Procurement Regulatory Framework

1.1 This annual report summarises the Council’s regulated procurement activity for the period 1 April 2023 to 31 March 2024, in line with Scottish Government’s Guidance under the Procurement Reform (Scotland) Act 2014, and in support of national and organisational priorities.

A regulated procurement is any procurement for public supplies or services with value of over £50,000 and for public works of over £2 million. This complies with the Procurement Reform (Scotland) Act 2014 requirements to publish an annual Procurement Strategy and Annual Procurement Report.

East Dunbartonshire Council recognises the importance and the benefits of effective procurement The Corporate Procurement Team’s aim is to continue to develop and implement an effective procurement approach by:

• Setting out clear strategic objectives supporting the Council’s corporate priorities
• Procure goods, services and works in a lawful and ethical manner which encourages participation, collaboration and sustainable economic growth
• Embedding a continuous improvement approach to procurement
• A value for money procurement service that delivers and supports financial savings and best value. Maximising opportunities to collaborate, innovate and deliver efficiencies
• Increasing opportunities to Supported Businesses, Social Enterprises, local and SME suppliers to access public sector contracts
• Directing focus on sustainable procurement, including the identification and delivery of community benefits
• Deliver a quality service which supports delivery of quality outcomes to the citizens of East Dunbartonshire.

This will ensure the delivery of the Council’s regulated procurements in accordance with the mandatory requirements set out in the Procurement Reform (Scotland) Act 2014.  The following legislative suite of documents supports this:

• Council Contract Standing Orders
• Financial Regulations
• Scheme of Delegation
• Annual Procurement Strategy.

The Procurement Strategy and Governance approach will embed national and local policies and strategies in support of organisational performance management. The following policies will support achievement of this strategy:

• Anti-Bribery Policy
• Contract and Supplier Management (Incl in Action Plan)
• Digital Transformation
• Continuous Improvement
• Climate Action Plan
• Climate Emergency Response Policy.

The Council’s Governance Framework and Policies capture the required actions from this Strategy.  Procedure and documentation reviews will support the achievement of legislative requirements whilst securing best value. The following documentation supports delivery of this:

• Procurement Strategy And Governance Framework
• Organisational Transformation Business & Improvement Plan
• Procurement Authority levels
• Sourcing Strategies
• Web & Hub Guidance
• Training Packs.

The report has been closely aligned to the Council’s organisational objectives, taking consideration of the impact through BREXIT and COVID-19.

Total spend: £178,976,593
Total Number of Suppliers: 1,343
Invoices Processed: 58,398
Invoices paid within 30 days: 88.73%
SME Suppliers: 1,060
Spend % with SME Suppliers: 42.4%
SME Spend: £75,885,151.74

Section 18 (2)(a) of the Procurement Reform (Scotland) Act 2014 requires organisations to include “a summary of the regulated procurements that have been completed during the year covered by the report”.

Regulated procurement refers to any contract above £50,000 for goods and services, or £2,000,000 for works. A regulated procurement is completed when the award notice is published or where the procurement process otherwise comes to an end. Regulated procurements can refer to new contracts and framework agreements but also to mini-competitions and call offs from existing framework agreements.

View the list of regulated procurements completed in 2023-2024.

The Council’s internal Contract register contains details of contracts awarded above £16,500.

The Council’s Procurement Strategy 2023-24 provided a clear framework to ensure its Procurement Activities supported all services to meet the Council’s priorities.  Progress continues within delivery of the strategy.

• Number of Regulated Contracts Awarded: 18
• Total Estimated Value of Regulated Procurements: £7,650,000
• % of Regulated Contracts awarded to SMEs during reporting period: 38.75%
• % of Regulated Contracts awarded to local suppliers: 0%
• Total Number of Contracts Awarded: 90
• Total Estimated Value of All Procurement: £23,097,128
• Awards from Non Council Frameworks: 32

In addition, the Council makes awards from existing Council social care frameworks.  It also utilises the National Care Home Contract to make awards above regulated procurement thresholds.

During the same period there were instances where alternative methods of procurement were used in line with Council Standing Orders (e.g. where there is only one potential supplier, where competition is absent for technical reasons, etc)

Section 17 of the Procurement Reform (Scotland) Act 2014 requires that regulated procurements be carried out in accordance with the Organisation’s procurement strategy, so far as reasonably practical. Section 18(2) states that an annual procurement report must include, at 18(2)B, “a review of whether those procurements complied with the authority’s procurement strategy, and at 18 (2)C, “to the extent that any regulated procurements did not comply , a statement of how the authority intends to ensure that future regulated procurements do comply”

The Council’s Procurement Strategy 2023-2024 set out how the regulated procurement would be undertaken in compliance with the Act and in support of Organisational objectives.

