Evidence library

This research explores the views and experiences of third sector organisations and new businesses in relation to Scottish public procurement.

In September 2021, Scottish Government commissioned Blake Stevenson Ltd. to undertake research with third sector organisations and new private businesses to explore their experiences of public procurement in Scotland. It builds on previous research undertaken and the findings will be used to ensure that future delivery of public procurement is as inclusive as possible and enables third sector organisations and new private businesses to better access and compete for public contracts. A mixed-methods approach was adopted for this research. It combined an online survey and interviews: 48 responses were received to the online survey – 43 from third sector organisations and five from new private businesses, of which 33 organisations had bid for public contracts in the past five years. In addition, we spoke to 49 individuals through interviews and focus groups – 36 from third sector organisations, six from new private businesses, and seven stakeholders.

Key factors that enable third sector and new business engagement with Scottish public procurement:

• Provision of relevant and timely feedback
• Independent appeals process
• Standardised and streamlined central procurement systems
• Strong relationships between buyers and suppliers
• Lotting of contracts and effective use of Quick Quotes and Frameworks
• Capacity building and effective training and advice for suppliers
• Simple, consistent tendering processes with proportionate terms and conditions

Considerations for improving access to public procurement for third sector organisations and new private businesses The research identified a number of considerations, outlined below, which will help public bodies to reflect on potential ways to address the barriers highlighted above. They take account of the fact that while Scottish Government has a role to play in improving access to public procurement, the wider public sector – including local authorities, the NHS and a wide range of other buyers – as well as supporting bodies such as the Centres of Expertise, also have an important role in improving access to public contracts for third sector organisations and new businesses.

1. Consider potential for ongoing improvements to PCS and PCS-Tender; support for training and development in public procurement; and sharing of experiences of tendering processes.
2. Consider opportunities to simplify tender processes, ensuring that tender processes only require information to be provided that is proportionate and relevant to the work being commissioned.
3. Consider opportunities to engage earlier, and more meaningfully, ahead of tendering opportunities.
4. Consider potential for greater transparency around selection for Quick Quotes, and for support to organisations to improve chances of selection for Quick Quotes.
5. Consider opportunities to ensure that local supply of goods and services are appropriately valued in assessment processes, without breaching procurement rules.
6. Explore opportunities to encourage greater use of lotting, where this is appropriate.
7. Explore potential to improve frequency and quality of feedback to unsuccessful bidders for lower value contracts not currently covered by any legislative requirement to provide feedback.
8. Consider opportunities to reduce onerous terms and conditions and ensure these remain proportionate to contract type and value.
9. Work towards ensuring that the SPoE is more visible and facilitate greater transparency of its work. Find ways of enabling it to make better use of available data to share lessons learned.
10. Explore opportunities to enhance understanding of the role of the third sector in the delivery of public contracts.