Beta Testing of Sustainable Procurement Tools Sustainable Procurement

Beta Testing of Sustainable Procurement Tools Sustainable Procurement Topic Support Network University of Edinburgh 03 November 2014 Barbara Morton, Sustainable Procurement Ltd

Objectives 1. To provide an update on the Procurement Reform (Scotland) Act 2014 2. To introduce / test / discuss the enhanced tools 3. To take feedback 4. To discuss next steps

Beta Testing of Sustainable Procurement Tools Agenda 10: 00 Welcome and Introductions 10. 10 Update on the Procurement Reform (Scotland) Act 2014 & discussion (Josephine Mitchell, Scottish Government) 10: 30 Prioritisation – run-through the tools highlighting enhancements (Barbara to lead) 11: 15 Sustainability Test – run-through the tool and discussion of its functionality (Barbara to lead) 12: 30 Lunch 13: 15 Flexible Framework – run-though and discussion of functionality - including Action Plan & guidance 14. 15 Discussion of guidance / fit with other developments in and for the sector 15: 00 Next steps 15: 30 Close (Barbara to lead) (All)

Scottish procurement landscape Spend by sector (£m) £ 697 £ 163 £ 1, 566 Spend by commodity (£m) 2, 500 2, 000 £ 2, 074 £ 5, 237 1, 500 1, 000 Local Authorities NHS Scottish Government & Family Colleges and Universities 500 er vi en ce t s al Ve S hi e cl rv e ic M es an ag em en t En vi ro n m nc i al T Fi na ic bl Pu S sp ra n til iti or t es ol U hn re n ic m un om C io n at m fo r Te c ca th ea l at io en em H t S er v ic es e C ar ity un m an ag M s & In Fa ci lit ie So ci al C om C on s tru ct io n og y Fire Service and Police

The Scottish Model Of Procurement: Improving supplier access to public contracts Quality Cost Embedding sustainability in all we do Maximising efficiency and collaboration Delivering savings and benefits Sustainability Vision: Through the Scottish Model of Procurement, to be world leaders in innovative public procurement, enabling the best outcomes for Scotland

Procurement Reform (Scotland) Act 2014 Duties T H R E S H O L D S G E N E R A L S U S T A I N A B L E D U T Y Specific measures / duties Regulations Guidance Sustainable procurement duty Health & social care procurement Contract award without competition Procurement strategy & annual report Annual report on procurement activity in Scotland Publication of notices on PCS D U T Y Community benefit requirements Exclusion of bidders Selection of tenderers / award of contracts (inc. Workforce Matters Technical specifications Prohibiting charging for participation in process Giving of reasons (Debriefing) Contracts register Reuse / Remanufacture / Recycle REMEDIES

Procurement Reform (Scotland) Act Business friendly: Socially responsible Procurement Reform (Scotland) Act 2014 Sustainable Procurement Duty Consider: Improving Involving Economic, social, Small and medium environmental, wellbeing enterprises and 3 rd sector and reducing inequality in bodies including supported the area. businesses. Promoting Innovation

Key Questions in the ‘Embedding Project’ 1. When the PR Bill / Act comes into effect will public sector organisations in Scotland be clear about: a. What they are required to do? b. How they are required to do it and report on it? c. How their performance will be assessed? d. What happens if they fail to deliver? 2. Will there be tools and guidance to support them and will these be: a. Sufficient, consistent, clear, unambiguous, easy to access, easy to use?

Sustainable Procurement Landscape Procurement Reform Act EU Directive Regulatory Reform Bill Construction Procurement Review Flexible Framework Self-assessment Procurement Capability Assessment PCS Tender Procurement Journey E-learning modules Marrakech Training – ‘Sustainable procurement is good procurement’

Deliverables 1. Embedding Project Review of policy, strategy and systems Prioritisation methodology Updated Flexible Framework Case studies Guidance 2. Beta Testing Ø 1. Prioritisation methodology Ø 2. Sustainability Test / Contracts Tool Ø 3. Updated Flexible Framework with Action Plan Ø 4. Guidance Ø 5. Case studies

Working Methods during Embedding Project • Engagement and testing through Working Groups: 1. Prioritisation methodology • Representatives from: – Scottish Government – Scotland Excel – APUC – NP Health / Greater Glasgow & Clyde Health Board – Scottish Parliament 2. Flexible Framework • Representatives from: – – – Scottish Government Scotland Excel APUC NP Health Scottish Parliament South Ayrshire Council

Prioritisation – Aims and Objectives “Deciding to use, apply a specific strategic approach (Spend Prioritisation) for the organisation, a particular services, or range of commodities/groups” “Prioritisation methodology - quick, simple won't consume too much extra time” “I enjoyed it all but really liked the applying prioritisation and the review of risks”

National Outcomes Link to Single Outcome Agreements / Service Level Agreements Cross reference with Local Authority Benchmarking activity Links to reporting requirements of all public sector bodies in Scotland Anticipate / reflect the reporting requirements of the Procurement Reform Act

Scottish Government Priorities – May 2013 Reflected by the National Indicators Increase the abundance of terrestrial breeding birds (biodiveristy) Improve the condition of protected nature sites Improve the state of Scotland's marine environment Reduce Scotland’ s Carbon footprint Reduce Waste Generated Reduce the proportion of people living in poverty Increase the proportion of journeys to work made by public or active transport Increase renewable energy production Increase exports Improve the skill profile of the population Improve mental wellbeing and end of life care Improve support for people with care needs Improve digital infrastructure Improve access to suitable housing options Improve people’s perception of their neighbourhood Improve the responsiveness of public services ‘Organisational Priorities Policy & Strategy’ Increase the number of new homes (Scottish Government and core agencies and NDPB’s) Widen the use of the internet Improve Scotland’s Reputation Increase research and development spending Improve perceptions of the quality of public services Reduce death on Scottish roads Reduce Traffic Congestion Increase No of Business Increase the proportion of young people in learning training or work Reduce Reconvicti on rates Improve children’ s services Increase the number of graduates in positive destinations Improve levels of educational attainment Improve the quality of the healthcare experience 14

