Monitor wishes to set up a framework agreement and for the NHS Trust Development Authority (NHS TDA) to have access to it. Both have a responsibility to protect patient interests through the delivery of high quality, financially sustainable health services.

The objective of this framework agreement is for contractors to develop strategic options assessing financial viability of clinical services, when a healthcare Provider falls into financial distress/failure. In the event of this happening, Monitor/NTDA will appoint a Trust Special Administrator (TSA) or Monitor alone may appoint a Health Special Administrator (HSA).

There are two separate routes to appointing TSA's, one for NHS Foundation Trusts and the other for NHS Trusts. A Health Special Administrator may also be appointed in the case of an independent sector provider entering administration. Details of the different routes and powers are provided in the ITT document.

Essentially, the appointed specialist will act as an advisor to Monitor/NTDA overseeing the delivery of the provider's services whilst a longer term solution is found. As such, parties to this framework agreement may be required to run healthcare providers – of all sizes – as a going concern in the interim. We anticipate that successful contractors will have expertise in running large companies, other public sector organisations or health organisations whilst they are in administration.

Further information about Monitor can be found at: http://www.monitor-nhsft.gov.uk/ Further Information about the NTDA can be found at: http://www.ntda.nhs.uk/

This Framework Agreement is subsequently divided into two lots: Lot 1: Strategic Recommendations, and Lot 2: Implementation of Strategic Recommendations.

Lot 1 (Strategic Recommendations)

The Contractor may be required to deploy up to two teams to the Provider's location – a Contingency Planning Team (CPT) and/or a Special Administration Team (SAT).

A CPT would identify options for restructuring, including identifying those specific services to be protected at the Provider. A troubled provider might not proceed to special administration where it is possible to secure a solvent restructuring.

Example duties of the Contingency Planning Team (CPT)

— To Support Commissioners to identify Protected Services (PS)

— To support the development of plans to ensure that PS are continued throughout an administration if a provider were to be placed in administration..

— To develop recommendations for non-protected services

— Communication / stakeholder management.

In the event that a Special Administration Team (SAT) is required, the SAT will then have an Interim Report on which he or she is required by the Health and Social Care Act 2012 to consult. The Administrator may choose to either consult on the Interim Report immediately or to develop it further, prior to the consultation process required by the Act. In either case, whilst the Report is being developed, consulted upon and discussed with the Secretary of State, the Administrator, once appointed, is required to run the Provider as a going concern as would normally be expected in an administration process.

Example duties of the Special Administration Team (SAT)

Please note that these are example duties only and some may not be applicable in any particular special administration. The duration and precise nature of the duties required of a Contractor will be specified in greater detail at mini-competition stage.

— Strategy development;

— Stakeholder engagement – including managing the consultation process;

— Responding to creditors (as appropriate to Health Special Administration or Trust Special Administration);

— Trading matters;

— Patient Safety;

— Employee relations and management;

— Compliance and Statutory Matters;

— Communications Matters.

Further details of the tasks required are contained within the ITT document. The output of Lot 1 will be a strategic report providing details of the consultation.

CPT stage and SAT stage may be subject to individual mini-competitions however a direct award may be permissible under emergency situations. Details of this mechanism are provided in the ITT document. We would expect the direct award of contracts to Contractor's to be the exception, rather than the norm.

Lot 2 (Implementation of Strategic Recommendations)

Following the consultation and a process of acceptance of the final Report by Monitor and/or the Secretary of State as appropriate to the type of special administration, a new Contractor may be appointed

Typical activities that may be expected of a Contractor (whether acting as the TSA or as support to the TSA) at this stage mirror those that may be required in a corporate insolvency. These may include but are not limited to:

— Facilitation of contract renegotiations with suppliers and third parties;

— Reconfiguration and rationalisation of property held by the Provider;

— Reconfiguration of clinical service lines offered at the Provider's location;

— The development of new clinical service lines as recommended in the Report;

— The assessment of staffing and managerial levels and the facilitation of contractual negotiations, in accordance with the Transfer of Undertakings (Protection of Employment) Regulations where appropriate;

— The preparation of the Provider for a merger with another NHS Foundation Trust or for the transfer of its assets and liabilities to another NHS Foundation Trust or the Secretary of State or between another NHS Foundation Trust and the Secretary of State.

A mini competition will be held in most cases however the Authority does have the option to use a direct award mechanism however this option will only be used as a last resort.

The Contracting Authority reserves the right to discontinue the tendering process at any time and not award the contract.

The Contracting Authority considers that this contract may be suitable for economic operators that are small or medium enterprises (SMEs). For the avoidance of doubt, the contracting authority points out that no weight will be attached to whether or not the economic operator is an SME in selecting economic operators to submit tenders or in assessing the most economically advantageous tender.

The Authority wishes to allow a maximum of 20 suppliers onto the framework agreement (Therefore a maximum of up to 10 suppliers per lot).