The Public Procurement Reform Programme 2006-2016: achievements and impacts

Executive Summary

Procurement today plays a key part in delivering Scotland's economic strategy, focussed on sustainable economic growth and delivering better outcomes for Scotland. As well as influencing changes in culture, approach and practice, the programme has captured significant savings since 2006. The truly collaborative partnership approach between public sector, business and the third sector has resulted in a transformed public sector landscape, with procurement today a lever for economic change.

This report reflects on the achievements, impacts and overall progress of the public procurement reform programme. Running for 10 years, Scottish procurement now sits as an exemplar in its field, an international leader in procurement practices.

The Scottish Model of Procurement realises the key components of the Scottish Government's drive towards a more dynamic, sustainable and inclusive economy, where high quality public services play a vital role in making Scotland stronger and fairer, and increasing economic growth.

The full impact and benefits of the changes in legislation are yet to be fully realised, but will support improved economic, social and environmental wellbeing, reduce inequality, promote innovation, and increase access to opportunities for small businesses, the voluntary sector and disadvantaged individuals across the country.

The changes will maximise the impact of the circa £11 billion annual procurement spend and ensure that public procurement in Scotland delivers environmentally sustainable, socially responsible and innovative goods, services and works.

In the last 10 years public procurement has:

• Collaborated annually on around £2.5bn of spend, including 6% of savings.
• Increased access to public sector contracts year on year, with Public Contracts Scotland now advertising over 14,700 contracts in 2015.
• Provided supported businesses with an easier route to public sector contracts that have generated more than £10.5m worth of business since 2012, with the supported business framework tracking spend at £1.9m.
• Increased the use of community benefit clauses, with independent research identifying that 24 public contracts have helped support people from priority groups with access to:
  • More than 1,000 people being employed, and it is thought community benefits clauses raised this number by 38%;
  • 200 apprenticeships created with community benefits clauses having thought to have risen this number by 78%;
  • Over 650 people gaining work experience, with 72% estimated to be additional due to community benefits clauses; and
  • Over 6,700 people accessing training, 31% would not have been provided without community benefit clauses.