Scotland Excel. Sustainable Procurement Strategy

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1 Sctland Excel Sustainable Prcurement Strategy Octber

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3 Sctland Excel: Sustainable Prcurement Strategy Cntents: 1 Intrductin Ecnmic, scial and envirnmental wellbeing What des this mean? Hw Sctland Excel implements this SMEs, Third Sectr Bdies, Supprted Businesses What des this mean? Hw Sctland Excel implements this... 7 Transparency... 7 Simplicity... 7 Access Prmting innvatin What des this mean? Hw Sctland Excel Implements this Supprting ur members Summary, Key Principles and Outcmes Change Cntrl Dcument histry and versin cntrl

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5 1 Intrductin Sustainable prcurement is a prcess whereby rganisatins meet their needs fr gds, services, wrks and utilities in a way that achieves value fr mney n a whle life basis in terms f generating benefits nt nly t the rganisatin, but als t sciety and the ecnmy, while minimising damage t the envirnment 1. With the gal f achieving scial, ecnmic and envirnmental value frm public sectr spend Sctland Excel has, particularly ver recent years, been a prminent first-adpter and practitiner f sustainable prcurement. Our lead in the develpment f the sustainable prcurement Flexible Framewrk self-assessment tl and ur sustainable public prcurement training t the public sectr exemplify this apprach. Our success in implementing sustainable prcurement is clearly seen in ur Natinal GO Award fr Sustainability Initiative f the Year, and the fact that arund 70% f suppliers n ur cntracts are SMEs. This strategy builds upn current practice and sets ut hw Sctland Excel will best address recent changes in legislatin, implement the new sustainable prcurement duty and will further incrprate/embed sustainability int all f its prcurement activity. Sctland Excel is cmmitted t understanding hw its prcurement activity can cntribute t natinal and lcal pririties. The Scttish Gvernment s Natinal Outcmes align with thse f the United Natins Sustainable Develpment Gals. The Scttish Gvernment s purpse is t fcus gvernment and public services n creating a mre successful cuntry, with pprtunities fr all f Sctland t flurish thrugh increasing sustainable ecnmic grwth. Therefre, sustainable public prcurement, cvering all f Sctland and implemented and supprted by Sctland Excel, will help the gvernment achieve its verarching purpse and strategic bjectives. Sctland Excel is permitted under the EU public prcurement rules and required under the Prcurement Refrm (Sctland) Act 2014 s ( Act ) sustainable prcurement duty, t cnsider befre it prcures anything, hw it can imprve the scial, envirnmental and ecnmic well-being f the area in which it perates. There is a particular fcus n reducing inequality. Sctland Excel is als required t cnsider hw its prcurement prcesses can facilitate the invlvement f SMEs, third sectr bdies and supprted businesses and hw its prcurements can be used t prmte innvatin. The purpse f this strategy is t set ut hw Sctland Excel intends t ensure that its regulated prcurements (as defined under the Act 2 ) will be carried ut in cmpliance with 1 Prcuring the Future (Sustainable Prcurement Task Frce). 2 Fr the purpses f this plicy, it is assumed that all f Sctland Excel s prcurements are regulated prcurements as defined in the Act, namely, any prcedure carried ut in relatin t the award f a prpsed cntract / framewrk agreement with an estimated value equal r greater than 2,000,000 fr public wrks cntracts / framewrk agreements and 50,000 fr ther public cntracts / framewrks agreements (assuming the cntract / framewrk agreement is nt an excluded cntract / framewrk agreement). 3

