Contract and supplier management / monitoring
Contract performance clauses may address sustainable issues within supply chains on condition that they are linked to the performance of the contract, for example the minimisation or avoidance of conflict minerals.
Where clauses in respect of conflict minerals have been built into the contract, performance monitoring methods must be developed to ensure delivery. This may include the provision of on-going evidence of conflict free status and independent verification of process methods.
Contractual requirements must be quantifiable and measureable; otherwise there is a risk that it may be unenforceable. The buyer must also consider whether this requirement is core to the contract or a secondary issue, as any remedy for breach of performance may be difficult to quantify.
At the point of potential award there is always scope to reach a voluntary agreement with the supplier that both parties will work together through the period of the contract to minimise or avoid the use of conflict minerals, and to deliver identified (and agreed) sustainable outcomes that can be captured as contract commitments.
Finally, on-going improvement and innovation can be built into the management of the contract to further develop the products and services required by the contracting organisation and key performance indicators can be developed in order to focus on areas where continuous improvement is sought.
Summary
Embedding sustainability into procurement can support the objectives of the organisation as set out in relevant policies and / or strategies and can be adapted to reflect the nature of the contract.
Many sustainability benefits can be achieved through supplier engagement before the procurement process begins which is essential to allow the market to understand and prepare their response to tender requirements.
Also key is the approach to selection of suppliers, the inclusion of relevant and proportionate requirements in the specification, and the evaluation of relevant and proportionate award criteria.
The approach taken by Scottish Procurement when establishing a new suite of national frameworks for the supply of ICT client devices has been outlined in a case study.