LONDON – The UK government’s Department of Health and Social Care (DHSC) is reported to currently have over 170 ongoing disputes with suppliers of Covid-19 personal protection equipment (PPE), with a value of around £4 billion.
In the most high profile case, the UK government has just issued breach of contract proceedings against London-based PPE Medpro over the supply of sterile gowns in 2020.
This company has been at the centre of controversy following allegations linking it to Tory peer Baroness Michelle Mone. PPE Medpro secured contracts worth more than £200 million after she recommended it to ministers in the early days of the coronavirus pandemic.
The company, however, says the court case will be “rigorously defended” and accused the DHSC of a “cynical attempt to recover money from suppliers”.
“PPE Medpro will demonstrate to the courts that we supplied our gowns to the correct specification, on time and at a highly competitive price,” the company said in a statement. “The case will also show the utter incompetence of the DHSC to correctly procure and specify PPE during the emergency procurement period. This will be the real legacy of the court case and it will be played out in the public arena for all to see. Over a two-month period, July through to end of August 2020, PPE Medpro supplied DHSC with 25 million sterile gowns. The gowns were manufactured to the correct quality, standards and specification set out in the contract, delivered on time and at a price that was 50% of what the DHSC had been paying at the time.
“By the end of 2020 it was clear that the DHSC had vastly over ordered and held five years’ supply of PPE across the seven major categories, including gowns. It was clear that the DHSC would never be able to use all the PPE it procured.
“Consultants were then brought in to pick over all the contracts and fight product not on quality but on contract technicalities that were never envisaged at the time of contract. For example, PPE Medpro’s contract never specified double bagging of gowns. Yet it became clear in late 2020 that all the gown manufacturers who had correctly produced single bagged gowns were being unfairly challenged by the DHSC.
“Despite numerous attempts at mediation with the DHSC, it is clear they didn’t want to settle.”
A DHSC spokesman said: “We can confirm we have commenced legal proceedings in the High Court against PPE Medpro Limited for breach of contract regarding gowns delivered under a contract dated June 26, 2020. We do not comment on matters that are the subject of ongoing legal proceedings.”
