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Public Contracts Scotland

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Acronym of the case:

PCS

Country of the case:

United Kingdom

City/region:

Scotland

Posting Date:

2 October 2009

Last Edited Date:

02 October 2009

Author:

Gary Robinson (Scottish Procurement Directorate)
Public Contracts Scotland LogoGary.Robinson's picture
Award finalist 2009

Type of initiative

  • Project or service-imgProject or service
  • Strategic initiative-imgStrategic initiative

Case Abstract

Public Contracts Scotland (PCS) is provided by the Scottish Procurement Directorate (SPD) which is part of the Scottish Government. 

The case was launched to help drive efficiency across the public sector by providing the tools to enable more effective use of resources in procurement and by promoting an open and competitive market environment, nationally and across Europe.  In 2006 John McClelland CBE published his report Review of Public Procurement in Scotland and called for a single public sector “electronic portal” to support this process.

The solution is for use by all public sector contracting authorities in Scotland to allow them to manage the procurement process from end-to-end in an electronic environment, from preparing standard documentation to advertising a notice, from receiving electronic tenders to awarding a contract.

The portal has also assisted the public sector in identifying duplication of contracts by matching spend with awarded contracts. Through PCS we now have central resource of contract data for integration with our spend analysis solution.

PCS also provides a one stop shop for suppliers who can register and receive free e-mail alerts. This has promoted a much improved relationship between public and private sector business.

Within 12 months of the project launch date, 125 out of the 185 contracting authorities which were targeted are actively using the system already to create and publish public tender notices.  The portal can also boast 28000 supplier registrations.  Over 780,000 e-mail alerts have been sent to these suppliers during the first 8 months of the service, alerting them to over 3700 potential business opportunities.

The main lessons learnt are:

1)       Have a well planned marketing, communication and training strategy

2)       Adopt a phased implementation approach

3)       Ensure technical and procurement support for users via a specialist helpdesk

4)       The importance of clear and strong governance arrangements

 

Description of the case

Start date - End date
January 2007 (Ongoing)
Date operational
October 2008
Target Users
Administrative | Business (self-employed) | Business (industry) | Business (SME) | Citizen | Intermediaries
Target Users Description

Public Contracts Scotland (PCS) is provided by the Scottish Procurement Directorate (SPD), part of the Scottish Government, for all public sector organisations in Scotland and any current or potential suppliers.  The target users of PCS can be identified in three main groups:

1.    The Scottish Government
2.    Contracting Authorities
3.    Economic Operators

The Scottish Government, as the central administration, is responsible for leading the PCS project, however they are also a user of the service in their own right and use the portal to advertise contracts, record contract award information and make use of the eTendering tools like other public organisations in Scotland. The Scottish Government plans the implementation of the service and reports the progress of the project to the Public Procurement Reform Board – which is chaired by the Cabinet Secretary - Minister for Finance and Sustainable Growth and is constituted from the major Public sectors across Scotland. Reporting is made quarterly through the production of statistical analysis from the portal.  

Contracting authorities using PCS are clearly identified. The service originally set out to enable 185 public sector organisations, operating at a range of levels to use the service over two years.  The portal is currently used by over 1100 public sector users across central government (including agencies and non-departmental public bodies), local government, the National Health Service, higher and further education organisations, the police service, the fire and rescue services, voluntary sector organisations, registered social landlords and all other public sector contracting authorities operating in Scotland. 

The third group identified are economic operators.  These are either current or potential suppliers to the Scottish public sector and they constitute the largest number of users, currently at 28,000.  Suppliers registering on the website are not limited by location and can register to access tendering opportunities, whether they are in Scotland, the UK, other EU countries or Worldwide. Currently over 82% of suppliers registered on the site are SME’s. Over 780,000 e-mail alerts have been sent to these suppliers during the first 8 months of the service, alerting them to over 3700 potential business opportunities. This has resulted in over 16,000 notes of interest on contracts since the service started, of which 81% are from SME’s.

