Procurement and the Council
Procurement is the full range of activities related to purchasing works, supplies and services. This includes the process of supplier engagement, advertising, supplier selection and subsequent management of any contract arising.
All Council services involve procurement. Procurement can range from engaging a contractor to build a school through to purchasing pens and pencils for Resource use.
Effective procurement supports the Council’s aims and objectives, helping it deliver high quality services which meet the current and future needs of local people based on value for money. The Council has a Procurement Strategy which sets out the procurement aims and objectives for the Council until 31 March 2020.
Procurement in the Public Sector is subject to the Law of Scotland and the way in which the Council purchase works, supplies and services is governed by these laws.
Procurement Law and Regulation
Public Sector Procurement in Scotland is subject to The Public Contracts (Scotland) Regulations 2015, The Procurement Reform (Scotland) Act 2014 and The Procurement (Scotland) Regulations 2016. This legislative framework governs how any public organisation in Scotland purchases works where the estimated value exceeds £2million and, supplies and services where the estimated value exceeds £50,000. There are some differences in the relevant procurement law depending on the contract value. However every procurement process must comply with the basic principles of transparency, openness, non-discrimination and equal treatment.
The legislative framework is supplemented by the Council’s Standing Orders on Contracts which set out the provisions which must be adhered to at all times when procuring works, supplies or services regardless of the value of the requirement.
The Procurement Service is based within Finance and Corporate Resources and supports the delivery of works, supplies and services to the annual value of £420 million. The Procurement Service has a key role in both supporting and governing how supplies, works and services are obtained which includes, but is not limited to, high value contract delivery, continuous improvement of procurement processes (in line with Scottish Procurement Regulations) and the delivery of procurement efficiencies, guidance and advice.
The Procurement Service is responsible for securing best value for money by procuring works, supplies and services that best meet the Council's requirements. Best value for money may be determined by a number of factors including quality, service and delivery against price, whole life cost, maintenance and running and disposal costs.
The main areas of work for the Procurement Service are:
- Conducting tenders and establishing works, supplies and services contracts that deliver best value
- Delivering financial savings for the Council through contract arrangements
- Delivering Community Benefits for the Council through contract arrangement
- Providing professional procurement guidance and advice
- Ensuring compliance with applicable procurement law and the Council’s Standing Orders on Contracts
- Promoting the use of electronic procurement processes throughout the Council
- Promoting sustainable procurement
- Ensuring procurement helps deliver the Council's key corporate objectives
The Procurement Service is formed of a single centralised team comprising of Advisers, Officers and Assistants reporting to the overall Transactions and Procure to Pay Manager and the Head of Finance (Transactions).
The centralised structure will ensure procurement activity is well directed and best practice is more easily disseminated. The Procurement Service works closely with Resources and also with Legal Services to ensure procurement practice is compliant with regulatory requirements.
Current South Lanarkshire Council Contracts
The Contract Register is a record of all contracts used by the Council where the contract value exceeds £2,500. This includes contracts awarded by the Council and contracts used by the Council but awarded by other bodies e.g. Scotland Excel and Procurement Scotland.