beta testing of sustainable procurement tools sustainable procurement topic support network...
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Beta Testing of Sustainable Procurement Tools
Sustainable Procurement Topic Support NetworkUniversity of Edinburgh03 November 2014
Barbara Morton, Sustainable Procurement Ltd
Objectives
1. To provide an update on the Procurement Reform (Scotland) Act 2014
2. To introduce / test / discuss the enhanced tools
3. To take feedback
4. To discuss next steps
Beta Testing of Sustainable Procurement ToolsAgenda
10:00 Welcome and Introductions
10.10 Update on the Procurement Reform (Scotland) Act 2014 & discussion (Josephine Mitchell, Scottish Government)
10:30 Prioritisation – run-through the tools highlighting enhancements (Barbara to lead)
11:15 Sustainability Test – run-through the tool and discussion of its functionality (Barbara to lead)
12:30 Lunch
13:15 Flexible Framework – run-though and discussion of functionality
- including Action Plan & guidance (Barbara to lead)
14.15 Discussion of guidance / fit with other developments in and for the sector (All)
15:00 Next steps
15:30 Close
Spend by sector (£m)
Spend by commodity (£m)
Scottish procurement landscape
1,000
2,000
3,000
£5,237 £2,074
£1,566
£697
£163
Local Authorities NHS
Scottish Government & Family Colleges and Universities
Fire Service and Police
Sustainability
CostQuality
Improving supplier access to
public contracts
Maximising efficiency
and collaborati
on
Embedding sustainability in all we
do
Delivering savings and
benefits
The Scottish Model Of Procurement:
Vision:
Through the Scottish Model of Procurement,
to be world leaders in innovative public
procurement, enabling the best outcomes
for Scotland
Procurement Reform (Scotland) Act 2014
THRESHOLDS
Duties Specific measures / duties Regulations Guidance
G D E U
N TE Y
R A L
Sustainable procurement duty
Health & social care procurement
Contract award without competition
Procurement strategy & annual report
Annual report on procurement activity in Scotland
Publication of notices on PCS
S DU US TT Y
A I N A B L E
Community benefit requirements
Exclusion of bidders
Selection of tenderers / award of contracts (inc. Workforce Matters
Technical specifications
Prohibiting charging for participation in process
Giving of reasons (Debriefing)
Contracts register
Reuse / Remanufacture / Recycle
REMEDIES
Procurement Reform (Scotland) Act
Consider:
Improving
Economic, social,
environmental, wellbeing
and reducing inequality in
the area.
Involving
Small and medium
enterprises and 3rd sector
bodies including supported
businesses.
Promoting
Innovation
Sustainable Procurement Duty
Procurement Reform (Scotland) Act 2014
Business friendly: Socially responsible
Key Questions in the ‘Embedding Project’
1. When the PR Bill / Act comes into effect will public sector organisations in Scotland be clear about:a. What they are required to do?b. How they are required to do it and report on it?c. How their performance will be assessed?d. What happens if they fail to deliver?
2. Will there be tools and guidance to support them and will these be:a. Sufficient, consistent, clear, unambiguous, easy to
access, easy to use?
Sustainable Procurement Landscape
Procurement Reform Act
Procurement Capability Assessment
Flexible Framework
Self-assessment Procurement Journey
Marrakech Training – ‘Sustainable procurement is good procurement’
PCS Tender
E-learning modules
EU DirectiveRegulatory Reform Bill
Construction Procurement Review
Deliverables
1. Embedding ProjectReview of policy, strategy and systemsPrioritisation methodologyUpdated Flexible Framework Case studiesGuidance
2. Beta Testing1. Prioritisation methodology 2. Sustainability Test / Contracts Tool3. Updated Flexible Framework with
Action Plan4. Guidance 5. Case studies
Working Methods during Embedding Project
• Engagement and testing through Working Groups:1. Prioritisation methodology
• Representatives from:– Scottish Government– Scotland Excel– APUC– NP Health / Greater Glasgow & Clyde Health Board– Scottish Parliament
2. Flexible Framework
• Representatives from:– Scottish Government– Scotland Excel– APUC– NP Health– Scottish Parliament– South Ayrshire Council
Prioritisation – Aims and Objectives
“Deciding to use, apply a specific strategic approach (Spend Prioritisation) for the organisation, a particular services, or range of commodities/groups”
“Prioritisation methodology - quick, simple - won't consume too much extra time”
“I enjoyed it all but really liked the applying prioritisation and the review of risks”
National Outcomes
Link to Single Outcome Agreements / Service Level Agreements
Cross reference with Local Authority Benchmarking activity
Links to reporting requirements of all public sector bodies in Scotland
Anticipate / reflect the reporting requirements of the Procurement Reform Act
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‘Organisational Priorities
Policy & Strategy’
(Scottish Government and core agencies and NDPB’s)
Improve levels of
educational
attainment
Increase exports
Improve people’s
perception of their
neighbourhood
Improve Scotland’s Reputation
Improve the
condition of
protected nature sites
Improve mental
wellbeing and end of life
care
Increase the abundance of
terrestrial breeding
birds (biodiveristy)
Improve the state of
Scotland's marine
environment
Reduce Scotlan
d’s Carbon footprin
t
Increase the proportion of journeys
to work made by public or
active transport
Improve support for people with care needs
Improve the skill profile of the population
Improve the quality of the
healthcare experience
Reduce Waste
Generated
Increase renewable
energy productio
n
Improve
children’s
services
Improve the responsiveness of public
services
Reduce death on Scottish
roads Reduce Reconviction rates
Increase the number of
graduates in positive
destinations
Increase No of
Business
Reduce the proportion of people living
in poverty
Increase the number
of new homes
Improve digital
infrastructure
Widen the use of the internet
Increase research
and development spending
Improve perceptions of the quality of
public services
Increase the proportion of
young people in learning training
or work
Improve access to suitable housing options
Reduce Traffic
Congestion
Scottish Government Priorities – May 2013 Reflected by the National Indicators
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‘Organisational Priorities’
Policy & Strategy
Carbon Reduction
Recyclable/ Recycled
Goods
Fair & Ethical Trade
Local Sourcing
Innovation
Health Improvement
Equality and Diversity
Accessibility
Waste Reduction
Community Benefits
Construction
Energy and Resource Efficiency
A Healthy and Protected
Environment
Regeneration, Jobs and Skills
Cost Savings
Safer Communities
Transport
Climate Change
Adaptation
Clackmannanshire Council Priorities – May 2013
University of Edinburgh
Strategic Plan diagram 2012 -2016
…an overarching theme for this Plan is to increase our global impact and our contribution to society.”
