Presentation on theme: "Beta Testing of Sustainable Procurement Tools"— Presentation transcript:
1 Beta Testing of Sustainable Procurement Tools Sustainable Procurement Topic Support NetworkUniversity of Edinburgh03 November 2014Barbara Morton, Sustainable Procurement Ltd
2 ObjectivesTo provide an update on the Procurement Reform (Scotland) Act 2014To introduce / test / discuss the enhanced toolsTo take feedbackTo discuss next steps
3 Beta Testing of Sustainable Procurement Tools Agenda 10:00 Welcome and Introductions 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) Discussion of guidance / fit with other developments in and for the sector (All) 15:00 Next steps 15:30 Close
4 Scottish procurement landscape Spend by sector (£m)Spend by commodity (£m)
5 The Scottish Model Of Procurement: SustainabilityCostQualityImproving supplier access to public contractsMaximising efficiency and collaborationEmbedding sustainability in all we doDelivering savings and benefitsVision:Through the Scottish Model of Procurement, to be world leaders in innovative public procurement, enabling the best outcomes for ScotlandProcurement at the heart of Scotland’s economic recoveryOutcomes not outputsKey enabler of policy development and service deliveryStrong political leadershipSingle overall strategyCentres of ExpertiseFocus on collaboration
6 Procurement Reform (Scotland) Act 2014 HRESOLDDutiesSpecific measures / dutiesRegulationsGuidanceG DE UN TE YASustainable procurement dutyHealth & social care procurementContract award without competitionProcurement strategy & annual reportAnnual report on procurement activity in ScotlandPublication of notices on PCSS DU US TT YINBCommunity benefit requirementsExclusion of biddersSelection of tenderers / award of contracts (inc. Workforce MattersTechnical specificationsProhibiting charging for participation in processGiving of reasons (Debriefing)Contracts registerReuse / Remanufacture / RecycleREMEDIESThe Procurement Reform (Scotland) Act received Royal Assent in June 2014, building on the work achieved so far in the reform of public procurement in Scotland. It will establish the laws regarding sustainable public procurement, and allow us to maximise the economic benefit brought to Scotland from effective and efficient public procurement activity. The Act provides Ministers with powers to make Regulations and to issue Statutory Guidance on issues such as workforce matters and the Sustainable Procurement Duty.Work on the development of those Regulations and the supporting Statutory Guidance is being taken forward together with work on the Regulations that are required to ‘transpose’ (implement) the three new EU Directives into Scots law enabling robust and consistent engagement with stakeholders.The Act focuses on a small number of general duties on contracting authorities regarding their procurement activities and some specific measures aimed at promoting good, transparent and consistent practice in procurement. It also places some administrative requirements on larger spending contracting authorities to publish procurement strategies and annual reports, which will aid visibility of the purchasing activities of these bodies and how they will meet their procurement obligations.All of which are can be underpinned by an enforcement regime of remedies.The provisions in the Act are designed to shift perception that public procurement is about lowest price to a shared understanding that it is about better value. It is about making it simpler to do business with the public sector, and simpler for the public sector to spend money wisely.
7 Procurement Reform (Scotland) Act Business friendly: Socially responsibleConsider:ImprovingEconomic, social, environmental, wellbeing and reducing inequality in the area.InvolvingSmall and medium enterprises and 3rd sector bodies including supported businesses.PromotingInnovationSustainable Procurement DutyProcurement Reform (Scotland) Act 20148 General duties(2) A contracting authority must also comply with the sustainable procurement duty.9 Sustainable procurement duty(1) For the purposes of this Act, the sustainable procurement duty is the duty of a contracting authority(a) before carrying out a regulated procurement, to consider how in conducting the procurement process it can(i) improve the economic, social, and environmental wellbeing of the authority’s area,(ii) facilitate the involvement of small and medium enterprises, third sector bodies and supported businesses in the process, and(iii) promote innovation, and(b) in carrying out the procurement, to act with a view to securing such improvements identified as a result of paragraph (a)(i)(2) The contracting authority must consider under subsection (1) only matters that are relevant to what is proposed to be procured and, in doing so, consider the extent to which it is proportionate in all the circumstances to take those matters into account…(4) In this section, references to the wellbeing of the authority’s area include, in particular, reducing inequality in the area.
