Public sector spending on goods and services across Scotland, in areas such as health and education services, amounts to around £8 billion per year. Procurement guidelines govern the purchasing of these goods and services.

AiB has its own Procurement branch which is responsible for setting our policy and procedures in place, and purchasing goods and services for all aspects of the Agency's business. Being an Agency of the Scottish Government, the definitive authority in relation to our procurement policy and procedures is the Scottish Procurement Directorate. Where appropriate, however and due to unique nature of the AiB's business area, some policies, procedures and authorities may vary.

A substantial proportion of the Agency's resources is spent on goods and services procured from third parties.

AiB procurement follows some key objectives:

• Obtaining maximum value for money in contracting for the goods and services that enable us to deliver our business objectives

• Enhancing the competitiveness of the supply base

• 'Value for money' means the optimal combination of costs, service delivery and quality

• Using e-Procurment in order to boost efficiency

• Improve access to opportunities for SMEs

• Sustainable and ethical procurement

• Prompt payment to suppliers

The Scottish Procurement Directorate (SPD) is responsible for the provision of Scottish Government Procurement Policy and best practice advice to the ministers, and support for specific procurement projects.

Frameworks

Currently, the majority of contracts used by AiB are at a Central Government level. They tend to be framework agreements whereby Central Government agencies and Non Departmental Public Bodies (NPDBs) can choose to work directly from them or do a mini tender, service dependant, for their individual requirements. Responsibility for these frameworks lies as follows:

- Category A goods and services . Procurement Scotland was launched in March 2008 with the task of developing and implementing procurement strategies for national Category A commodities on behalf of all Scottish public sector organisations.

- Category B goods and services. The Central Government Centre of Procurement Expertise (CGCoPE) is one of five Centres of Procurement Expertise, set up in response to the McClelland Review of Public Procurement in Scotland (2006). The review recommended the establishment of sectoral Centres of Procurement Expertise to help develop and facilitate best practice procurement of goods and services.

Agencies and NDPB's can opt out of these agreements, but must still follow clear procurement rules and regulations in relation to tendering business and have a clear business case for opting out of an existing contract.

Further Guidance

For more advice and guidance on tendering, read the Business Gateway guide to tendering for public contracts .

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