Background

Organisation: XXX
Contract Title: Provision of Scheduled Medical Equipment Maintenance
Contract Value: £450,000 over 3 years
Risk Level: Medium value / medium risk
Supplier: XXX

Contract Type: Framework call-off (from a national medical equipment servicing framework)
Contract Manager: Estates & Facilities Manager
Service Areas Affected: Radiology, Theatres, Outpatients, Community Care

The Health Board required a reliable supplier to provide maintenance and repair services for a range of diagnostic and treatment equipment. Downtime of equipment affects patient care, waiting times, and clinical risk—but the contract value and complexity place it in the medium-risk category.

Procurement and Contract Award

A mini-competition was run under the national framework, with award criteria based on:

• Quality (60%) – technical capability, response times, compliance with standards
• Price (40%) – fixed maintenance costs and capped repair rates

The winning supplier demonstrated strong technical competence and offered a transparent pricing structure.

A formal handover meeting took place between the procurement team and the contract manager. Key documents handed over included:

• Specification
• Tender response
• KPI schedule
• Contract management plan template
• Pricing schedule
• Risk register
• Escalation routes

Contract Management Structure - Roles & Responsibilities

Contract Manager (Health Board)

• Oversees delivery, performance, and compliance
• Analyses management information and KPIs
• Holds quarterly performance reviews
• Manages risks and escalations

Service User Leads (Radiology, Theatres, Outpatients)

• Log service requests
• Verify completion of repairs
• Provide user feedback
• Report issues promptly

Supplier Contract Lead

• Ensures compliance with service levels
• Provides monthly MI
• Attends quarterly review meetings

Procurement

• Provides commercial advice where needed
• Supports variations, disputes, and extensions

Contract Objectives

The contract aimed to:

1. Ensure safe, compliant, and reliable medical equipment.
2. Maintain 90% equipment availability across all departments.
3. Achieve response to urgent faults within 4 hours.
4. Deliver annual cost predictability.
5. Reduce asset downtime by 20% in year 1.

Performance Measures (KPIs)

Contract and Supplier Management Activities

Mobilisation

The Health Board held a mobilisation meeting to:

• Confirm asset list (540 items)
• Agree reporting dashboards
• Finalise service desk process
• Introduce supplier to departmental leads
• Set expectations on behaviours, communication, and risk reporting

Monitoring and Reporting

Monthly reporting provided:

• Fault trends
• Average response/repair times
• Preventative maintenance completion
• Customer feedback
• Risks and issues
• Proposed improvement actions

Quarterly Review Meetings

Each quarter, the contract manager reviewed:

• KPI performance
• Customer satisfaction
• Costs and budget position
• Incidents and compliance issues
• Supplier innovations and improvement proposals

Minutes and action logs were maintained.

Issue and Risk Management

Issue Example:

In Month 5, Radiology experienced repeated delays in CT scanner repairs due to supplier staffing shortages.

Actions Taken:

1. Contract manager triggered Level 1 escalation.
2. Supplier provided a recovery plan including bringing an additional engineer on site two days per week.
3. Contract manager monitored weekly until service levels returned to normal.
4. KPI for urgent response time was temporarily amber but recovered by Month 7.

Risk Example:

Risk of delayed preventative maintenance affecting clinical availability.

Mitigation:

• Supplier must present a rolling 8-week forward maintenance schedule.
• Spot audits by departmental leads.

Continuous Improvement

The supplier proposed two improvements:

1. QR-code asset tags for faster fault logging.
2. Predictive maintenance alerts for high-use equipment (based on vibration monitoring).

The Health Board accepted both, resulting in:

• 15% reduction in routine repair callouts
• Improved user satisfaction from 3.8 to 4.4 out of 5

Outcome After Year 1

Lessons Learned

• Early mobilisation and clarity of roles were essential.
• A shared performance dashboard increased transparency.
• A medium-risk contract still requires regular monitoring due to operational impact.
• Strong relationship management helped resolve issues quickly.
• Having realistic but challenging KPIs supported service improvement.

Conclusion

This case study demonstrates practical, proportionate, and effective contract and supplier management for a medium-value, medium-risk contract within the Scottish public sector. The combination of structured governance, consistent reporting, and collaborative problem-solving resulted in improved service performance and value for money.

