Route 3

Route 3

Before finalising the commodity/service strategy and sending it for approval, you should ensure an executive summary is included. The purpose of the executive summary is to highlight the key points of your strategy including details of any decisions taken and the justification.

The finalised strategy which has been developed with the User Intelligence Group (UIG) should be approved on PCS-Tender by an appropriate approver, as per your local governance arrangements.

The example commodity/service strategy includes an executive summary for your reference.

Any documents you need are listed below

Commodity/Service Strategy Review

Commodity/service profiling and strategy development should not be an isolated or 'one-off' occurrence.  A subgroup of the UIG (where appropriate) needs to be assigned to carry out the ongoing activities of:

  • supplier relationship management
  • monitoring
  • implementation
  • compliance and benefits tracking and 
  • a regular review of the chosen strategy to make sure it is still suitable for the current/changing enviroment (both internal to the procuring organisation and external to market supply)

Quickfire Guide

Quickfire Guide

Commodity/Service Strategy Review

There are a number of issues that may trigger a commodity/service strategy review, these include:

  • Market developments e.g. changes in economic environment, technology, regulation
  • Internal changes to the organisation e.g. significant restructuring, changes in demand
  • Contract termination e.g. through poor performance
  • Contract expiry
  • Reviewing of organisational objectives and / or legislative changes could highlight areas for review at a commodity/service strategy level, e.g. sustainable procurement opportunities
Route 3

An Innovation Partnership must only be used where:

  • there is a need for the development of an innovative product or service and
  •  the subsequent purchase of these cannot be met by solutions already available on the market.

The use of this procedure must be justified.

The Innovation Partnership Procedure aims to solve an existing problem i.e. organisations not being able to purchase directly from the developer without further competition.  This was because the original research and development contract was awarded without competition.

Quickfire Guide

Quickfire Guide

Innovation Partnership Benefits

The benefits of this procedure are:

  • Allowing the development of new types of goods and services
  • Market stimulation through the appointment of one or several partners.  They compete to conduct separate research and development activities funded through the contract
  • Allowing the choice of the most suitable partners for development contracts
  • Allowing the purchase of innovative supplies and/or services through the Innovation Partnership.

Please Note

In all cases "days" are calendar days and not working days.  The final day must however be a working day in Scotland.


Innovation Partnership Stages and Timescales

Whilst an innovative solution is the objective of your procurement, the outcome must still:

  • meet the minimum requirements set out in the tender documents and
  • be within the agreed performance levels and maximum costs.

You must set out in the Procurement Documents:

  • the subject matter of the procurement by providing a description of your need
  • the minimum requirements
  • the award criteria and
  • the applicable intellectual property rights arrangements.

The information you provide must be precise enough to help potential partners identify the nature and scope of the requirement.  This will allow them to decide whether to request to participate in your procedure. However, you have to be careful not to restrict the innovative proposals with the requirements.

The only set timescales is the deadline for requests to participate must be a minimum of 30 days after the Contract Notice is sent for publication. 

When fixing other time limits you must take account of the complexity of the contract and the time required for drawing up tenders.

The following shows the Innovation Partnership stages:

1. Requests to Participate

You must permit any potential partner to submit a request to participate within the timescales you have set, answering your selection stage requirements.

The evaluation of the selection stage information may be more challenging than other procedures. You must, in particular, apply criteria concerning:

  • the partner’s capacity in the field of research and development and
  • of developing and implementing innovative solutions. 

Only those invited by you may participate in the procedure and go on to submit research and innovation projects.

2. Structure

The Innovation Partnership must be structured in successive phases to reflect the research and development stages involved.  You must ensure the structure, duration and value of the partnership’s different phases reflect the degree of innovation of the proposed solution and the sequence of the research and innovation activities.  

You should set intermediate targets to be attained by the partners and provide for payment in appropriate instalments.

You must negotiate with partners over the initial and all subsequent tenders submitted, except for the final tender, to improve its content.  Minimum requirements and the award criteria must not be negotiated.

After each phase, you have the option to terminate the partnership or reduce the number of partners.  You can terminate individual contracts by applying the award criteria, provided that you have indicated such possibilities in the Procurement Documents.

3. Evaluation

You evaluate the final solutions or terminate the contract.  The contract must be awarded on the sole basis of the best price-quality ratio.

You should not use Innovation Partnership in a way that prevents, restricts or distorts competition.

You may limit the number of candidates meeting the selection criteria.  if you stated  this possibility in the Contract Notice.  You can then invite these candidates to participate in the procedure.

You should invite at least three bidders to partner (if three or more meet the selection criteria) in order to ensure genuine competition. You may also establish an innovation partnership with one or several partners conducting separate research and development activities.


Care and Support Services

For many care and support services contract, an organisation may use the procurement procedures, tools and techniques of its choosing. You should follow a procurement procedure, as a matter of best practice, that is proportionate to the value of the contract and to take account of some fundamental considerations (for example, the principles of procurement where relevant and Fair Work Practices).

When doing so, you may choose to adapt or streamline the Innovation Partnership Procedure described in the Public Contract (Scotland) Regulations 2015. If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations. You should therefore not refer to the Regulations in the tender documentation issued to participants, as this may create an expectation that the detailed procedural requirements will be followed. In all cases, you should ensure that the procurement process is described accurately and clearly, and then adhered to.

Confidentiality

Organisations must ensure the equal treatment of all parties involved. Part of this requires that confidentiality must be maintained to prevent any distortion of competition.

Your Organisation must not reveal confidential information communicated by a party to another party without their express agreement. This permission may only be given with reference to the intended communication of specific information. 

You should also add a requirement to ensure your organisation’s confidential information is protected throughout the procurement process.

Principles of Procurement

The activities you undertake at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement As a minimum the processes must be  transparent  ensuring no distortion of the market.  The outcome cannot  unduly favour or disadvantage a particular partner. It is the responsibility of your  Organisation to make sure these requirements are met.

Route 3

A Negotiated Procedure without Prior Publication should only be used in very exceptional circumstances.

Quickfire Guide

Quickfire Guide

When to Use a Negotiated Procedure without Prior Publication

These exceptions should be limited to cases where publishing a call for competition e.g. Contract Notice, is not possible, such as where you have received:

  • no bids

  • no suitable bids,

  • no requests to participate or

  • no suitable requests to participate to a previous Open or Restricted tender exercises.  For your NPwPP you cannot substantially alter the conditions of the contract from those in your previous Open or Restricted tender exercise.  A tender shall be considered not to be suitable where:

  • it is irrelevant to the contract, being basically incapable (without major changes) of meeting your organisation's needs and requirements as specified in your procurement documents.  A request to participate shall be considered not to be suitable where the bidder has been or would have been excluded or where it does not meet your selection criteria.

