Using public procurement to deliver sustainable and inclusive economic growth.
- Streamlined purchase to pay processes
- Supporting small businesses and local supply chains
To support businesses, we will review our own processes to increase the level of digital transactions to streamline our purchase to pay processes, including the deployment of digital invoicing techniques.
We continue to focus on paying our bills quickly. Last year, the Scottish Government paid 99% of valid invoices within 10 days. We will continue to focus on this and deploy resources released from the deployment of digital invoicing techniques to improve the percentage of valid invoices.
Project Bank Accounts
To improve cash flow for sub-contractors who are critical in the delivery of infrastructure, our existing policy has resulted in the award of contracts worth around £100m for projects with Project Bank Accounts. We will review our Project Bank Account thresholds with a view to increasing the number of sub-contractors who can benefit from this approach.
From January 2017 to March 2018 almost 700 SME sub-contractors, two-thirds of which are based in Scotland, won work in our supply chain worth £114 million. To extend these benefits to small businesses and local supply chains, we will:
- develop an easily accessible portal drawing together the support available for businesses who aspire to use public procurement as a means to facilitate growth;
- extend a requirement to use Public Contracts Scotland to facilitate access to sub-contract opportunities in major contracts for Scottish SMEs and the reporting of sub-contracted spend;
- continue to fund and support the Supplier Development Programme, helping local supply chains to maximise contracting and sub-contracting opportunities.
Digital Commercial Service
We will launch a Digital Commercial Service that builds on our CivTech model and offers new opportunities to engage with the public sector through agile procurement at greater scale. We will also continue to extend the range of Scottish Government and public sector contracts to which the fair work criteria will apply.