Beta Testing of Sustainable
Procurement Tools
Sustainable Procurement Topic Support Network
University of Edinburgh
03 November 2014
Barbara Morton, Sustainable Procurement Ltd
Objectives
1. To provide an update on the Procurement Reform (Scotland) Act
2014
2. To introduce / test / discuss the enhanced tools
3. To take feedback
4. To discuss next steps
Beta Testing of Sustainable Procurement Tools
Agenda
10:00
Welcome and Introductions
10.10
Update on the Procurement Reform (Scotland) Act 2014 & discussion
(Josephine Mitchell, Scottish Government)
10:30
Prioritisation – run-through the tools highlighting enhancements
(Barbara to lead)
11:15
Sustainability Test – run-through the tool and discussion of its functionality
(Barbara to lead)
12:30
Lunch
13:15
Flexible Framework – run-though and discussion of functionality
- including Action Plan & guidance
14.15
Discussion of guidance / fit with other developments in and for the sector
15:00
Next steps
15:30
Close
(Barbara to lead)
(All)
Scottish procurement landscape
Spend by sector (£m)
£697
£163
£1,566
Spend by commodity (£m)
2,500
2,000
1,500
£2,074
£5,237
1,000
500
Local Authorities
NHS
Scottish Government & Family
Colleges and Universities
Fire Service and Police
The Scottish Model Of Procurement:
Improving
supplier
access to
public
contracts
Quality
Cost
Embedding
sustainability
in all we do
Maximising
efficiency
and
collaboration
Delivering
savings and
benefits
Sustainability
Vision:
Through the Scottish Model of Procurement, to be world leaders in
innovative public procurement, enabling the best outcomes for Scotland
Procurement Reform (Scotland) Act 2014
Duties
Specific measures / duties
Regulations

Sustainable procurement duty
T
H
R
E
S
H
O
L
D
S
G
E
N
E
R
A
L
D
U
T
Y
Health & social care procurement

Contract award without competition



Procurement strategy & annual report
Annual report on procurement activity in Scotland
Publication of notices on PCS
S
U
S
T
A
I
N
A
B
L
E
Guidance
D
U
T
Y


Community benefit requirements
Exclusion of bidders

Selection of tenderers / award of contracts (inc.
Workforce Matters

Technical specifications

Prohibiting charging for participation in process
Giving of reasons (Debriefing)
Contracts register
Reuse / Remanufacture / Recycle
REMEDIES


