Route 3 Sustainability Test

You can use this test to identify and prioritise the opportunities to address sustainability through your procurement.

The key stages within the procurement process that relate to Sustainability are:

Develop Strategy

Public bodies can reserve a contract by restricting participation in a tendering exercise to supported factories & businesses only

Specification Public bodies are able to specify their requirements in sustainable terms provided they do not discriminate against products or providers

Selection Criteria

Questions regarding the suppliers’ general sustainable policies are not permitted unless they are directly relevant to the subject/performance of the contract

Award Criteria Must be relevant to the subject/performance of the contract and where possible should include whole life costing

Invitation to Tender

Contract terms and conditions could be linked to the sustainable policies of the organisation e.g. whilst working on the organisation’s premises the contractor will comply as far as possible with its’ recycling policy

The sustainability test is in two parts:

1. Initial Options Analysis tables where your initial analysis of the options to address economic, social and environmental aspects through your procurement should be recorded

2. Sustainable Opportunities slide where details of which of the opportunities that were identified during the initial options analysis can feasibly be addressed through your procurement should be recorded. The Sustainable Opportunities slide should be included in the commodity strategy.

Using the Test

The social, environmental and economic aspects tables should be used to identify opportunities to address sustainability through your procurement. This initial analysis of all options will inform the sustainable opportunities slide for inclusion within the commodity strategy.

1. In the Aspect column, click on the links for guidance and examples of sustainable procurement good practice

2. In the Opportunity column, insert details of the opportunities that exist to deliver positive sustainable outcomes through your procurement for each Aspect

3. In the Impact column, summarise any impacts these opportunities will have on the delivery of the organisations objectives or the delivery of the contract. You should arrange these impacts by order of priority, from highest to lowest impact

4. In the Recommendation column, if possible, provide details of what actions should be taken to address the opportunity through your procurement

Initial Options Analysis Tables

Details of the opportunities that were identified during the initial options analysis that can feasibly be addressed through your procurement and recommendations for how they are to be addressed should be included here.

It is highly unlikely that you will be able to address every aspect of sustainability through every procurement. You should try to prioritise delivering those opportunities that have the highest positive impact on your organisation’s sustainable procurement objectives.

You should also record details of how you propose to implement the recommendations to address each opportunity.

Once completed, the sustainable opportunities slide can then be inserted into your commodity strategy in the appropriate place.

Sustainable Opportunities Slide

Managing Sustainability

The requirements that you placed on contractors and their sub-contractors should be monitored once the contract is awarded through Contract & Supplier Management.

Care should be taken to make sure the monitoring process does not place excessive burdens on contractors which could be a barrier to their participation in the competitive process.

The balanced scorecard is a useful tool for ensuring that contract performance is consistent with the pre-determined measurements.

Performance Review Meetings are an important part of the Contract & Supplier Management process. The meetings provide the Contract Manager and the Contractor with an opportunity to focus on what is going well, identify any problems at an early stage and agree opportunities for improvement and innovation.

Employment Opportunities

Promotion of:• Youth employment & older workers• Gender balance• Employment of persons from minority groups• Job skill development programmes• Inclusive and accessible work environments

Equality & Human Rights

Promotion of:• Access to training• Gender equality• Access to basic social protection• Diversity• Health and safety throughout the supply chain, including sub-

contractors

Social Inclusion

Accessibility & Design for All

Promotion of:•Mandatory requirements in technical specifications to ensure access by persons with disabilities

Social Considerations

Promotion of:• Equal access to procurement opportunities of firms owned

by/employing persons from ethnic/minority groups • Access to employment for persons with special needs to

enhance their employability to secure decent work language/cultural skills & knowledge

• Language/cultural skills & knowledge e.g. making information available in other languages, reflecting different cultural requirements in service provision

• Documents written in simple language which is easy to understand

• Use of reserved contracts to restrict the tendering process to supported businesses only

Examples of Procurement Activities with a Positive Social Impact

Procurement Activity Sustainable Impact

Advertise contract opportunity on *Public Contracts Scotland *to access PCS copy and paste the link in your browser http://www.publiccontractsscotland.gov.uk/

Ensures contract opportunity is advertised widely to maximise participation and increase supplier diversity

