Transport Scotland Procurement Strategy 2012 - 2015

Introduction

Procurement is a high-value activity within Transport Scotland that has a critical impact on its performance and success.

Transport Scotland's Procurement Strategy identifies the key policies and processes to be followed in any procurement activity and sets out the actions to achieve improvement and innovation in procurement practice across the Agency.

This document sets out the framework in which Transport Scotland will work to ensure that procurement delivers value for money and sustainability across all such activities. It looks to contribute to the achievement of Scottish Ministers' ambition and vision for transport, and the delivery priorities set out in the Transport Scotland Corporate Plan.

Our Vision for Procurement

In recognition of the wider impact that procurement policy and practice has on the Scottish Government's purpose and Transport Scotland's delivery priorities, our vision for procurement is:

"To support the delivery of value for money, sustainable and innovative infrastructure and services in fulfilment of the Scottish Government's ambition and vision for transport, and Transport Scotland's corporate priorities, through a strategic and systematic approach to procurement."

As a key enabler for enhancing productivity and delivering faster, more sustainable growth, transport is a key element of the overall strategy for infrastructure investment and is central to the Scottish Government's ambitions for a low carbon economy.

At Transport Scotland we procure from suppliers almost all of what is needed to deliver the investment in infrastructure and services required to develop a modern transport system fit for Scotland's needs in the 21st century.

Roles and Responsibilities in Relation to Procurement

Transport Scotland is responsible for delivering an efficient transport system that will enhance productivity and deliver faster, more sustainable growth.

The agency is responsible for overseeing the operation and improvement of:

  • trunk road, ferry, inland waterway and railway networks in Scotland
  • air passenger facilities and routes in the Highlands and Islands
  • national concessionary travel schemes
  • provision of travel information services
  • future transport policy and investments
  • promoting sustainable transport and road safety

We are committed to providing leadership and enhancing procurement capability in the use of procurement across these business areas.

Aims

Transport Scotland aims to deliver Best Value, promoting responsible procurement and professional management to meet its delivery priorities. This will be achieved by continuous improvement of procurement activity, having regard for economy, efficiency, effectiveness, openness, sustainability and transparency and our legal obligations. Transport Scotland will seek opportunities to promote best practice and to work creatively and collaboratively with Scottish Government Procurement and Commercial Directorate and other organisations where possible.

The agency undertakes a diverse array of differing types, complexity and values of procurements and it is not possible to create a one-size-fits-all approach to project procurement and contract management.

Transport Scotland's Corporate Delivery Priorities

Over the next 3 years Transport Scotland's Corporate Delivery Priorities are:

  • Improved connections across Scotland and internationally
  • Better journey times, better reliability, quality and accessibility
  • Increased safety, more innovation
  • Continuously improving performance and organisation
  • Low carbon technology and infrastructure, reduced emissions

Our Key Priorities

  • Value for Money (VfM)

Transport Scotland looks to achieve the optimum VfM based on whole-life costs. Value for Money is not achieved solely on the lowest tender price but from consideration of full-life cycle costs and performance. Transport Scotland awards the majority of contracts on the basis of the most economically advantageous tender (MEAT) taking into account factors such as delivery time, quality, technical merit and maintenance costs. This approach is about using resources more efficiently and getting the best possible solution.

  • Innovation

Transport Scotland makes use of a number of methods to encourage more innovative solutions, including:

  • Identifying project needs more holistically
  • Developing effective relationships with stakeholders and suppliers
  • Effective communication of requirements
  • Identifying and managing risk
  • Providing incentives to suppliers
  • Engagement with the market to identify what is possible
  • Helping smaller innovative companies to tender for contracts
  • Encouraging future proofing of projects from the outset
  • Monitoring impacts and performance
  • Learning from other organisations and applying best practice in procurement
  • Risk Management

Transport Scotland's high level Risk Strategy sets out a consistent approach to the implementation of risk management across the agency at strategic, programme and project levels and this is implemented on a project-specific basis at Directorate level.

  • Delivery

Transport Scotland's procurement activities support delivery of Scottish Ministers' vision for sustainable transport in Scotland, making a real difference for people and businesses using the national rail, road and ferry networks. This supports over 25% of the civil engineering contracting sector's workload in Scotland with over 95% of the agency's budget invested back into the economy either through the procurement of contracts or by providing grant funding. Current investment across transport modes, whether in route and services development, long-term operation and maintenance or in specific infrastructure construction, currently supports more than 12,000 jobs.

  • Sustainability

Transport Scotland procures works, services and goods in a way that achieves value for money on a whole life basis as well as generating benefits to society, the economy and the environment.

Transport Scotland champions Sustainable Procurement and encourages sustainable procurement across the agency. This is being achieved by:

  • Implementing the Scottish Sustainable Procurement Action Plan
  • Embedding sustainable procurement principles into project and contract processes and procedures
  • Promoting Scottish Government initiatives on sustainable procurement.
  • Encouraging use of sustainable specifications where appropriate
  • Assessing sustainable procurement practices using available assessment tools and techniques
  • Building on previous successes and best practice
  • Delivering sustainable procurement training to all staff with Delegated Purchasing Authority (DPA)

Our Key Stakeholders

  • Scottish Ministers
  • Scottish Procurement and Commercial Directorate and Scottish Government Legal Directorate
  • Procurement Reform Governance Bodies
  • Local Authorities
  • Convention of Scottish Local Authorities (COSLA)
  • Society of Chief Officers of Transportation in Scotland
  • Regional Transport Partnerships
  • Scottish Futures Trust
  • ScotRail
  • Network Rail
  • Suppliers
  • Civil Engineering Contractors Association
  • Highways Term Maintenance Association
  • Public Utility Providers
  • Statutory bodies i.e. Scottish Natural Heritage and Historic Scotland
  • The public