Annual procurement report 2020 - 2021

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 is pleased to publish its third Annual Procurement Report. This report shows that the procurement team continues to champion Procurement best practice and plays a key role in supporting the Scottish Government Public Procurement Reform Programme.

Out with staffing costs, procurement activity represents the majority of RoS expenditure totalling £29.8M for 2020/21. We therefore place great emphasis on ensuring that appropriate contracts are in place and deliver best value for money.

During this reporting period we faced the unprecedented challenge of COVID-19. Working with the rest of the organisation the procurement team placed over 800 orders to ensure needs were met of staff who were now working from home.

RoS regulated procurement during 20/21

The procurement team work closely with internal customers to develop new requirements and the renewal of existing contracts. During the 2020/21 period RoS completed 289 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.

• 130 Quick Quotes Completed (On Framework)
• 89 Direct Awards Completed (On Framework)
  • 22 Non RoS Frameworks (Scottish Government/Crown Commercial Services)
  • 5 RoS Frameworks
• 4 Quick Quotes Completed (Off Framework & below Threshold)
• 5 OJEU Procurement Exercises
• 61 Regulated Exercises (Non-OJEU)

Summary of all RoS contracted procurements

Appendix A

RoS procurement in numbers

• £29,824,083
  Total spend
• £11,333,151
  SME spend
• 395
  Active suppliers
• 143
  SME suppliers
• 39
  Local suppliers
• 9,693
  Transactions
• £75,504
  Average spend per supplier
• 38%
  SME spend
• 35%
  Local spend
• £6,814
  Supported business spend
• £2,937,855
  Annual cash saving
• 9.8%
  Annual saving
• 92.17%
  Payment performance (10 days)
• 1.1%
  GPC spend
• 3
  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 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 38% of RoS’s total spend was from working with 143 SMEs.

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

The SDP was established in 2008, and is a partnership of Local Authorities, Scottish Government and other public bodies working together to provide free 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.

More information can be found at www.sdpscotland.co.uk

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 agreement.

RoS‘s spend with supported businesses was £6,814 for this period, however during this period a large project award to RSBi via the Scottish Government Supported Business and Factory Framework was completed. This project for £70,714 began just before the first COVID lockdown.

The project involved RSBi stripping out the tea points at Meadowbank House and supplying new kitchen units at each location. RSBi suggested and provided various innovative ideas such as the Zip Hydro taps and built-in recycling which make for a more modern and accessible tea point for staff.

RoS procurements that did not comply

RoS also raised 3 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 £2.9m of cash savings for the period, a 9.8% 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 2020/21 the following progress has been made-

One member of the team completed their Professional Diploma and achieved their MCIPS qualification. One member of the team has progressed through CIPS Level 5 and is close to completing their Advanced Diploma. One member of the team continues their MCIPS Advanced Practitioner course.

The team also undertook internal and external training to further their knowledge and expertise, The courses included: - Legal Aspects of Procurement, Effective IT Procurement, Introduction to Public Procurement, Dealing with Difficult People, Introduction to FM Procurement, Management Induction and Management Essentials

Procurement pipeline

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

Appendix B