Transport Scotland’s procurement policy and procedures

Introduction

The following policies are embedded into existing procurement processes in Transport Scotland and are intended to assist decision making, management and administrative functions. Monitoring, review and reporting of the effectiveness of a policy is a key part of ensuring continuous improvement.

National policies

Transport Scotland staff involved in procurement are required to take account of the following national policies, legislation and tools:

Procurement Reform (Scotland) Act 2014
The Public Contracts (Scotland) Regulations 2015
The Procurement (Scotland) Regulations 2016
General Data Protection Regulations 2018
relevant environmental and health and safety legislation, such as the Construction (Design and Management) Regulations 2015
Published Statutory Guidance to support the implementation of the Procurement Reform (Scotland) Act 2014
The Equality Act 2010 (Specific Duties) (Scotland) Regulations 2012 and subsequent duties under the Public Contracts (Scotland) Regulations 2015
Scottish Government Construction Policy Notes (CPNs), published by the Scottish Government Construction Procurement Policy Unit
Scottish Procurement Policy Notes (SPPNs), published by the Scottish Procurement and Property Directorate
Scottish Government’s Procurement Journey
The Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Order 2015
Scottish Government’s Client Guide to Construction Projects
Scottish Government’s National Strategy for Economic Transformation
Scottish Government’s Gifts and Hospitality standard of conduct guidance
Scottish Government’s National Performance Framework
Public Procurement Group’s Public Procurement Priorities
Scottish Public Finance Manual
the sustainable procurement duty tools developed by Scottish Government to assist public sector bodies to identify and address how they can optimise economic, social and environmental outcomes of procurement activity

Local policies and procedures

In addition, Transport Scotland staff are required to take account of local policies and procedures when undertaking any procurement activity, including:

the prompt payment of invoices for works, goods and services in line with the Scottish Government’s 10 day payment policy
the requirement for appropriate staff to have a suitable level of Delegated Purchasing Authority
Transport Scotland’s Investment Decision Making procedures
Transport Scotland’s Risk Management Framework
Transport Scotland’s requirement that procurement activity is underpinned by an approved Procurement Strategy
Transport Scotland’s Fraud Policy and Response Plan

Compliance with Requirements of Section 15(5) of the Procurement Reform (Scotland) Act 2014 and Statutory Guidance

Section 15(5) of the Procurement Reform (Scotland) Act 2014 and the published Statutory Guidance, sets out what should be included in Transport Scotland’s Procurement Strategy. This section can be broadly divided into two parts, firstly how specific tasks will be achieved as set out in section 15(5) (a) and (d) and secondly what policies and approaches are in place as set out in section 15(5) (b) and (c).

In terms of the requirements of section 15(5) (a) and (d), Transport Scotland is required to set out how it intends to ensure that:

Its regulated procurements will contribute to the carrying out its functions and achievement of its purposes (section 15(5)(a)(i) of the Act)
Its regulated procurements will deliver value for money (section 15(5)(a)(ii) of the Act)
Its regulated procurements will be carried out in compliance with its duty to treat relevant economic operators equally and without discrimination (section 15(5)(a)(iii) of the Act)
Its regulated procurements will be carried out in compliance with its duty to act in a transparent and proportionate manner (section 15(5)(a)(iii) of the Act)
Its regulated procurements will be carried out in compliance with the sustainable procurement duty (section 15(5)(a)(iii) of the Act)
So far as reasonably practicable, the following payments are made no later than 30 days after the invoice (or similar claim) relating to payment is presented:
- payments due by the authority to a contractor
- payments due by a contractor to a sub-contractor
- payments due by a sub-contractor to a sub-contractor (section 15(5)(d) of the Act)

The following statements demonstrate how Transport Scotland will ensure the delivery of the above requirements

