Frequently Asked Questions
These FAQs have lots of helpful advice for the general public and suppliers
General Queries
1. What is Procurement?
2. What is the Tayside Procurement Consortium?
3. Why are the three Councils starting to work together?
4. What role does Tayside Contract have in the programme?
5. What do we mean by “Commodities”?
6. What is the significance of putting Commodities into “Categories”?
7. What benefits will be achieved?
8. How will reduction in duplication of effort and therefore lower costs be measured?
9. What is the Procurement Transformation Programme?
10. Who made the decision to commence this Programme?
11. How long will the Programme run for?
12. How will the Programme affect Council Employees?
13. What is the cost of the Programme?
14. What is Electronic Procurement Scotland (ePS)?
15. What is eProcurement?
16. What is Procurement Scotland?
17. What is Scotland Excel?
18. What are “Regional Hubs”?
19. What is the McClelland Report?
Business Specific Queries
20. Where do TPC advertise?
21. How can businesses offer their services to the Consortium?
22. How can businesses improve their chances?
23. How will the Programme affect small, local suppliers?
24. What about approved and select lists?
25. What about sub-contractors and suppliers?
26. What is your policy on insurance requirements?
27. What is your policy on health & safety requirements?
28. What is your policy on equality and diversity in procurement?
29. What is your policy on contractors and the environment?
30. How do I return tender documents?
31. What are your terms for payment?
What is Procurement?
Procurement is the full range of activities related to purchasing goods, services and works. The procurement programme will address the way in which we do our ‘’buying’’ – i.e. how we purchase goods, services, works and how you manage contracts. We will look at our procurement process to ensure that we are always achieving Best Value For Money.
Value for Money does not mean the cheapest price – it requires us to achieve
- The Right Quantity
- At the Right Quality
- For the Right Cost
- At the Right Time
- To the Right Place
- From the Right Source
The key objectives of the procurement programme are to deliver improved procurement practice across all areas – simply put this means that we will have to improve the way we ‘buy’ things - this covers EVERYTHING from a ‘nail to a new school.’
What is the Tayside Procurement Consortium?
The Tayside Procurement Consortium (TPC) is a partnership between Dundee City, Angus and Perth and Kinross Councils. The Councils are coming together to improve the way in which goods and services are bought. The TPC aims to make fundamental changes in procurement practices and establish permanent support arrangements for collaborative procurement in the area.
If you have any comments on their design or content or purely wish to contact us please email tayside.procurement@dundeecity.gov.uk
Why are the three Councils starting to work together?
By combining procurement expertise and negotiating power across all Councils, there is the potential to generate significant savings in each authority each year.
What role does Tayside Contract have in the programme?
The 3 authorities already work in partnership with Tayside Contracts to deliver best value and the procurement programme will develop this existing partnership to realise greater efficiency benefits for all.
What do we mean by “Commodities”?
'Commodities' is the term used by procurement specialists to describe different groups of goods and services which Councils and other businesses require to buy. By way of example some of the commodities which the TPC is currently looking at for collaborative buying opportunities include:-
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What is the significance of putting Commodities into “Categories”?
This is really down to the McClelland Report. He recommended that commodities should be put into groups (categories) and procured in specific ways. McClelland envisaged the following categories:-
- Category A – National Procurement – McClelland envisaged a small number of high value commodities being subject to Scotland-wide contracts negotiated by the Scottish Government and which all public sector bodies in Scotland would use on a “call-off” basis to buy goods and services.
- Category B – Regional or Sectoral Procurement – this would cover those commodities which were inappropriate to be procured through national contracts but would benefit from collaboration on either a Regional or Sectoral level. For example it may be appropriate for all NHS bodies to come together to buy specialist medical equipment which is specific to their sector of the economy.
- Category C – Local Commodity Procurement – these commodities would be those best sourced locally by Councils individually or through smaller scale collaborations such the TPC.
Although the categorisation of commodities is now largely agreed there are many obstacles to overcome to make McClelland’s vision a reality and until Category A & B contracts start to become available the TPC will be looking at all commodities to see if there are benefits from collaboration without getting into long term local contracts.
What benefits will be achieved?
By uniting the procurement activities of all three Councils and driving continuous improvement, significant savings will be generated. Key activities will include establishing well-negotiated contracts that meet users’ needs and ensuring that these contracts are uniformly applied across all Councils. As a result, all Councils will benefit from best practice and will maximise efficiency savings through their combined buying power.
How will reduction in duplication of effort and therefore lower costs be measured?
The efficient purchasing process should result in greater efficiencies for services, freeing up staff time to focus on other tasks. The financial savings will be achieved through strategic procurement processes. Key performance indicators are being developed at a national level.
What is the Procurement Transformation Programme?
The Procurement Transformation Programme is a programme of change, aimed at transforming the way in which goods and services are purchased. The programme consists of a number of streams of activity across all three Councils - Dundee City, Angus and Perth and Kinross Councils.
