Procurement activity: annual report 2021 to 2022

Glossary

Annual procurement report: A report published by an individual public body, which provides information about the public body’s regulated procurement activities over the course of a given financial year. It also provides details of upcoming procurement projects.

Community benefit requirements: A contractual requirement imposed by a contracting authority relating to training and improvement, or to the availability of sub-contracting opportunities, or which is otherwise intended to improve the economic, social or environmental wellbeing of the authority’s area.

Fair Work First: Scottish Government policy which encourages businesses bidding for a public contract to commit to: adopting appropriate channels for effective voice such as trade union recognition; investment in workforce development; no inappropriate use of zero hours contracts; action to tackle the gender pay gap; providing fair pay for workers, for example through payment of the real Living Wage; offer flexible and family-friendly working practices; and oppose the use of fire and rehire practices.

Framework agreement: An agreement between one or more public bodies and one or more economic operators, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular terms with regardsto price and, where appropriate, the quantity envisaged. A contract is only established when a “call off” from the framework is made.

Large businesses: Businesses with 250 employees or more.

Medium-sized businesses: Businesses with between 50 and 249 employees.

Micro businesses: Businesses with fewer than 10 employees.

Procurement: The process leading to the award of a public contract or framework agreement or establishment of a dynamic purchasing system for the acquisition of works, supplies or services from an economic operator.

Procurement spend: The amount paid by a public body for the acquisition of works, supplies or services from an economic operator, in line with the established procurement process.

Prompt payment: The timely payment of all suppliers involved in the delivery of public contracts, in accordance with the terms of the contract.

Public Contracts Scotland (PCS): Advertising portal for Scottish public sector contracts, where contract notices and award notices are published.

Real Living Wage: A voluntary rate of pay that is enough to ensure that those receiving it can have an acceptable standard of living.

Regulated procurements: Procurements seeking offers regarding contracts which are regulated by the Procurement Reform (Scotland) Act 2014. Contracts are regulated by the Act if their estimated value is equal to or greater than £50,000 excluding VAT for goods and services, and £2 million excluding VAT for works.

Small businesses Businesses with between 10 and 49 employees.

Small and Medium-Sized Enterprises (SMEs): All businesses with fewer than 250 employees.

Supply chains: The network of suppliers involved in the delivery of any given public contract. This includes the main contractor(s) and any sub-contractors involved in contract delivery.

Supported businesses: Businesses whose main aim is the social and professional integration of disabled or disadvantaged persons, and where at least 30% of the employees are disabled or disadvantaged persons.

Third sector organisations: Organisations that exist wholly or mainly to provide benefits for society or the environment. These organisations include charities, social enterprises and voluntary groups.

Value for money: The optimum combination of whole-life cost and quality (or fitness for purpose) to meet the user’s requirement.