All regulated procurement in the Council is undertaken in accordance with a legal and procedural framework that ensures that each procurement is compliant with the Strategy. Legal requirements are set out in the Council Standing Orders Relating to Contracts. Procedural requirements are set out in Scottish Government Procurement Journey (for general procurement best practice) and is covered within the Corporate Procurement Governance approach.

Throughout the reporting period, the Council’s regulated procurements were monitored on an ongoing basis. This monitoring process consisted of reviewing the key supporting documents that underpin the legislative and governance framework including sourcing strategies, procedural documentation, and approval routing.

These combined processes work to ensure that regulated procurements are undertaken in compliance with the legal and procedural framework and, as a result, in compliance with the Strategy.  

The reviews have also allowed the Corporate Procurement Team to identify the following potential improvement areas:

• There are further opportunities to secure economic and social sustainability outcomes from a council wide approach to contract management
• Digitalisation of transactional processes will support further development opportunities
• Continue to work with service teams on advance work plans which will allow increased opportunity to deliver best value from our regulated procurements
• Increase use of PIN’s for regulated procurements to support advance planning
• Refresher training for roles with Procurement responsibility
• Updated training documentation to support Iproc Self Service alignments
• Continue to develop our own Frameworks where appropriate to do so and to secure best value for East Dunbartonshire citizens and SME’s
• Review of Health & Social Care Partnership Contracting & Governance processes
• Contract & Supplier Management alignments with the Business & Digital Change Team.

The council is committed to ensuring that all suppliers who are awarded business are paid within 30 days. Prompt payment clauses requiring a 30 day payment term are embedded within contractual terms and conditions. During the reporting period, the council paid 92% of invoices within agreed timescales.

Section 18 (2)(d) of the Procurement Reform (Scotland) Act 2014 states that it is mandatory for the annual report to include “a summary of any community benefit requirements imposed as part of a regulated procurement that were fulfilled during the year covered by the report.”

Section 25 of the Procurement Reform (Scotland) Act 2014 mandates that all contracting authorities “must consider whether to impose community benefit requirements as part of the procurement” when the estimated contract value is greater than or equal to £4,000,000. However, community benefits are a key objective of the council’s Procurement Strategy for 2023 to 2024 and the Council’s own processes require that community benefits must be considered for inclusion in all requirements above £50,000.  The delivery date for Community Benefits which were unachievable due to COVID-19 have been extended, work is ongoing to support delivery within contractual requirements.

Section 18 (2)(e) of the Procurement Reform (Scotland) Act 2014 requires organisations to include “a summary of any steps taken to facilitate the involvement of supported businesses in regulated procurements during the year covered by the report”.

The council’s Contract Standing Orders require consideration be given to inclusion of small to medium enterprises and supported businesses in relevant processes.

Expenditure to supported businesses during the financial year was:

Royal British Legion Industries T/A Scotland’s Bravest Manufacturing Company £9,733.70

Section 18 (2)(f) of the Procurement Reform Scotland requires the annual report to include “a summary of the regulated procurements the authority expects to commence in the next two financial years”.

Future regulated procurements have been identified via the following means:

• Current contracts on the Council register that will expire and need to be extended or re-let over the next two years
• New procurements identified via future work plans provided by Council service teams
• New procurement identified via Capital Programming
• Anticipated Procurements that may be subject to revision.

Local Authority budget constraints has had a substantial impact on the delivery of Organisational Services and ultimately corporate objectives. 

With the resource profile and additional workstreams attributed to the implementation of a new ERP System, the Procurement team have been under a significant workload throughout the 2023-204 year, playing a key role in the project preparation, data cleansing, system design, implementation, training, testing and governance of the overarching corporate project.

Over the 2023-2024 Financial year, the Corporate Procurement team continued to work collaboratively across the Council, working in partnership with Health & Safety, Legal, Education Services, Environment, Assets, and the Health & Social Care Partnership to support contractual requirements, tender new/additional services, and embed demand management whilst enabling Business Critical spend controls through both existing and new Procurement systems.

