SFHA launches procurement advisory service

SFHAThe Scottish Federation of Housing Associations (SFHA) has today announced the launch of an advisory service for social landlords in response to upcoming changes to procurement legislation.

Whilst the regulatory changes are designed to improve public procurement and ensure a number of benefits for local communities as well as smaller companies interested in bidding for work, complying with the new rules may prove a challenge for many housing associations that are small not-for-profit organisations without specialist procurement staff.

The SFHA has therefore developed an advisory service, which is being funded by Scottish Procurement Alliance (SPA), to help registered social landlords (RSLs) implement the changes, employing a procurement advisor to provide free and impartial advice to Scottish housing association and co-operatives as they prepare for the changes. The service will be launched at the SFHA’s Development Conference at Hampden Park today.

The major reform in public procurement comes from two European Union directives, with the Scottish Government passing the Procurement Scotland (Reform) Act in 2014. The main provisions come into place on 18 April 2016.

Some of the major changes include:

  • The Public Contract Scotland website must be used to advertise all contracts over £50,000.
  • Community benefits, including jobs and training, should be used for large contracts (those over £4 million).
  • Small and medium size enterprises (SMEs) must be encouraged to bid and win works.
  • From 31 December 2016, all organisations with a total spend of £5m will be required to produce a procurement strategy.
  • Mary Taylor, SFHA chief executive, said: “While the SFHA recognises the benefits that procurement reform will bring, we are aware that the EU directives and the Procurement Reform Act were written with large public bodies such as the NHS and local authorities in mind.

    “We recognise that this is a challenge for housing associations and co-operatives, and we have responded to this by securing a procurement advisor who will support the sector as it adapts to the changes.”

    Tim Oakley, head of consultancy, SPA, said: “The new regulatory requirements for public sector procurement in Scotland will allow housing associations and local authorities to obtain better value for money, support SMEs and social enterprises and obtain local social benefits.

    “This advisory service will guide organisations in getting the best out of the regulations.”

    Procurement advisor Dougie Gold will be engaging with the sector by running seminars, producing guidance as well as answering individual queries

    He said: “I am very much looking forward to engaging with all RSLs and other parties to provide assistance and support with the soon approaching procurement changes.

    “I see the new regulations very much as an opportunity to allow RSLs to further deliver value for money as well as the economic, social and environmental benefits of public procurement with tangible results.”

    Dougie can be contacted by emailing dgold@sfha.co.uk.

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