SFHA Procurement Service Update

Over the past two to three years there have been significant changes in public procurement.

These changes are a result of the EU Procurement Directive on Public Procurement (2014) which was enacted by the Scottish Government in the Procurement Reform (Scotland) Act 2014.  The Crawford Review, which focussed on construction procurement, also has significant implications for public procurement authorities.

For the purposes of procurement legislation and rules, housing associations are classified as public sector organisations because of the levels of grant they receive to fund the development of new homes. Housing associations are unusual amongst procuring organisations – while they may spend large sums delivering new homes, maintaining those homes and providing care and support, they are often not large organisations who employ procurement specialists.  In that regard we are significantly different from other bodies covered by the legislation such as NHS trusts, universities, local authorities and agencies such as Scottish Water.

Recognising the challenge that procurement reform posed, SFHA has been able to provide a free procurement advisory service for housing associations, funded through support from the Scottish Procurement Alliance (SPA), over the past 15 months. Following our recent members survey, where we asked about the key issues facing members and the areas where members value SFHA representation and support, it is clear there is a continued need for support and training with procurement.  The SFHA is currently developing proposals to provide continued support to members.

As mentioned above, the procurement advisory service has been resourced through a collaboration with the SPA. The aim of the collaboration is to offer advice to RSLs in Scotland in order that they can deliver improved public value through better understanding and implementation of Scottish procurement regulations, however this arrangement ends in June 2017.

The recent SFHA membership survey asked members about the existing service and a potential long term approach sustainable service.  It was clear from the survey that members valued support and advice on procurement.  The top elements that members highlighted were consultancy services, procurement skills and capacity pre-tendered frameworks.

The other areas which members valued were around knowledge of existing resources and tools and when it was appropriate to use them – for example the use of quick quotes, and how and when to use the European Single Procurement Document (ESPD).

Having taken on board this feedback and recognising that procurement is an area where members want and require support, the SFHA, in collaboration with SPA, is planning to develop and build on the procurement service to provide the following:

• Procurement Advice

• Procurement Skills and Capacity Building

In the coming months, we intend to continue to develop the procurement services. We will be in touch with members over the next month or so with more details of the proposed Procurement Skills and Capacity Building, but I wanted to get in touch to update you on our plans.

The Procurement Service is just one way that SFHA will support members with Public Procurement Reform.  As detailed in Mark Turley’s article, the Scottish Government has funded Scotland Excel to carry out voluntary procurement capability assessments for developing housing associations and the SFHA will engage with members, the Scottish Government and Scotland Excel as it runs over the next two years. I am also pleased to say that the SFHA recently held the first meeting of Procurement Forum in order to keep members up to date on policy developments, share issues and best practice with members, and to have a place to gain insight in the services and support that members want from the SFHA.  The forum will directly inform the service that the SFHA provides members. Look out for the dates on the SFHA website.

I am also able to advise that the SFHA and SPA are going to continue the Procurement Advisory Service, albeit on a reduced scale.  From the end of June, we will be able to provide a Free Procurement Advice Service, available one day per week (reduced from the previous three days per week provided to help members prepare for procurement reform) to continue with our phone, email and desktop procurement support. 

David Stewart, Policy Lead