8 Key Questions in the ‘Embedding Project’ When the PR Bill / Act comes into effect will public sector organisations in Scotland be clear about:What they are required to do?How they are required to do it and report on it?How their performance will be assessed?What happens if they fail to deliver?Will there be tools and guidance to support them and will these be:Sufficient, consistent, clear, unambiguous, easy to access, easy to use?
9 Sustainable Procurement Landscape Procurement Reform ActEU DirectiveRegulatory Reform BillConstruction Procurement ReviewProcurement Capability AssessmentPCS TenderFlexible FrameworkSelf-assessmentProcurement JourneyE-learning modulesMarrakech Training – ‘Sustainable procurement is good procurement’
10 Deliverables 2. Beta Testing 1. Embedding Project Review of policy, strategy and systemsPrioritisation methodologyUpdated Flexible FrameworkCase studiesGuidance2. Beta Testing1. Prioritisation methodology2. Sustainability Test / Contracts Tool3. Updated Flexible Framework with Action Plan4. Guidance5. Case studies
11 Working Methods during Embedding Project Engagement and testing through Working Groups:Prioritisation methodologyRepresentatives from:Scottish GovernmentScotland ExcelAPUCNP Health / Greater Glasgow & Clyde Health BoardScottish Parliament2. Flexible FrameworkNP HealthSouth Ayrshire Council
12 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”Buy-in to Prioritisation achieved during MTF training.Scotland at an advantage due to available spend data.
13 National Outcomes Link to Single Outcome Agreements / Service Level AgreementsCross reference with Local AuthorityBenchmarking activityLinks to reporting requirements of allpublic sector bodies in ScotlandAnticipate / reflect the reporting requirements of theProcurement Reform ActTo tailor to Scottish environment and building on Community Benefits Monitoring Framework – linking to National Performance Framework. Working with National Performance Unit (SG) to ensure that there is clear line of sight between National Outcomes, indicators for buyers and outcomes and outputs in contracts.(Can mention employability research if required:To identify the additionality in terms of employment and skills from CBIP clausesDo this as a national level in terms of the overall contribution to National Outcomes.Recommendations on monitoring and evaluation of these clauses in the medium to long term – may result in refinement of existing Monitoring Guidance).Plan to extend this practice across 16 National Outcomes. Should result in opportunity to apply a consistent approach across the public sector – including consistency of monitoring and reporting – Measuring the right things (refer to Viv’s Rapid Evidence Review?)Our public services are high quality, continually improving, efficient and responsive to local people's needsWe live in a Scotland that is the most attractive place for doing business in EuropeWe realise our full economic potential with more and better employment opportunities for our peopleWe are better educated, more skilled and more successful, renowned for our research and innovationWe have tackled the significant inequalities in Scottish societyWe live in well-designed, sustainable places where we are able to access the amenities and services we needWe have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect othersWe value and enjoy our built and natural environment and protect it and enhance it for future generationsWe reduce the local and global environmental impact of our consumption and production
14 Scottish Government Priorities – May 2013 Reflected by the National Indicators ‘Organisational PrioritiesPolicy & Strategy’(Scottish Government and core agencies and NDPB’s)Improve levels of educational attainmentIncrease exportsImprove people’s perception of their neighbourhoodImprove Scotland’s ReputationImprove the condition of protected nature sitesImprove mental wellbeing and end of life careIncrease the abundance of terrestrial breeding birds (biodiveristy)Improve the state of Scotland's marine environmentReduce Scotland’s Carbon footprintIncrease the proportion of journeys to work made by public or active transportImprove support for people with care needsImprove the skill profile of the populationImprove the quality of the healthcare experienceReduce Waste GeneratedIncrease renewable energy productionImprove children’s servicesImprove the responsiveness of public servicesReduce death on Scottish roadsReduce Reconviction ratesIncrease the number of graduates in positive destinationsIncrease No of BusinessReduce the proportion of people living in povertyIncrease the number of new homesImprove digital infrastructureWiden the use of the internetIncrease research and development spendingImprove perceptions of the quality of public servicesIncrease the proportion of young people in learning training or workImprove access to suitable housing optionsReduce Traffic CongestionLarge organisation
