Sustainable Procurement Tools

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Procurement Process - Embedding Sustainability Requirements

NAC's Corporate Procurement Unit (CPU) and NAC's Property Management & Investment Team developed a contract strategy with a focus on meeting the CPU's strategic objective 'to create a more sustainable North Ayrshire'. The CPU helped develop the specification, and the selection and award criteria.

NAC's CPU adhere to the Sustainable Procurement Duty outlined within The Procurement Reform (Scotland) Act 2014. For this project, the following tools were used in order to ensure relevant and proportionate sustainability requirements were embedded in the contract.

Prioritisation Tool

The prioritisation tool is a self-assessment tool designed to assist early stage strategic planning through the consideration of economic, environmental and social wellbeing, and brings a standard, structured approach to the assessment of spend categories.

Construction: The prioritisation tool revealed there was scope to improve the environmental impact as a result of this procurement. Specifically around materials, logistics, climate change and waste. This led to the decision to complete Life Cycle Impact Mapping and a Sustainability Test.

Life Cycle Impact Mapping (LCIM)

Every product and service has a 'life cycle' or number of stages it goes through. LCIM is used to identify and assess the social and environmental impacts of these stages. It is designed to be a gateway into the sustainability test.

Impacts of Obtaining Raw Materials: LCIM revealed that timber will be the main material used in the construction of the bungalows, and therefore it is important to ensure ethically sourced timber is used - which minimises the impact of logging on forests and the surrounding wildlife and communities. Sustainable wood also means that the timber is not a product of illegal logging that violates national and/or regional regulations protecting forests and the environment. Material selection formed part of the design specification to ensure only sustainable and certified materials are used. This included:

  • Ensuring only FSC, CSA, SFI, PEFC and CoC certified timber is used for all construction elements (external walls, ground and intermediate floors, internal load-bearing and non-load-bearing partitions and roof construction).

Impacts of Manufacturing and Logistics: LCIM also revealed that vehicles and heavy machinery will be used throughout the construction phase. ISO 14001 or equivalent formed part of the SPD minimum conditions to ensure bidders demonstrate a commitment to protecting the environment and complying with increasingly stringent environmental laws, including the reduction in CO2 emissions.

Sustainability Test

The sustainability test is a self-assessment tool designed to help buyers embed relevant and proportionate sustainability requirements consistently in the development of contracts and frameworks.

Area Considered
Outcome
Led To
Climate Change

In addition to the LCIM outcomes, the sustainability test revealed there was scope to reduce the impact on climate change as a result of the design of the bungalows and also their energy usage.

Climate change formed a key aspect of the design specification to reduce the impact on climate change, which included:

  • The installation of solar (PV) panels on the roof of each bungalow with the energy generated from the solar (PV) panels used to operate the bungalows.
  • The installation of air source heat pumps, rather than the traditional gas or oil-fired boiler. Air source heat pumps work at a lower internal temperature than a gas or oil-fired boiler, so radiators will not feel as warm - because they are now more efficient and do not need to be as hot. It will provide gentle heating over longer periods rather than quick boosts of heat on demand.
  • The installation of low energy lighting with a minimum efficiency of 45 lumens per circuit wall. The energy efficient lighting will help lower electricity bills and carbon dioxide emissions, all without reducing the quality of light in bungalows. 
Material

Similar to LCIM, the sustainability test revealed that timber will be the main material used in the construction of the bungalows, and therefore it is important to ensure ethically sourced timber is used - which minimises the impact of logging on forests and the surrounding wildlife and communities. Sustainable wood also means that the timber is not a product of illegal logging that violates national and/or regional regulations protecting forests and the environment.

Repair/reuse/re-manufacturing at end of life of materials used in design and build was considered and will be monitored and managed by NAC’s maintenance team as part of the maintenance contract for the units.

Material selection formed part of the design specification to ensure only sustainable and certified materials are used. This included:

  • Ensuring only FSC, CSA, SFI, PEFC and CoC certified timber is used for all construction elements (external walls, ground and intermediate floors, internal load-bearing and non-load-bearing partitions and roof construction).

