The Annual Procurement Report was presented to members of the policy & coordination committee last week.

In addition to financial savings, benefits from procurement activity over 2020-21 include:

• Ensuring as much of Fife Council’s procurement spend as possible is spent with local Fife businesses
• Reduction of environmental impacts
• Community Benefits from suppliers
• Promoting Fair Work practices in procurement activity.

Cllr David Alexander, co-leader Fife Council, said: “In addition to financial benefits procurement also achieved a range of community benefits, driving fair work practices and supporting sustainability-related projects. We are working hard to make all council projects have more sustainable results for the economy and individuals. Council contracts have generated significant and varied benefits ranging from jobs, apprenticeships, work placements and training, to sub-contract/supply chain benefits, social value rebates and donations.”

Cllr David Ross, co-leader Fife Council, said: “Despite the challenges of the Covid-19 pandemic a number of milestones and improvements in activity were achieved. I am pleased that, increasingly, significant Fife Council spend is kept within the local Fife economy, with almost 40% of spend being made with local businesses.

“Fife Council progressively focuses on growing social and environmental benefits across all procurement and economic activity, creating jobs and opportunities for local people. I am determined that we can do all we can to make Fife fairer and better for all.”

The council spent approximately £477 million over the reporting period, with £10.018m of savings and benefits generated and £3.608m of these savings being cashable. This is a significant increase on the £3.633m reported for 2019/20 and £3.384m in 2018/9. £5.1m of the benefits reported were in relation to the COVID-19 pandemic.

As well as ensuring best value the council is committed to achieving the best outcomes for the wider Fife economy through ensuring as much procurement spend as possible is spent with local Fife businesses, especially with small to medium enterprises (SMEs), with under 250 employees.

39.7% of Fife Council’s third party spend was attributed to Fife businesses. This is an increase from 37.9% in 19/20 and 33% in 18/19. 39.2% of spend was with SMEs, and 22.4% of the spend was with Fife-based SMEs.

Fife Council remains an active participant in the Supplier Development Programme, helping support local SMEs to participate in the tender process. Although involvement was impacted by the pandemic, virtual activities were embraced and positive engagement continued.

In addition, Scotland Excel provides wider opportunities for these suppliers to supply outside Fife’s boundaries. Spend with Fife suppliers through these frameworks was £25.38m. £6.54m of this spend was from Fife Council and represents 25.8% of spend via Scotland Excel frameworks.