The interaction of these three user groups with the portal determines whether the project is successful in providing administrative efficiencies and one central location for advertising and accessing all public sector contract opportunities in Scotland.

Scope
Cross-border | International | Local (city or municipality) | National | Pan-European | Regional (sub-national)
Status
Operation
Language(s)
English

Policy Context and Legal Framework

The Scottish Government must comply with EU procurement directives and policies on the award of public works, services and supplies contracts in accordance with European Directive 2004/18EC.  The European Directive was implemented in Scotland through the Public Contracts Regulations (Scotland) 2006.  Similar regulations were adopted for the rest of the UK by the Office of Government Commerce (OGC) and there is significant interchange in both directions between UK national procurement initiatives and those which are being developed in Scotland.

Under this legal framework, all public contracts exceeding the threshold in the Directive must be advertised in the Official Journal of the European Union (OJEU). For contracts that fall below the European thresholds the Scottish Regulations state that “contracting authorities must ensure a degree of advertising which is sufficient to enable open competition and meet the requirements of the principles of equal treatment, non discrimination and transparency”. PCS drives public sector organisations to actively advertise high and low value contracts in order to meet the legal obligations.  The Public procurement Reform board is actively encouraging public sector organisations to advertise more lower value contracts on PCS, to ensure that economic operators have adequate opportunities to win public sector business.  

The project forms part of the Scottish Governments’ Public Procurement Reform Programme which was approved in 2006 and aims to drive up standards in the way the public sector procures goods and services.  The following governance and strategic groups were put in place to support this programme and the PCS project operates under this structure also:

1.       The Public Procurement Reform Board : (PPRB); Chair- Cabinet Secretary John Swinney;

·     Chief Executives of 

o  Local Authorities,

o  Heath Boards,

o  Universities & Colleges,

o  Central Government Departments,

o  Scottish Government Procurement.

2.       Public Procurement Advisory Group (PPAG); Chair - Mr Mather; Minister for Enterprise

·     Chief Executives of

o  Chambers of Commerce - Scotland

o  Federation of Small Business - Scotland

o  Confederation of British Industry - Scotland

o  Scottish Trades Union Congress

o  Social Firms Scotland

o  Glasgow Council for the Voluntary Sector

o  Institute of Directors

3.       Procurement Reform Delivery Group (PPDG);

·     Directors of Centres of Procurement Expertise

o  Advanced Procurement Universities & Colleges,

o  National Health Service NSS National Procurement,

o  Scotland Excel (Local Authorities Procurement),

o  Central Government Centre of Expertise,

o  Procurement Scotland (National Contracts), 

4.       Other representative bodies.

As well as supporting this programme, the introduction of PCS is in line with other national agendas. The objectives are complimentary of government strategies on National, Local and Sectoral Inclusion, Equal Opportunities, Diversity and SME’s, use of technology and innovation, and sustainability.

By providing free and unrestricted access to high and low value contract opportunities, the case also helps to support the following European Union policies and strategic initiatives:

-      Single Market & free trade

-      i2010 - A European Information Society for growth and employment

 

 

Project Size and Implementation

Type of initiative
IT infrastructures and products
Overall Implementation approach
Partnerships between administration and/or private sector and/or non-profit sector
Technology choice
Standards-based technology | Mainly (or only) open standards | Accessibility-compliant (minimum WAI AA)
Funding source
Public funding regional
Project size
Implementation: €49-299,000
Yearly cost:
€49-299,000

Implementation and Management Approach

The Scottish Procurement Directorate is responsible for the management and implementation of the overall project and a dedicated project team of 7 SPD staff has been set up to facilitate the roll-out of the initiative, although the project is supported by the sectoral collaborative buying hubs, Trades Unions, Enterprise Agencies, Employer Organisations, such as Scottish Chambers of Commerce, Federation of Small Businesses, CBI Scotland and the Social Enterprise Sectors. Other support is given by the Enterprise Europe Network to promote the service.