The Programme consists of three strands of work:
- Creation of a Central Procurement Unit ( CPU )
A CPU will be developed with the centralisation of the Council’s ‘expert knowledge’ about procurement. This unit will be led by experienced staff who will be sourced from all three Councils and who will provide ongoing specialist support across the Councils. The CPU will develop and implement common ways of working on which contracts can be negotiated and will act as a ‘centre of excellence’ to support all Councils.
- Strategic Procurement
This activity will focus upon the adoption of a structured and comprehensive approach to purchasing goods and services on a TPC basis. A sourcing toolkit has been developed and will be used to provide a standard approach to procurement across all three Councils, focusing on identifying leading practices, managing commodities, and driving improvements throughout all areas of the Councils. This will deliver cost savings and improve quality, service, process and customer satisfaction.
- eProcurement Systems
The implementation of new eProcurement technology and processes to support the TPC procurement vision. The eProcurement Scotl@nd service adopted system (called 'PECOS') will be implemented in Perth and Kinross and Angus Councils and the eProcurement module of Civica Authority in Dundee City Council.
Who made the decision to commence this Programme?
All three Chief Governments have played a critical role in driving this Programme forward. They all believe that getting smarter in how we purchase goods and services will play a key role in delivering the council efficiency goals, strengthening collaborative working between our Councils and furthering the shared services agenda. The Programme aligns with the Scottish Government’s agenda for Procurement and the recommendations made by the McClelland Report (March 2006).
How long will the Programme run for?
It is envisaged that the entire Programme will run for an estimated three years before activities become ‘Business as Usual’. The Programme activities will be structured in a series of waves/phases – within each wave/phase there will be new commodities addressed by the Strategic Procurement team, new staff recruited for the CPU and new departments/services staff adopting the appropriate eProcurement Systems.
How will the Programme affect Council Employees?
This will depend upon the individual’s current level of involvement in the procurement process and the nature of the goods or services that are purchased. For example, individuals involved in purchasing new equipment will link closely to a key contact within the Central Procurement Unit who will provide support and guidance through the procurement process. Ordering more routine goods/services will be done via eProcurement using an online catalogue.
What is the cost of the Programme?
This is a 'spend to save' initiative and the cost of the programme will ultimately be fully covered by a proportion of the efficiencies delivered.
What is Electronic Procurement Scotland (ePS)?
ePS is the name given to the system which most Councils have adopted to allow them to order goods and services by electronic means; however DCC are using Authority Financials. ePS was commissioned by the Scottish Government and has been developed by CapGemini in conjunction with other partners. Both systems are web based and thus can be accessed from any PC with internet access. It is already in use in over 60 public sector organisations in Scotland including a growing number of Councils.
For information on Authority Financials click on the link below: http://www.civicaplc.com/UK/Software/Corporate+Services/
The ePS pages can be accessed by clicking the following: http://www.eprocurementscotland.com/
What is eProcurement?
This is the electronic process by which goods and services will be purchased. This is the process that will enable orders to be placed electronically with suppliers following approval – similar to online shopping.
What is Procurement Scotland?
Procurement Scotland is tasked with developing and implementing procurement strategies for national Category A commodities on behalf of all Scottish public bodies. It has been established in response to the McClelland's ' Review of Public Sector Procurement in Scotland' report, which views national and sectoral Centres of Expertise as the major vehicle for driving collaborative, advanced procurement in the public sector.
What is Scotland Excel?
Scotland Excel is being led by Renfrewshire Council and has taken over the Authorities Buying Consortium (abc). Scotland Excel is expected to be the main vehicle for Category B commodity procurement for the local government sector. Scotland Excel may however also have a role in assisting the Scottish Government to develop national contracts for Category A commodities. Scotland Excel has 4 centres of excellence across Scotland through what are termed Regional Hubs.
What are “Regional Hubs”?
Regional centres of excellence (hubs) will be set up across Scotland as part of the Scotland Excel project and will play a role in the development of Category B contracts. The idea is to share the workload of developing contracts for Category B commodities among the centres of excellence based on the knowledge and experience they have. The regional hubs are in Inverness, Aberdeen, Edinburgh and Paisley, which is also Scotland Excel's HQ.
What is the McClelland Report?
This is the report by John McClelland OBE which was commissioned by the then Scottish Government in 2005. McClelland’s report was published in March 2006 and made wide ranging recommendations regarding the future of public sector procurement in Scotland. Collaborative procurement through the TPC, the implementation of an electronic procurement system and the creation of a corporate procurement team all stem from the recommendations made by McClelland.
The report is available online at: McClelland Report
Where do TPC advertise?
Tender adverts are advertised via an appropriate forum ie OJEU, Public Contracts Scotland, one of our websites and occasionally local or national newspapers.
How can businesses offer their services to the Consortium?
The TPC does not propose to maintain a list of ‘approved’ contractors and suppliers.
