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Corporate Procurement Strategy and Procurement Policy

1. Introduction

1.1.    The Procurement Reform (Scotland) Act 2014 requires a contracting authority with expected annual procurement spend above £5 million to produce a Procurement Strategy. This document updates SEPA’s 2021-24 Corporate Procurement Strategy (Procurement Operating Plan) which was originally published in December 2021. 

1.2.    SEPA’s procurement function has been on a maturity journey for several years and has faced a number of set-back in the face of the global pandemic and more recent cyber-attack (December 2020). This has resulted in a largely transaction focus on delivery on the part of the function. There is now an opportunity to review our corporate approach to procurement and strengthen our policy position.

2. Overview

2.1.    The document is aligned to both SEPA Corporate Plan and Scottish Government Procurement Policy and sets out how SEPA intends to ensure that its regulated procurements (>£50k):

1. contribute to the carrying out of its functions and the achievement of its purposes;
2. deliver value for money; and
3. are carried out in compliance with its duties under Sustainable Procurement.

2.2.    In addition, the document includes a statement of the authority's general policy on:

1. the use of community benefit requirements;
2. consulting and engaging with those affected by its procurements;
3. the payment of a living wage to persons involved in producing, providing or constructing the subject matter of regulated procurements;
4. promoting compliance by contractors and sub-contractors with the Health and Safety at Work etc. Act 1974 (c.37); and
5. the procurement of fairly and ethically traded goods and services.

2.3.    The Strategy also includes a statement on how we approach regulated procurements and sets out how SEPA intends to ensure that, so far as reasonably practicable, prompt payments are made to suppliers.

2.4.    To achieve this, the previous Standing Financial Instruction 4 (Purchasing and Procurement of Good & Services) has been reviewed and updated to create a supporting Procurement Policy.

2.5.    In addition to the legislative requirement, we are scheduled for a commercial assessment by the government’s Procurement Capability Team in August 2024. This is part of the wider government Procurement & Commercial Improvement Programme (PCIP) that assesses contracting authorities’ commercial maturity. A Corporate Procurement Strategy is a keystone requirement of the assessment and provides the platform to standardise our approach to procurement delivery across the business.

2.6.    It should be noted that an organisation with a strong procurement function improves our brand and reputation in the recruitment marketplace and aids with staff recruitment and retention. This is currently a constrained marketplace and we view this as a positive step toward making SEPA an ‘employer of choice’.

3. Recommendations

3.1.    The Board is asked to approve the Corporate Procurement Strategy and the Procurement Policy.

3.2.    The Board is asked to note that as part of next steps, the Procurement team is engaging with wider stakeholders as part of a business partnering model (currently being developed) and will incorporate this as part of ongoing communications. In addition, communication will be both on an informal day-to day basis and formal updates to the internal website for staff awareness.