Procurement as a reserved contract Restricts the contract opportunity to supported businesses only

Specification of *Community Benefits clauses *to access Community Benefits copy and paste the link in your browser http://www.scotland.gov.uk/Topics/Government/Procurement/policy/procurecombenefits

Delivers a wider social benefit in addition to the core purpose of the contract, particularly through targeted training & recruitment outcomes in the local community

Specification includes consideration of diversity and equality issues

Ensures contract can be accessed by all potential end-users i.e. regardless of gender, ethnicity, religion, disability

Consultation with Ready for Business Ensures realisation of maximum value from procurement opportunities through:

• Use of Community Benefits

• Encourage best practice in social enterprise procurement

• Facilitate consortia development

• Encourage collaboration between social enterprises, SMEs and third sector organisations

Documentation written in Plain English Ensures clear understanding of requirement and standardised approach

Emissions

Reduction in:• Emissions to air• Emissions to water• Impact on Climate Change • Impact on population’s health

Waste

Reduction in:•Solid waste •Liquid wastes•Hazardous wastes•Packaging•Landfill

Raw Materials

Reduction in:•Energy use•Business travel

Promotion of:•Energy efficient products;•Renewable energy

Energy Usage

Promotion of:•Sustainable resources

Habitat

Reduction in:•Impact on habitat•Loss of biodiversity

Environmental Considerations

Environmental Purchasing Hierarchy

Re-think e.g. service instead of product

Eliminate e.g. hazardous material content

Reduce e.g. emissions produced

Re-use e.g. packaging

Recycle e.g. paper, glass

Dispose e.g. minimise quantities and therefore cost

Examples of Procurement Activities with a Positive Environmental Impact

Procurement Activity Sustainable Impact

Use of *Government Buying Standards *to access Government Buying Standards copy and paste the link in your browser http://www.scotland.gov.uk/Topics/Government/Procurement/policy/corporate-responsibility/govprocstanannex

Sets out minimum criteria that must be followed when buying a range of different products and services and ensures that products which fulfil the criteria provide better value for money over the whole life of the product than products that do not

Consider the principals of the Environmental Procurement Hierarchy

Ensures that products / services with the lowest environmental impacts are identified

Assess procurement on a Whole Life Cost basis Ensures that all costs associated with the contract are identified and fully accounted for as part of the procurement process to minimise “over specifying” the products/services being procured i.e. costs for disposal. Also ensures that costs associated with performance are more visible so trade-offs can be made between performance and cost so wastes can be minimised

Supplier Diversity Enabling greater access for all suppliers by:• Engaging early with suppliers to advise of forthcoming

opportunities• Advertising the requirement in easily accessible places e.g.

Public Contracts Scotland• Ensuring sub-contracting opportunities are visible • Ensuring equal terms for sub-contractors• Encouraging supply base collaboration

Supporting suppliers’ competitiveness by considering:• Contract terms & conditions• Payment terms, including terms relating to payment to sub-

contractors• Using output based specifications so the supplier can define

the solution to your requirement

Economic ConsiderationsReducing the cost/burden of participation by:• Ensuring the requirements in the pre-qualification documents

and tender documents are proportionate to the value and complexity of the contract

• Using plain English and avoiding the use of jargon in documentation

• Considering the use of lotting strategies

Providing economic benefits to the community by:• Using community benefit clauses• Using collaboration with other buying organisations to reduce

cost disparities• Whole life costing to identify the most economic solution

Competitiveness

Examples of Procurement Activities with a Positive Economic Impact

Procurement Activity Sustainable Impact

Use a geographical lotting strategy Makes opportunity more available to maximise participation and increase supplier diversity

Advertise contract opportunity on *Public Contracts Scotland *to access PCS copy and paste the link in your browser http://www.publiccontractsscotland.gov.uk/

Ensures contract opportunity is advertised widely to maximise participation and increase supplier diversity

Specify that the successful Contractors are to advertise any sub-contracting opportunities on *Public Contracts Scotland rather than allowing them to appoint sub-contractors directly *to access PCS copy and paste the link in your browser http://www.publiccontractsscotland.gov.uk/

Ensures contract opportunities are advertised widely to maximise diversity in the supply chain