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
To provide an update on the Procurement Reform (Scotland) Act 2014
To introduce / test / discuss the enhanced tools
To take feedback
To 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:
Sustainability
Cost
Quality
Improving supplier access to public contracts
Maximising efficiency and collaboration
Embedding sustainability in all we do
Delivering savings and benefits
Vision:
Through the Scottish Model of Procurement, to be world leaders in innovative public procurement, enabling the best outcomes for Scotland
Procurement at the heart of Scotland’s economic recovery
Outcomes not outputs
Key enabler of policy development and service delivery
Strong political leadership
Single overall strategy
Centres of Expertise
Focus on collaboration

6. Procurement Reform (Scotland) Act 2014H R E S O L D
Duties
Specific measures / duties
Regulations
Guidance
G D
E U
N T
E Y A
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 U
S T
T Y I N B
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
The 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 responsible
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
8 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 Act
EU Directive
Regulatory Reform Bill
Construction Procurement Review
Procurement Capability Assessment
PCS Tender
Flexible Framework
Self-assessment
Procurement Journey
E-learning modules
Marrakech Training – ‘Sustainable procurement is good procurement’

10. Deliverables 2. Beta Testing 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:
Prioritisation methodology
Representatives from:
Scottish Government
Scotland Excel
APUC
NP Health / Greater Glasgow & Clyde Health Board
Scottish Parliament
2. Flexible Framework
NP Health
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”
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 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
To 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 clauses
Do 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 needs
We live in a Scotland that is the most attractive place for doing business in Europe
We realise our full economic potential with more and better employment opportunities for our people
We are better educated, more skilled and more successful, renowned for our research and innovation
We have tackled the significant inequalities in Scottish society
We live in well-designed, sustainable places where we are able to access the amenities and services we need
We have strong, resilient and supportive communities where people take responsibility for their own actions and how they affect others
We value and enjoy our built and natural environment and protect it and enhance it for future generations
We reduce the local and global environmental impact of our consumption and production

14. Scottish Government Priorities – May 2013 Reflected by the National Indicators
‘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
Large organisation

15. ‘Organisational Priorities’
Clackmannanshire Council Priorities – May 2013
‘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
Small organisation

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
University of Edinburgh
Strategic Plan
diagram
…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
Strategic themes including outstanding student experience, equality and widening participation – expected of any modern university
Add Global Impact, Social Responsibility and the themes of lifelong community and partnerships relates to the people who supply us
© 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 linked to University Strategic Plan
Procurement professional influence to exceed 80%
Collaborative procurement on target 30%
So what is our sustainable procurement goal – read it here.
Well worn phrase, probably used in many institutions and companies: but how do we apply it…. More later.
When buying through the University’s purchasing systems, or using other University contracted suppliers, we want environmental and social and risk issues to be considered.
First point to make is that we have set up systems and processes not just policies and strategies - so that buyers across our campuses can be assured that (in so far as we can within public procurement law) more on that later too, we have taken environmental and social issues into account.
Our procurement strategy links this goal into the aspirations of the University strategic plan.
Our award winning professional procurement team influence most of the expenditure and we collaborate with other universities, colleges and public bodies on about 1/3 of our spend and thus we are aiming to influence beyond our own campus to our collaborators (and competitors) for sustainability.
© The University of Edinburgh

18. TOOLS: 1. Prioritisation – Aims and Objectives
Role of prioritisation
Risk and opportunity assessment
Trail – ‘Golden Thread’
Audit
When and who?
Simplicity /complexity?
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. Delivering the sustainable procurement ‘Golden Thread’
National performance framework and national outcomes
Procurement journey, prioritisation
Life cycle impact mapping
Procurement strategies
Projects,
products,
services
of performance
validation
– external
PCA
Flexible Framework – internal assessment of performance
Corporate Procurement Strategy (Procurement Reform (Scotland) Act 2014)
Product and supplier selection
Contracts tool
Sustainability test 2

20. TOOLS: 1. Prioritisation – Aims and Objectives
Where does it sit?
Link to The Procurement Journey – risk management template
Link to Flexible Framework
Guidance
Monitoring
Are 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 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. Flexible Framework Working Group
Procurement Capability Assessment
Procurement Reform Act
Flexible Framework
PCAFlexible Framework
PCA
Level 1
Level 2
Level 3
Level 4
Level 5
Corporate Procurement Strategy
to take account of economic, social and environmental wellbeing
Procurement Journey
Law & Regulations
Policy & SPPNs
Guidance
Tools
Organisation’s Action Plan
Action
Responsibility
Target Date

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. The Nature of Community Benefit
Employability / targeted recruitment & training
Supply chain initiatives
creating opportunities for SMEs
creating opportunities for social enterprise
workshops / mentoring
Community consultation / engagement / events
Educational initiatives
Buyers are risk averse

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 (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 training
Proposed recalibration – links to Bill
In partnership with

30. In partnership with Foundation (L1(a) content)
A Corporate Procurement Strategy showing high level organisational goals/objectives.
Criteria described
The 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" Response
Guidance and examples
Objectives 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 – Suggestions
Suggested actions to meet criteria and evidence
Derive 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 Suggested
In 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" Response
Communications 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 examples
e.g. AM visit to Australia, NHSScotland - visits to Canderside etc - Colin Sinclair. Opportunities to communicate with Brazil
Criteria met? If no, actions will be suggested
Suggested actions to meet criteria and evidence
Ensure 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 Suggested
In partnership with

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
Participants 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 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
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
The 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 Steps
Feedback through questionnaire
Consultation process

35. Thank you for your attention
Barbara Morton