New approach to lower value contracts rolled out
We’re rolling out a new approach to smaller value contracts with the launch of two brand new frameworks.
Our new bottled gas and laundry equipment contracts have gone live, marking the first of our 11 lower value contracts to be introduced between now and the end of the financial year.
Councillor John Shaw, our Convener said: “I’m delighted the first of our smaller value contracts have been launched. This is a unique approach for Scotland Excel and will not only bring real value and efficiencies for councils, but will also bring opportunities for businesses – particularly SMEs.
“When establishing the smaller value portfolio, we carefully assessed more than 40 areas of opportunity, looking at which had the highest council spend. We then asked councils what they would like to see launched in order of preference. I’m pleased that as a result, 11 new national frameworks will be put in place where suppliers are ready to do business with councils.”
Once implemented by April 2018, the portfolio of smaller value contracts will collectively be worth around £20 million a year.
Julie Welsh, our Director added: “The value of a Scotland Excel framework can typically range from anything between £17m and £200m. But there are many goods and services sourced by councils that while not cumulating in a national spend of tens of millions – do still account for a significant spend of Scotland’s public purse.
“We took the unique step of setting up a team to focus specifically on finding procurement opportunities for lower value contracts and to then work closely with Scottish councils to ascertain where we could bring them most value. We look forward to rolling out contracts that cover a wide range of goods and services. Previously councils have been independently negotiating with suppliers at local level for these, but now, these new national frameworks can bring savings by securing more competitive prices.”
The smaller value portfolio that will be in place by April 2018 will consist of:
• Bottled gas
• Commercial laundry equipment
• Catering machine repair and maintenance
• Steeplejacks and associated services
• Pest and vermin control services
• Fire safety products and services
• IT training providers
• Vocational training services
• Water coolers and bottled water
• Swimming pool contractors
• Funeral service providers
The new Operational Supplies and Services Team was established in April 2017 to implement a portfolio of smaller value contracts for Scotland’s councils. Scotland Excel’s Joint Committee approved a new approach to use funding from rebates to establish the new service.