6 the sustainable prcurement duty. This strategy sets ut hw Sctland Excel will draft and / r revise its statement in its annual Prcurement Strategy setting ut its cmpliance with the sustainable prcurement duty. This strategy, tgether with each year s Prcurement Strategy, will detail a rbust, achievable apprach t sustainable prcurement that is relevant and prprtinate t the scpe f Sctland Excel s prcurement activities. The sustainable prcurement duty is rughly divided int three sectins. It is sensible fr this strategy t fllw these sectins, which are: - Ecnmic, Scial and Envirnmental wellbeing - SMEs, Third Sectr Bdies, Supprted Businesses - Prmting Innvatin 2 Ecnmic, scial and envirnmental wellbeing 2.1 What des this mean? Under its sustainable prcurement duty, Sctland Excel must, befre carrying ut a regulated prcurement, cnsider hw in cnducting the prcurement prcess it can imprve the ecnmic, scial and envirnmental wellbeing f Sctland Excel s area and act, when carrying ut the prcurement, with a view t securing these benefits. 2.2 Hw Sctland Excel implements this In general, we will cnsider hw best ur prcurements can achieve the fllwing: - ecnmic utcmes, including: ptimal availability f suitable and high quality jbs; encuragement f lcal small businesses; efficient and effective transprt links; lifelng learning, training and skills develpment; and the prvisin f infrastructure and new infrmatin and cmmunicatin technlgies; - scial utcmes, including: encuragement f the vluntary sectr; satisfactin f the needs f children and yung peple (particularly the mst vulnerable); and fuller access t educatin; - envirnmental utcmes, including: imprving the availability f clean air, clean water, and clean streets; imprving the quality and safety f the built envirnment; prtecting cmmunities against the threat f climate change, including flding; and imprving and prmting bidiversity and accessibility t nature. In particular, t ensure that Sctland Excel identifies and addresses hw it can ptimise these ecnmic, scial and envirnmental utcmes thrugh its prcurement activity (and s satisfy its sustainable prcurement duty), it shall psitively implement the methdlgy agreed by the Scttish Gvernment s Public Prcurement Refrm gvernance structure. First, each year in the preparatin f its sustainable prcurement duty statement in its annual Prcurement Strategy (which utlines its prpsed apprach t sustainable 4

7 prcurement), Sctland Excel will use the Sustainable Public Prcurement Priritisatin Tl ( SPPPT ) t identify the best pprtunities fr sustainable prcurement in relatin t its anticipated prcurement spend ver that cming calendar year. Secnd, during the develpment phase f each prcurement exercise the Sustainability Test may be used (alne, r using infrmatin derived frm the SPPPT) t check the anticipated sustainability-related pprtunities, utcmes and risks that an individual prcurement might invlve. Third, during the develpment phase f each prcurement, r at regular strategy develpment-related intervals, Sctland Excel may run the Life-Cycle Impact Mapping exercise in rder t identify sustainability-related (ecnmic, scial, health and envirnmental) impacts at each stage in the life f the wrks, prducts r services t be prcured. The utputs f this exercise can then be used t best mitigate the ptential fr negative impacts, r further develp any psitive impacts, in, fr example, the design f the: prcurement prcess; cntractual perfrmance clauses; r Sctland Excel s cntractual management prcedures. Finally, Sctland Excel will cntinue t use the Flexible Framewrk self-assessment tl fr sustainable prcurement t develp actin plans, respnsibilities and targets, t help it realise its intended sustainability utcmes. Nte that in 2013 Sctland Excel was ne f the first rganisatins t reach level 4 f the Flexible Framewrk. Sme f the ways in which Sctland Excel will specifically prmte ecnmic, scial and envirnmental sustainability are: - Ecnmic sustainability: Fair wrking practices: Use ur prcurement prcesses t the full extent permissible t prmte fair wrking practices by ur suppliers, in particular, encuraging the payment f the Living Wage and discuraging the use f zerhurs cntracts; Cmmunity benefits: Further embed the prvisin by suppliers f recruitment and training and ther ecnmic cmmunity benefits int ur future tender pprtunities, and encurage current suppliers t prvide these; Unfair cmmercial practices: Cntinue t use and develp ur prcurement prcesses t the full extent permissible t discurage the use f unfair cmmercial practices such as blacklisting, crruptin, bribery, fraud and anticmpetitive practices; Lcal businesses: Further encurage the participatin f lcal businesses in ur tender pprtunities, fr example, by strengthening ur partnership with the Supplier Develpment prgramme, supplier / buyer events, training suppliers n ur e-prcurement platfrms and by develping a mdel fr engaging directly with lcal suppliers in partnership with ur members prcurement and ecnmic develpment teams; 5

