Scottish Government procurement: annual report 2023 to 2024

Overview of Scottish Government procurement activity during the period 1 April 2023 to 31 March 2024. It reflects our performance as a contracting authority.


4. Contracting activity and how our procurement activity contributes to value for money

4.1 Introduction

Our contracts deliver a wide range of economic, social and environmental benefits as well as significant financial savings for the public sector.

Our contracting activity covers Scottish Government core use only; central government agencies and non-departmental public bodies (NDPB) (non-collaborative, for individual public bodies); sectoral collaborative frameworks (for central government organisations including agencies and NDPBs); and national collaborative frameworks and contracts. We provide framework agreements and contracts for commonly purchased goods and services which are used across the public sector. Details of the contracts that we have placed can be found on PCS.

Contracting for Scottish Government directorates is about delivering the services and goods required to enable delivery of government policy and support corporate functions, placing contracts that are key to delivery of the Programme for Government. As an organisation, year on year we mainly buy research to help us understand the needs of the people of Scotland, although there are some exceptions to this. Details of our contract awards are available in the Scottish Government contracts register: Contracts Search – Public Contracts Scotland on the PCS website.

We are committed to spending wisely and delivering real value for money. To support this we:

  • work closely with the people who use the goods, services and works we buy to help understand their requirements and the markets we work in;
  • award contracts based on fair, open and transparent competition which is in proportion to the contract in question and which keeps to our legal obligations; and
  • make sure that our contracts are effective and managed efficiently.

Our collaborative procurement achieves VfM for the Scottish public sector through partnership working with buying organisations, the Procurement Centres of Expertise and suppliers.

Our established collaborative procurement portfolio teams cover utilities, information and communication technology, construction, and corporate and professional services. They award framework agreements for the whole of the Scottish public sector and for the central government sector.

Our Major Programmes Implementation Procurement Team delivers contracts and provides commercial support to fulfil obligations under the Scotland Act 2016 which transferred a wide range of powers to Scottish Ministers, most significantly the powers over social security and employment support.

The national contracts and frameworks awarded by our buying teams can be used by public organisations and charities across Scotland and cover a range of goods and services. Our website contains more information on our current collaborative agreements.

4.2 Summary of Scottish Government[6] core regulated procurements April 2023 - March 2024

Key figures

  • Throughout the reporting period, we managed 540 live regulated contracts worth over £12 billion throughout their lifetimes.
  • We awarded 245 new contracts regulated by the Procurement Reform (Scotland) Act 2014 with a total value of over £7 billion over their lifetime.
  • Through our contracts and frameworks in reporting year 2023-2024 (across all types of contracting activity), we saved the public sector over £81 million.

4.3 Summary of SG procurement spend and savings in 2023-2024

Key figures

  • Spend in-year by core Scottish Government and through collaborative frameworks by other organisations combined was over £2.1 billion, with savings of over £141 million (9%).
  • Core Scottish Government only spend through suppliers in reporting period 2023-2024 was £561 million.
  • Total spend through our collaborative frameworks was over £1.5 billion, and savings achieved through these frameworks was over £130 million (8%).

4.4 Summary of regulated procurements in the next two financial years

The 2014 Act requires public bodies to provide a summary, in their annual procurement reports, of the regulated procurements expected to commence over the next two financial years. This brings added transparency to the procurement process and enables suppliers to gain an early indication of upcoming tendering opportunities and to plan accordingly for these.

In the next two years we anticipate starting around 95 regulated procurements with a combined value of approximately £936 million across our contracting scope.

We expect to award:

  • around 81 contracts for the sole use of the Scottish Government, with an approximate value of over £514 million.
  • It is expected that 25 national collaborative contracts frameworks will be awarded on behalf of Scottish public bodies, with a value of around £2.15 billion.

A full list of known regulated procurements due to commence within the next two years of the reporting period is in Annex A.

Contact

Email: scottishprocurement@gov.scot

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