It is important to consider the intended social outcomes that are to be delivered from a contract and optimum methods of delivering these early in the process certainly before the procurement process begins. Using the sustainable procurement tools and supporting guidance can help identify and achieve social impact. Early consideration of outcomes on a case-by-case basis helps to ensure relevance and proportionality, which considers the subject matter of the contract, associated market analysis, value and duration of contract, along with local factors and the nature of the supply base.
Involving key stakeholders from the outset by establishing a stakeholder group, e.g. a User Intelligence Group (UIG), will enable a diverse group of people to consider the contract or framework requirements from a range of viewpoints, increasing the prospect of high-quality sustainable outcomes.
Community benefit opportunities should be identified based on contract scope, location and value, taking account of the organisation’s aims and objectives when defining the specific benefits required (employment, local engagement, green skills, etc).
Community benefits requirements must be considered at a local level to ensure they are relevant to the place and the people and community they will impact. What is relevant in one place may not necessarily be appropriate for another. Public bodies should engage with communities who have an interest in the procurement to get the best possible outcome.
Buyers should consider how by including relevant and proportionate community benefits requirements in their procurement, the public body can demonstrate its positive impact on their local area and contribute to tackling inequalities in Scotland’s labour market.
The procurement strategy should demonstrate how the procurement will contribute to wider public body’s aims including contributing to national and local outcomes through compliance with the Sustainable Procurement Duty, and should align with the body’s procurement strategy.
An appropriate strategy should focus on identifying:
The Life Cycle Impact Map (LCIM) is used to identify and assess the economic, social and environmental impacts within the life cycle of a product or service, and can lead to appropriate market research. It can help a buyer undertake the Sustainability Test.
Use of the sustainability test can draw out and help the buyer / stakeholders understand the relevant opportunities and risks relating to their procurement.
Early market research which considers the nature of goods, services or works being bought is essential to help identify opportunities and potential associated risks. For example, the opportunity to create jobs for those facing barriers to employment or those at risk of exclusion.
Early engagement with the market can help a buyer understand the current and evolving market capacity and capability, and the opportunities and risks for sustainable outcomes before starting a procurement process. Market engagement can also be used to support information sharing, leading to new ideas and innovation.
This may be done by issuing a Request for Information for example in the form of a Prior Information Notice (PIN) or organising market events where information can be gathered about what is typical in the sector and what opportunities are available, such as the nature of employment, skills and training, trends around payment of at least the real Living Wage, and pay and employment gaps.
Factor in sufficient time to conduct an effective market dialogue – communicate your intended objectives, outcomes, timescales, and the project business case. This signals your intent to the market (as well as internal stakeholders) and provides a basis for measuring and managing overall performance.
