The Local Authority Procurement Process

and Influences

Iain McKie

Corporate Procurement Manager

Renfrewshire Council

“ Procurement legislation applies to all public bodies… .and…must be conducted in accordance with fundamental EU Treaty principles which include non-discrimination on grounds of nationality (or location), equal treatment, transparency and proportionality. Public sector contracts are awarded either on the basis of lowest price or Most Economically Advantageous Tender (MEAT) ….

In the context of procurement processes and decisions, social added value and/or local economic multipliers are not generally permissible considerations. “

Extract from ”Making the Case - Social Added Value” – Commissioned by Communities Scotland’s Social Economy Unit (SG)

The Guiding Rules

Renfrewshire Council, as any other, have a statutory duty under the Scotland Act 2003 to secure best value. The Act states that:

“…an authority which secures best value will be able to demonstrate that it is conscious of being publicly funded in everything it does; and, it is aware of the need to conduct its business in a manner which demonstrates appropriate competitive practice”.

•Council’s operate open and transparent tendering processes to foster competition and encourage participation in the tendering process. •This is achieved through advertising all suitable contracts. •All Councils must advertise a contract in a way that is "sufficient to enable open competition”, as obligated under the Public Contracts (Scotland) Regulations 2006.

The Guiding Rules - continued

The McClelland ReportBest Value criteria in the Local Government (Scotland) Act (2003), have seen procurement become an increasingly important strategic issue for the public sector in Scotland.

The ‘Review of Public Procurement in Scotland – Report and Recommendations’, by John McClelland, published on 15 March 2006 provided over 70 recommendations for improving procurement within the following areas:

•Structure and organisation•Skills and capability•Practices and procedures•Performance indicators and targets•Opportunity for improvements and new techniques.

National Procurement : The Main Influences

Public Procurement Reform Board (PPRB), with the “…immediate prime responsibility…to oversee the successful implementation of the actions essential to address the basic issues in Public Sector procurement…”

The PPRB forms the Programme Board for the McClelland Programme. Renfrewshire Councils Chief Executive David Martin is one of 8 members of this Board.

The Scottish Procurement Directorate (SPD)Part of the Scottish Government, currently working to assist the PPRB in the full implementation of all recommendations.

National Procurement : The Main Influences

Two new bodies are being developed:

National Procurement Centre of Expertise (NPCoE)

Responsible for National Contracts (CATEGORY A’s)e.g. stationary, IT, telecoms

Centres of Expertise (Scotland Excel)

Responsible for Regional Contracts (CATEGORY B’s)e.g. light vehicles, wheeled bins, signage etc.

More information is available via the SPD website www.scotland.gov.uk and Scotland Excel www.scotland-excel.org.uk

National & Regional Collaborations

Renfrewshire Council - InformationThe Council spends in excess of million per annum on a diverse range of goods, works and services from suppliers.

This spend is split between the following Service Departments:•Housing and Property Services•Social Work•Planning and Transport•Finance and IT•Environmental Services•Education and Leisure•Corporate Services•Chief Executives

The approach taken by the Council to this spending has a significant impact on the community and the Council's own resources.

£150

Three tendering departments:

The Corporate Procurement UnitEducation & Leisure, Environmental Services, Social WorkCorporate Services, Chief Executives

Housing and Property Housing, Building Services, Investment & Technical

Planning and Transport Roads, Planning, Economic Development

Please contact Procurement departments within the Councils – they can direct you to the best person OR check their web sites!

Renfrewshire Council - Information

The Procurement Route

Contract value?? = OJEU or Not

Advertise

Invitation to Tender (ITT)

Evaluate

Award

Contract management

Examples of Market Approach

Renfrewshire Supply2.gov.uk OJEU (ted.europa.eu)

East Renfrewshire

OJEU Council website Supply2.gov.uk

Contrax Weekly

Inverclyde OJEU Supply2.gov.uk

Contrax Weekly

Market, Supply2.gov.uk

Approved List (P&T)

Approved List

Approved List Council website Supply2.gov.uk Contrax Weekly Approved List (Tech)

£25k£500k£40k

£3.9m£139k

Developments to be Aware of

•Single Point of Contact

•National Advertising Portal

•Spikes Cavell

•E-Procurement•PECOS, Oracle etc.•E-Invoicing•E-Market Place

Developments to be Aware of

•Supplier Development Programme

•E-Auctions

•E-Tenders

•SPD and Council websites

QUESTIONS?