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.
Each contract or Framework Agreement must include conditions relating to the performance of the contract (which are linked to the contract subject matter). These conditions must be considered reasonably necessary to ensure the supplier complies with these environmental, social and employment law obligations. These conditions of contract must be included in the procurement documents and a plan in place at this point to manage these through the life of the contract.
Statutory Guidance has been published on Sustainable Procurement Duty to help you.
The Scottish Government has developed a number of tools to help you:
You can use the following tools when developing your commodity/service strategies:
The above tools can be accessed by registering on the Sustainable Procurement Tools platform and used alongside:
By assessing and scoring the socio-economic criteria on these tools you can:
As a matter of good practice, you should have completed the Sustainable Public Procurement Prioritisation Tool (to prioritise Sustainable Procurement aims) at a category or organisation level prior to working on your commodity/service strategy. If you are unsure, please speak to your manager to ask if this has been done.
Sustainable Procurement is successful where its importance is made equal to other areas of commodity/service profiling e.g. quality, technical specifications and commercial objectives.
There are always different options available to you when examining how to achieve this balance. While many will be commodity/service specific, the primary considerations of the Sustainable Procurement Duty (when Profiling the Commodity/Service) are:
There are a number of areas procurement can influence to improve environmental, social and/or economic factors. These are listed below and more information can be found in the Sustainable Procurement Duty Index.
To meet your obligations under the Sustainable Procurement Duty you must consider how to facilitate the involvement of:
in all procurement exercises.
To do so there are some specific actions you must take.
A Supported Business is a supplier:
Your Organisation can “reserve” a competition so that only supported businesses can bid. In these cases, this must have been assessed as appropriate as there are specific rules around the reservation of competitions.
SPPN 4/2017 provides further information and guidance on Reserving Contracts For Supported Businesses, including:
The majority of businesses are SME’s. By doing everything you can to make it easy for SME’s to bid for your exercise then you are reaching the broader market and this will benefit your organisation as well as the broader economy.
Some things you can do to help SME’s access your process include:
There are many more things that you can do (or indeed not do) and you should take time to explore these as part of your strategy development. Speaking to colleagues, your UIG and contacting organisations such as the Federation of Small Businesses and the Supplier Development Programme can be very helpful.
The third sector, which includes charities, social enterprises and voluntary groups, delivers essential services, helps to improve people’s wellbeing and contributes to economic growth. It plays a vital role in supporting communities at a local level. The economic contribution of third sector organisations is steadily increasing and we expect this to continue in the coming years. Some things you should do to help Third Sector suppliers access your process include:
Many of the actions that you can take to make sure SME’s are engaged can also support the inclusion of Third Sector organisations. Each council in Scotland has a “Third Sector Interface” (TSI) and further information can be obtained from these if you need help in identifying local Third Sector organisations.
When developing any procurement exercise, you must do so in line with the Statutory Guidance on Addressing Fair Work Practices, including the Living Wage, in Procurement. This requires you to consider how to address Fair Work practices in all procurement exercises before you start your procurement.
To support this Best Practice Guidance and a Toolkit have been developed to offer additional guidance and practical tools for public bodies and suppliers. Guidance has been embedded throughout the Procurement Journey.
The Scottish Government believes that contractors who go beyond minimum legal requirements by adopting Fair Work practices will:
positively impact on the delivery of a public contract. The payment of the real Living Wage is considered by the Scottish Government to be a significant indicator of an employer’s commitment to Fair Work practices. The payment of the real Living Wage is one of the clearest ways an employer can demonstrate a positive approach to its workforce.
The Scottish Government expects:
In addition to the Sustainable Procurement tools, a Fair Work practices commodity/service strategy: checklist and flowchart is available to help identify how to address fair Work in relevant procurement exercises with an example - Fair Work commodity/service strategy: checklist - home support services.
The Toolkit also includes Information Sheets on:
You must make sure the performance of the contract by suppliers complies with their obligations in environmental, social and labour law. It is essential that robust requirements are built into your strategy, procurement documents and contract management processes.
For example, when considering how to address Fair Work practices in a procurement exercise, you must assess whether you should exclude supplier(s) if they do not meet their legal obligations as a diligent employer.
SPPN 09/2016 includes guidance and contract conditions an organisation can adapt for use in its contracts.
You must consider how you can promote innovation through your procurement exercise.
Some methods you can use to achieve this are:
Sustainable procurement elements can also be included as part of your costing model and it’s important for you to review what models are available and assess where you think that sustainable elements can be considered.
The Marrakech Approach with help you with this assessment by providing a means of identifying the life cycle of commodities and services.
You can apply life cycle costing as part of the specification and subsequent evaluation.
Life Cycle Costing may be used where additional environmental costs result from the products or services being purchased e.g. carbon emission costs from purchased machinery and the environmental disposal cost at end of life.
Life cycle costing takes into account all identifiable product or service costs i.e.:
These can be direct costs like scheduled maintenance and energy used through the life of a road sweeping vehicle. Also included are less apparent external environmental costs. Such as the cost of emissions of greenhouse gas based on the energy use of the road sweeper.
These costs can only be assessed when:
If using a life-cycle costing approach, the Procurement Documents must state:
It is important to differentiate between Whole Life Costing, Lifecycle Costing and Lifecycle Impact Mapping:
Whole Life Costing: Focuses solely on cost(£) of a product or service from cradle to grave. It takes into account:
It does not include any environmental or social costs.
Lifecycle Costing: Life-cycle costing covers part or all of the following costs over the life cycle of a product or service:
a) costs produced by the Organisation or other users, such as:
(i) acquisition costs;
(ii) usage costs such as energy consumption and other resources;
(iii) maintenance costs;
iv) end of life costs, such as collection and recycling costs; and
(b) external environmental costs linked to the product or service during its life cycle. These costs must be able to be determined and verified. This may include the cost of emissions of greenhouse gases, other pollutant emissions and other climate change mitigation costs.
Lifecycle Impact Mapping: Focuses on social and environmental impact rather than cost. Life cycle impacts help the user identify and assess impacts. For example, it may help to focus attention on the disposal phase before the procurement is carried out. This allows you to build end-of-life management requirements into performance clauses for successful contractors and your own internal management procedures.
Please note: Life cycle impact mapping can be used alongside life cycle costing as part of the procurement process.
The Lifecycle impact Mapping tool can be accessed by registering on the Sustainable Procurement Tools platform.
When purchasing goods or services you can specify labels as a means of proof that you meet certain requirements.
There is specific guidance around the use of labels within procurement.
To specify labels in your procurement exercise you need to meet the following criteria:
Rather than apply a label on a broad basis, if it’s more proportionate you can detail which label requirements are to be met. This will reduce the burden on bidders and could expand the number of capable bidders for your process.
Labels must comply with the label requirements of the Public Contracts (Scotland) Regulations 2015 and equivalent labels must be accepted. Where the bidder can demonstrate it has not been possible to obtain either the label or an equivalent, through no fault of its own, you must accept other appropriate means of proof e.g. manufacturers technical dossiers.