Procurement - SME and third sector action plan 2024-2026: business and regulatory impact assessment

Consideration of Options

Option 1: Do not publish a Procurement Action Plan, and continue current approach

Sectors and Groups affected

A decision not to publish an SME and Third Sector Action Plan will result in:

• Lack of single source of information of the Scottish Government’s policy, tools, systems and guidance.
• Risk of perception of a lack of coherence in Scottish Government approach, and a lack of commitment from the Scottish Government.
• Potential loss of opportunity to the public sector to purchase from SMEs and Third Sector Organisations, and therefore potential loss of best-possible supplier, with associated impact on cost, quality and timescales
• Potential loss of economic opportunity to SMEs and Third Sector Organisations to bid for public contracts, and loss of revenue and potential to grow.

Benefits

By not publishing we are not placing expectation on Scottish Government to develop and maintain the Action Plan.

Costs

There are no additional immediate costs associated with this option relating to the production of an Action Plan, but there would be significant risk of subsequent cost from the lack of clear and up-to-date guidance and advice.

Regulatory and EU Alignment Impacts

EU Alignment

Taking no action will not will not impact upon EU Alignment.

Intra-UK Trade Impacts

Taking no action will not impact upon internal UK Trade, including the United Kingdom’s Internal Market Act 2020 and the Common Framework agreements.

International Trade

Taking no action will not impact international trade.

Scottish Firms Impact Test

Taking no action will not impact Scottish firms.

Competition Assessment

Taking no action will not have an impact upon competition.

Consumer Assessment

Taking no action will not have an impact upon the consumer.

Test Run of Business Forms

Under this option no new forms will be introduced.

Digital Impact Test

Taking no action will not impact have a digital impact as this option is a continuation of business as usual.

Legal Aid Impact Test

This option does not relate to new regulations and will not impact individuals’ right to access justice.

Enforcement, Sanctions and Monitoring

Not publishing will not require monitoring or enforcement, and will therefore not entail any sanctions.

Implementation and Delivery Plan

As this option is continuation of current practices there is no implementation or delivery plan.

Post-implementation Review

As this is a continuation of current practices, there is no need for an implementation and delivery plan and therefore no requirement for a bespoke post-implementation review.

Option 2: Publish the Action Plan

Sectors and Groups

The following groups will be affected by the introduction of the Action Plan:

• SMEs and Third Sector Organisations, who are the intended beneficiaries
• All other suppliers and potential suppliers to Scottish Government – while not the target audience of the plan, suppliers of all scales and sectors will be able to refer to the information and resources published within the plan.
• Contracting organisations and agencies across the public sector, which will need to be aware of the contents of the Action Plan and have due regard for the actions contained.

Benefits

Benefits from publishing the strategy are:

• Clarity for SMEs and Third-Sector Organisations of opportunities in public-sector procurement.
• Visibility for the whole procurement community of Scottish Government’s policies, tools, and sources of information for SMEs and Third-Sector Organisations.
• Increased opportunity for the public sector to procure from most suitable supplier from an increase in bids from SMEs and Third-Sector Organisations.
• Community improvements from the increased opportunity for local SMEs and Third-Sector Organisations to participate in public sector procurement

Costs

Regulatory and EU Alignment Impacts

EU Alignment

It is not expected that the introducing the Action Plan would have any impact upon internal UK Trade, including on the United Kingdom’s Internal Market Act 2020 and the Common Framework agreements.

The Procurement Directorate will share information on the Action Plan with cross-UK government contacts for their information and awareness.

Intra-UK Trade Impacts

Publication will not impact upon internal UK Trade, including the United Kingdom’s Internal Market Act 2020 and the Common Framework agreements.

International Trade

This option will not impact international trade.

Scottish Firms Impact Test

As part of the development process for the Action Plan, engagement was conducted individually and in group via the Scottish Government’s Procurement Supply Group with organisations representing Scottish businesses (e.g. British Services Association, Federation of Small Businesses).

Feedback has been integrated into the text of the Action Plan.

Competition Assessment

The Action Plan is intended to provide information and support to SMEs and Third Sector Organisations. It is not expected that it will have a direct impact on competition.

Consumer Assessment

As the Action Plan applies to procurement in the public sector, there is no direct impact on the end consumer.

Test Run of Business Forms

Under this option there will be no new forms for businesses to complete.

Digital Impact Test

Digital impact of the Action Plan is not assessed as significant and the initiatives and advice contained are a summary of existing procedures.

Legal Aid Impact Test

There will be no effects to Legal Aid or to right to access justice.

Enforcement, Sanctions and Monitoring

Monitoring of introduction of the Action Plan will be conducted by Scottish Government Procurement on a continual basis.

Reporting will be included in the annual Minster’s Reports.

Implementation and Delivery Plan

Publication of the Action Plan is due to take place in April 2024, via the Scottish Government website.

Ownership will remain with Scottish Government Procurement, with oversight from the Public Procurement Group, who will monitor its impact, where relevant to do so

Ministerial sign-off of the Plan will be obtained prior to this publication.

A communications plan across Scottish Government Procurement will support the publication of the strategy. This will be conducted online and in person, and include engagement through key stakeholders of Scottish Government.

Promotion will also take place through the Scottish Government’s key partner the Supplier Development Programme, who provide advice and guidance to SMEs and Third Sector Organisations on biding for and winning contracts in the public sector.

Post-implementation Review

No formal review process of the Action Plan will be conducted. Instead, ongoing monitoring and updating will be managed by Scottish Government Procurement.