  • where the supplies or services can only be provided by a particular supplier for any of the following reasons:

    • The procurement aim  is the creation or purchase of a unique work of art or artistic performance;

    • Competition is absent for technical reasons.  This applies only if competition has been reduced artificially and no reasonable alternative or substitute exists);

    • The protection of exclusive rights, including intellectual property rights.  This applies only if  competition has been reduced artificially and no reasonable alternative or substitute exists);

  • Where it is necessary for reasons of extreme urgency.  These events have been caused unforeseeable events and not caused by your Organisation.  For example emergency situations affecting the public.   In such cases the time limits for the Open or Restricted Procedure or Competitive Procedure with Negotiation cannot be complied with – they are too long.

You must justify the use of this procedure.  It can only be used in situations which have not been created by your Organisation.

Organisations relying on this procedure should provide reasons why there are no reasonable alternatives or substitutes.  For example could you use alternative distribution channels outside the UK or consider functionally comparable supplies and services?

Where the exclusive situation is due to technical reasons, these must be rigorously defined and justified on a case-by-case basis. Technical reasons may also derive from specific interoperability requirements e.g. ICT requirements, which must be fulfilled in order to ensure the functioning of the works, supplies or services to be procured.


Please Note

In all cases "days" are calendar days and not working days.  The final day must however be a working day in Scotland.


Negotiated Procedure without Prior Publication Steps and Timescales

  1. When fixing any time limits you must take account of the complexity of the contract.  A Contract Notice will not be published in this procedure. The only procurement documents which may be published would be a Voluntary Ex-Ante Transparency (VEAT) Notice.  Your organisation can use a VEAT Notice to protect itself by sending by sending it via the Find a Tender Service (FTS) prior to entering the contract.
  2. It is still mandatory to publish a Contract Award Notice with this procedure.

Negotiated Procedure without Prior Publication for Goods

This procedure can be used for goods:

  • Where the goods are manufactured purely for  research, experimentation, study or development purposes.  This does not include quantity production to establish commercial viability or to recover research and development costs.  Note this should not be abused to allow a single supplier to be approached e.g. to design an item which must subsequently be purchased as a result of proprietary rights;
  • Where a change in supplier(s) would mean your Organisation would have compatibility issues or disproportionate technical difficulties.  In such cases you can use NPwPP to buy additional deliveries from the original supplier.  This is for replacing or increasing supplies or installations.  In this case, the contract or recurrent contract length must not exceed three years, other than in exceptional circumstances
  • For supplies quoted and purchased on a commodity market; 
  • For the purchase of supplies on particularly advantageous terms.  This can be from either a supplier definitively winding up its business activities, or the liquidator in:
  • an insolvency procedure,
  • an arrangement with creditors, or
  • a similar procedure under national laws or regulations.

Negotiated Procedure without Prior Publication for Services

Negotiated Procedure without Prior Publication can be used for services:

  • Where the contract concerned follows a design contest (see below) organised in accordance with the Public Contracts (Scotland) Regulations 2015.   The contract concerned is to be awarded as part of the design contest to the winner or winners. if there is more than one winner of the design contest, all of them must be invited to participate in the negotiation;
  • In instances when all of the following apply:
    • for new services  of repetitive similar services performed by the supplier already awarded the original contract.,  In such cases the services must:
    •  conform with the basic project for which the original contract was awarded and
    •  the original award included the extent of possible additional services and the conditions under which they would be awarded;
    • When the possible use of this procedure was disclosed in the Procurement Documents.  Also  the total estimated cost of subsequent services was taken into consideration by your Organisation when applying the thresholds in relation to the original contract; and
    • Not more than three years have elapsed following the conclusion of the original contract.

Design Contest


Special rules apply to the award of service contract through a design contest.  A design contest, in this context, means a procedure in which a Service contract is to be awarded to the company or person submitting the winning design. In summary:

  • Design contests are procedures for obtaining plans or designs, which involve a jury. The jury is autonomous in making its decisions, and can offer prizes or payments, which may lead to the award of a services contract.
  • The rules apply to contests which are expected to lead to public service contracts, the value of which, including the value of any prizes or payments for the contest, means that they would otherwise be subject to the regulations.

Where the rules of the contest require a services contract to be awarded to the successful contestant or one of the successful contestants, the negotiated procedure can be used without a call for competition, provided all the successful contestants are invited to negotiate the contract. Some examples can be found under Glasgow Design Competitions.

Care and Support Services

For many care and support services contract, an organisation may use the procurement procedures, tools and techniques of its choosing. You should follow a procurement procedure, as a matter of best practice, that is proportionate to the value of the contract and to take account of some fundamental considerations (for example, the principles of procurement and fair work practices).

When doing so, ou may choose to adapt or streamline the Negotiated Procedure without Prior Publication described in the Public Contract (Scotland) Regulations 2015. If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations. You should therefore not refer to the Regulations in the tender documentation issued to participants, as this may create an expectation that the detailed procedural requirements will be followed. In all cases, you should ensure that the procurement process is described accurately and clearly, and then adhered to.

Principles of Procurement

The activities at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement.  As a minimum the processes must be carried out in a transparent way that ensures  is no distortion of the market  The outcome cannot be a procurement that unduly favours or disadvantages a particular supplier.  It is the responsibility of your  Organisation to make sure these requirements are met.

Route 3

Competitive Dialogue allows tenderers to submit initial solutions after being successful at the selection stage. It allows you to negotiate proposed solutions with bidders.  This may help to open up cross-border markets by encouraging bidders to discuss possible solutions.

Quickfire Guide

Quickfire Guide

When to Use Competitive Dialogue

Competitive Dialogue may be beneficial where:

  • greater flexibility is needed.  For example highly complex and risky projects. 

  • you are procuring innovative projects

  • you are unable to specify your requirements e.g. your technical, financial or legal solutions.  Therefore bidders may have a major role in defining the solution

  • You cannot assess without in-depth dialogue on what the market can offer or

  • The Open or Restricted Procedures may not deliver the expected outcomes.

You cannot use this procedure when your requirements can be provided by many different market operators, or it is in an off-the-shelf service or supply.

The use of Competitive Dialogue must always be justified, although there is no need to include that justification in your Contract Notice.  Unlike the Competitive Procedure with Negotiation, here the specification requirements concentrate on your organisation's needs without having to detail the nature, characteristics or solutions to be offered.


Please Note

In all cases "days" are calendar days and not working days.  The final day must however be a working day in Scotland.


The Pros and Cons of a Competitive Dialogue

Advantages of Competitive Dialogue are:

  • it allows organisations to clarify, specify or optimise the final bids. 
  • Your negotiations with your ultimate preferred bidder may also confirm financial commitments or other terms contained in the tender to finalise the contract.  This helps, for example, in situations where a preferred bidder needs to secure final planning permission for a project before the contract can be concluded.

Care should be taken before selecting this route:

  • you must ensure that you legally satisfy the criteria of using Competitive Dialogue. 
  • You should be aware that this process is costly and resource intensive for you and bidders 
  • This procedure is likely to result in a significant increase in procurement timescales.