Procurement Reform (Scotland) Act
Business friendly: Socially responsible
Procurement Reform (Scotland) Act 2014
Sustainable Procurement Duty
Consider:
Improving
Involving
Economic, social,
Small and medium
environmental, wellbeing
enterprises and 3rd sector
and reducing inequality in
bodies including supported
the area.
businesses.
Promoting
Innovation
Key Questions in the ‘Embedding Project’
1.
When the PR Bill / Act comes into effect will public sector
organisations in Scotland be clear about:
a. What they are required to do?
b. How they are required to do it and report on it?
c. How their performance will be assessed?
d. What happens if they fail to deliver?
2.
Will there be tools and guidance to support them and will
these be:
a. Sufficient, consistent, clear, unambiguous, easy to
access, easy to use?
Sustainable Procurement Landscape
Procurement Reform Act
EU Directive
Regulatory Reform Bill
Construction
Procurement Review
Flexible
Framework
Self-assessment
Procurement Capability Assessment
PCS
Tender
Procurement
Journey
E-learning modules
Marrakech Training – ‘Sustainable procurement is good procurement’
Deliverables
1. Embedding Project
Review of policy, strategy and systems
Prioritisation methodology
Updated Flexible Framework
Case studies
Guidance
2. Beta Testing
1. Prioritisation methodology
2. Sustainability Test / Contracts Tool
3. Updated Flexible Framework with
Action Plan
4. Guidance
5. Case studies
Working Methods during Embedding Project
• Engagement and testing through Working Groups:
1. Prioritisation methodology
• Representatives from:
– Scottish Government
– Scotland Excel
– APUC
– NP Health / Greater Glasgow & Clyde Health Board
– Scottish Parliament
2. Flexible Framework
• Representatives from:
–
–
–
–
–
–
Scottish Government
Scotland Excel
APUC
NP Health
Scottish Parliament
South Ayrshire Council
Prioritisation – Aims and Objectives
“Deciding to use, apply a specific strategic
approach (Spend Prioritisation) for the
organisation, a particular services, or range
of commodities/groups”
“Prioritisation methodology - quick, simple won't consume too much extra time”
“I enjoyed it all but really liked the applying
prioritisation and the review of risks”
National Outcomes
Link to Single Outcome Agreements /
Service Level Agreements
Cross reference with Local Authority
Benchmarking activity
Links to reporting requirements of all
public sector bodies in Scotland
Anticipate / reflect the reporting requirements of the
Procurement Reform Act
Scottish Government Priorities – May 2013 Reflected by the National Indicators
Increase the
abundance of
terrestrial
breeding birds
(biodiveristy)
Improve
the
condition of
protected
nature sites
Improve the
state of
Scotland's
marine
environment
Reduce
Scotland’
s Carbon
footprint
Reduce
Waste
Generated
Reduce the
proportion of
people living in
poverty
Increase the
proportion of
journeys to
work made by
public or
active
transport
Increase
renewable
energy
production
Increase
exports
Improve the skill
profile of the
population
Improve mental
wellbeing and
end of life care
Improve
support for
people with
care needs
Improve digital
infrastructure
Improve
access to
suitable
housing
options
Improve
people’s
perception of
their
neighbourhood
Improve the
responsiveness
of public
services
‘Organisational Priorities
Policy & Strategy’
Increase the
number of
new homes
(Scottish Government and
core agencies and NDPB’s)
Widen the use
of the internet
Improve
Scotland’s
Reputation
Increase
research and
development
spending
Improve
perceptions of
the quality of
public services
Reduce death on
Scottish roads
Reduce
Traffic
Congestion
Increase No
of Business
Increase the
proportion of
young people in
learning training or
work
Reduce
Reconvicti
on rates
Improve
children’
s
services
Increase the
number of
graduates in
positive
destinations
Improve
levels of
educational
attainment
Improve the
quality of the
healthcare
experience
14
Clackmannanshire Council Priorities – May 2013
Waste
Reduction
Carbon
Reduction
Transport
Climate
Change
Adaptation
Local
Sourcing
Fair &
Ethical
Trade
Recyclable/
Recycled Goods
Innovation
‘Organisational
Priorities’
A Healthy and
Protected
Environment
Energy and
Resource Efficiency
Policy &
Strategy
Cost Savings
Construction
Accessibility
Safer
Communities
Health
Improvement
Community
Benefits
Regeneration,
Jobs and Skills
Equality and
Diversity
15
University of Edinburgh
Strategic Plan
diagram
2012 -2016
…an overarching
theme for this Plan
is to increase our
global impact and
our contribution to
society.”
Prof. Sir Timothy O’Shea
Principal & Vice-Chancellor,
The University of Edinburgh
Our Sustainable Procurement Goal
to procure goods and services in ways
that maximise efficiency & effectiveness
while minimising social, environmental
and other risks.
Procurement Strategy linked to University Strategic Plan
Procurement professional influence to exceed 80%
Collaborative procurement on target 30%
TOOLS: 1. Prioritisation – Aims and Objectives
A. Role of prioritisation