Regulated procurements will contribute to carrying out Transport Scotland’s functions and achieving its purposes:
- Transport Scotland’s Procurement Strategy and its commitments sets out the strategic direction of Transport Scotland’s procurement activity for –2022 - 2023 and progress on delivery will be reported on a quarterly basis to Senior Management
- robust investment decision making and procurement approval processes are in place to provide assurance that the decision to invest and place a contract directly supports a corporate delivery commitment and that the selection of an appropriate procurement route has been made in accordance with policy and legislation
- effective contract and supplier management will ensure delivery in accordance with the contract terms
- stakeholder engagement will be undertaken during project development and procurement preparation
- corporate delivery commitments will be communicated to all Transport Scotland staff
Regulated procurements will deliver value for money:
- robust investment decision making and procurement approval processes are in place to provide justification for the requirement and assurance that value for money will be obtained
- early market engagement is undertaken as appropriate to enable areas of savings, added value and innovation to be identified
- collaborative opportunities are identified during preparation of a project procurement strategy
- effective contract and supplier management procedures are in place to enable delivery in accordance with the contract terms
- Transport Scotland’s lessons learned process allows identification of areas for improvement
- effective stakeholder engagement will be undertaken, both internally and externally, to drive innovation and ensure that purchase requirements are fully understood
- analysis of previous procurement activity and contract performance data will be undertaken to identify potential areas of savings and added value
- supplier feedback system enables performance feedback to suppliers on a biannual basis
Regulated procurements will be carried out in compliance with its duty to treat relevant economic operators equally and without discrimination:
- a procurement strategy approval process is in place to provide assurance that the selection of an appropriate procurement route has been made in accordance with policy and legislation
- early market engagement is undertaken and, where appropriate, industry days are hosted
- the Public Contracts Scotland portal is used for the publication of contracts and primary contractor’s sub-contract opportunities where appropriate
- an appropriate Lot structure is considered and developed for our Frameworks
- Transport Scotland’s Contracts Register is published on Public Contracts Scotland
- provide suitable feedback to unsuccessful tenderers
- proportionate requirements are specified for insurance and financial requirements at tender stage
Regulated procurements will be carried out in compliance with its duty to act in a transparent and proportionate manner:
- a procurement strategy approval process is in place to provide assurance that the selection of an appropriate procurement route has been made in accordance with policy and legislation
- the Public Contracts Scotland portal is used for publication of contract and main contractors’ sub-contract opportunities where appropriate
- the use of Meet the Buyer events and industry days
Regulated procurements will be carried out in compliance with the sustainable procurement duty:
- the Scottish Government’s recommended sustainable procurement tools are utilised to identify and address how we can optimise economic, social and environmental outcomes of procurement activity
- project procurement strategies require to be approved prior to procurement commencing. These take account of sustainable procurement practices and the output of the sustainability tools
- sustainable procurement principles and requirements are embedded in project and contract documentation, processes and procedures
- Transport Scotland engages with stakeholders to advance our scientific and engineering knowledge and, where practical, enhance the natural and physical environment
- Transport Scotland provides sustainable procurement training to staff throughout the organisation
Payments are made no later than 30 days after the invoice (or similar claim) relating to the payment is presented including:
1. Payments due by the authority to a contractor
2. Payments due by a contractor to a sub-contractor
- Transport Scotland is committed to the prompt payment of invoices for works, goods and services and aims to settle all undisputed invoices within contract terms and also in line with the Scottish Government’s 10 day payment policy. In 2021-2022 Transport Scotland settled an average of 96% of invoices within this timescale
- prompt payment clauses requiring a 30 day payment term are embedded within our contracts and these are required to be replicated throughout the supply chain
- Project Bank Accounts (PBAs) will be in place for all works contracts of value equal to or greater than £5 million in accordance with the Scottish Government requirements

In terms of section 15(5) (b) and (c) of the Procurement Reform (Scotland) Act 2014 Transport Scotland is required to set out the agency’s general policy on

The use of community benefit requirements (section 15(5)(b)(i) of the Act)
Consulting and engaging with those affected by its procurements (section 15(5)(b)(ii) of the Act)
The payment of a living wage to persons involved in producing, providing or constructing the subject matter of regulated procurements (section 15(5)(b)(iii) of the Act)
Promoting compliance by contractors and sub-contractors with the Health and Safety at Work etc. Act 1974 (c. 37) and any provision made under that Act (section 15(5)(b)(iv) of the Act)
The procurement of fairly and ethically traded goods and services (section 15(5)(b)(v) of the Act)
How it intends its approach to regulated procurements involving the provision of food to:
1. improve the health, wellbeing and education of communities in the authority’s area (section 15(5) (c) of the Act)
2. promote the highest standards of animal welfare (section 15(5) (c) of the Act)

The following statements demonstrate how Transport Scotland will ensure the delivery of the above requirements:

