Annual procurement report 2020

Introduction

Registers of Scotland is a Scottish Public Sector contracting authority, subject to the Procurement Reform Act (Scotland) 2014.

As such we have an obligation to publish a procurement strategy and to then monitor progress published in an annual procurement report.

Registers of Scotland (RoS) is pleased to publish its third Annual Procurement Report. This report shows that the procurement team continues to champion the Scottish Procurement Model and plays a key role in supporting the Scottish Government Public Procurement Reform Programme.

Following employee costs, procurement activity represents the majority of RoS expenditure totalling £33.2M for 2019/20. We therefore place great emphasis on ensuring that appropriate contracts are in place and deliver best value.

RoS regulated procurement during 19/20

Our Procurement Team work with internal customers to develop new contracts. During the 2019/20 period RoS completed 197 procurement exercises.

RoS has a commitment to use Scottish Government and Crown Commercial Services Frameworks where possible. Below is a summary of this procurement activity.

• 188 Quick Quotes Completed (On Framework)
• 18 Non RoS Frameworks (Scottish Government/Crown Commercial Services)
• 6 RoS Frameworks
• 0 Quick Quote Completed (Off Framework)
• 2 OJEU Procurement Exercises
• 7 Regulated Exercises (Non-OJEU)

Summary of all RoS contracted procurements

Appendix A

RoS procurement in numbers

• £33,270,301
  Total spend
• £13,260,278
  SME spend
• 376
  Active suppliers
• 167
  SME suppliers
• 44
  Local suppliers
• 7744
  Transactions
• £90,902
  Average spend per supplier
• 40%
  SME spend
• 32%
  Local spend
• £70,714
  Supported business spend
• £1,026,948
  Annual cash saving
• 3.1%
  Annual saving
• 92.17%
  Payment performance (10 days)
• 1%
  GPC spend
• 5
  Non-competitive actions

Community benefits

The Procurement Reform (Scotland) Act 2014 includes a sustainable procurement duty on public sector bodies which requires them to conduct their procurement in a way that will secure economic, social and environmental wellbeing and a requirement that public bodies consider the use of community benefits in major contracts.

RoS continues to promote the use of community benefits within procurement exercises where relevant and proportionate to the contract.

All of the contracts appointed in this period support the living wage and are striving to deliver further community benefits.

SMEs

We are pleased to report that during this period we have worked with a wide range of suppliers. During this period 40% of RoS’s total spend was from working with 167 SMEs.

RoS continues to be a Supplier Development Programme (SDP) member.

SDP is a partnership of Local Authorities, Scottish Government and other public bodies working together to provide support to businesses in all aspects of tendering. The SDP assists businesses to become tender ready for public procurement and improves all-round efficiency, sustainability and market potential.

In November 2019 the RoS Procurement Team attended a “Meet the Buyer” event organised by the SDP.  The event was attended by over 2,000 delegates and was an opportunity for businesses from all sectors to discuss contract opportunities.  The day was a great success with excellent feedback being received.

Supported businesses and third sector organisations

Supported businesses make an important contribution to the Scottish economy, not only through the goods and services that they deliver, but also by providing meaningful employment, training and support for those who may otherwise be excluded from the workplace.

We continue to use the Scottish Government’s Supported Business and Factory Framework when purchasing goods and services covered by this contract.

RoS‘s spend with supported businesses was £70,714 for this period, this was mainly by placing a large order with the RSBi. We have also started to engage with a number of other supported businesses for upcoming projects.

During the year RoS have visited both RSBi and Scotland’s Bravest Manufacturing Company.  Both visits gave us a greater insight into the products and services available from both suppliers.

RoS procurements that did not comply

RoS also raised 5 Non-Competitive Actions (NCAs) within this period.

None of these NCAs fall into the category of a “regulated procurement”.

All NCAs were reviewed by either the Head of Procurement or the Accountable Officer.  All NCAs exceeding £10,000 were signed off by the Accountable Officer.

Savings

Using the Scottish Government’s “Procurement Benefits Reporting Guidance” methodology, RoS procurement achieved £1.02M of cash savings for the period, a 3.1% saving on the annual expenditure.  This has been achieved mainly by identification of available frameworks and further competitions.

Learning and team development

RoS utilise the Scottish Governments Public Sector Procurement Competency Framework to aid professional development within the Procurement Team.

This is based on the four pillars of Global Occupational Standards:

Infrastructure foundations

• Corporate strategy
• Procurement strategy
• Legislation
• Governance and compliance
• Technology
• Standards and conduct

Process (how)

Planning: pre-market engagement

• Commodity supplier and SC profiling
• Spend analysis market and SC analysis
• Specification development

Implementation: tender

• Contract law and T&Cs
• EU/Tender process
• Building tender documents
• Tender evaluation
• Award and debrief
• Negotiation
• Alternative routes to market

Delivery: post-contract

• Contract management
• Supplier management
• Supply chain management
• Inventory management
• Distribution and logistics

Performance (what)

• Performance management and measurement (including benefits, tracking and KPIs)
• Continuous improvement (including change methodologies)

People (who)

• Self-development
• Managing high performing teams
• Leading and influencing
• Stakeholder relationships
• Communications

Professional development for the team also continues through the Chartered Institute for Purchase and Supply.

During 2019/20 the following progress has been made-

CIPS Level 5 – 1 Team Member
CIPS Level 6 – 1 Team Member
MCIPS Advanced Practitioner – 1 Team Member

Other courses attended include: Legal Aspects of Procurement, Effective IT Procurement, Introduction to Public Procurement, Dealing with Difficult People, Introduction to FM Procurement, Management Induction and Management Essentially

Procurement pipeline

Below is a list of potential upcoming opportunities (subject to Business Case sign off)

Appendix B