The project team consults widely with both the governance groups, delivery and user groups which provide strong leadership, management direction and communication of the service. The PPDG/portal user groups are comprised of senior procurement personnel from a wide range of public sector organisations who assist with the project implementation through minimise unnecessary duplication of effort, removal of obstacles, manage risks and realise benefits. The SPD project team communicates with these groups via status reports, board papers, meetings workshops and user intelligence groups.  Businesses understand progress and give direction to the development of the service through the PPAG, which is chaired by the Minister for Enterprise, but is comprised of the major employer organisations, trade unions and social enterprise sectors in Scotland.

The project is delivered in partnership between the SPD and the private sector after a contract was awarded to Millstream Associates Ltd in December 2007 following a public tender procedure.  On a day-to day basis Millstream are responsible for the software development and helpdesk, of the PCS portal, while SPD are responsible for the projects implementation to suppliers and contracting organisations. By implementing the solution in this way, SPD have been able to take advantage of the technical knowledge and user support expertise of the software provider, while utilising the new and innovative governance structures of public sector procurement in Scotland.

This partnership arrangement is managed through a Service Level Agreement and close liaison between the two parties.  A detailed Development Plan is used to drive developments on the portal and monthly reports and project meetings help to monitor the progress. 

In terms of practically implementing and managing the project – a staged implementation has been rolled out by supporting a targeted marketing campaign for both contracting authorities and economic operators.  Change management for individuals within contracting organisations has been crucially important, as individuals have had to change policies, systems and ultimately behaviours to use the service to benefit suppliers.  A detailed project plan was set up, with appropriate tasks detailed such as training and support for the tool itself, provision of migration strategy to organisations using other advertising portals and the transition of all contract information held on those systems.

‘Early Adopter’ training was provided to 20 contracting authority organisations before the launch date, with a view to using them as key supporters to help roll out to other contracting authorities.  Both the SPD project team and the service provider are involved in consulting stakeholders at the implementation level, for example user group meetings take place every quarter where risks, issues, questions, developments and stakeholder feedback is discussed. Knowledge has been transferred from the SPD account managers either through direct training, through the train the trainer approach or through interaction with individuals within their organisations sector. Similarly, suppliers’ knowledge transfer has occurred through both direct and indirect marketing. The policy has been to encourage individual ownership and accountability for knowledge transfer at all levels within the project. The policy is not a one size fits all approach from the central project team.

Practical guidance material is also readily available through the portal and through the Scottish Government website, including a  PCS implementation checklist guide, to help each organisation monitor ongoing implementation, and a PCS User Guide,  describing the key features and functionality. Other information is also provided to assist suppliers including user instructions for the site, practical guides to assist private business in working with the public sector, a list of contracting organisations using the service (updated monthly) and information relating to detailed goods, services and works which the public sector spends across Scotland.

A strong supporting framework for implementation, wide consultation and buy-in from users and other key stakeholders has helped to ensure an effective management approach to the whole project.

 

Technology solution

Technical interoperability is paramount for the PCS solution as it must comply with the eSender protocols agreed by the European Commission's Publications Office (OPOCE).  It also has to interface with a spend analysis system administered a third party provider in order that procurement spend information can be measured against contracts advertised and awarded.

PCS was developed using ASP.Net, an Object Oriented Programming (OOP) model for creating network applications that take advantage of the Internet.  ASP.Net not only makes it simple to use XML for data storage, configuration and manipulation, it also provides great support for Web Services which are designed to support interoperable machine-to-machine interaction. 

The Integrated Development Environment (IDE) used to develop PCS is Visual Studio (VS) 2009 based on the Microsoft .NET Framework 3.5. VS provides a rich editor allowing you to work with XHTML, CSS, JAVASCRIPT, AJAX and third party libraries like JQuery, all of which have been implemented to generate the feature rich, interoperable and accessible application that is the PCS solution.