Prof. Sir Timothy O’SheaPrincipal & Vice-Chancellor, The University of Edinburgh
Our Sustainable Procurement Goal
to procure goods and services in ways that maximise efficiency & effectiveness while minimising social, environmental and other risks.
Procurement Strategy linked to University Strategic Plan Procurement professional influence to exceed 80%
Collaborative procurement on target 30%
TOOLS: 1. Prioritisation – Aims and Objectives
A. Role of prioritisation– Risk and opportunity assessment – Trail – ‘Golden Thread’– Audit– When and who?– Simplicity /complexity?
B. Use:– Demand review – can need be met in a lower risk way?– Strategic review at high level - inform procurement strategy– Sub-category level– Outputs and link to procurement process
National performance framework and national outcomes
Procurement journey, prioritisation
Life cycle impact mappingProcurement strategies
Projects, products, services
Flexible Framework – internal assessment of performance
Corporate Procurement Strategy (Procurement Reform (Scotland) Act 2014)
Product and supplier selectionContracts toolSustainability test 2
Delivering the sustainable procurement ‘Golden Thread’
TOOLS: 1. Prioritisation – Aims and Objectives
C. Where does it sit?― Link to The Procurement Journey – risk management template― Link to Flexible Framework
D. GuidanceE. Monitoring
– Are we measuring the right things?
TOOLS: 2. Sustainability Test
• Framework /Contract level• Environmental and socio-economic factors in more detail• Sub-category level• Link to procurement process
• Guidance documents • Case studies and examples
TOOLS 3: Enhanced Flexible Framework with Action Plan
• Tailored to Scottish context • Updated in line with existing policy• Includes a recalibration process• Provides direction through Action Plans (new feature)• Shows how action delivers against National Outcomes and Indicators• Supports the delivery of the Procurement Reform (Scotland) Act 2014
PCA
PCAFlexible Framework
Procurement Capability Assessment
Procurement Journey
Law & Regulations
Policy & SPPNsGuidance
Tools
Level 1 Level 2 Level 3 Level 4 Level 5
Flexible Framework
Corporate Procurement Strategy to take account of economic, social and environmental wellbeing
Organisation’s Action Plan Action Responsibility Target Date
Procurement Reform Act
Flexible Framework Working Group
Flexible Framework
• Clarifying definitions and intent• Strengthening guidance to show how self-assessment leads to action
(plans)• Making specific reference to relevant risks and opportunities e.g.
ethical issues• Developing toolkit to be consistent with content of other tools• Populating with examples & case studies
• Developing Markets for Third Sector Providers Programme• Providing direction
Flexible Framework
• Clarifying definitions and intent• Strengthening guidance to show how self-assessment leads to action (plans)• Making specific reference to relevant risks and opportunities e.g. ethical issues• Developing toolkit to be consistent with content of other tools• Populating with examples & case studies
• Developing Markets for Third Sector Providers Programme• Providing direction
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• Employability / targeted recruitment & training• Supply chain initiatives
• creating opportunities for SMEs• creating opportunities for social enterprise• workshops / mentoring
• Community consultation / engagement / events• Educational initiatives
The Nature of Community Benefit
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CBCs and Social Enterprise / Social Firms to date
Successful adoption Unity & Crescent Kitchen – Catering at a number
of venues Reboot – Highland Council Remploy – Gullane Fire Station furniture Action for Children – employability service at the
Velodrome Kibble – painting and decorating NSGH Gal Gael Trust – Queens Baton Relay
In partnership with
In partnership with
In partnership with
Exercise: Identify life cycle impacts
Impacts of obtaining raw materials
Impacts of manufacturing & logistics
Impacts during use of product/service
Impacts at end-of-life / disposal
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Impacts of obtaining raw materials• Sourcing overseas if demand outstrips supply – impact on carbon emissions• Wood should be sourced not just from legal but also sustainable forests/woodlands – forest management critical• Potential impact on biodiversity of forests/woodlands if focus is only on economic viability• Support development of an immature supply chain through aggregated demand• Opportunities for community woodland schemes to be integral to supply chain
Impacts of manufacturing & logistics• Carbon emissions from transportation, particularly if local supply chains are inadequate• Production of chips/pellets – is renewable energy used• Sourcing overseas if demand outstrips supply – impact on carbon emissions• Competition for raw materials e.g. chipboard manufacturers • Waste products from pellet manufacturing process
Impacts during use of product/service• Emissions particularly in ‘Air Quality Management Areas’• Shortage of qualified engineers/installers; through aggregated demand an opportunity to influence recruitment and training• Disposal of waste products e.g. ash
Impacts at end-of-life/disposal• Disposal of ash – use as a fertiliser • Disposal of boilers
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Identify life cycle impacts – in practice
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Next Steps
• Feedback through questionnaire• Consultation process