Competitive Dialogue Stages and Timescales

A Competitive Dialogue has several stages.  These are detailed below:

1. Publish Minimum Requirements, Award Criteria and their Weightings

You should publish your minimum requirements, award criteria and their weightings.  These cannot be changed during the negotiation process.  

If your process will be conducted in successive stages this must be stated in the Contract Notice or descriptive document.

The day after the Contract Notice is sent for publication, at least 30 days must elapse before the closing date for receipt of selection stage information. 

Note that after this stage there are no further set minimum timescales for submissions, however timescales must be reasonable.  When fixing time limits you must take account of the complexity of the contract and the time required for writing bids. You must set out an indicative timeframe in the Contract Notice and/or a descriptive document.

You must allow any bidders to submit a request to participate in response to a Contract Notice within the time limit set.

2. Invite Selected Candidates to Particpate

You then invite the selected candidates to participate in the dialogue, using an Invitation to take part in dialogue (ITPD). There is no minimum period specified for bids in response to this document but it must be reasonable. 

You may limit the number of suitable bidders who meet your selection criteria to be invited to participate in the procedure.  You should invite at least three bidders (if 3 or more meet selection criteria) to the dialogue process in order to ensure genuine competition.

Bidders do not submit tenders before starting dialogues with your Organisation.

3. Negotiations/Dialogue

Following this initial response, you may decide to have several stages of negotiations/dialogue in order to develop solutions and reduce the number of solutions (if indicated in the contract notice or the descriptive document).

If there are successive stages, you must ensure that in the final stage the number of solutions remaining make for genuine competition.  This means there must be enough solutions or qualified bidders. 

You can decide on the number of dialogue stages.   

You may reduce the number of bidders by you applying the award criteria to suppliers’ proposals these multiple dialogue stages before using the criteria again to assess bidders’ final bids.

During the dialogue Organisations must ensure equal treatment of all participants. 

Any clarifications, specification, optimisation, additional information or negotiations must not involve changes to the essential aspects of the tender.  You must not provide information in a discriminatory manner which may give any bidder an advantage over others.

4. Conclusion of Dialogue

You must inform all bidders when the dialogue is being concluded 

You must invite each remaining bidder to submit their final tender on the basis of the solution(s) presented and specified during the dialogue.

5. Deadline for Receipt of Final Tenders

After the invitations to Submit Final Tenders are sent out, you must set a deadline for receipt of final tenders. There is no minimum period specified but these must be proportionate by taking into account the contract complexity and the time required to prepare and submit a bid.

You must extend the time limits for the receipt of tenders so that all bidders concerned are aware of all of the information needed to produce tenders e.g. where additional information requested by a supplier is not supplied at least 6 days before the time limit fixed for the receipt of tenders, or where there are significant changes made to the procurement documents. 

The length of extension must be proportionate to the importance of the information or change.

6. Contract Award

Final tenders may be further clarified before award of the contract but this must not involve the essential aspects, cause discrimination or distort competition.  You apply the award criteria to assess bidders’ final bids and award the contract.


Care and Support Services

For many care and support services contracts, an organisation may use the procurement procedures, tools and techniques of its choosing. you should follow a procurement procedure, as a matter of best practice, that is proportionate to the value of the contract and to take account of some fundamental considerations (for example the principles of procurement and Fair Work Practices).

When doing so, you may choose to adapt or streamline the Competitive Dialogue procedure described in the Public Contracts (Scotland) Regulations 2015. If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations. You should therefore not refer to the Regulations in the tender documentation issued to participants, as this may create an expectation that the detailed procedural requirements will be followed. In all cases, you should ensure that the procurement process is described accurately and clearly and then adhered to.

Irregular and Unacceptable Tenders

You can use Competitive Dialogue where all of the submissions you have received for an Open or Restricted Procedure are classed as either irregular or unacceptable.

A tender is irregular where:

  • it does not comply with the Procurement Documents
  • It was received late
  • There is evidence of collusion or corruption

      or

  • It has been found by you to be abnormally low

A tender is unacceptable where:

  • It was submitted by a bidder that does not have the required qualifications

          or

  • The price tendered exceeds your Organisation’s budget (as determined and documented  before the Procurement Procedure started.

Variants

You may authorise or require variant bids.  However this have been specified in the Contract Notice.

Your Procurement Documents must set out the minimum requirements and how the variant will be evaluated. Variants cannot be considered unless:

  • Specified within your Procurement Documents
  • they are linked to the subject matter of the contract and
  • they meet the minimum requirements.

All variant bids should be evaluated using the same criteria as the standard bids and compared on a like-for-like basis.

You should also consider whether to allow potential bidders to offer different TUPE scenario options within their bids. If so, you must provide clear directions to bidders to ensure that bids are compared on a like-for-like basis.

Issuing Documents

The Invitation to Submit a Final Tender is a procurement document but can only be finalised in the course of the actual dialogue.  As a result it does not need to be made available at the same time as the Contract Notice.

The procurement documentation relevant to the first part of the procedure (up to and including the Invitation to Take part in Dialogue (ITPDs) must be made available:

  • through the Internet ,
  • for free
  • simultaneously
  • by electronic means and
  • include all ITT documents (unless exclusions apply, for example confidentiality) when the Contract Notice is published .  In such cases another, non-internet method must be used to provide the information.

Principles of Procurement

The activities you undertake at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement. As a minimum the processes must be transparent ensuring no distortion of the market.  The outcome cannot unduly favour or disadvantage a particular bidder.  It is the responsibility of your Organisation to make sure these requirements are met.

Route 3

This procedure lets you clarify bids with bidders after their submission of fully formed initial tenders.

You should use this procedure If you are unable to define how to meet your needs technically and/or you cannot specify the legal or financial requirements of your contract.


 Examples

This procedure may be used:

  • for procuring services or goods that require adaptation or design inputs.
  • in cases of complex purchases, such as sophisticated products, intellectual services or major information and communication technology tools

You may have to start a dialogue with the bidders to guarantee the satisfactory outcome of the procurement process.

This procedure should not be used for ‘off-the-shelf’ services or goods, where many suppliers can deliver the service or product.

The use of Competitive Procedure with Negotiation must be justified and the reasons recorded.

You can also use the Competitive Procedure with Negotiation where all of the submissions received for an Open or Restricted Procedure that you have conducted are classed as either irregular or unacceptable.

Quickfire Guide

Quickfire Guide

Irregular or Unacceptable Tenders

A tender is irregular where:

  • It does not comply with the Procurement Documents
  • There is evidence of collusion or corruption; or
  • The bid is abnormally low

A tender is unacceptable where:

  • It was submitted by a bidder that does not have the required qualifications
  • The price tendered exceeds your Organisation’s budget (as determined and documented before the Procurement Procedure started).

Please Note

In all cases "days" are calendar days and not working days.  The final day must however be a working day in Scotland.