15 ‘Organisational Priorities’ Clackmannanshire Council Priorities – May 2013‘Organisational Priorities’Policy & StrategyCarbon ReductionRecyclable/ Recycled GoodsFair & Ethical TradeLocal SourcingInnovationHealth ImprovementEquality and DiversityAccessibilityWaste ReductionCommunity BenefitsConstructionEnergy and Resource EfficiencyA Healthy and Protected EnvironmentRegeneration, Jobs and SkillsCost SavingsSafer CommunitiesTransportClimate Change AdaptationSmall organisation
18 TOOLS: 1. Prioritisation – Aims and Objectives Role of prioritisationRisk and opportunity assessmentTrail – ‘Golden Thread’AuditWhen and who?Simplicity /complexity?Use:Demand review – can need be met in a lower risk way?Strategic review at high level - inform procurement strategySub-category levelOutputs and link to procurement process
19 Delivering the sustainable procurement ‘Golden Thread’ National performance framework and national outcomesProcurement journey, prioritisationLife cycle impact mappingProcurement strategiesProjects,products,servicesof performancevalidation– externalPCAFlexible Framework – internal assessment of performanceCorporate Procurement Strategy (Procurement Reform (Scotland) Act 2014)Product and supplier selectionContracts toolSustainability test 2
20 TOOLS: 1. Prioritisation – Aims and Objectives Where does it sit?Link to The Procurement Journey – risk management templateLink to Flexible FrameworkGuidanceMonitoringAre we measuring the right things?Measuring the right things (Rapid Evidence Review again)
21 Early prioritisation output, based on procurement hub data. (2008/9?) Development of contracting tool, may replace existing sustainability test, so that buyers can cross check risks and opportunities on a contract-by-contract basis.
22 TOOLS: 2. Sustainability Test Framework /Contract levelEnvironmental and socio-economic factors in more detailSub-category levelLink to procurement processGuidance documentsCase studies and examples
23 TOOLS 3: Enhanced Flexible Framework with Action Plan Tailored to Scottish contextUpdated in line with existing policyIncludes a recalibration processProvides direction through Action Plans (new feature)Shows how action delivers against National Outcomes and IndicatorsSupports the delivery of the Procurement Reform (Scotland) Act 2014
24 Flexible Framework Working Group Procurement Capability AssessmentProcurement Reform ActFlexible FrameworkPCAFlexible FrameworkPCALevel 1Level 2Level 3Level 4Level 5Corporate Procurement Strategyto take account of economic, social and environmental wellbeingProcurement JourneyLaw & RegulationsPolicy & SPPNsGuidanceToolsOrganisation’s Action PlanActionResponsibilityTarget Date
25 Flexible FrameworkClarifying definitions and intentStrengthening guidance to show how self-assessment leads to action (plans)Making specific reference to relevant risks and opportunities e.g. ethical issuesDeveloping toolkit to be consistent with content of other toolsPopulating with examples & case studiesDeveloping Markets for Third Sector Providers ProgrammeProviding direction
26 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 issuesDeveloping toolkit to be consistent with content of other toolsPopulating with examples & case studiesDeveloping Markets for Third Sector Providers ProgrammeProviding direction
27 The Nature of Community Benefit Employability / targeted recruitment & trainingSupply chain initiativescreating opportunities for SMEscreating opportunities for social enterpriseworkshops / mentoringCommunity consultation / engagement / eventsEducational initiativesBuyers are risk averse
28 CBCs and Social Enterprise / Social Firms to date Successful adoptionUnity & Crescent Kitchen – Catering at a number of venuesReboot – Highland CouncilRemploy – Gullane Fire Station furnitureAction for Children – employability service at the VelodromeKibble – painting and decorating NSGHGal Gael Trust – Queens Baton Relay
29 In partnership with (Next 3 slides on an as required basis) Five categories;Need to reach level in all 5 categories before progression;Re-design in light of feedback during trainingProposed recalibration – links to BillIn partnership with