During the final Quarter of 2023-2024, the implementation of a new Financial and Procurement Management System went live, resources continue to be aligned to support this through 2024/25 financial year.

Recruitment and Retention remains a key risk, vacancies and availability of resource are areas for increased risk management and resource planning.

As well as monitoring regulated procurements, delivery of the Corporate Procurement Strategy was managed via Team action planning and the Procurement Governance approach.

Key benefits delivered by these actions included:

• Updating process and procedures to comply with the requirements of the procurement rules and regulations
• Review of Council Contracting Orders to support the Strategy Objective
• Updated Contract Standing Orders to take cognisance of service restructures and alignments within the Legal & Regulatory Service Group
• Increased e-processes through the implementation of Oracle Fusion Financial Management system
• Supported Key Transformation Work streams to support Organisational efficiency and savings targets
• Supported Business Critical Spend controls and shared transparency.

No formal complaints or challenges were received during 2023/2024.

The council participates in and accesses collaborative contracts to deliver efficiencies in revenue and processes. 

Scotland Excel currently have 63 available Frameworks, of which the Council currently accesses 44.

The Procurement Team are working to support the Local Economic Recovery Plan, Climate Emergency Plan and Circular Economy Plan, work will continue to ensure alignment with legislation on how Procurement should support the net-zero carbon target and related requirements for emission savings, under the Organisational Strategy approach embedded within the Sustainable Procurement Duty.

Current Procurement processes facilitate that the Council must consider how we, through tendering, improve the social, environmental and economic wellbeing of Scotland.  This will include the appropriate use and application of sustainability tests within relevant contracts.

The Council’s Procurement Team are part of the Organisational Transformation Service which sits within the Education, Business & People Directorate.

The Procurement Team is responsible for the procurement of goods, works and services across all Council Teams, and also for procurement processes, procedures, strategies and policies to support Organisational objectives.

For further information on the contents within the report, please contact:

Corporate Procurement Manager, Kirsty Chisholm

Contact email                                Kirsty.chisholm@eastdunbarton.gov.uk

Contact Telephone Number: 0141 574 5621

Section 18 (2)(b) states that the annual report must include “a review of whether those procurements complied with the authority’s procurement strategy.”

Below are the key objectives identified in the EDC procurement strategy 2023-2024.

1.1 Ensure compliance with relevant policies, procedures and legislative requirements

Compliant –

Public Contracts Scotland portal is used for procurement activity over £16,500.The current list of regulated contracts are updated online quarterly

The annual procurement strategy is also publicly advertised on our website and PCS

The Procurement Strategy and Governance Framework embeds the legislative Procurement requirements within EDC.

1.2 Contribute to the Council’s vision and to provide efficiencies

Compliant –

East Dunbartonshire Council’s Procurement Strategy and Governance Framework is aligned to the Organisational Transformation Programme, working alongside the Business & Digital Change team implementing an efficient and effective procurement approach to supporting Organisational objectives and delivery of Transformation savings.

The Procurement team also have representation across relevant project Boards within the Capital Programmes and the City Deal Project to support Corporate and Scottish government objectives.

1.3 Extend collaboration with other public bodies and suppliers

Compliant –

East Dunbartonshire Council is currently participating in 44 of the 63 Scotland Excel frameworks.

In addition, EDC has participated in Scottish Government, CSS contracts, SPA, SCAPE & HUB West Frameworks during the period of April 2023 to March 2024.

1.4 Ensure Procurement Governance principles are provided to key stakeholders, and delegated procurement approach is monitored and reported, where key procurement staff are regularly updated with new legislation and changes to legislation 

Compliant –

Procurement Governance Framework provides Training and support to all employees involved in the procurement process, the PDR process supports training updates and staff development within the Workforce Strategy approach.

1.5 Embed a clear, informed , systematic, holistic reporting framework to ensure information on Procurement activity is clearly conveyed and managed

Compliant –

This is set out clearly in Procurement Strategy and Governance documentation and other documents published online. Relevant authorisations and approvals are built in to processes and systems to ensure transparency and stakeholder engagement are maintained throughout the process.

Option Appraisals and Business Case authorisations are captured within our Project Governance approach, with Procurement representation embedded at Board membership level.

2.1 Support achievement of Organisational savings

Compliant –

The Corporate Procurement Team sit within key Organisational Transformation workstreams, supporting achievement of Transformational change and Business objectives of Services and the Council as a whole.

The Procurement Governance approach ensures transparency and best value in support of Organisational savings.