Competitive Procedure with Negotiation

Quickfire Guide

Quickfire Guide

The Usual Rules

  1. In the case of the basic Competitive Procedure with Negotiation, you must allow at least 30 days (from despatch of the Contract Notice) for suppliers to submit their selection stage documents.
  2. After applying selection criteria, you invite the shortlist of those meeting the selection requirements to submit a final tender.  Those invited must be allowed at least 30 days (25 if you have indicated you will accept electronic submissions) from the Invitation to Tender, to submit tenders. Sub-central organisations may set the time limit for the receipt of initial tenders via agreement with the selected bidders.  This date must be the same for all bidders. In the absence of an agreement, the time limit must be at least 10 days from the date on which the invitation to tender was sent.  A sub-central organisation is any organisation which does not belong to Central Government or National Health Services.
  3. After the evaluation of initial tenders, you may decide to award the contract to one of the bidders.  Alternatively you may negotiate on an equal treatment basis with the bidders.
  4. There are no statutory timescales for the negotiation phase. However bidders must be informed of the rules to be applied, including details of the process and timings before the process starts.  When you decide to conclude the negotiations you must inform the remaining bidders and set a common deadline to submit any new or revised tenders.  At the end of this process (which may include a best and final offers stage) you must award the contract to the supplier with the most economically advantageous tender (using the award criteria in the procurement documents).

Different Types of Competitive Procedure with Negotiation

There are four variations of the Competitive Procedure with Negotiation with slightly differing timelines:

Competitive Procedure with Negotiation

Competitive Procedure with Negotiation - with Publication of a Prior Information Notice

Competitive Procedure with Negotiation - Using a PIN as a Call for Competition

Competitive Procedure with Negotiation - Urgency


Care and Support Services

For many care and support services contract, an organisation may use the procurement procedures, tools and techniques of its choosing. You should follow a procurement procedure, as a matter of best practice, that is proportionate to the value of the contract and to take account of some fundamental considerations (for example, the principles of procurement and Fair Work Practices).

When doing so, you may choose to adapt or streamline the Competitive Procedure with Negotiation described in the Public Contract (Scotland) Regulations 2015. If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations. You should therefore not refer to the Regulations in the tender documentation issued to participants, as this may create an expectation that the detailed procedural requirements will be followed. In all cases, you should ensure that the procurement process is described accurately and clearly, and then adhered to.

Variants

You may authorise or require variant bids.  However this must have been specified:

  • in the Contract Notice or,
  • where a PIN is used as a means of calling for competition, in the invitation to confirm interest. 

Your Procurement Documents must set out the minimum requirements and how the variant will be evaluated. Variants cannot be considered unless:

  • specified within your Procurement Documents
  • they are linked to the subject matter of the contract and
  • they meet the minimum requirements.

 All variant bids should be evaluated using the same criteria as the standard bids and compared on a like-for-like basis.

You should also consider whether to allow potential bidders to offer different TUPE scenario options within their bids. If so, you must provide clear directions to bidders to ensure that bids  are compared on a like-for-like basis.

Issuing Documents

Since your final documents may be dependent upon the negotiations held, it is not practical to expect you to publish all Procurement Documents with the Contract Notice.

Invitations to Tender (ITT) should be sent to all selected bidders:

If an ITT is issued near to the closing date, bidders should be made aware that the submission date is imminent.

The ITT time limits for receipt of tender submissions should be proportionate to the contract complexity and the time required to prepare and submit a bid (bearing in mind minimum requirements).

Tender Extensions

Your Organisation must extend the time limits for the receipt of tenders so that all bidders are aware of all of the information needed.  When:    

  • additional information has been requested by a bidder andnot supplied at least 6 days (or 4 days in accelerated procedures) before the receipt of tenders deadline or
  • where there are significant changes made to the procurement documents.

Any extension should be proportionate to the complexity of the change and /or the additional information being provided.

To proceed with a tender extension the necessary approval should be obtained in accordance with your internal governance.

If the date is amended, the new date should be notified to all bidders.  If any tenderer indicates that they have already submitted a tender, they should be able to withdraw their original bid and submit a revised one (in line with the extended tender deadline).

Care must be taken to guard against fraud.  A full audit trail must be documented to ensure no information is passed to a bidder, to allowing them to amend bids already seen by the Organisation.

Principles of Procurement

The activities you undertake at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement. As a minimum the processes must be  transparent  ensuring no distortion of the market.The outcome cannot  unduly favour or disadvantage a particular bidder.I It is the responsibility of your  Organisation to make sure these requirements are met.

Route 3

The Restricted Procedure should be used for procurement exercises where market analysis has shown many bidders could meet your needs and bid. 

The Restricted Procedure is a two stage process. The first stage is a selection process, where the bidders’ capability, capacity and experience to perform the contract is assessed i.e. the SPD (Scotland) is used to shortlist bidders. This means the number of bidders can be reduced at the selection stage.

The second stage is when the Invitation to Tender is issued and the bids are assessed to determine the most economically advantageous tender, the basis of contract award.  Only the shortlisted bidders are then invited to submit a tender.  This will minimise the cost for the bidders and your organisation.

All Organisations are free to use this procedure, in any circumstances and for any type of contract and Framework Agreement. 


Please Note

In all cases "days" are calendar days and not working days.  The final day must however be a working day in Scotland.


Care and Support Services

For many care and support serveices contracts, an organisation may use the procurment procedures, tools and techniques of its choosing.  You should follow a procurement procedure, as a matter of best practice, that is proportionate to the value of the contract and to take account of some fundamental considertaions (for example, the principles of procurement and Fair Work Practices).

When doing so, you may choose to adapt or streamline the Restricted Procedure described in the Public Contract (Scotland) Regulations 2015. If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations. You should therefore not refer to the Regulations in the tender documentation issued to participants, as this may create an expectation that the detailed procedural requirements will be followed. In all cases, you should ensure that the procurement process is described accurately and clearly, and then adhered to.

Restricted Procedure Stages

Stage 1

Selection Stage

  • Following a call for competition, any bidder may submit a request to participate.
  • The Single Procurement Document (SPD) is used as the standard request to participate document in Scotland. Selection is looking at the bidder's capacity and capability, not how the bidder will deliver your requirement. Therefore this is a backward looking process i.e. you cannot consider matters specific to performance of the contract at this stage.
  • You must state in the Contract Notice or in the Invitation to Confirm Interest:
  •  your objective and non-discriminatory criteria or rules that you intend to apply,
  •  the minimum number of bidders that you intend to invite and, where applicable, the maximum number.
  • Timescales to consider: bidders must be given a minimum of 30 days (from the day the Contract Notice is sent for publication) to respond to a call for competition.

