Sustainable Public Procurement
Jo Mitchell
Scottish Procurement and Commercial Directorate
March 2011
Procurement Value for Money
Triangle
Improve the quality of public services
and the ease of access for suppliers
Capability
Competitiveness
Capturing Savings &
Benefits
Coverage
Collaboration
Deliver savings
and
value for money
Corporate Social Responsibility
Communication
Buy
Sustainably
Technology for Reform
• Scottish Procurement Information Hub- Collect spend data to
identify where collaborative may opportunities exist and where
transactional efficiencies could be made.
• Public Contracts Scotland – Access to contracts and collect contract
data
• Best Practice Indicators (BPIs) - Performance Data
• eProcurement Scotland – encourage contract compliance in
organisations; faster delivery of goods and services and quicker
payment of suppliers
Procurement Journey
Processes, templates and guides to support all levels of procurement activity.
http://www.scotland.gov.uk/procurementjourneyhome
Sustainable Public Procurement
Scottish Sustainable Procurement Action Plan:
http://www.scotland.gov.uk/Topics/Government/Procurement/policy/corporateresponsibility
Sustainable Procurement Delivery Plan:
http://www.scotland.gov.uk/Topics/Government/Procurement/policy/corporateresponsibility/procurementdelplan
Legislation and Sustainable Public
Procurement in Scotland
• Local Government Scotland Act 2003
http://www.legislation.gov.uk/asp/2003/1/contents
• The Public Contracts (Scotland) Regulations 2006, regulation
39 states:
http://www.oqps.gov.uk/legislation/ssi/ssi2006/ssi_20060001_en_1
• Scotland Climate Change Act 2009
http://www.scotland.gov.uk/Topics/Environment/climatechange/scotl
ands-action/climatechangeact
• Housing (Scotland) Act 2010. Part 2 Section 24d
http://www.oqps.gov.uk/legislation/acts/acts2010/pdf/asp_20100017
_en.pdf
Scottish National Sustainable Public Procurement Training Programme
Community Benefits in Public Procurement
• Contracting authorities may have a legal and policy basis for
incorporating community benefit requirements into their procurement
processes.
• The Local Government in Scotland Act 2003 confers “well-being”
powers on local authorities facilitating their scope to implement
Community Benefit clauses in a way which meets their sustainable
development responsibilities.
• The scope for other public bodies will depend on their particular
frameworks e.g. RSLs
• Best Value or Value for Money remains the overarching principle.
7
The first question that we
should ask when
developing
any contract
specification should be:
‘Can we include
a Community Benefit
clause?’"
John Swinney, Cabinet
Secretary for Finance
and Sustainable
Growth, March 2010
Types of Community benefits
• Targeted Recruitment and Training (providing employment and
training opportunities)
• SME and Social Enterprise development
• Community engagement
The Scottish Government Energy
Assistance Package
• There is a strong association between income and fuel poverty.
• All households with an average weekly income of less than £100
have a high probability of being fuel poor regardless of other factors.
• The Government’s objective is to increase the opportunities for
employment thereby increasing income and reducing poverty.
• Maximising the employment potential of this contract for new labour
market entrants and people who are disadvantaged in the labour
market ,will reduce the number of Scottish Households that are fuel
poor.
10
The Scottish Government Energy
Assistance Package
• In addition to providing more energy efficient homes to those who
need them most, the contract included a commitment to:
• Creation of three Green Skills Academies in Scotland;
• Training and recruitment of new entrants to the employment
market.
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Procurement Process
• Contract Notice (Advert):
– Include Community Benefit as core to the subject matter of the contract
• PQQ requirement:
– Demonstrate where you have delivered or been involved in the delivery
of a skill relating to community benefits using specific examples e.g.
training of new staff, training of existing staff, supplier development.
• ITT requirement:
– Demonstrate the Community Benefit to be achieved through the
delivery of this contract and the overall management process
• Contract Management
–
Implement and Monitor clauses
Who’s Using Community Benefit Clauses
•
Central Government - Scottish Government contracts for the national
Energy Assistance Package and the Scottish Crime Campus
•
Health Boards: Greater Glasgow and Clyde contract for the new Southern
General Hospital (target of 250 new entrants trainees and Social enterprise
development in catering, recycling and transport sectors)
•
Local Authorities - Glasgow City Council for Commonwealth Games
contracts (current contractual commitment of over 160 new entrant trainees)
•
Regeneration Organisations - Raploch Urban Regeneration Company,
Stirling (contractual commitment of 225 new entrant trainees)
•
Registered Social Landlords - Glasgow Housing Association (to date more
than 1500 new opportunities created including over 400 apprenticeships)
Practical Hints
• Map out the key people across the organisation who can contribute
to scoping the social requirements
• Identify the sustainable procurement champions
• Choose social requirements you can monitor
• Consider evaluation criteria and weighting
• Think how payment relates to delivery
• Think through sanctions for breach of social clauses
Sources of Help and Advice
The Scottish Government ‘Ready For Business’ Programme:
http://www.readyforbusiness.org/index.php
Targeted Recruitment and Training :
•Regeneration Agencies
•Sector Skills Councils, e.g. Construction Skills (http://www.cskills.org/contactus/scotlandsouth.aspx)
Advertising sub-contracting opportunities is also achieving opportunities for a
wide range of businesses including social enterprises
SME and Social Enterprises:
•Public Contracts Scotland (http://www.publiccontractsscotland.gov.uk/)
•Supplier Development Programme
•Ready for Business (see above)
•Business organisations