30 In partnership with Foundation (L1(a) content) A Corporate Procurement Strategy showing high level organisational goals/objectives.Criteria describedThe organisation should outline at a high level its key sustainability objectives as part of the development of its Procurement Policy or a Corporate Procurement Strategy (in line with the requirements of the Procurement Reform Bill/Act.)Suggested Evidence to Support a "Yes" ResponseGuidance and examplesObjectives should be in line with National Performance Framework (and Single Outcome Agreements, where relevant) and should inform the development of the Corporate Procurement Strategy. Link to PR Bill / Act.Note that the Policy/Strategy should relate to the communities/ groups that the organisation represents (including partnerships).Criteria met? – If yes, no suggestions. Partial or no – SuggestionsSuggested actions to meet criteria and evidenceDerive clearly described key sustainable procurement objectives for the organisation.Use sustainable procurement objectives to develop an organisational policy statement for sustainability.Detailed organisation actions - if different from SuggestedIn partnership with
31 In partnership with LEADER (L5(c)) Criteria Question Is best practice shared with other/peer organisations locally, nationally and internationally?Suggested Evidence to Support a "Yes" ResponseCommunications to other organisations at a senior level on the delivery of best practice (sustainable) procurement within the organisation e.g. Chief Executive groups or sector conventions or associations.Guidance and examplese.g. AM visit to Australia, NHSScotland - visits to Canderside etc - Colin Sinclair. Opportunities to communicate with BrazilCriteria met? If no, actions will be suggestedSuggested actions to meet criteria and evidenceEnsure that senior management is advised on significant achievements or results with regard to sustainable procurement delivery.Identify senior management conferences, events or forums where successes can be marketed as best practice sustainable procurement.Detailed organisation actions - if different from SuggestedIn partnership with
32 Exercise: Identify life cycle impacts Impacts of obtaining raw materialsImpacts of manufacturing & logisticsImpacts during use of product/serviceImpacts at end-of-life / disposalParticipants divided into groups to flipchart results of this exercise.Use a familiar product such as a laptop for this exercise.Focus here is on environmental, socio-economic, reputational risks at each stage.So participants may start by identifying the raw materials used and the elements that may be impacted upon before assessing what those impacts may be - trainers should challenge them to identify as many impacts as possible – pollution, depletion of natural resources, working conditions, etc.For feedback ask one group to present ‘Raw materials’ and ask other groups to add anything new they have then move to ‘manufacturing & logistics’ etc. make sure in discussion that delegates think how they would use this for services.Also discuss how far back in the supply chain can we make a difference, reducing impacts.
33 Identify life cycle impacts – in practice Impacts of obtaining raw materialsSourcing overseas if demand outstrips supply – impact on carbon emissionsWood should be sourced not just from legal but also sustainable forests/woodlands – forest management criticalPotential impact on biodiversity of forests/woodlands if focus is only on economic viabilitySupport development of an immature supply chain through aggregated demandOpportunities for community woodland schemes to be integral to supply chainImpacts of manufacturing & logisticsCarbon emissions from transportation, particularly if local supply chains are inadequateProduction of chips/pellets – is renewable energy usedCompetition for raw materials e.g. chipboard manufacturersWaste products from pellet manufacturing processImpacts during use of product/serviceEmissions particularly in ‘Air Quality Management Areas’Shortage of qualified engineers/installers; through aggregated demand an opportunity to influence recruitment and trainingDisposal of waste products e.g. ashImpacts at end-of-life/disposalDisposal of ash – use as a fertiliserDisposal of boilersThe Scottish Government is currently working on a new Biomass-Framework Agreement – this life cycle impact assessment developed at strategy development Stage shows how it works in practice.This is a real life example of impact mapping being used from strategy through procurement. Discuss with delegates if they plan to use this approach.31
34 Next StepsFeedback through questionnaireConsultation process