Stage 2

Invitation to Tender (ITT) Stage

  • The minimum number of bidders is five and
  • the number of candidates invited must be sufficient to ensure genuine competition.  Note: if the number of bidders meeting the selection criteria is fewer than five the procurement can still proceed. 
  • You must issue ITT documents for completion by bidders successful at the Stage 1 selection stage
  • Timescales to consider: Bidders must be given a minimum 30 days to respond to the ITT (or 25 days where the organisation has indicated that it will accept an electronic submission).

Timescales to Consider

Bidders must be given a minimum of 30 days (from the day the Contract Notice is sent for publication) to respond to a call for competition (or 25 days where the organisation has indicated that it will accept an electronic submission).

Sub-central buyer organisations may set the time limit for the receipt of tenders.  However this must be done by agreement with the bidders successful at selection stage.  The same time limit must be applied to all bidders.

Where a time limit cannot be agreed a minimum of 10 days must elapse between despatching the ITT and the deadline for submission.

Note: A sub-central buyer organisations is any Organisation which does not belong to Central Government or National Health Services.

Restricted Procedure with Publication of a PIN which is not used as a Call for Competition

  • Organisations can choose to use a Prior Information Notice (PIN) to shorten the time period for the receipt of tenders.
  • If using a PIN (which is not a call for competition) a minimum of 10 days needs to elapse after the dispatch of the ITT before the closing date for the receipt of tenders if:
  • the PIN includes certain information required for the Contract Notice, if  it is available when the PIN is published; and
  • the PIN is sent for publication between 35 days and 12 months before the Contract Notice is sent.

Restricted Procedure – Use of PIN as a Call for Competition

Sub-central Organisations may use the Prior Information Notice as a Call for Competition.

  • If a PIN is a call for competition it must be sent for publication between 35 days and 12 months before sending the invitation to confirm interest.
  • This PIN  must:
  • contain certain information and
  •  indicate that the contract will be awarded by restricted procedure without further publication of a call for competition and
  •  invite bidders to express interest. 
  • If a PIN is used as a Call for Competition, bidders must be given a minimum of 30 days to confirm their interest (from the date bidders are invited to confirm interest).

Restricted Procedure – Urgency

Organisations are allowed to shorten certain deadlines in case of urgency. 

  • Urgency needs to be suitably justified. This need not be an extreme urgency from unforeseen events  and/or  not caused by your Organisation. 
  • Your contract notice must include justification.
  • After the despatch of your Contract Notice, you need to allow at least 15 days for the submission deadline of selection stage information.
  • Following the completion of your selection stage assessment you may despatch the ITT.
  • A minimum of 10 days must then be allowed before the submission deadline.
  • Sub-central Organisations may agree on the submission deadline with bidders. If there is no agreement, a minimum of 10 days must be allowed by you for the submission of tenders

Issuing Documents

In a Restricted Procedure, it is not necessary to make all procurement documentation available when the Contract Notice is published.

It is necessary that your organisation provides sufficiently precise information to allow bidders to identify the nature and scope of the requirement.  From this information the bidders will decide whether to express an interest to participate i.e.. it is essential that the SPD (Scotland) is used and is available when the Contract Notice is issued.

All Procurement Documents should be made available via the internet with free and unrestricted access. If exceptions apply, which mean that the Procurement Documents cannot be issued electronically, the Contract Notice must detail how this will be done instead.

If the documents cannot be accessed immediately by electronic means then the timescales should be extended by five days.  The exception is in a case of duly substantiated urgency.

The ITT time limits (for receipt of bidder tender submissions)  should be proportionate to the contract complexity and the time required to prepare and submit a bid.  You must take into account the minimum requirements when setting this time limit.

Time limits for the receipt of tenders must be extended:

  • if you significantly change the procurement documents
  • where additional information requested by a bidder in good time  is not supplied at least 6 days (or 4 days in accelerated procedures) before the time limit of the receipt of tenders 

The length of extension of a tender deadline should be proportionate to the complexity of the change and /or the additional information being provided.

To proceed with a tender extension the necessary approval should be obtained in accordance with your internal governance procedures.

If the date is amended, the new date should be notified to all tenderers. If any tenderer has already submitted a bid then they should be given the opportunity to withdraw their original bid and submitting a revised one.  This revised bid should meet the extended tender deadline.

Clarification of Bids

You cannot negotiate on fundamental aspects of contracts i.e. areas likely to distort competition such as price.

Dialogue with bidders should be limited to requests for clarification.

You should record any discussions with bidders.  Meetings which discuss proposals/requirements should be avoided as these may distort competition.  For more information please refer to Post Tender Clarification.

Principles of Procurement

The activities at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement.

As a minimum the processes must be transparent ensuring no distortion of the market. The procurement cannot  unduly favour or disadvantage a particular bidder.  It is the responsibility of your Organisation to make sure these requirements are met.

Route 3

If your research has shown there are few bidders who could meet your needs, you may decide use the Open Procedure.  This is where you send all bidders (who responded to the advertised opportunity) the full Invitation to Tender documents.  This means there is no separate selection stage.

The Open Procedure can be used freely in any circumstances and for any type of contract and Framework Agreement.  Any interested bidder may submit a tender.

However in some cases it can be beneficial to choose a procedure where the number of the bidders can be reduced at the selection stage based on their capacity and capacity, especially if the Organisation does not have enough resources (such as time) to conduct a full Open Procedure.

Using the Open Procedure will depend upon the number of tenders received and the nature of the evaluation criteria. If the Organisation receives a large number of tenders, the evaluation of them is likely to be time consuming.

When doing so, you may choose to adapt or streamline the Open Procedure described in the Public Contract (Scotland) Regulations 2015. If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations. You should therefore not refer to the Regulations in the tender documentation issued to participants, as this may create an expectation that the detailed procedural requirements will be followed. In all cases, you should ensure that the procurement process is described accurately and clearly, and then adhered to.


Please Note

In all cases "days" are calendar days and not working days.  The final day must however be a working day in Scotland.


Care and Support Services

For many care and support services contracts, an organisation may use the procurement procedures, tools and techniques of its choosing.  You should follow a procurement procedure, as a matter of best practice, that is proportionate to the value of the contract and to take account of some fundamental considerations e.g. the principles of procurement and Fair Work Practices.

When doing so you may choose to adapt or streamline the Open Procedure described in The Public Contract (Scotland) Regulations 2015.  If you do so, you are not obliged to follow the detailed procedural requirements set out in those Regulations.  You should therefore not refer to the Regulations in the tender documentation issued to participants: this may create an expectation that the detailed procedural requirements will be followed.  In all cases you should ensure that the procurement process is described accurately and clearly and is adhered to.

Timescales to Consider

After despatching the contract notice, at least 35 days must elapse before the tender closing date. Where tenders may be submitted electronically, this number of days decreases to 30.

Your Organisation may publicise their future, planned procurement exercises by publishing a Prior Information Notice (PIN) on Public Contracts Scotland (PCS). A PIN, in this instance, cannot be used as a call for competition – your Contract Notice must be despatched later.  However publishing a PIN does reduce your tender timescales later on.  If using a PIN, only a minimum of 15 days need to elapse after the dispatch of the Contract Notice before the tender closing date if-

Your Invitation to Tender (ITT) time limits for the receipt of bids should be long enough and reasonable for the bidders to tendertaking into account:

  • the contract complexity and

  • the time required to prepare and submit a bid.

