Annual Procurement Report 2023-24

The below details how delivery of our procurements has complied with our Procurement Strategy for 2023-24.

Aim: Legislative compliance, governance and achieving best value

What we said we would do:

• promote and ensure procurement compliance
• ensure availability and use of available contracts to fulfil AiB requirements using collaborative contracts where possible
• ensure our procurement exercises uphold the fundamental procurement principles of non-discrimination, equal treatment, transparency, mutual recognition and proportionality
• ensure that our contracted insolvency practitioners and legal agents use our other contracted service providers when working on AiB cases
• report on commodity spend and on/off contract spend throughout the year and continue to develop savings and benefits reporting

Our progress and plans:

• procurement assurance checklists and risk registers are available for all procurement routes. This ensures compliance with applicable public procurement legislation and Scottish Public Procurement Notices. Use of risk registers across all procurements will aid assurance of business continuity through ensuring end-to-end risk management
• our procurement document suite comprises comprehensive guidance to ensure development of robust procurement strategies and tender documentation. This document suite is updated in accordance with Scottish Government legislation and policy
• user intelligence group (UIG) and tender evaluation panel members complete a conflict of interest and declaration of impartiality statement prior to any procurement involvement to ensure fairness and transparency throughout the procurement process
• AiB Procurement team has developed and delivered in-house evaluation training to tender evaluation panel members emphasising the need to uphold the fundamental principles of procurement
• AiB insolvency practitioners and legal agents consistently use our other contracted service providers when working on AiB cases
• an AiB Procurement Policy has been introduced to open non-regulated procurement ability to AiB staff holding delegated purchasing authority. This has been supported with the delivery of non-regulated procurement and contract management training

Aim: Economic growth and sustainability

What we said we would do:

• consideration and inclusion of the sustainable procurement duty where appropriate and proportionate
• facilitate the involvement of small and medium enterprises, third sector bodies and supported businesses where possible
• support student placements in the procurement team
• continue working towards becoming a carbon zero organisation
• consider and implement the Scottish Government Fair Work First

Our progress and plans:

• AiB sustainable procurement duty is embedded into all procurement strategies for regulated procurements. Each element of the sustainable procurement duty is discussed with the UIG with inclusion subject to an assessment of appropriateness and reasonable
• inclusion of SMEs is considered for all regulated procurements. Market engagement is undertaken where appropriate to better understand the market’s delivery scope and capacity
• AiB searches the Partnership for Procurement, Framework for Supported Business and British Association for Supported Employment for all regulated procurements. The option to reserve a contract for supported businesses is discussed with the UIG should any supported businesses be identified
• the majority of AiB contracts are call-off contracts. The provisions of the sustainable procurement duty therefore do not apply as per Section 6(2)(b)(i) of the Procurement Reform (Scotland) Act 2014. Over the next financial year, we intend to undertake market research to include elements of the sustainable procurement duty into more of our procurements in a proportionate manner that does not deter potential tenderers
• the AiB Working Environment Group is supported by the AiB Procurement team to support AiB’s net zero ambitions from a procurement perspective

Aim: Procurement capability and improving commercial awareness

What we said we would do:

• work with senior managers and AiB staff to identify services or business areas where we can improve performance through an innovative procurement approach
• participation in AiB project processes to provide procurement guidance
• participation in business planning processes
• develop procurement staff
• implementation of the Procurement Capability Improvement Plan recommendations

Our progress and plans:

• the route 1 procurement document suite has been redeveloped. The award criteria for route 1 procurements may now take the form of tick boxes or more formal technical questions. This change represents a procurement process improvement wherein the technical assessment of low value and low risk tenders can be kept proportional with a minimal administrative burden whilst still achieving legislative compliance
• procurement are always on hand to answer procurement questions from any AiB staff. The team also developed and delivered non-regulated procurement and contract management training to support the introduction of the AiB Procurement Policy
• our procurement manager has recently completed their CIPS Level 6
• our modern apprentice has recently completed their Business Administration qualification and commenced CIPS Level 4
• the recommendations from the Procurement Capability Improvement Plan are currently being reviewed by the procurement team. These recommendations will be used to develop any procurement documentation and processes where appropriate. The next AiB Procurement Capability Improvement Plan is in 2024

Aim: Stakeholder engagement and collaboration

What we said we would do:

• working with AiB Contract Management and Digital Transformation teams to implement appropriate contract management processes
• work with SG colleagues to ensure that collaborative opportunities are utilised where possible
• be active in the wider Scottish Government Procurement network
• ensure use of early market engagement where appropriate

Our progress and plans:

• the development of key performance indicators has changed to include performance criteria considerations and key performance indicator scoring descriptors. The frequency, actions and monitoring requirements are also stated. This makes the obligations clear to both parties and provides clear grounds for Rectification Plan requests and/or contract termination
• a Prior Information Notice was used for our credit reference check and legal services requirement to ascertain the market offering and develop a procurement strategy wherein competition would be maximised. A Prior Information Notice is used for all regulated procurements where appropriate. Questions around inclusion of sustainable procurement duty elements will be a focus for the coming financial year
• AiB Procurement team approach Scottish Government shared services and other executive agencies of the Scottish Government to offer procurement support and resource. We will continue to look for opportunities to network with and support the wider Scottish Government in delivery of its procurements