Therefore XML web services are a key part of the solution. Using Simple Object Access Protocol (SOAP), users can simply exchange XML-based messages, in this instance tender notices are generated in XML, over computer networks using HTTP. At present the main interchange of information takes place when procurement notices are exported to 3rd party systems and when notices are imported from 3rd party systems. The XML schemas for the transfer of this information are published by the Office of Official Publications in Luxembourg and the Portal system is fully compliant with the OJEU DTD 2.0.5 XML specification. 

PCS has been developed using XHTML and is fully compliant with the XHTML 1.0 Transitional standard. Content and layout are kept separate through the use of CSS (Cascading Style Sheets). Notice information is held on the database and displayed as HTML pages "on demand". CSS is then used to format the display of the pages in the web browser. PCS functions effectively with all standards compliant browsers and has been audited by web accessibility consultants and their recommendations have been implemented to ensure compliance with WC3 AA accessibility standards. Changes to the Portal are tested using accessibility validation tools and checked against W3C validity standards. Access keys are also provided for those who require them.

The PCS service also offers contracting organisations the option of creating their own individual microsites which feature future contracts, contact details, past contract awards and future purchasing plans (held on PCS). These consistent yet individually  badged microsites are embedded within each organisations own website to allow suppliers maximum access through integration into the overall PCS service. All contracting organisations are actively encouraged to pursue this option.

Impact, innovation and results

Economic effects
Larger than €10,000,000

Impact

PCS is free to use for both contracting authorities and economic operators. Contracting authorities can now open up their procurement opportunities and achieve lower pricing through more competitive tendering.  They have a range of supportive tools available through the portal to enable administrative efficiencies.

It also provides the Scottish Government and contracting organisations with an invaluable analysis tool on the procurement transactions across Scotland.  Using the new data, the SPD can target specific aspects of administrative reform, understand the ability of SME's to tender for contracts, support the economic development activity of providers and enable the sharing of experience and information.  PCS data is integrated with a separate spend analysis tool which is used to establish and embed appropriate procurement policy and best practice to reduce duplication of effort for both contracting organisations and suppliers and to encourage best practice. 

Bonnie Nicolson, Senior Procurement Executive with Scottish Enterprise uses the portal and has the following comments on their experience so far:

 “Using PCS has been an easy transition for Scottish Enterprise.  The user training was excellent and the system has led to a more streamlined approach to procurement.  We have received positive feedback from users [suppliers] and we are now looking to increase user numbers within our organisation to improve our procurement processes further."

 Of the 185 organisations targeted, 125 are actively using the system already to publish notices.  In addition, organisations outwith the original scope have also come on board following good experiences of other organisations. 

The below table shows the difference in the proportion of notices being published in the first month and then again in May 2009.  That means that in less than a year 80% of all OJEU contract notices go through PCS, putting Scotland on track to achieve one of the highest eSending rates in Europe alongside only a handful of other regions.

  

August 2008

May 2009

PCS Low Value Notice

1

174

PCS OJEU Notice

9

183

External Notice

203

43

Overall the tools provides administrative efficiencies to all parties and will bring environmental efficiencies as well by cutting a large amount of paper out of the tendering process and moving daily practices online. The good results are set to continue, with an increasing number of purchasing authorities, tender notices and suppliers.   The number of lower value notices is likely to rise significantly over time with proposed new developments to the portal, which will be implemented within the first year of use.

The adoption of the service has provided much improved links between buyers in the public sector and private sector suppliers. Public sector processes, policies and procedures are more open and transparent which has encouraged much improved communication between the sectors. Buyers are now more willing to spend time informing the private sector of the service - principally as there is now one common platform across the country to promote. Private sector suppliers have found this invaluable. One SME in Ayrshire said:

“In all my years of business I have never known anyone to promote public sector procurement to be as open, transparent and accountable.”