Extending or Changing a Tender Deadline

Changes to a tender closing date must be made if:

  • significant changes are made to the Procurement Documents and/or

  • if information requested by a bidder (in a timely fashion) have not been supplied  - a minimum of six days before the tender deadline (or 4 days in accelerated procedures). 

Extending a tender deadline should be proportionate to the complexity of the change and /or the additional information being provided. 

To proceed with a tender extension the necessary approval must be obtained in accordance with your internal governance procedures.

If the date is amended, the new date should be notified to all bidders. If any tenderer  has already submitted a bid, they should be given the opportunity to withdraw their original bid and submitting a revised one (in line with the extended tender deadline).

Urgency

Organisations are allowed to shorten certain deadlines in case of urgency.  This needs to be suitably justified.

This need not be an extreme urgency caused by unforeseeable events and/or not your Organisation’s fault.  Your contract notice must provide a justification.

If your Organisation can appropriately justify urgency,  the closing date for receipt of tenders can be 15 days after the Contract Notice was sent for publication.

Issuing Documents

This is the only procedure where you are required to make the Invitation to Tender (ITT) available from the start of the procurement i.e. when the Contract Notice is published.

If you decide to use an Open Procedure, you must provide full information about the requirements and qualitative selection process. The Invitation to Tender (ITT) documents must be issued to all bidders that request them.

All Procurement Documents, including the ITT, must be made available:

  • for free direct download

  • from the internet

  • from the time they are sent to participants in the process and

  • with unrestricted access. 

The Contract Notice must specify the internet address at which the Procurement Documents can be accessed. 

If exceptions apply, which mean the Procurement Documents are not available electronically, the Contract Notice must detail how access can be achieved.  Timescales must be extended by five days if the documents cannot be accessed immediately by electronic means.  An exception is  in a case of a substantiated urgency.

The Open Procedure allows for ITTs to be issued on request at any point prior to the date set for submission of tenders.

When an ITT is issued near to the closing date, the recipient should be made aware that the submission date is imminent.

Clarification of Bids

You can clarify some aspects of the tender.  You cannot clarify fundamental aspects where any changes may distort competition or cause discrimination.

Any discussions you have with bidders should be properly recorded.  Meetings which discuss proposals/requirements in any detail should be avoided as they   may distort competition.  For more information, please refer to Post Tender Clarification.

Principles of Procurement

The activities at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement.  As a minimum the processes must be transparent  ensuring  no distortion of the market. The outcome cannot  unduly favour or disadvantage a particular bidder.  It is the responsibility of your Organisation to make sure these requirements are met.

Route 3

The purpose of this section is to:

  • determine the requirement
  • agree what is in/what is out of scope and
  • consider e-Commerce implications with the User Information Group (UIG) and other key stakeholders.

You should start by breaking down the requirement into its sub-commodities/services and identify the specific products/services within each category.

Use one of the templates below to assist in this process:

Templates

Commodity Service Tree

(file type: docx)

CSS Service Tree

(file type: docx)

Guide to Making Content Decisions

You should consider whether or not the commodity/service you are buying is capable of being catalogued or not.

This simple Guide to Making Content Decisions at the bottom of the Pecos Content Management page, will guide the buyer in the right direction. 

If the commodity/service you are buying is to be catalogued, this electronic content must be provided for the contract via Pecos Content Management (PCM) . 

Sometimes it is appropriate to build the ITT documents in a format where the evaluation is based on catalogue submission.  If this is the case, the Contract Notice or the invitation to confirm interest as a result of a Prior Information Notice (PIN) should detail this clearly. Further guidance is provided at the notification of contract award decision and the develop documents stages.

The key characteristics for each sub-commodity/service can now be identified and agreed by using the Key Commodity/Service Characteristics template.

Environmental/Social Characteristics

Once you have identified the specific products and services, it is now important to consider their specific environmental or social characteristics.  

You should use labels (if they exist in your marketplace) that comply with these characteristics e.g. those relating to fair trade.  (Please note: note bidders should be allowed to offer other proof of compliance).

You should also consider whether you should include special conditions of contract relating to the performance of the contract.  This may cover:

  • economic,
  • innovation-related,
  • environmental,
  • social or
  • employment-related conditions.

It is a legal requirement that each contract includes conditions which are reasonably necessary to ensure supplier compliance to environmental, social and employment law.  These laws must be linked to the subject matter of the relevant contract. These conditions of contract must be included in the procurement documents.

At this stage you may want to consider how the products/services are provided e.g. electronic purchase orders, purchasing card, consolidated invoices and self-billing.

DIgital/ICT Requirements

If your procurement is of a Digital or ICT nature, consideration must be given to the Digital Public Services Scotland Programme. This strategy sets out the collective ambitions and national level actions at sector, cluster or organisational level.  Since this strategy release more Current Standards, Guidelines and Recommendations have been developed as outlined within the ICT High Level Operating Model.

Care and Support Services

Please refer to Example of Care and Support Services Service Tree found above (Residential Care).

The procurement procedures available for you to use are as follows:

Open Procedure

Restricted Procedure

Competitive Procedure with Negotiation

Competitive Dialogue

Negotiated Procedure without Prior Publication

Innovation Partnership

Route 3

Commodity Service Strategy v Procurement Strategy 

A commodity/service strategy should not be confused with a Procurement Strategy.

A commodity/service strategy is effectively a purchasing plan for a particular good or service i.e. it documents your sourcing strategy.

Key components of a commodity/service strategy with the suggested minimum requirements are included in the document section below.

 A Procurement Strategy is a mandatory legislative requirement under The Procurement Reform (Scotland) Act 2014. An organisation must publish a Procurement Strategy where it estimates the value of its regulated contracts in a year will the same  or greater than £5 million (excluding VAT).  

Further information on Procurement Strategy requirements can be found in the Additional Resources dropdown.

Main Subject of the Contract

If your procurement includes both goods and services your approach should be determined by the main subject of the contract. For example if the services/goods subject split is 60%/40% respectively then the entire exercise should be treated as a services procurement exercise.

If your contract consists:

  • partly of services and partly of supplies, or
  • partly of social services (or other specific services listed in schedule 3 to The Public Contracts (Scotland) Regulations 2015) and partly of other services,

then the main subject of the contract is determined by which of the services or supplies has the highest estimated value. 

(Please note: the Procurement Journey does not cover procurements which are works contracts or contracts that include ‘utility’ activities e.g. running tramways.  This includes works/utilities contracts whose elements:

  • cannot be separated or
  • which can be separated but  are the  main subject-matter of the contract).

