This part of the Procurement Journey helps you to create a Route 2 Commodity/Service strategy.
A Commodity/Service Strategy should not be confused with a Procurement Strategy. The publication of a Procurement Strategy is a legislative requirement under the Procurement Reform (Scotland) Act 2014 for public bodies with an estimated regulated procurement spend of £5 million or over per year. Further information on Procurement Strategy requirements can be found in the Resources section.
To aid creating your Commodity/Service strategy, templates are provided at the bottom of this page:
You will find additional Commodity/Service Strategy guidance and templates in Route 3 and you may find these of help when looking at higher risk or value Route 2 procurement exercises. However you only need to follow Route 3 where the contract is required by law to be advertised in OJEU.
Any economic, social and environmental sustainability opportunities should be included in your strategy when they are relevant and proportionate. Examples are community benefits and fair working practices.
When developing your commodity/service strategy, you should access the contracts register for your organisation. This will assist in evaluating existing contract arrangements, including contract value.
The Contracts Register module in Public Contracts Scotland (PCS) provides the facility for buying organisations to operate a private register of all contracts they have in place. This public register of contracts meets the obligations of Section 35 of the Procurement Reform Act (Scotland) 2014.
Quickfire Guide
The PCS contracts register will pull through the contract value from the contract award notice. You should always be open and transparent when completing this contract value field. This field can be manually amended but all relevant amendments need to be manually duplicated in the Scottish Procurement Information Hub: there is no integration between the two systems.
A organisation may withhold information from publication on the contract award or the conclusion of the framework agreement. This is when the release of the information:
(a) would impede law enforcement or be contrary to the public interest;
(b) would prejudice the commercial interests of any person;
(c) might prejudice fair competition between economic operators.
So, if relying on (b) above, you would need to be able to demonstarte that the commercial interests of the company concerned would defintitely be prejudiced by the release of this information.
PLEASE NOTE: if you do not use PCS for producing a contract register, you still must produce a publicly available one.
When a Commodity/Service Strategy is prepared it must be proportionate to:
Quickfire Guide
There are natural break points within the Procurement Journey that can be used as review points for sign off and approval to proceed to the next stage of the process.
Suggested review and sign off points are:
Throughout the Journey you will see reference to these sign off points at the relevant sections, as well as documents/templates for your use. Any review and agreement to the project plan should be in line with your organisation's governance arrangements.
Consideration must also be given to Planning, Sustainable Procurement and Risk Management throughout this stage of the Journey.
Once you have completed your Commodity/Service strategy, you should continue your Journey.
The Sustainable Procurement Duty, outlined in the Procurement Reform (Scotland) Act 2014, requires you to think about how you can improve the:
of the area(s) in which you operate – whether that is nationally or more locally. Particular focus should be on reducing inequality.
You can create a positive environmental impact through every procurement exercise you undertake, regardless of its value or scope. This must be a key part of commodity/service profiling and strategy development rather than an optional area of interest. You must fully explore the possibilities with your User Intelligence Group and other stakeholders for your procurement.
Full Sustainable Procurement guidance can be found the Sustainable Procurement Station in Route 3.
PLEASE NOTE: if you do not use PCS for producing a contract register, you still must produce a publicly available one.
When a Commodity/Service Strategy is prepared it must be proportionate to:
If using PCS-Tender, the Procurement Officer should upload the appropriate slides to the appropriate task within PCS-Tender.
Organisations should determine if data processing activities are relevant to your procurement exercise.
Contracts that are currently subject to the Data Protection Act 1998 are also likely to be subject to GDPR.
Organisations must ensure:
More detailed information on GDPR can be found in Additional Resources.
Please note that if you withhold the contract value from a contract award notice this information may still be requested from your organisation via the Freedom Of Information (Scotland) Act 2002 (FOISA).
The FOISA equivalent test is set much higher than the Contracts Register i.e. publication would have to, or be likely to:
Detailed contracts register user guidance can be found in PCS
For Care and Support Services procurements, Procurement Officers must use Route 3 Develop Strategy stations and sub-stations to develop their service strategy and plan their approach to the procurement. You should then progress Route 2 from the Develop Documents station.
Cyber Risks
If the contract will involve, support or rely on the digital processing of information, organisations should ensure that appropriate consideration is given to potential cyber risks and their management.
Further information on how to assess and manage cyber risks as part of the procurement process can be found in the Scottish public sector Guidance Note on Supplier Cyber Security Buyers may also optionally make use of the Cyber Security Procurement Support Tool to assess cyber risks and generate minimum cyber security requirements as part of award criteria. More information can be found in Leadership and Governance.
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