Procurement representation at Project Board level supports facilitation of information and decision making in relation to savings achievement.

The implementation of Oracle Fusion supports ongoing activities.

2.2 Provide a Governance framework to achieve continuous improvement in procurement activity

Compliant –

The implementation of the Procurement Strategy & Governance Framework works toward ensuring compliance and continuous improvement within Procurement process and procedures, lessons learned, escalations, and training opportunities ensure all employees involved in the Procurement process have the relevant knowledge and skills to ensure improvement features within the day-to-day activities.

• Sourcing Strategies
• Risk Management
• Implementation Plans
• Contract Management
• Periodic Reporting
• Sharing of Lessons Learned
• Procurement Guidance Notes
• Standardised Operating Procedure documentation
• Moodle Training.

2.3 Ensure all supplies, services and works are procured in the most effective and efficient way to maximise and deliver best value to the council

Compliant –

The Procurement Governance approach has supported the role out and delivery of Procurement training and systems to support efficiency and effectiveness of the procurement process.

Maximising the use of existing Cat A & B contracts, incorporating market research in relevant regulated procurements, consideration of Lots for exercises above £50k and stakeholder engagement support the required processes to deliver best value to the council.

2.4 Regularly review spend data to ensure compliant contracts are in place for external spend, considering whole life costing where relevant and appropriate to balance cost, quality and sustainability

Compliant –

iProc system controls ensure all spend is covered by the relevant Procurement Process and as such is facilitating contract compliance.

The Contract Register and Wave plan are managed to ensure all contracts are managed within the relevant start/completion dates, engagement with Service Managers on upcoming projects and access to the Council’s capital programme support forward planning and contract alignment.

All regulated Procurements are carried out by the Corporate Procurement Team, ensuring that procurement professionals are overseeing the requirement to ensure that the appropriate balance of cost, quality and sustainability are embedded within all relevant contracts.

The implementation of Oracle Fusion supports ongoing activities.

2.5 Improve Contract & Supplier Management approaches to ensure delivery of all benefits

Area for Development –

A collaborative approach is taken between the Corporate Procurement Team, the Business & Digital Development Team and the wider council departments for the management of contracts and suppliers/contractors.

Contract & supplier management is the responsibility of directorates leading the contract, monitoring is the responsibility of procurement with escalation points built in to support Contract Managers. This assists identification and management opportunities.

The Corporate Procurement Team manage the Council’s contract register and council wide contracts.

A Contract & Supplier Management Lead role was created within the Business & Digital Development team.  This supports an Organisational approach to Contract & Supplier Management and embeds the relevant processes to ensure best value and achievement of efficiencies within the Council’s contracts and in alignment to the Procurement Governance Framework. This role has now transitioned to the Corporate Procurement Team during.

A revised Contract & Supplier Management approach has been created and is currently in pilot stage with key services.

Ongoing development of the Procurement Strategy and Governance Framework will deliver specific Contract and Supply Management training to those involved in the process moving forward.

Relevant Stakeholders have already received training on PCS-T for evaluation and been involved in the development of KPI’s to support the formalised approach to Contract and Supplier Management.

The implementation of Oracle Fusion has supported key aspects of Contract monitoring and Management.

2.6 Support achievement of the Organisational approach to Climate Change, Circular Economy and Community Wealth Building

Area for Development – See 3.1

3.1 Embed sustainable and socially responsible purchasing to reflect the Scottish Model of Procurement

Compliant –

Sustainability considerations are relevant throughout the whole procurement cycle, and take into account the whole life cost of products from design and manufacture through to disposal. Procurement Governance training covers the areas for consideration within the Procurement process and the relevant procedural documentation aligns.

Sustainability Guidance documentation has been created to sit alongside the process documentation for consideration of Scotland’s national Outcomes in tender opportunities.

Procurement process and documentation supports this embedded approach, all regulated procurements are carried out by the Procurement Team to ensure compliance across all aspects of procurement Legislation.

3.2 Ensure as far as reasonably practical that payments to Suppliers and Contractors are made no later than 30 days after a valid invoice is presented

Compliant –

The Accounts Payable team sits within the Corporate Procurement Structure to support payment improvement and align the purchase to pay process within one Service. Work is ongoing to further increase volume through e-invoicing, invoice scanning, data imports to deliver wider benefits and improvements.

