Coronavirus (COVID-19): making best use of procurement resources during COVID-19 outbreak SPPN 6/2020

Please note: this policy note was written at a time when Scottish procurement was subject to the EU legal framework. Some references may no longer be valid, caution should be exercised if you come across one of these references. Content should be cross-referenced with SPPNs which address questions and issues related to exit from the EU legal framework. It should also be read after taking note of the introduction on the SPPN index page.

Background

4. The current outbreak of COVID-19 is having a significant impact on businesses of all sizes. Many suppliers will struggle to meet their contractual obligations and this will put their financial viability, ability to retain staff and their supply chains at risk. This SPPN describes some practical steps for existing contracts and forthcoming contracts that public bodies might want to consider in discussion with their customers and suppliers to reduce pressures on them at this time.

Existing contracts

5. For contracts that are already in place public bodies will want to consider the most appropriate response to ensure continuity of service. Public bodies should:

• work with suppliers to understand the specific pressures they face and identify potential solutions on a case-by-case basis.
• consider with individual suppliers whether it might be sensible in some cases to revise delivery dates and other elements of the contract. For example:
  • the Scottish Government conducts a number of field work surveys each year and has halted these surveys due to travel and access restrictions and is reconsidering how and when best to progress this work.
  • other contracts that include inspections have had Key Performance Indicators temporarily varied to take account of the implications of COVID‑19.
  • in some contracts where delivery is particularly critical, there is increased contact with suppliers to ensure issues and concerns are captured and addressed quickly.

New procurements

6. For any procurement procedures due to start soon, buyers should first speak with their customers to ensure that it is necessary to commence the procurement at this time, that the requirement still exists and that it is still practical to deliver:

• Is the market able to submit bids at this time? Again, a supplier’s approach to furlough may impact on its ability to bid. For example, if the majority of staff in an organisation including those involved in submitting tenders are on furlough, which is distinct from working from home, this could affect the ability of individual businesses to submit a tender at this time;
• Sourcing strategies and specifications should be reviewed to check that these are still achievable or if any changes are needed;
• Consider whether it may be necessary to rewrite parts of the specification and other documentation such as evaluation criteria. For example, for a service contract that would traditionally involve face-to-face interaction consideration might need to be given to using innovative technology to reduce or replace that requirement. This may have the additional benefit of positive environmental benefits.

7. These steps should be carried out to ensure that procurement procedures are not commenced that are not practical to deliver and to ensure the best use of resources at this time.

8. For procurements that need to proceed, buyers should consider making the greatest use of technology in the market engagement process. For example, some organisations will have facilities to provide for video-conferencing/information sessions. The Supplier Development Programme may be able to assist.

9. It will also help suppliers to manage uncertainty if changes to procurement plans and timescales are clearly communicated through forward plans and other media. This will provide assurance to suppliers as circumstances change and opportunities arise.