8 Best-value: Cntinue t make sure that all ur prcurement prvide the pprtunity fr ur members t achieve best value in their prcurements; Educatin and training: Ensure that ur educatin related framewrks prvide the best prducts and services fr child and adult educatin; - Scial sustainability: Ethical prcurement: Cntinue t design ur prcurement prcesses t ffer fairly surced, manufactured and traded prducts; Scial Care: Cntinue t ensure ur adult and children care services deliver relevant natinal plicy utcmes; Cmmunity benefits: Fully embed the prvisin by suppliers f scial-related cmmunity Benefits int ur future tender pprtunities, and encurage current suppliers t prvide these; Our framewrks: Cntinue t design ur fd-related prcurement prcesses t ffer healthy fd ptins, such as rganic prducts, and t ensure that all f ur framewrks, and in particular ur scial care, fd, hygiene and safety and safety and security framewrks, maximise healthy and safe utcmes; - Envirnmental sustainability: Our framewrks: Cntinue t embed in all f ur framewrks, in particular, thse specifically with envirnmental-related purpses, implementatin f relevant Gvernment envirnmental-related strategies (e.g. reductin f envirnmental impacts, waste, recycling and climate change) and, s, supprt, ur members cmpliance with legislatin, climate change targets and effrts t recver value frm waste; Cmmunity benefits: Fully embed the prvisin by suppliers f envirnmentalrelated cmmunity Benefits int ur future tender pprtunities, and encurage current suppliers t prvide these; 3 SMEs, Third Sectr Bdies, Supprted Businesses 3.1 What des this mean? Under its sustainable prcurement duty, Sctland Excel must, befre carrying ut a regulated prcurement, cnsider hw in cnducting the prcurement prcess it can facilitate the invlvement f: SMEs; third sectr bdies; and supprted businesses in the relevant prcurement prcess. This is particularly imprtant fr micr-businesses which cnstitute the majrity f businesses in Sctland. In brief, this means keeping the csts assciated with submitting a tender as lw as pssible, and remving barriers t participatin, in rder t encurage the participatin f small firms (including the self-emplyed), third sectr bdies and supprted businesses. 6

9 3.2 Hw Sctland Excel implements this Sctland Excel already addresses the well-dcumented cncerns regarding the participatin f SMEs, Third Sectr Bdies and Supprted Businesses in its prcurement prcesses, namely, transparency, simplicity f prcesses and facilitating access. A key driver f the sustainable prcurement duty is t increase the transparency f prcurement activity t ecnmic peratrs and simplicity is the key t help facilitate access t public cntracts. Transparency Sctland Excel already carries ut a number f requirements that cmplement the sustainable prcurement duty s aims f increased transparency, with the aim f assisting businesses t assess current spend areas, rganisatinal pririties and ptential future cntract pprtunities: - Full use f Public Cntracts Sctland ( PCS ) t prvide fully transparent tendering and award prcedures; - Using the Cntracts Register n the Sctland Excel website t prvide infrmatin n the scale and nature f prcurement by a cntracting authrity (enabling the market t identify pprtunities); and - Fully debriefing f unsuccessful candidates and tenderers t help them understand in detail the relative strengths and weaknesses f their bids t prvide them with a fcus fr develping their business. Sctland Excel will cntinue t prvide its transparency enhancing activities utlined abve. In additin, - Its annual prcurement strategy will set ut hw it intends t cnduct its prcurements and its annual prcurement reprt will set ut the scale and nature f its previus year s prcurements, bth f which will enable the market t identify further pprtunities; and - Sctland Excel fresees that it will cntinue t develp and enhance its debriefing f unsuccessful candidates and tenderers t assist them in future tenders. Simplicity Sctland Excel currently aims t make the prcess f accessing its prcurements by candidates and tenderers as simple as pssible. Fr example, it strives t ensure that its selectin and award stages are designed in as simple and as clear a manner as pssible, and fully and clearly explained t candidates and tenderers via PCS, the prcurement dcuments and tenderer infrmatin sessins. Further, we make n charges fr participatin in ur prcurement prcesses and have n intentin t d s. Sctland Excel will build upn its current systems t make the prcess f accessing its prcurements by candidates and tenderers as simple and straightfrward as pssible. Furthermre, it will cnsider whether ther mdels f prcurement might suit its 7

