance issues reported over the lifetime of the current contract.

The service DHL provide comprises 11 OHFT routes and a further eight interoperable routes shared between OHFT and Oxford University Hospitals NHS Foundation Trust (OUH). These shared routes support hospitals, clinics and other joint sites across both organisations, ensuring route optimisation, avoiding duplication of journeys and reducing the requirement for additional vehicle capacity within Oxford City. This collaborative approach delivers both operational efficiencies and environmental benefits.

Historically, DHL has provided the service under a contract held directly with OUH, with OHFT participating through a Memorandum of Understanding (MoU) with OUH. This arm’s-length arrangement has limited OHFT's visibility of operational and management information relating to the service. Detailed data regarding route utilisation, service volumes, workforce requirements, fleet deployment, cost structures and dependencies on OUH operations is not currently sufficiently developed to enable OHFT to accurately cost, evaluate and safely implement an alternative delivery model.

The proposed 2-year contract with an optional 12-month exit period, represents a continuation of the existing service model but establishes a direct contractual relationship between OHFT and DHL. This will provide greater contractual oversight and governance through the incorporation of framework terms and conditions, a robust audit trail, clearly defined scope and pricing mechanisms, CPI-linked provisions, performance management through Key Performance Indicators (KPIs) and Service Level Agreements (SLAs), route-level reporting, business continuity and escalation arrangements, annual value review processes, exit provisions, and a formal gateway review prior to any contract extension.

A change in provider at this stage would likely result in the loss of the operational benefits derived from the existing integrated route structure. The interoperable routes currently operated across both Trusts would become misaligned, resulting in duplication of journeys, increased costs for both organisations and a reduction in the environmental efficiencies currently achieved.

The proposed contract term will provide OHFT with the necessary time and operational insight to develop a comprehensive evidence base and undertake a robust future options appraisal. This will include the completion of a Public Interest Test in accordance with Procurement Policy Note (PPN) 024, ensuring that future decisions are informed by robust commercial, operational and public value consideration. Dependant on the evaluation outcome before the end of the second year, a plan will be developed to support transition to the agreed future delivery model.