 
Waste

Sustainability test also revealed that packaging waste and other types of waste will be produced throughout the construction phase.

In addition to ISO 14001 or equivalent which also ensures bidders reduce waste management costs, a Site Waste Management Plan (SWMP) formed part of the terms and conditions to ensure contractors address the types and quantities of waste that will be generated, the resource management options for waste including proposals for elimination / minimisation / reuse / recycling, the use of appropriate and licensed waste management contractors and record keeping procedures. 
Skills and Training

Sustainability test also revealed an opportunities to generate employment and training opportunities.

Mandatory community benefits formed part of the technical criteria, including:

  • Employability Requirements (52 weeks per £1million);
  • Supply Chain Initiatives; and
  • Education & Community Engagement.
Communities - Impacts

Sustainability test also revealed their could potentially be a negative impact on the community and the need for community consultation.

Consultations were conducted, regarding the potential impacts on the community, as set out in the Community Empowerment and Renewal Act.
Equality &
Fair Work -Workforce Matters

Sustainability test also revealed equality as a concern in the construction industry, specifically the industry is not diverse and the main areas of concern over recent years centre on improving Equality, Diversity and Inclusion for women, Black, Asian and Minority Ethnic (BAME) individuals, those with a disability and those who identify as Lesbian, Gay, Bisexual, Transgender, Queer or Questioning (LGBTQ+).

It also revealed there is risk of unfair employment practices, including pay and conditions and an opportunity to promote the living wage or ensure the workforce is well motivated, well led and has appropriate opportunities for training and skills development. 

Mandatory fair working practices formed part of the quality evaluation, which required bidders to confirm their commitment to progressing towards adopting the five Fair Work First criteria in the delivery of the contract as part of a fair and equitable employment and reward package as a route to progressing towards wider fair work practices set out in the Fair Work Framework.
Health & Safety

Sustainability test also revealed health and safety as a potential issue during the delivery of the contract and an opportunity to improve this.

ISO 45001 or equivalent formed part of the SPD minimum conditions to ensure bidders demonstrate a commitment towards fewer workplace injuries and illnesses through a proactive approach to hazard identification and risk assessment which in turn leads to improved health and safety.
Security and Crime - Impacts

Lastly, the sustainability test revealed the potential risks around Serious and Organised Crime (SOC).

Bidders details were shared with Police Scotland to ensure there was nothing of an adverse nature held on Police Intelligence systems. This was in accordance with NAC’s Information Sharing Protocol with Police Scotland.

A summary of the selection and award criteria is noted below, which were included as minimum requirements to enhance sustainability.

Selection Criteria (Single Procurement Document)
As previously mentioned under LCIM and Sustainability Test, contractors were asked to have:
  • ISO 14001 (Environmental Management Systems) or equivalent as a minimum requirement.
  • ISO 45001 (Health & Safety Management) or equivalent as a minimum requirement.
Award Criteria (Technical and Commercial Criteria)

Quality questions were included in the procurement process that addressed: How contractors would consider the sustainability requirements outlined within Appendix G – NAC Sustainability Statement in order to demonstrate these will be considered during the design phase and savings are passed to tenants.

Bidders were asked the following quality questions. The weightings applied are also included below:

Experience & Resource (10%) - Bidders must detail their proposed team structure demonstrating how this project would evolve from project development through to construction completion. Bidders must also detail the roles and responsibility for each team member including CVs, in order to demonstrate they have the required experience and resource to deliver this project.
Sustainability (10%) - Bidders must detail how they will consider the sustainability requirements outlined within Appendix G – NAC Sustainability Statement in order to demonstrate these will be considered during the design phase and savings are passed to tenants.
Innovation (5%) - Bidders must detail their approach to ensure innovation is embedded within all aspects of the design and construction phases and must provide 2 examples from previously completed projects that demonstrates their ability to innovate.
Engagement (5%) - Bidders must detail how they will manage stakeholder engagement including dealing with statutory authorities and public utilities in order to meet the requirements outlined within the Employers Requirements.

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