In order to ensure fair competition, services and supplies are currently advertised in the appropriate forum - i.e. OJEU, Public Contracts Scotland, local or national newspapers and within some authority web pages.
Contractors and suppliers are requested to submit an expression of interest in response to tenders as and when they are advertised.
These expressions can only be accepted when received electronically or in hard copy format, and MUST include all information requested within the advert.
Verbal expressions of interest will not be accepted.
How can businesses improve their chances?
There are a number of ways in which you can improve your chances of being successful.
Be prepared for tenders as they are due to for release, i.e. keep an eye on the contracts opportunity page and note the contract expiry date of any contracts your company may be interested in.
When expressing an interest or completing a tender pack, ensure you follow the instructions issued, answering all questions and returning all documents/evidence requested and making sure this is provided in the format required.
- Do not answer the questions by sending in company annual reports/brochures that require the evaluation team to search for the information required.
- Be honest and open, if you are unable to answer a question give the reason why.
Failure to follow the above two bullet points can severely restrict your chances, and may even result in your application being dismissed.
How will the Programme affect small, local suppliers?
Small, local suppliers will continue to remain important to all three member Councils of TPC. Our aim is to ensure that, wherever possible and, consistent with the need to secure value for money, suitably qualified Small or Medium Enterprises (SMEs) have the opportunity to compete for business.
The barriers to business that SMEs face and how SMEs can be assisted in bidding for work will be addressed by the TPC to ensure that SMEs are not unfairly disadvantaged in the procurement process.
The definition of an SME is described as a business with less than 250 employees.
The issue of quotas for SMEs, i.e. ensuring that SMEs are awarded an agreed percentage of all public sector contracts, is often raised in the UK, but while inclusion of SMEs in competitive tendering exercises should have the benefit of increased competition, quotas would act against the principle of Value For Money (VFM) and also against Procurement legislation.
For the avoidance of doubt, Scottish Government Procurement Policy states – ‘’It is Government policy to take steps to remove barriers to participation by SMEs. There are many ways in which this can be done, such as improving access to procurement opportunities and information, which do not discriminate against larger firms and which help to improve VFM by increasing competition.’’
Given the nature and often comparatively large size of public sector contracts there will inevitably be circumstances when SMEs will have the best opportunities to tender for contracts as part of a consortium, as opposed to as a main contractor.
The procurement function will work in partnership with colleagues in Economic Development to deliver on the initiatives aimed to support and stimulate growth within the local economies,
We will actively pursue activities relating to: -
- The Contract Process - To make the tender process more efficient and cost effective
- Communication - To raise awareness of the procurement initiative
- Supplier Charter – Deliver on the Scottish Government’s charter that commits to removing the barriers to business for SMEs
We will actively engage with the local Chambers of Commerce and the Federation of Small Businesses to progress our support of the local business community in Tayside.
What about approved and select lists?
TPC does not use approved lists but subjects each requirement to a tender procedure. Lists created as result of this process become null and void at the tender award stage.
What about sub-contractors and suppliers?
TPC recognises the importance of sub-contractors and suppliers within the supply chain and accordingly we will develop pages within the website which attempt to provide the contact information providing direct access to our current service providers for the full spectrum of goods and services.
Additional supply chain opportunities may also be found from the Economic Development Units within the respective authorities.
What is your policy on insurance requirements?
Generally insurance requirements are stated within tender/contract documents, however as a minimum most contracts will require the contractor to be covered by an Employers and Public Liabilities Insurance to the value of £5 million.
What is your policy on health & safety requirements?
TPC is committed to ensuring the health and safety of its residents, visitors, employees and users of all the facilities and services within the authorities
As part of this on going commitment we continually assess and monitor the way in which contractors and suppliers provide their services to TPC, whilst also reviewing the way in which we carry out such assessments.
Should you have any further queries relating to H&S, please email the Procurement team who will assist with your query.
What is your policy on equality and diversity in procurement?
The TPC is committed to an Equalities and Diversity Policy covering Race, Disability and Sexual orientation.
An important part of this commitment is encouraging and, where possible, requiring companies and other organisations which bid for Council services to practise equalities and diversity in employment and service delivery.
The TPC will take into account within its tender evaluation and contracting processes, a potential contractor's approach to equalities in terms of its employment practices and service delivery, which will also be monitored and managed during the life of each contract.
What is your policy on contractors and the environment?
TPC will endeavour to put into practise the principles of a sustainable procurement.
How do I return tender documents?
Full details on how to return your tender will be included with the tender documents issued and these must be followed to the letter to avoid disqualification.
What are your terms for payment?
Where TPC enters into a formal contract the terms and conditions are stated within the tender documents and/or negotiated with the successful tenderer.
These terms of payment will generally be based on our standard terms for purchase orders, which are, that payment will be despatched 30 days from receipt of an acceptable invoice for goods or services performed.
These pages have been designed to provide our business partners and other interested parties with information and advice on our procurement process.
