Scottish procurement: policy manual

Definitions of procurement and contract and supplier management (CSM)

Procurement is the process of buying goods, services and works from external suppliers. The public procurement process typically includes:

• understanding customer requirements as set out in a customer specification
• reviewing existence and accessibility of current frameworks and contracts
• understanding current and evolving market capacity and capability to underpin and enable effective competition
• developing a commodity / service strategy or brief to maximise sustainable value, considering wider economic, social and environmental outcomes as well as cost, quality and timelines
• determining the procurement procedure and exclusion, selection and award criteria
• issuing Invitations to Tender or invitations to quote
• evaluating bids or quotes
• awarding, implementing, and managing contracts
• obtaining and paying for purchases / orders

The purpose of CSM is to ensure the contract is successfully executed by monitoring supplier performance against the contract requirements in order to fulfil the requirement and realise the projected benefits and savings. CSM must be considered when developing a commodity / service strategy and carried out throughout the entire life of a contract. It is usually performed by the business area for whom the contract has been awarded, however support can be provided to business areas from SPPD where requested and paid for. Collaborative framework agreements are managed strategically by SPPD. Call-off contracts under frameworks are managed by the business area who conducted the call-off competition. For more information on CSM responsibilities see the CSM section of this Manual.