Background

Organisation: XXX

Contract Title: Supply, Delivery & Maintenance of Communal Waste Containers
Contract Value: £320,000 over 4 years
Risk Level: Medium value / medium risk
Supplier: XXX
Contract Type: Open procurement – 60/40 Quality/Price
Contract Manager: Waste Services Operations Lead
Service Areas Affected: Waste & Recycling, Neighbourhood Services, Customer Services

The council required a reliable supplier to provide communal bins for housing estates and public spaces, as well as maintenance and replacement services. The contract’s operational impact—public safety, waste service continuity, and community satisfaction—classified it as medium-risk.

Procurement and Award

The council evaluated suppliers on:

• Quality (60%) – durability of bins, maintenance programme, sustainability credentials, delivery capability
• Price (40%) – cost per bin, maintenance rates, optional extras

The supplier scored highest due to strong warranty terms and a sustainability-led manufacturing process.

A structured contract handover meeting was held to transition ownership from procurement to the waste services team.

Contract Governance Structure

Contract Manager (Council)

• Monitors Key Performance Indicator(KPI) performance
• Verifies volumes, delivery accuracy, and repair completion
• Holds quarterly meetings
• Manages risks and disputes

Service Supervisors

• Report issues to the supplier
• Confirm bin installations
• Perform random quality checks

Supplier Account Manager

• Provides monthly reporting
• Manages repair teams
• Attends governance meetings

Procurement (Council)

• Supports change control and variations
• Advises on commercial risks

Contract Objectives

1. Maintain continuous availability of communal bins in public areas.
2. Ensure delivery of new bins within 10 working days of order.
3. Achieve repairs within 5 working days.
4. Increase use of recycled material.
5. Reduce customer complaints around overflowing or damaged bins.

Performance Indicators

Contract and Supplier Management Activities

Mobilisation Phase

Initial mobilisation activities included:

• Validating site list and priority locations
• Agreeing design specifications for bins
• Establishing communication routes for reporting faults
• Supplier providing a sample batch for testing durability
• Setting up monthly delivery schedules

Ongoing Monitoring

The supplier provided a monthly performance dashboard showing:

• Number of bins ordered
• Delivery performance
• Repair orders and completion times
• Bin failure types (wheels, locks, lids)
• Customer complaint correlation
• Sustainability data

The council’s waste supervisors cross-checked deliveries weekly.

Quarterly Review Meetings

Topics covered:

• KPI scores
• Warranty claims
• Community feedback
• Performance issues (delivery delays in winter)
• Environmental performance

Minutes and corrective action plans were recorded.

Issue and Risk Management

Issue Example: Delivery Delays During Peak Period

In Month 7, several housing estates did not receive replacement bins on time due to supplier factory downtime.

Actions Taken

• Contract manager initiated Level 2 escalation under the contract.
• Supplier presented a recovery plan with temporary outsourcing for manufacturing.
• Council agreed to a temporary prioritisation of high-risk sites.
• Deliveries returned to target within two months.

Risk Example: Vandalism Leading to High Failure Rates

Mitigation Measures

• Installation of reinforced lids in three high-risk estates.
• Joint inspection with police community teams.
• Supplier provided training for council staff on early detection of stress damage.

Continuous Improvement

Two continuous improvement actions were delivered:

1. “End-of-life bin recycling scheme.”
   Supplier introduced a take-back scheme where old bins are collected and recycled with proof of recycled tonnage.
2. Predictive maintenance programme.

The supplier began analysing repair trends to preemptively replace wheel-sets.

These initiatives supported the council’s waste reduction and circular economy goals.

Outcomes After Year 1

Overall, the contract was evaluated as “Good – performing within expected parameters with minor improvements required.”

Lessons Learned

• Regular site inspections helped identify recurring failure types.
• Early escalation prevented performance deterioration.
• Clear KPIs supported meaningful contractor conversations.
• Sustainability improvements created added value not originally specified.
• Seasonal risks (winter delays) must be built into future contracts.

Conclusion

This case study demonstrates practical, balanced, and proportionate supplier management within a Scottish local authority setting. Despite initial challenges, collaborative governance and structured performance monitoring enabled strong value for money and supported community outcomes.