Track record of sharing

The issues regarding public expenditure tackled by this project are common to public administrations across Europe and the way in which this case has been implemented and managed could easily be transferred to other countries. The practice employed conforms to or exceeds European Code Of Best Practices Facilitating Access By SME’S to Public Procurement Contracts - June 2008.

PCS is an example of shared best practice itself as the implementation approach was informed by examples from other European countries, and in particular the experiences of Ireland and Norway where a similar technical solution is also been employed at a national level. 

The use of ICT in achieving procurement efficiencies was on regional, national and European agendas so we were interested in those tools that had already been tried and tested.  Before the award of the contract discussions took place with the Norwegian and Irish administrations and a site visit was made to the Department of Finance in Ireland to witness the results.  We also visited Dublin City Council to see an example of the tool in practice and the impact and benefits for an individual contracting authority. Further, the Scottish Government are now being consulted and working with the Welsh and English administrations regarding the future of similar services in their respective countries. The overall aim is to share knowledge/learning from each other

Practical experience in other countries seemed to indicate that contracting authorities would not all move at the same pace, for example, the Norwegian and Irish implementations have taken longer to reach a similar level of supplier engagements. Those learning experiences contributed into the PCS phased implementation approach; focusing first of all on notice publication, providing user training and allowing flexibility with the usage of additional functionality. The project governance arrangements, business planning and supplier engagement models are also different in Scotland, and as such other countries could learn from our experiences.

Since the project launch we have shared our case with the UK (National) Government and devolved governments in the UK. Meetings have been held in London, Cardiff and Scotland, where knowledge sharing has taken place with the Office of Government Commerce and Value Wales. Meetings have taken place where delivery plans inside different sectors have been exchanged. The discussions are likely to impact on how similar solutions or future developments may be implemented there, and how the PCS service will be further developed in Scotland.

Regular participation in pan-European seminars and workshops has also allowed exchange of experience.  The PCS case was presented at the European Institute of Public Administration (EIPA) conference in April 2008, the ePractice forum in Vienna in January 2009 and to the eGovernment group in the UN/CEFACT Forum in Rome in March 2009.

Lessons learnt

Lesson One – Planned Marketing, Communication and Training Strategy

Having numerous stakeholder groups (suppliers and buyers) to communicate with has been a relatively difficult challenge for PCS however the combination of direct and indirect  marketing,  and a devolved approach to cascading information has worked exceptionally well.  This decentralised approach, where contracting authorities have been encouraged to plan their own marketing, communications and training to their own stakeholder base has been of great benefit. This has meant that SPD can manage overall high level National and Sectoral marketing and communications while many contracting organisations organise their own at a local level. SPD has ensured a consistent approach across the many stakeholder groups, while targeting key groups individuals with available resources.

Economic operators were also encouraged to use PCS through a staged targeted marketing campaign towards them in the early stages of the project which resulted in a high-level of buy in.

Lesson Two – Phased Implementation

Having a simple, user friendly clear system was imperative to the PCS project. Implementing new functionality using a staged approach has allowed user testing and priorities to be incorporated in the development of the system.

Lesson Three – Specialist helpdesk

The portal was a significant adjustment for some authorities and having a specialist helpdesk has enabled a smooth transition from their current systems to PCS.  Additionally, support, training and awareness on an individual account managed basis has enabled contracting organisations to make use of the service quickly and efficiently throughout Scotland.

The helpdesk and account managers are often the first point of contact for users and as such have a key role to play in communicating the service and benefits to them.  This is a vital role as it  has helped achieve buy-in from users in a very supportive and inclusive way thus furthering the dissemination of PCS.

Lesson Four – Governance arrangements

The portal project has clear governance with backing both from Ministers and Chief Executives from across the Scottish Public Sector. This has allowed the project team to report progress to the Reform Board, which in turn has allowed them to encourage support and direct organisations to use this service

 

 

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