The Changing Face of Local Government Procurement

The 'Review of Public Procurement in Scotland - Report and Recommendations,' by John McClelland, was published on 15th March 2006. The McClelland Report challenged the Scottish Public Sector to make significant improvements in procurement in a relatively short time frame. The complexity and scale of rising to this challenge demand the initiation and management of a co-ordinated programme of work. This programme of work has commenced and includes initiatives at all levels and across all organisations within the Scottish Public Sector, including local government. The expected benefits of improving procurement across the Scottish Public Sector are articulated in the McClelland Report, and amount to £140m in 2006/7, rising year by year to £600m anticipated in 2009/10. The Programme includes changes to policy; delivery of cross-sector collaboration and structures to support it including the establishment of Centres of Procurement Expertise, improving procurement management information; enhancing skills and practices; improving procurement efficiency (including eProcurement) and improving supplier relations. The programme consists of several managed initiatives, delivered in conjunction with sectoral and local projects.

Tender commodities are split into 3 groups, category A, category B and category C.

Procurement Scotland is responsible for the procurement of category A (national) commodities and Local Authorities will be responsible for the procurement of category C (local) commodities. The procurement of category B (sectoral) commodities will be the responsibility of the Centres of Procurement Expertise, which have been established for the Local Government, Health and Higher & Further Education sectors.

Scotland Excel

The Scotland Excel project secured funding from the Efficient Government Fund to establish a local government Centre of Procurement Expertise. The aim of Scotland Excel is to achieve Best Value public services by securing cost reductions, by 2010, of £47.8m per annum, increasing to £66m per annum thereafter, through increased collaboration and improved procurement performance, capacity and capability. Scotland Excel intends to establish a strategic partnership with 29 of the 32 Scottish Local Authorities with COSLA and SOLACE.

Organisationally, Scotland Excel is a Joint Committee with representatives from all its local authority members and supported by a Chief Executive Officer Management Group selected on a representative basis. Renfrewshire Council currently acts as lead authority, providing committee and support services to Scotland Excel.

The key objectives of Scotland Excel are to: -

• Reduce cost and increase the quality of service from suppliers through collaborative procurement initiatives. Scotland Excel will act as the delivery agency for local government and partner organisations for category 'B' (sectoral) commodities. It will also contribute to the category 'A' (national) commodities and category 'C' local commodities. In doing so, Scotland Excel will act as the main point of contact for national initiatives and support the development of local level procurement and facilitate cluster initiatives.
• Facilitate more effective dialogue between procurement professionals and partner services departments by creating a customer-orientated organisation
• Increase the level of expertise and capacity in local authority procurement by developing a comprehensive coaching, mentoring, training and development framework, aimed at all relevant staff in all functions
• Deliver business benefits within the supply chain community by fostering innovation and effective partnerships with key suppliers, small-sized and medium-sized enterprises (SME’s), trade associations, and other public and private bodies, at all levels
• Develop an approach that is scaleable for all Scottish Local Authorities
• Manage the transition to the Centre of Expertise, in line with the McClelland recommendations and timescales

The project consists of several workstreams, amongst which are People, Organisation & Skills, Contract Renewal, Information Technology and Systems and Customer & Supplier Relations Management, which are currently employed in gathering and analysing information and working closely with local authorities to ensure the full benefits and best value expectations are established and reported.

The Scotland Excel Project Steering Group consists of Chief Executives and Senior Managers from across Scotland. The Project Team are based in Paisley and the Director is Dorothy Cowie.

For more information in relation to Scotland Excel an the procurement of category B commodities and how you can get involved, please contact the project team by emailing contactus@scotland-excel.org.uk or visit: http://www.scotland-excel.org.uk   

Procurement Scotland

For more information in relation to the procurement of category A commodities and how you can get involved please visit http://www.scotland.gov.uk/Topics/Govenment/Procurement or contact scottishProcurementDirectorate@scotland.gsi.gov.uk

Other Centres of Expertise

For further information in relation to procurement within the Higher and Further Education sector please visit the website of APUC (Advanced Procurement for Universities and Colleges) http://www.apuc-scot.ac.uk/home

For further information in relation to procurement within the Health sector please visit the National Procurement website http://www.nhsscotlandprocurement.scot.nhs.uk/ .

All Category A and B contract opportunities will be advertised through the European Journal which can be accessed via http://www.ojec.com .  Category C contract opportunities will continue to be advertised through West Lothian Councils website, http://www.westlothian.com/councilcontracts

A contract advertising portal is also under construction and, once developed, will contain information on all contract opportunities across the Scottish Public Sector. This page will be updated with a link to this portal once it has been made LIVE.