Procurement activity: annual report 2022 to 2023

Glossary

Term / Description

Annual procurement report

A report published by an individual public body, which provides information about the public body’s regulated procurement activities over the course of a given financial year. It also provides details of upcoming procurement projects.

Community benefit requirements

A contractual requirement imposed by a public body relating to training and improvement, or to the availability of sub-contracting opportunities, or which is otherwise intended to improve the economic, social or environmental wellbeing of the body’s area.

Fair Work First

Scottish Government policy which encourages businesses bidding for a public contract to commit to: payment of at least the real Living Wage, provide appropriate channels for effective workers’ voice, such as trade union recognition; investment in workforce development; no inappropriate use of zero-hours contracts; address workplace inequalities, including pay and employment gaps for disabled people, racialised minorities, women and workers aged over 50; offer flexible and family friendly working practices for all workers from day one of employment; and oppose the use of fire and rehire practices.

Framework agreement

An agreement between one or more public bodies and one or more suppliers, the purpose of which is to establish the terms governing contracts to be awarded during a given period, in particular terms with regards to price and, where appropriate, the quantity envisaged. A contract is only established when a “call off” from the framework is made.

Large businesses

Businesses with 250 employees or more.

Medium-sized businesses

Businesses with between 50 and 249 employees.

Micro businesses

Businesses with fewer than 10 employees.

Procurement

The process leading to the award of a public contract or framework agreement or establishment of a dynamic purchasing system for the acquisition of works, supplies or services from supplier.

Procurement spend

The amount paid by a public body for the acquisition of works, supplies or services from an economic operator, in line with the established procurement process.

Prompt payment

The timely payment of all suppliers involved in the delivery of public contracts, in accordance with the terms of the contract.

Public Contracts Scotland (PCS)

Advertising portal for Scottish public sector contracts, where contract notices and award notices are published.

real Living Wage

The real Living Wage is an independently calculated rate based on the cost of living and is paid voluntarily by employers.

Regulated procurements

Procurements seeking offers regarding contracts which are regulated by the Procurement Reform (Scotland) Act 2014. Contracts are regulated by the Act if their estimated value is equal to or greater than £50,000 excluding VAT for goods and services, and £2 million excluding VAT for works.

Small businesses

Businesses with between 10 and 49 employees.

Small and Medium-Sized Enterprises (SMEs)

All businesses with fewer than 250 employees.

Supply chains

The network of suppliers involved in the delivery of any given public contract. This includes the main contractor(s) and any sub-contractors involved in contract delivery.

Supported businesses

Businesses whose main aim is the social and professional integration of disabled or disadvantaged persons, and where at least 30% of the employees are disabled or disadvantaged persons.

Third sector organisations

Organisations that exist wholly or mainly to provide benefits for society or the environment. These organisations include charities, social enterprises and voluntary groups.

Value for money

The optimum combination of whole-life cost and quality (or fitness for purpose) to meet the user’s requirement.