Procurement: SME and third sector action plan 2024-2026

Introduction

The publication of this SME and Third Sector Procurement Action Plan strengthens our commitment to delivering real impact and ensuring we continue to collaborate across industry and the wider public sector in Scotland.

The Scottish Government’s SME and Third Sector Procurement Action Plan sets out our actions for the next two years (2024-2026) to collaborate, engage and reduce the barriers for SMEs and third sector organisations when engaging with public procurement processes.

Our work in this area contributes to achieving all of the National Outcomes, in particular:

• We have thriving and innovative businesses, with quality jobs and fair work for everyone.

We are committed to making it as easy as possible for SMEs and third sector organisations to bid for, and win, public contracts as well as participate in local supply chains and promote innovation.

Our Sustainable Procurement Duty requires public bodies, among other things, to consider and act on opportunities to facilitate the involvement of SMEs and third sector organisations in the procurement process.

Within public procurement we have outcomes supported by our policies, tools and guidance which underpin and enable our work.

We aim to increase SME and third sector organisations’ awareness of, and ability to engage with, public sector procurement.

We are reviewing our current processes and practices to consider how contracts are developed in order to reduce barriers and enable SME and third sector organisations to participate in public sector procurement.

The New Deal for Business

The New Deal for Business recommended that public bodies should promote opportunities for purposeful businesses to advance sustainability, fair work and community benefits. The procurement action included in The New Deal for Business Implementation Plan (October 2023) was:

“Publication of an SME and Third Sector Action Plan as part of the wider Scottish Government work through Public Procurement policy and approaches to better support suppliers, especially SMEs and third sector organisations, who want to bid for public sector contracts.”

Public Procurement Strategy for Scotland

The Public Procurement Strategy for Scotland’s vision is ‘putting public procurement at the heart of a sustainable economy to maximise value for the people of Scotland’. The SME and Third Sector Procurement Action Plan will support the implementation of this strategy as part of its ‘Good for Businesses and their Employees’ objective. The plan will aim to consider how procurements are conducted and contracts are developed to reduce barriers and enable participation for SMEs and third sector organisations.

What is an SME?

Our definition of SME encompasses micro (fewer than 10 employees), small (fewer than 50 employees) and medium-sized (not more than 250 employees) businesses.

What is the Third Sector?

Organisations (other than bodies established under an enactment) that exist wholly or mainly to provide benefits for society or the environment. This includes a charity, with the exception of public bodies, a voluntary organisation or a social enterprise.

This action plan has been developed with procurement and policy experts as well as supplier representative bodies and demonstrates the work which can be achieved through industry and government collaboration. Throughout the implementation of this plan I am excited to continue this partnership as well as see the real benefits which the actions within this plan can bring to SME and third sector engagement in the procurement process.

Nick Ford

Director Procurement & Property, Scottish Government