– Risk and opportunity assessment
– Trail – ‘Golden Thread’
– Audit
– When and who?
– Simplicity /complexity?
B. Use:
– Demand review – can need be met in a lower risk way?
– Strategic review at high level - inform procurement strategy
– Sub-category level
– Outputs and link to procurement process
Delivering the sustainable procurement ‘Golden Thread’
National performance framework
and national outcomes
PCA
– external
validation
of performance
Procurement journey,
prioritisation
Flexible Framework –
internal assessment of
performance
Life cycle impact
mapping
Procurement
strategies
Corporate Procurement
Strategy (Procurement
Reform (Scotland) Act 2014)
Projects,
products,
services
Product and supplier selection
Contracts tool
Sustainability test 2
TOOLS: 1. Prioritisation – Aims and Objectives
C.
Where does it sit?
― Link to The Procurement Journey – risk management template
― Link to Flexible Framework
D. Guidance
E. Monitoring
– Are we measuring the right things?
TOOLS: 2. Sustainability Test
• Framework /Contract level
• Environmental and socio-economic factors in more detail
• Sub-category level
• Link to procurement process
• Guidance documents
• Case studies and examples
TOOLS 3: Enhanced Flexible Framework
with Action Plan
• Tailored to Scottish context
• Updated in line with existing policy
• Includes a recalibration process
• Provides direction through Action Plans (new feature)
• Shows how action delivers against National Outcomes and Indicators
• Supports the delivery of the Procurement Reform (Scotland) Act 2014
Flexible Framework Working Group
Procurement Capability Assessment
PCA
Level 1
Level 2
Flexible Framework
Level 3
Level 4
Level 5
Procurement Reform Act
Corporate Procurement Strategy
to take account of economic,
social and environmental
wellbeing
PCAFlexible Framework
Organisation’s Action Plan
 Action
 Responsibility
 Target Date
Procurement Journey
Law &
Regulations
Policy & SPPNs
Guidance
Tools
Flexible Framework
• Clarifying definitions and intent
• Strengthening guidance to show how self-assessment leads to action
(plans)
• Making specific reference to relevant risks and opportunities e.g.
ethical issues
• Developing toolkit to be consistent with content of other tools
• Populating with examples & case studies
• Developing Markets for Third Sector Providers Programme
• Providing direction
Flexible Framework
• Clarifying definitions and intent
• Strengthening guidance to show how self-assessment leads to action (plans)
• Making specific reference to relevant risks and opportunities e.g. ethical issues
• Developing toolkit to be consistent with content of other tools
• Populating with examples & case studies
• Developing Markets for Third Sector Providers Programme
• Providing direction
The Nature of Community Benefit
• Employability / targeted recruitment & training
• Supply chain initiatives
• creating opportunities for SMEs
• creating opportunities for social enterprise
• workshops / mentoring
• Community consultation / engagement / events
• Educational initiatives
27
CBCs and Social Enterprise / Social Firms
to date
Successful adoption
 Unity & Crescent Kitchen – Catering at a number of venues
 Reboot – Highland Council
 Remploy – Gullane Fire Station furniture
 Action for Children – employability service at the Velodrome
 Kibble – painting and decorating NSGH
 Gal Gael Trust – Queens Baton Relay
28
In partnership with
In partnership with
In partnership with
Exercise: Identify life cycle impacts
32
Impacts of obtaining raw
materials
Impacts of manufacturing &
logistics
Impacts during use of
product/service
Impacts at end-of-life /
disposal
Identify life cycle impacts – in practice
33
Impacts of obtaining raw materials
• Sourcing overseas if demand outstrips supply
– impact on carbon emissions
• Wood should be sourced not just from legal but
also sustainable forests/woodlands – forest
management critical
• Potential impact on biodiversity of
forests/woodlands if focus is only on economic
viability
• Support development of an immature supply
chain through aggregated demand
• Opportunities for community woodland
schemes to be integral to supply chain
Impacts of manufacturing & logistics
• Carbon emissions from transportation,
particularly if local supply chains are inadequate
• Production of chips/pellets – is renewable
energy used
• Sourcing overseas if demand outstrips supply
– impact on carbon emissions
• Competition for raw materials e.g. chipboard
manufacturers
• Waste products from pellet manufacturing
process
Impacts during use of product/service
• Emissions particularly in ‘Air Quality
Management Areas’
• Shortage of qualified engineers/installers;
through aggregated demand an opportunity to
influence recruitment and training
• Disposal of waste products e.g. ash
Impacts at end-of-life/disposal
• Disposal of ash – use as a fertiliser
• Disposal of boilers
31
Next Steps
• Feedback through questionnaire
• Consultation process
Thank you for your attention
Barbara Morton
barbara@sustainableprocurement.eu.com
07766 023560