General policy on the use of community benefit requirements:
- Transport Scotland requires that the potential for community benefits to be delivered is considered at procurement preparation stage for regulated procurements, prior to approval of the project procurement strategy. When developing any contract specification, consideration must be given to the suitability of including community benefit clauses, such as the requirement to provide targeted recruitment and training. Where appropriate, the delivery of community benefits will be a contractual commitment
- the delivery of community benefits through Transport Scotland contracts continues to provide opportunities for targeted training and recruitment, including training and jobs for long-term unemployed people, development of the skills and qualifications of the existing workforce, apprenticeships and job start positions and professional graduate training opportunities
- This policy will be monitored and reported on by:
  - undertaking contract management to ensure delivery in accordance with contractual requirements
  - undertaking procurement strategy compliance checks to provide assurance that the requirements identified at development stage were carried through to the contract
  - summarising the outcome of the monitoring in Transport Scotland’s Annual Procurement Report, in compliance with section 21 of the Procurement Reform (Scotland) Act 2014
General policy on consulting and engaging with those affected by its procurements:
- consultation and engagement with key stakeholders affected by our procurement activity is embedded in our processes, both during project development and any subsequent procurement activity. This consultation can include public engagement, consultations with other statutory bodies (such as SEPA and NatureScot), consultation with suppliers at open days or market engagement events and meetings with specialist groups, such as the Civil Engineering Contractors Association and the Association for Consultancy and Engineering. The appropriate level of consultation and engagement for projects will be identified at the procurement development stage and feedback from the consultation will be reported in the procurement strategy. This provides assurance that an appropriate level of consultation has been undertaken to inform the decision making process
- information about the progress of major projects is supported by an appropriate approach to communication. This may include the use of the agency’s website, specific project websites and press releases to provide progress reports and other information of interest to the public about major projects throughout their lifecycle. Engagement with local communities was undertaken using virtual exhibitions during the COVID-19 pandemic
- Transport Scotland advertises tender opportunities for lower value procurements and those regulated under the Procurement Reform (Scotland) Act 2014 through the Public Contracts Scotland portal. Procurements valued at over UK thresholds are also advertised on the Find a Tender service
- This policy will be monitored and reported on by:
  - undertaking lessons learned reviews to identify any issues arising from the consultation
  - undertaking compliance checks to ensure that the level of consultation stated in the procurement strategy is proportionate and appropriate.
  - undertaking compliance checks on procurements to ensure that they have been advertised appropriately
General policy on the payment of a living wage to persons involved in producing, providing or constructing the subject matter of regulated procurements:
- Transport Scotland understands the need to support a society that offers equal opportunity and ensures the benefits from a stronger economy are shared fairly
- Transport Scotland became an Accredited Living Wage employer in 2016 and considers payment of the real Living Wage to be a significant indicator of an employer’s (supplier) commitment to its workforce. Transport Scotland is committed to supporting the Scottish Government in its objective of implementing the payment of the real Living Wage through our procurement activities in line with updates to the Procurement Reform (Scotland) Act 2014: Statutory Guidance published in May 2022. Transport Scotland encourages a proactive approach from its contractors and sub-contractors by utilising scored and non-scored fair work practice award criteria within our Invitations to Tender in relevant contracts
- Transport Scotland undertakes to include relevant and proportionate questions on Fair Work First for all regulated procurements, in line with the Procurement Reform (Scotland) Act 2014: Statutory Guidance and SPPN 6/2021. Consideration of the need to include a scored question on a supplier’s approach to fair employment, including the real Living Wage, are considered at procurement strategy stage depending on the nature of the procurement
- This policy will be monitored and reported on by:
  - undertaking contract management to ensure delivery in accordance with contractual requirements
  - undertaking procurement strategy compliance checks to provide assurance that the requirements identified at development stage were carried through to the contract
General policy on promoting compliance by contractors and sub-contractors with the Health and Safety at Work etc. Act 1974 (c. 37) and any provision made under that Act:
- health and safety risks are taken into consideration at the design stage of a project as well as during preparation for procurement. Factors pertaining to specific health and safety requirements are recorded in project procurement strategies on a case by case basis. These will vary depending on the nature of the works, services or goods being purchased. The supplier will be required to provide information in its tender to demonstrate compliance with the necessary legislation, such as the Construction Design and Management Regulations 2015
- This policy will be monitored and reported on by:
  - undertaking contract management to ensure delivery in accordance with contractual requirements
  - undertaking procurement strategy compliance checks to provide assurance that the requirements identified at development stage were carried through to the contract
General policy on the procurement of fairly and ethically traded goods and services:
- consideration of specific requirements and availability in relation to fairly and ethically traded goods and services will be considered at project development stage and recorded in the project Procurement Strategy for approval prior to commencement. The use of the Single Procurement Document for above threshold procurements allows consideration of whether a potential supplier has been convicted of certain offences and/or committed any acts of professional misconduct and allows suitability to be assessed
- This policy will be monitored and reported on by:
  - undertaking contract management to ensure delivery in accordance with contractual requirements
  - undertaking procurement strategy compliance checks to provide assurance that the requirements identified at development stage were carried through to the contract
General policy on how it intends its approach to regulated procurements involving the provision of food to:

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