Appendix A - General policies

Transport Scotland has developed statements on its general policies, in line with the requirements of the Procurement Reform (Scotland) Act 2014 and the accompanying Statutory Guidance. These policies are set out below:

Procurement policy 1 - procurement will contribute to corporate priorities

Regulated procurements will directly support Transport Scotland’s functions and delivery objectives.

Transport Scotland’s Corporate Procurement Strategy will set out the strategic direction of its procurement activity for 2025-2026. Progress on delivery will be reported on a quarterly basis to Senior Management through the Procurement Group.
An appropriate procurement route will be used for each procurement, to support corporate delivery commitments and comply 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.

Procurement policy 2 - value for money

Transport Scotland will ensure that 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 as appropriate to enable areas of savings, added value and innovation to be identified.
Research to ensure collaborative opportunities are identified during the preparation of project procurement strategies.
Effective contract and supplier management procedures to enable delivery in accordance with the contract terms.
Lessons learned process to allow identification of areas for improvement.
Effective stakeholder engagement, both internally and externally, to drive innovation and ensure that purchase requirements are fully understood.
Analysis of previous procurement activity and contract performance data to identify potential areas of savings and added value.
Supplier feedback system to give performance feedback to suppliers on a regular basis.

Procurement policy 3 - equal treatment and non-discrimination

Transport Scotland will undertake regulated procurements in compliance with the duty to treat relevant economic operators equally and without discrimination.

A project 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 frameworks.
Transport Scotland’s Contracts Register is published on Public Contracts Scotland.
Suitable feedback is provided to unsuccessful tenderers.
Proportionate requirements are specified for insurance and financial requirements.

Procurement policy 4 - transparency and proportionality

Transport Scotland will ensure that regulated procurements comply with the 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.

Procurement policy 5 - the sustainable procurement duty

Transport Scotland’s regulated procurements will be carried out in compliance with the sustainable procurement duty.

The Scottish Government sustainable procurement tools are used to identify and address how Transport Scotland can optimise economic, social and environmental outcomes of procurement activity.
Project procurement strategies will be approved prior to procurement commencing. These will 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 will engage with stakeholders to advance its scientific and engineering knowledge and, where practical, enhance the natural and physical environment.
Transport Scotland will provide sustainable procurement training to staff throughout the organisation.

Procurement policy 6 - community benefits requirements

Community benefits requirements will be considered for all relevant procurements.

The potential for community benefits to be delivered will be considered at procurement preparation stage for regulated procurements, prior to approval of the project procurement strategy.
Consideration will be given to including community benefit clauses in contracts.
The delivery of community benefits will be monitored using contract management and strategy compliance checks. Outcomes will be reported in the Annual Procurement Report.

Procurement policy 7 - consultation and engagement

Stakeholders affected by procurement will be consulted appropriately.

Consultation and engagement with key stakeholders affected by procurement activity will be built into procurement processes. This will include consultation and engagement with the public, statutory bodies, suppliers, and industry groups.
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 keep the public informed.
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 the World Trade Organisation’s Government Procurement Agreement thresholds are also advertised on the Find a Tender service.

Procurement policy 8 - fair work and the real living wage

Transport Scotland supports fair work and payment of the Real Living Wage.

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 a supplier’s 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 its procurement activities in line with updates to the Procurement Reform (Scotland) Act 2014: Statutory Guidance and encourages a proactive approach from its contractors and sub-contractors by utilising scored and non-scored fair work practice award criteria within the 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 SPPN 1/2024, the Scottish Government’s Fair Work First Guidance which was published in March 2023 and its supplementary guidance on Fair Work Practices published in February 2024.
Inclusion of a scored question on a supplier’s approach to fair employment, including the Real Living Wage, is considered at the procurement strategy stage. Transport Scotland includes a pass/fail question for suppliers in its procurements asking them commit to paying the Real Living Wage, where it is relevant and proportionate to do so.

Procurement policy 9 - contractor’s health and safety

Transport Scotland promotes 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 projects 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.
Suppliers will be required to provide information in their tenders to demonstrate compliance with the necessary legislation, such as the Construction Design and Management Regulations 2015.

Procurement policy 10 - fairly and ethically traded goods and services

Transport Scotland’s considers fairly and ethically traded goods within the procurement process.

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.
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.

Procurement policy 11 - provision of food

Transport Scotland’s does not purchase food using regulated procurements. It therefore does not require a general policy on how it intends to approach regulated procurements involving the provision of food to improve the health, wellbeing, and education of communities in the authority’s area and promote the highest standards of animal welfare.

Procurement policy 12 - prompt payment

Transport Scotland will ensure that, so far as reasonably practicable, prompt payments will be made on their contracts.

Payments will be made no later than 30 days after the invoice (or similar claim) relating to payment is presented for:
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
Transport Scotland will aim to settle all undisputed invoices within contract terms and also in line with the Scottish Government’s 10-day payment policy.
Prompt payment clauses requiring a 30-day payment term will be embedded in contracts and these are required to be replicated throughout the supply chain.
Project Bank Accounts will be in place for all works contracts of value equal to or greater than £5 million in accordance with the Scottish Government requirements.

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