Clackmannanshire Council Priorities – May 2013 Waste Reduction Carbon Reduction Transport Climate Change Adaptation Local Sourcing Fair & Ethical Trade Recyclable/ Recycled Goods Innovation ‘Organisational Priorities’ Policy & Strategy A Healthy and Protected Environment Energy and Resource Efficiency Cost Savings Construction Accessibility Safer Communities Health Improvement Community Benefits Regeneration, Jobs and Skills Equality and Diversity 15

University of Edinburgh Strategic Plan diagram 2012 -2016 …an overarching theme for this Plan is to increase our global impact and our contribution to society. ” Prof. Sir Timothy O’Shea Principal & Vice-Chancellor, The University of Edinburgh

Our Sustainable Procurement Goal to procure goods and services in ways that maximise efficiency & effectiveness while minimising social, environmental and other risks. Procurement Strategy linked to University Strategic Plan Procurement professional influence to exceed 80% Collaborative procurement on target 30%

TOOLS: 1. Prioritisation – Aims and Objectives A. Role of prioritisation – Risk and opportunity assessment – Trail – ‘Golden Thread’ – Audit – When and who? – Simplicity /complexity? B. Use: – Demand review – can need be met in a lower risk way? – Strategic review at high level - inform procurement strategy – Sub-category level – Outputs and link to procurement process

Delivering the sustainable procurement ‘Golden Thread’ National performance framework and national outcomes PCA – external validation of performance Procurement journey, prioritisation Flexible Framework – internal assessment of performance Life cycle impact mapping Procurement strategies Corporate Procurement Strategy (Procurement Reform (Scotland) Act 2014) Projects, products, services Product and supplier selection Contracts tool Sustainability test 2

TOOLS: 1. Prioritisation – Aims and Objectives C. Where does it sit? ― Link to The Procurement Journey – risk management template ― Link to Flexible Framework D. Guidance E. Monitoring – Are we measuring the right things?

TOOLS: 2. Sustainability Test • Framework /Contract level • Environmental and socio-economic factors in more detail • Sub-category level • Link to procurement process • Guidance documents • Case studies and examples

TOOLS 3: Enhanced Flexible Framework with Action Plan • Tailored to Scottish context • Updated in line with existing policy • Includes a recalibration process • Provides direction through Action Plans (new feature) • Shows how action delivers against National Outcomes and Indicators • Supports the delivery of the Procurement Reform (Scotland) Act 2014

Flexible Framework Working Group Procurement Capability Assessment PCA Level 1 Level 2 Flexible Framework Level 3 Level 4 Level 5 Procurement Reform Act Corporate Procurement Strategy to take account of economic, social and environmental wellbeing PCAFlexible Framework Organisation’s Action Plan Ø Action Ø Responsibility Ø Target Date Procurement Journey Law & Regulations Policy & SPPNs Guidance Tools

Flexible Framework • Clarifying definitions and intent • Strengthening guidance to show self-assessment leads to action (plans) • Making specific reference to relevant risks and opportunities e. g. ethical issues • Developing toolkit to be consistent with content of other tools • Populating with examples & case studies • Developing Markets for Third Sector Providers Programme • Providing direction

The Nature of Community Benefit • Employability / targeted recruitment & training • Supply chain initiatives • creating opportunities for SMEs • creating opportunities for social enterprise • workshops / mentoring • Community consultation / engagement / events • Educational initiatives 27

CBCs and Social Enterprise / Social Firms to date Successful adoption § Unity & Crescent Kitchen – Catering at a number of venues § Reboot – Highland Council § Remploy – Gullane Fire Station furniture § Action for Children – employability service at the Velodrome § Kibble – painting and decorating NSGH § Gal Gael Trust – Queens Baton Relay 28

In partnership with

Exercise: Identify life cycle impacts 32 Impacts of obtaining raw materials Impacts of manufacturing & logistics Impacts during use of product/service Impacts at end-of-life / disposal

Identify life cycle impacts – in practice 33 Impacts of obtaining raw materials • Sourcing overseas if demand outstrips supply – impact on carbon emissions • Wood should be sourced not just from legal but also sustainable forests/woodlands – forest management critical • Potential impact on biodiversity of forests/woodlands if focus is only on economic viability • Support development of an immature supply chain through aggregated demand • Opportunities for community woodland schemes to be integral to supply chain Impacts of manufacturing & logistics • Carbon emissions from transportation, particularly if local supply chains are inadequate • Production of chips/pellets – is renewable energy used • Sourcing overseas if demand outstrips supply – impact on carbon emissions • Competition for raw materials e. g. chipboard manufacturers • Waste products from pellet manufacturing process Impacts during use of product/service • Emissions particularly in ‘Air Quality Management Areas’ • Shortage of qualified engineers/installers; through aggregated demand an opportunity to influence recruitment and training • Disposal of waste products e. g. ash Impacts at end-of-life/disposal • Disposal of ash – use as a fertiliser • Disposal of boilers 31

Next Steps • Feedback through questionnaire • Consultation process

Thank you for your attention Barbara Morton barbara@sustainableprocurement. eu. com 07766 023560