Transformation of Public Sector Procurement in Scotland

New procurement rules to benefit SME’s

18^th April saw Scotland’s new procurement rules come into force. The new regulations will see contracts no longer awarded on the sole basis of price or cost, with companies now required to demonstrate the wider benefits of their bids to the local community: such as apprenticeships and training, employment and educational opportunities.

Fair work practices will also be promoted through the scheme, with companies needing to show their tax and social security payments, the prohibition of blacklisting and the use of zero hours contracts monitored.

The new rules will allow more SME’s (Small-Medium sized Enterprises) to compete for public sector work alongside larger businesses, with public bodies required to break down the larger contracts into small lots that SME’s can reasonably bid for.

Hoping for a transformation in public sector procurement, Julie Welsh, Director of Scotland Excel – the woman in charge of Scotland’s centre of procurement expertise for local government, says that the introduction of the Public Contracts (Scotland) Regulations 2015 and Procurement (Scotland) Regulations 2016, together with the provisions of the Procurement Reform (Scotland) Act, will empower public bodies to deliver effective, sustainable procurement with lasting benefits for communities across Scotland.

She said: “I believe in procurement as an agent for positive change and the new procurement rules that have come into force this week act have the capacity to accelerate a transformation in public sector procurement.

“Scotland Excel has pioneered many of the reforms contained in the new regulations. As our portfolio has grown from £100M in 2008 to almost £700M today, we are not just helping councils to deliver savings and improve efficiencies, we are supporting them in the delivery of a range of social, economic and environmental improvements.

“Procurement is now so much more than just the buying of goods and services. It goes far beyond that, realising added value for our communities in the form of opportunities for local business supporting the creation of jobs and apprenticeships and helping make Scotland a fairer, greener place.”

 

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