§ Mr. DonohoeTo ask the Secretary of State for Social Security, pursuant to his answer of 1 April,Official Report, column 74 (1) what procedure was used by his Department prior to its entering into its contract with the General Healthcare Group plc; what other private companies or organisations were approached with a view to tendering for the contract now held by Healthcare Group plc; how many companies or organisations tendered for this contract; and what adjustments have been made to the terms of this contract since it was entered into; [28621]
(2) how many audiology tests were carried out under his Department's contract with the General Healthcare Group plc in each financial year since 1993–94; and what was the cost of this contract in each of these years. [28622]
§ Mr. BurtThese are matters for Mr. Kevin Caldwell, the chief executive of the War Pensions Agency. He will write to the hon. Member.
366WLetter from Kevin Caldwell to Mr. Brian Donohoe, dated 10 May 1996:
The Secretary of State has asked me to reply to your recent Parliamentary Questions about the contract held with General Healthcare group plc and the process leading up to the award.
The tender exercise leading to the award of contract began with an advertisement in the national press on 30 November 1992. This invited any organisation who wished to do so to express an interest in participating in the exercise with a view to inclusion on the tender list.
Questionnaires were then issued to thirty eight organisational who had expressed interest, requesting information on such areas as financial stability, capacity and capability, management infrastructure and commitment together with experience in the audiology field. Evaluation of these responses identified six companies who appeared suitable for shortlisting to the next stage, which consisted of site reference visits and further exploration of potential capability to provide the service. Of these six, four were considered suitable for inclusion on the tender list.
In fact sealed tenders were received from three companies: Nuffield Audiological Services, Minerva Health Management and General Healthcare Group PLC. They were opened in line with usual Departmental guidelines and evaluated by a panel comprising representatives from medical, operational and contractual backgrounds.
Following its analysis, the tender evaluation panel produced a report recommending award of a national contract to General Healthcare Group plc, trading as BMI Healthcare Audiology Services. This recommendation was endorsed by an independent Tender Board comprising senior managers within the Department.
Several adjustments have been made since the commencement of full service in 1993. These are all of an operational or administrative nature designed to modify operational aspects of the service in order to ensure maximum efficiency in the prevailing circumstances. The Terms and Conditions of the original contract remain unchanged.
The volume of tests by category together with the relevant costs in each financial year since award of contract is as follows:
Volume of tests 14 June 19931 31 March 1994 Standard Tests 61,822 Standard Tests (Domiciliary Visit) 1,661 Tympanograms 7,984 Cortical Evoked Response Audiometry 562 Cortical Evoked Response Audiometry (Domiciliary Visit) 17 Annual Cost £2,948,588.80 1 April 1994–31 March 1995 Standard Tests 60,553 Standard Tests (Domiciliary Visit) 5,025 Tympanograms 8,178 Cortical Evoked Response Audiometry 2,756 Cortical Evoked Response Audiometry (Domiciliary Visit) 364 Annual Cost £3,929,563.90 1 April 1995–31 March 1996 Standard Tests align="right">36,338 Standard Tests (Domiciliary Visit) 3,593 Tympanograms 4,951 Cortical Evoked Response Audiometry 2,563 Cortical Evoked Response Audiometry (Domiciliary Visit) 691 Annual Cost £3,636,035.42 1 Setting up of operations began in July 1993. Full services were operational from October 1993.