Scottish Government procurement annual report: 2018

Ministerial foreword

An outward-looking government that is honest, transparent and reachable, where our procurement is both business friendly and socially responsible.

This is how we believe government should operate. These are the values we are demonstrating when we spend taxpayers' money on the goods and services we use.

Supporting sustainable and inclusive economic growth is one of the foundations of the Procurement Reform (Scotland) Act 2014. In this, we committed ourselves, and all public sector organisations spending significant sums of public money, to align our actions with delivery of our national purpose.

"To focus on creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive economic growth."

Fig 1 – National Performance Framework

Across the public sector, for the first time, annual procurement reports are being published, giving greater transparency, openness and understanding of how we use and can improve public procurement as a social and economic lever.

Measures of success within these reports go well beyond savings. Our policies and our contracts are delivering more opportunities, more fairness and more equality.

Businesses, especially Small and Medium sized Enterprises ( SMEs), now have more public sector opportunities than ever before. SMEs have a special place in our economy, they are the powerhouse which creates significant numbers of jobs across Scotland. It is not only right, but essential, that we are enabling them to have access to our contracts. Whether that is through the eCommerce systems we provide, or breaking down large contracts to make them more suitable for SMEs to tender for, or paying our bills quicker – 99% are paid within ten days.

Our suppliers, in turn, deliver Fair Work practices for their staff, with 94% of recent contracts now paying at least the real Living Wage to their employees. Other indicators of fair work, driven through our Procurement Strategy, are having a positive impact on the wellbeing and the wealth of, our society.

Of course, savings are important. In this reporting period, our contracts have saved the Scottish public sector almost £160 million. That has enabled investment in services which otherwise may not have been possible.

On the international stage we are seen as a role model other countries wish to emulate. Our best practice guides and collaborative approaches are supporting procurement professionals in all public sector organisations the length and breadth of the nation.

There is a vibrancy and determination within Scottish Government procurement, and we are committed to using public procurement to help deliver our wider social and economic agenda. Every day we are looking to improve on what we do. We will not sit back and rest.

We will continue working with our partners and stakeholders across the public sector and the business and Third Sector communities, helping to share in a more equal and just society, and supporting the improved wealth and wellbeing of our people.

Derek Mackay
Cabinet Secretary for Finance, Economy & Fair Work