10 prcurement categries, fr example, cnsider substituting the prcurement f framewrk agreements with the prcurement and use f the dynamic purchasing mdel. Access Sctland Excel currently strives t ensure maximum access t its prcurements by SMEs, third sectr bdies and supprted businesses in the fllwing ways: - Using nly selectin cnditins and requirements, award criteria and cnditins f cntract that are prprtinate t the framewrk agreement being prcured; - Undertaking significant preliminary market cnsultatins t ensure that the market is aware f Sctland Excel s requirements and prcurement plans; - Dividing framewrk agreement requirements int lts t permit access frm smaller businesses; - Flexibly prcuring ur scial care framewrk agreements t the extent permitted by the prcurement rules; and - Encuraging its suppliers, via cmmunity benefit tender cmmitments r therwise, t cnsider: using SME, third sectr and supprted business sub-cntractrs t fulfil the cntract requirements; and prviding / facilitating develpment activities within its supply chain. In additin t its current access enhancing activities utlined abve, Sctland Excel fresees that it will further develp the access f SMEs, third sectr bdies and supprted businesses t its prcurements and plans t: - take full advantage f the new public prcurement rules t help participatin f these rganisatins, such as: limited financial capacity n lnger being a bar n being selected t tender; nly asking relevant and prprtinate questins and requiring the satisfactin f prprtinate minimum cnditins and requirements in the new ESPD (Sctland); and, limiting the qualificatin-related evidence required by bidders t the minimum necessary; - take steps t encurage the participatin f cnsrtiums invlving SMEs, third sectr bdies and supprted businesses; - cnsider whether it is apprpriate fr certain framewrk agreements, r lts thereunder, t reserve participatin, r certain cntracts, t supprted businesses; - cnsider ways t further encurage its suppliers (e.g. legally enfrceable cmmunity benefit cntract cmmitments, r sfter means) t cnsider: using SME, third sectr and supprted business sub-cntractrs t fulfil the cntract requirements; and prviding / facilitating develpment activities within its supply chain; - cnsider hw the flexible prcurement regime fr health and scial care might encurage SME, third sectr and supprted business bidder, fr example, by reducing fr them any administrative burden barriers t participatin; and 8

11 - cntinue t encurage participatin by lcal cmpanies in Sctland Excel s tender pprtunities. Fr example, Sctland Excel will: cntinue t hst supplier events and train suppliers n ur e-prcurement platfrms; cntinue t strengthen ur partnership with the Supplier Develpment Prgramme; engage with industry bdies, such as the Federatin f Small Businesses and Chambers f Cmmerce, all t identify pprtunities t imprve access fr SMEs. 4 Prmting innvatin 4.1 What des this mean? Under its sustainable prcurement duty, Sctland Excel must, befre carrying ut a regulated prcurement, cnsider hw in cnducting the prcurement prcess it can prmte innvatin. This means Sctland Excel can influence the market twards innvative slutins. This might invlve: innvatin in the design and delivery f public services; the prcurement f innvative gds and services; and innvative prcurement prcesses and mdels. 4.2 Hw Sctland Excel Implements this Nt nly d a number f Sctland Excel s framewrk agreements facilitate the purchase f innvative technlgies by ur members, but Sctland Excel has driven: the prcurement f innvative gds and services; and, innvative prcurement prcesses and mdels. In relatin t the frmer, Sctland Excel implements gvernment plicies thrugh its prcurements and thus drive demand fr, and the develpment f, new gds / services available t ur members. Fr example, the prvisin f a recycled furniture lt in ur recent Dmestic Furniture and Furnishings prcurement prcess was driven by the gvernment circular ecnmy plicy. The desire fr such a lt was nly develped at the instigatin f Sctland Excel via ur preliminary market cnsultatins. In relatin t the latter, Sctland has been at the frefrnt f develping nvel ways t encurage its suppliers t pay at r abve the living wage and prvide ecnmic, scial and envirnmental cmmunity benefits t their wider cmmunity. Furthermre, we have helped establish and embed the develpment f e-prcurement and the use f e-catalgues and e- invicing thrugh ur framewrks. Sctland Excel will cntinue t practively mnitr the legislative, plicy, cmmercial and market place backgrunds in rder t identify pprtunities thrugh which it can develp, r encurage its members r suppliers t develp new: ways t deliver public services; gd and services; and prcurement prcesses and mdels, and cntractual mdels. Sctland Excel, in a spirit f cntinuus imprvement, will als further build knwledge and understanding thrugh cllabratively engaging with Scttish Gvernment and Zer Waste Sctland, and by further develping relatinships, it will actively participate in the develpment f new learning initiatives with ther sectrs including higher educatin. 9