Care and Support Services

Conflicts of Interest and Fraud

You must consider conflicts of interest and fraud as part of your Commodity/service strategy.  This must be  in line with your Organisation’s own governance procedures.  Also for non commodity/service specific aspects of the procurement exercise in respect of the Procurement Reform (Scotland) Act 2014, the Public Contracts (Scotland) Regulations 2015 and the Procurement (Scotland) Regulations 2016,

You must ensure that you take all appropriate measures to prevent, identify and remedy conflicts of interest.  You must include measures to combat fraud throughout your procurement exercise. 

Strategic Partnerships

Your organisation may seek a long-term strategic partner or partners  e.g. for a period of 10 or 20 years.  This may be to redesign and achieve major changes in service delivery and/or the use of resources.

For example, your organisation may work with a supplier(s) to determine what range of services could be provided within available resources.  This would be instead of tendering for particular services. In this situation, the choice of strategic partner(s) should be transparent and through a competitive process in accordance with the public procurement rules.

Public Social Partnerships (PSPs)

PSPs are strategic partnering arrangements.  These are based on a co-planning approach where the public sector can work with third sector organisations.  In such cases you would share responsibility for designing services based around service user needs.

The Scottish Government published guidance on developing and running Public-Social Partnerships in July 2011.

A PSP typically comprises three stages:

  • third sector organisations work with public purchasers to design a service;
  • a consortium of third sector organisations(which may also involve the public sector) conduct a short-term pilot.  This helps to refine service delivery limitsand maximise community benefits; and
  • if the service is deemed successful, commissioners then consider the most appropriate approach to sustaining the PSP. This could involve a competitive tendering process but other methods of securing service delivery should also be considered.

You should also consider the current and possible future relationships between the Buyer and Supplier.  You should demonstrate how you intend to develop any relationship with a potential supplier going forward.

 

Joint Procurement Exercise

If you are entering a joint procurement exercise with one or more public sector organisations.  you must agree the legal status  and requirements of such an exercise at this stage. 

You organisation may either:

  • agree a “lead” authority at this stage.  Legally, this lead authority will be the organisation responsible for forming the contract with the successful supplier(s), or
  • entera truly “joint” exercise.  This is where the conduct of the procurement is carried out in the joint name(s) of the participating organisations. 

In either of the above cases, the organisations are jointly responsible for ensuring they comply with all relevant procurement legislation.

Sometimes you could consider having only part of the procurement operating as a joint exercise.  In such cases the organisations would be equally responsible for any joint  areas. and retain sole responsibility for their own.

Other practical areas to consider and plan for now include:

  • the responsibility for contract management;
  • how Key Performance Indicators (KPIs) will be managed and communicated and
  • the reporting / communication network that will be needed between organisations and  potential supplier(s)whether a Framework Agreement would be more appropriate than a contract.  If so,  how would the call offs and management of same will be conducted

The Strategic Positioning Action Plan

Having considered the previous points you can identify the position of your commodity/service as either Leverage, Strategic, Routine or Bottleneck. The Strategic Positioning Action Plan provides guidance as to the procurement approach you should adopt in each of these circumstances.

These suggested approaches  provide a starting point on how to proceed with your commodity/service. You must define these further still by looking at your specific commodity/service and the opportunities identified using the Best Value Triangle.


Duty of Best Value in Public Services

Best Value principles are a key component of the public service reform agenda in Scotland, supporting public service organisations. It is a central, enduring foundation for continuous improvement across the public sector.

Best Value Characteristics

There are many characteristics to Best Value that public service organisations are expected to demonstrate.  Some relating to procurement are as follows:

  • Purchase Demand Management
    • Reduce consumption
    • Consolidate spend
    • Improve specification
  • Supply Base Management
    • Restructure relationships
    • Increase competition
    • Restructure supply base
  • Total Cost Management
    • Optimise total supply chain costs
    • Reduce total life cycle / ownership costs
    • Reduce / eliminate transactions
  • Sustainable Procurement
    • Maximise sustainable opportunities
    • The requirements of the of the Climate Change Act where appropriate
    • Consider Fair Work Practices where appropriate

Fair Work Practices

In line with Statutory Guidance before starting your procurement you should consider whether Fair Work Practices are relevant and proportionate.  If so, you should  include a question on Fair Work, to be evaluated along with other relevant criteria. Your question(s) should be informed by an your organisation's policy statement on Living Wage, including Fair Work, and the results of your pre-market engagement.

In relation to Fair Work Practices and in line with the Statutory Guidance, an organisation should consider, before undertaking a procurement exercise, whether it is relevant and proportionate to include a question on Fair Work, to be evaluated along with other relevant criteria. This will be informed by an organisation's policy statement on Living Wage, including Fair Work and the results of pre-market engagement.I

General Data Protection Regulation (GDPR)

Organisations should determine if data processing activities are relevant to the commodity/service which is the subject of the procurement exercise.

Contacts that are currently subject to the Data Protection Act 1998 will likely also be subject to GDPR. Organisations must ensure that current and future procurement exercises (including contracts entered into before the legislation came into force) are compliant with GDPR and all relevant procurement document make reference to the new legislation.

More detailed information on GDPR can found in Leadership & Governance.

 

Cyber Risks

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 (CSPST) to assess cyber risks and generate minimum cyber security requirements as part of award criteria. More information can be found in Leadership and Governance.


SMEs 

Small and Medium Enterprises (SMEs) should have fair access to public sector contracts.It is important that SME inclusion is encouraged, especially as SMEs may have characteristics that give them competitive advantages over larger organisations. These can include:

SME Advantages

  • Better levels of service - relative to large bidders, your business will represent a much larger proportion of an SME’s turnover.  As a result they may value you more as a customer.  You may receive a better and more personal service;
  • Lower overheads – small bidder’ running costs will usually be lower than those associated with larger organisations;
  • Innovative business solutions - potential for taking a new approach to requirements, e.g.  early exploitation of new technology, or providing products or services in new/underdeveloped markets;
  • Greater flexibility – their size lends them to being able to tailor solutions more effectively, e.g. short management chains and approval routes;
  • Specialism – many are set up to cater for niche markets which may better match requirements;
  • Increased competitiveness in the longer term - rather than limiting competition to a few large bidders (who may be familiar with each other’s operations) inclusion of smaller bidders may lead to an increase in competition.

Compliance Issues and Strategies

You should consider how you will ensure compliance to the contract.

Compliance is required from all parties throughout the whole Procurement Journey. Governance arrangements, management and budget holder behaviours  are key to ensuring compliance.

The Components of a Compliance Strategy document should encourage maximum uptake of a new contract. Members of the User Intelligence Group (UIG) should champion the contract.  Commitment from users should be obtained for the proposed strategy options.

Commodity/Service Strategy Options

There will be a number of delivery options which are applicable to any commodity/service. These will vary with the type, size and complexity of the requirement..

In all cases, you should consider a 'Do Nothing' option as a benchmark.