The implementation of Oracle Fusion has supported ongoing activities, and the adoption of the Supplier Portal has enabled Suppliers to have real time access to their payment and invoice details directly from the Council’s system.

3.3 Continue to support and improve access to procurement opportunities for SME’s, including local businesses, third sector bodies and Supported

Compliant –

The Procurement Governance approach supports the inclusion of SME/Local/Supported businesses within the standard processes where legislatively permissible. 

A cross Organisation approach to community benefits is also looking to improve LGBF KPI on Local SME spend through joint working and developing opportunities to support our local businesses.

Opportunities have also been identified via the City Deal Project, work is currently ongoing to support benefits usage and reporting.

Work is also in process to align existing practices within a Community Wish list approach, this will follow the work in progress at City Region level to streamline opportunities and support SME involvement and upskilling.

The implementation of Oracle Fusion has supported ongoing activities, with the inclusion of a Supplier portal to provide access to key information and ensure payment detail is readily available without contact with an East Dunbartonshire Council Officer.

3.4 Support a cross organisational approach to community benefits, working towards a Community Wish-list process in alignment with the City Region work-plan

Compliant –

The Council is working on improving the approach to implementing Community Benefits by working strategically to realise opportunities for community benefits and target these opportunities. Ongoing work will ensure we keep improving on our current approach:

• A Community Benefit Forum to share and make aware of upcoming tenders, providing opportunities for Community Benefits in their respective service areas. Membership of this Forum will be reviewed to ensure the most relevant people are involved.
• The Forum will set up a system for sharing information to ensure there is always a list of Community Benefit Opportunities for Suppliers to be offered. For example, actions from relevant strategies will be detailed, Project Managers working with developers can report on Community Benefits Activity, and Procurement Advisers can provide information on upcoming tenders.
• A Community Benefits scoring methodology has been embedded in the procurement approach
• Drop-in sessions for local SME’s will be established to provide direct and focussed opportunities to engage in the tender process
• The use of Cenefits for City Deal projects is being considered for wider use across various council services.

3.5 Maximise the use of Community Benefits clauses in all appropriate contracts

Compliant –

Community Benefits are required to be included in any public contract over the value of £2 million, in East Dunbartonshire, they are included in contracts over £50,000

The relevant list of Community Benefits can be found in Section 5.

The Corporate Procurement team issue all regulated contracts, ensuring inclusion of Community Benefit opportunities in all contracts where appropriate and securing additional value.

3.6 Simplify and facilitate procurement processes and procedures to support accessibility for all

Compliant –

The Procurement Strategy and Governance framework directs the relevant legislative considerations for Procurement processes within the Council, this sits below the Council’s contract Standing Orders and Administrative Scheme.

Procurement Guidance Notes and standardised Operating Procedure documentation have been simplified to support accessibility for all.

The implementation of Oracle Fusion has supported ongoing activities.

3.7 Align to organisational policies, strategies and plans for Sustainability & Carbon Reduction, including Climate Action Plan, Circular Economy Strategy, Community Wealth Building, Carbon Management Plan & Local Housing Energy Efficiency Strategy, etc

Compliant –

The Procurement Strategy and Governance framework directs the relevant legislative considerations for Procurement processes within the Council, this sits below the Council’s contract Standing Orders and Administrative Scheme.

Procurement Guidance Notes and standardised Operating Procedure documentation have been simplified to support accessibility for all.

Procurement representation on Corporate Working Groups supporting development of Corporate priorities and reports.

3.8 Embed sustainability and promotion of ethical working practices as best practice within procurement processes and procedures

Compliant –

The Procurement Strategy and Governance Framework promotes the inclusion of ethical working practices within the roles and responsibilities of those who have responsibility for Procurement activity.

Standardised documentation includes the requirement to embed the relevant processes at the relevant points in all processes/procedures. These support Scotland’s National Outcomes and Indicators

All regulated Procurement activity is carried out by the Corporate Procurement Team.

3.8 Work in alignment to Scottish Procurement Policy Notes to support Fair Work First, Prompt Payments, Equality Duty, etc

Compliant –

The Procurement Strategy and Governance Framework promotes the inclusion of ethical working practices within the roles and responsibilities of those who have responsibility for Procurement activity.

Standardised documentation includes the requirement to embed the relevant processes at the relevant points in all processes/procedures. These support Scotland’s National Outcomes and Indicators

All regulated Procurement activity is carried out by the Corporate Procurement Team.

View the Annual Procurement Report Template