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Beta Testing of Sustainable Procurement Tools Sustainable Procurement Topic Support Network University of Edinburgh 03 November 2014 Barbara Morton, Sustainable.

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Presentation on theme: "Beta Testing of Sustainable Procurement Tools Sustainable Procurement Topic Support Network University of Edinburgh 03 November 2014 Barbara Morton, Sustainable."— Presentation transcript:

1 Beta Testing of Sustainable Procurement Tools Sustainable Procurement Topic Support Network University of Edinburgh 03 November 2014 Barbara Morton, Sustainable Procurement Ltd

2 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

3 Beta Testing of Sustainable Procurement Tools Agenda 10:00Welcome and Introductions 10.10Update 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

4 Spend by sector (£m) Spend by commodity (£m) Scottish procurement landscape

5 Sustainability Cost Quality 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

6 Procurement Reform (Scotland) Act 2014 THRESHOLDSTHRESHOLDS DutiesSpecific measures / duties RegulationsGuidance G D E U N T E 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 D U S T T 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

7 Procurement Reform (Scotland) Act Consider: Improving Economic, social, environmental, wellbeing and reducing inequality in the area. Involving Small and medium enterprises and 3 rd sector bodies including supported businesses. Promoting Innovation Sustainable Procurement Duty Procurement Reform (Scotland) Act 2014 Business friendly: Socially responsible

8 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?

9 Sustainable Procurement Landscape Procurement Reform Act Procurement Capability Assessment Flexible Framework Self-assessment Flexible Framework Self-assessment Procurement Journey Marrakech Training – ‘Sustainable procurement is good procurement’ PCS Tender E-learning modules EU Directive Regulatory Reform Bill Construction Procurement Review

10 Deliverables 1. Embedding Project Review of policy, strategy and systems Prioritisation methodology Updated Flexible Framework Case studies Guidance 2. Beta Testing  1. Prioritisation methodology  2. Sustainability Test / Contracts Tool  3. Updated Flexible Framework with Action Plan  4. Guidance  5. Case studies

11 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

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”

13 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

14 14 ‘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 Scotland’s Carbon footprint 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 production 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

15 15 ‘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 SavingsSafer CommunitiesTransport Climate Change Adaptation Clackmannanshire Council Priorities – May 2013

16 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’Shea Principal & Vice-Chancellor, The University of Edinburgh

17 Our Sustainable Procurement Goal to procure goods and services in ways that maximise efficiency & effectiveness while minimising social, environmental and other risks. Procurement Strategy Procurement Strategy linked to University Strategic Plan Procurement professional influence to exceed 80% Collaborative procurement on target 30%

18 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

19 National performance framework and national outcomes Procurement journey, prioritisation Life cycle impact mapping Procurement strategies Projects, products, services PCA – external validation of performance Flexible Framework – internal assessment of performance Corporate Procurement Strategy (Procurement Reform (Scotland) Act 2014) Product and supplier selection Contracts tool Sustainability test 2 Delivering the sustainable procurement ‘Golden Thread’

20 TOOLS: 1. Prioritisation – Aims and Objectives C.Where does it sit? ― Link to The Procurement Journey – risk management template ― Link to Flexible Framework D.Guidance E.Monitoring –Are we measuring the right things?

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22 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

23 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

24 PCA PCAFlexible Framework Procurement Capability Assessment Procurement Journey Law & Regulations Policy & SPPNs Guidance Tools Level 1Level 2Level 3Level 4Level 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

25 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

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 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

27 27 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

28 28 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

29 In partnership with

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32 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 32

33 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 31 Identify life cycle impacts – in practice 33

34 Next Steps Feedback through questionnaire Consultation process

35 Thank you for your attention Barbara Morton barbara@sustainableprocurement.eu.com 07766 023560 barbara@sustainableprocurement.eu.com


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