12 5 Supprting ur members Sctland Excel actively prmtes the sustainable whle rganisatin apprach t prcurement starting at the very beginning f the prcurement prcess when custmers (lcal authrities) begin t cnsider their cntract requirements. In line with this apprach Sctland Excel are als cmmitted t taking a lead rle in the delivery f sustainable prcurement thrugh being an advcate f best practices, facilitating sharing knwledge and supprt, and building capacity and capability within lcal authrities acrss Sctland. Where required, Sctland Excel will supprt its members with duties arising frm the new prcurement rules applicable in Sctland. We will wrk with partners and members t ensure that tls and guidance t supprt sustainable prcurement are develped and used t maximise scial, ecnmic and envirnmental benefits. 6 Summary, Key Principles and Outcmes Sctland Excel is ttally cmmitted t the n-ging develpment f, and delivering, this Sustainable Prcurement Strategy. As the Centre f Prcurement Expertise fr Lcal Authrities it is apprpriate and suitable that Sctland Excel aims t be at the frefrnt f best practice. Fr Sctland Excel, prcuring respnsibly and sustainably means adhering t ur sustainability principles: - We will deliver best value cllabrative cntracts which fully incrprate sustainability cnsideratins and supprt the delivery f best practice sustainable prcurement; - We will ensure that the prcurement decisins we take are full infrmed t s that resulting curses f actin have the minimum pssible impact n the envirnment, bth nw and in the future. We aim t increase knwledge and skills t evaluate and respnd t cnflicting demands; - We will cntinue t further embed ethical and scial issues int the prcurement prcess including the Living Wage and Cmmunity Benefits, and will be practive in addressing issues f brader human rights within the supply chain; - We will demnstrate the highest pssible prfessinal standards, which we will underpin by prviding effective training, develpment and supprt t all staff invlved in the prcurement prcess. We will fully meet the requirements f the Chartered Institute f Purchasing and Supply (CIPS) Cde f Ethics; - We will engage with suppliers acrss all the markets in which we wrk and simplify ur prcesses wherever pssible, helping t better equip them t cmpete fr public sectr business. We will wrk in partnership with suppliers t drive sustainability benefits frm cntracts; 10

13 - We will share expertise, best practice and engage with internal and external stakehlders t prmte appraches t sustainable prcurement. We will mnitr ur prgress and publish utputs; and - We will keep abreast f develpments and take an innvative apprach t sustainable prcurement, ensuring that ur decisins are based n prevailing best practice. Successful implementatin f this strategy will be demnstrated by delivery f the fllwing utcmes: - Prcurements with ptential fr high sustainability impacts clearly identified and apprpriate mitigatin plans and actins determined; - Specificatins include sustainability cnsideratins (including whle life csting) ; - Terms and Cnditins upgraded t include apprpriate sustainability and crprate scial respnsibility prvisins. - Sustainability within the Evaluatin Criteria apprpriately weighted; - Imprved transparency f Cntractrs psitin regarding Wrkfrce matters (in particular payment f the Living Wage;) - Increased Number f Cntractrs paying the Living Wage; - Reduced Number f Cntractrs using zer hurs cntracts; - Prvisin f Cmmunity Benefits will be maximised; - Imprved assurance that gds n Sctland Excel Framewrks are ethically surced; - Raised prductin and prcess standards; - Waste and envirnmental impacts will be minimised; - Increased participatin frm small and medium sized lcal businesses, supprted businesses and the third sectr; and - Higher cnsumptin f healthy and nutritius fd. 7 Change Cntrl Amendments t this dcument can nly be authrised by the Authr and in accrdance with apprved prcesses and prcedures. The electrnic versin f this dcument held by the Custdian is the nly true versin all printed cpies are uncntrlled. 11

14 8 Dcument histry and versin cntrl Dcument Title Sustainable Prcurement Strategy. Dcument File Name Sustainable Prcurement Strategy draft v0.3 Revisin N. Draft v0.3 Authr (Business Owner) Prcurement Crdinatr (Plicy) (Prcurement Develpment Manager). 12