The Commodity/Service Strategy should include a summary of options that clearly details the:

  • benefits,
  • costs and
  • risks

associated with each option.  These should  demonstrates compliance with any legal obligations. This should help the objective selection of the Commodity/Service Strategy to be pursued in the short, medium and long term.

Estimating benefits within a commodity/service area can be obtained from sources such as:

  • benchmarking,
  • market testing,
  • market trends,
  • past discounts and 
  • past experience. 

Identification and assessment of “softer” benefits must be undertaken at this stage.  For exampleCommunity Benefits that could be achieved or other sustainability measures such as carbon use reduction.

Costs to implement sourcing strategies include:

  • contract switching costs,
  • supplier switching costs,
  • manpower investment,
  • communications and roll out and
  • cost of going to tender

The Options Appraisal summarises the various delivery options considering the benefits and risks of each before selecting an option for recommendation.

The recommended option must satisfactorily meet the requirements, be affordable, viable and agreed with the UIG.

Division of Contracts into Lots

You should consider awarding  your contract in separate lots. Division into lots can increase SME participation. 

Where you decide not to award a contract in the form of lots, you must indicate the main reasons for not doing so.  These reasons must be included in the relevant Procurement Documents, or in the procurement exercise written report.

Potential reasons for not subdividing contracts into lots may be:

  • that it would risk restricting competition,
  • it would make contract execution  excessively technically difficult or expensive, or
  • the need to coordinate the different contractors for the lots could seriously risk undermining the proper execution of the contract.

You must  state in the relevant Procurement Documents, whether bids may be submitted for one, for several or for  all lots. Where more than one lot may be awarded to the same bidder contracts may be awarded that combine several or all lots.You must have specified this can happen and include the groups of lots that may be combined.  If you use thisapproach, you must think carefully about how the relevant evaluation matrices will assess all possible scenarios.

You can limit the number of lots that any one bidder can win.  To do so you must state the maximum number of lots per bidder in the relevant Procurement Documents. 

The objective and non-discriminatory criteria your Organisation intends to apply to determine who wins lots must also be listed in the relevant Procurement Documents. This is done where the application of the award criteria would result in one bidder being awarded more lots than the maximum number.

Sub-contractors

During the Profiling the Commodity stage of your procurement exercise, you should have considered whether bidders may sub-contract any of the awarded works or services. If so, question 4.C.4 from the SPD should be included to be evaluated alongside other criteria at selection stage.

Confirmation of how bidders will ensure payment of sub-contractors at all stages of the supply chain pertaining to the contract, within the standard 30 day payment terms and how this will be managed should be evaluated at award stage.

Contract Implementation/Contract and Supplier Management

There are separate stops on the Procurement Journey on Contract Mobilisation and Implementation and Contract and Supplier Management (C&SM).Your approach must be considered during this 'Develop Commodity/Service Strategy' phase.

You must consider how the proposed options will operate throughout the life of the requirement. For example, if you decide to use an existing contract or framework agreement the contract implementation and management will be covered in the framework terms and conditions.  These must be complied with in full.

You must think about how the new goods or services will be introduced into your organisation.  Also how will  you move from your existing arrangements to the new arrangements?

You should also consider your transition or exit strategy for when this new contract or framework agreement comes to an end.

Once fully operational you will manage and develop the contract and supplier(s) to ensure  desired delivered now and in the future.

You must consider the resources required to implement and manage the contract or framework agreement. A designated contract manager must be identified. Additional guidance can be found in the Planning & Governance station.

You should detail the contract and supplier management requirements in the contract or framework agreement terms and conditions.  This will ensure both parties are clear on their contractual obligations. The contract should then be managed in accordance with these terms and conditions.

The level of contract and supplier management required depends on the risk, value and complexity of the contract. You will find guidance to help assess the potential level management of C&SM required in the Contract and Supplier Management / Planning and Governance station.

Generally, "Routine" contracts will require a lower level of management than "Leverage" and "Bottleneck" (medium level), and "Strategic" which will require the highest level.

There may be opportunities for your organisation to make its own internal processes more efficient. Some of the key areas to consider during the procurement process are:

  • Use of PCS-Tender
  • The transactional procurement process: requisitioning, authorising, raising and sending purchase orders, goods receipting and invoicing and payment

Further guidance can be found in the Planning & Governance station.  

 

As with all aspects of the Procurement Journey, the activities at this stage must be carried out in a carefully managed manner that supports the Principles of Procurement.  The processes must be carried out in a transparent way.  This ensures there is no distortion of the market place. 

The procurement outcome cannot unduly favour or disadvantage a particular bidder.  It is your responsibility to make sure these requirements are met.

Useful documents are shown below

Commodity Service Tree

(file type: docx)

CSS Service Tree

(file type: docx)

Supply Market Sources

(file type: doc)

Route 3

You will now identify high-level opportunities.  This will be based on data gathered in the previous stages, which may be achieved with or without creating a new contract.

Strategic sourcing highlights opportunities in three key areas:

  • Purchase Demand Management
  • Supply Base Management
  • Total Cost Management

The above are portrayed as the three sides of the 'Best Value Triangle', which can be found at the bottom of the page.

Your commodity/service team should assess and highlight the potential opportunities on the triangle that could be further developed.  The team should determine how they could be applied to the commodity/service in question.  Risk should always be considered.

Your assessment of high-level opportunities should be carried out using the Sustainable Procurement Test, which can be found on the Sustainable Procurement Tools Platform.

The Best Value Triangle, available in both in graphic and table format, can be found at the bottom of the page.

You must also include any economic, social and environmental, and sustainability opportunities in your strategy e.g. include community benefits and Fair Work Practices. 

This exercise should be proportionate to the complexity of your requirement.  You are not expected to address every aspect of the best value triangle.

Quickfire Guide

Quickfire Guide

Are There Early Opportunities?

Early opportunities are defined as cost savings, sustainability opportunities or total cost improvements which:

  • Can be implemented within 90 days
  • Provide benefits within six to twelve months
  • Have been considered as part of the Scottish Sustainable Procurement Prioritisation methodology
  • Are relatively easy and straightforward to do
  • Are often tactical and short-term in nature and
  • Must support strategic plans

Opportunity Assessment

There are many factors to consider for implementation of all opportunities as well as early opportunities:

  • TImescales/implementation time
  • Complexity and how many other functions need to be involved
  • Number of geographical locations/business units involved
  • Specification changes required e.g. regulatory, safety, criticality, legal,
  • Use of external technology
  • Acceptability to the customer
  • Business Unit readiness - 'pull'
  • Supply market challenge
  • Skills & knowledge (existing and what is required for the future)
  • Number of people involved in deployment
  • Clear decision owner(s)
  • Results of the risk assessment

The Opportunity Assessment Template is an aid to quantifying and prioritising the opportunities which will be included in the commodity strategy.

Any documents you need are listed below

Opportunity assessment

(file type: docx)

Best Value Triangle

(file type: docx)

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