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Sustainable Development The Government's approach - delivering UK sustainable development together |
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What Government is doing?Estates Management |
IntroductionThis document should be read in conjunction with Part A of the Framework, which outlines the scope of the Framework and sets out further details of monitoring and reporting requirements in relation to all targets. See Also: Sustainable Procurement Task Force. Download the Procurement section ( PDF , 61kb) of the framework. Procurement policyThe Government's procurement policy objective is that "all public procurement of goods and services, including works, is to be based on value for money, having due regard to propriety and regularity". Value for money is not the lowest price; it is defined as "the optimum combination of whole-life cost and quality (or fitness for purpose) to meet the user's requirement". This policy is set out in Government Accounting, Chapter 22. It is the responsibility of all Government Departments, and their Executive Agencies to apply it. Further, all public bodies have to apply both the EC Treaty and the EC procurement Directives, but these do not contravene the value for money policy. The Treaty requires Member States to comply with principles of non-discrimination, equal treatment, free movement of goods and services and transparency. The EC procurement Directives are based on these Treaty principles and include detailed requirements for advertisement, specifications, selection of tenderers and award of contracts. These Directives are implemented in the UK by means of regulations. Government's CommitmentSustainable Procurement GroupIn November 2001 at the request of Secretary of State for Defra, an interdepartmental Sustainable Procurement Group (SPG) was established to look at the scope to improve the way in which sustainable development considerations are incorporated into purchasing. Its remit was to consider how Government bodies can carry out the procurement of goods and services in a manner that supports the Government's policy and objectives for sustainable development. The Group submitted its report and recommendations (PDF, 420kb) on environmental issues in purchasing to Ministers. The report was published on 30 October 2003. In Chapter 4.4 it states that: 'Value for money is not an end in itself. Government buys in order to achieve those things which it has set out to do. If Government has resolved to conduct its business in a sustainable manner then there can be no choice other than to conduct its procurement in a sustainable manner'. The report also states that a risk based approach is essential both at whole of Government and at departmental level. It makes clear that risk assessment (impact, likelihood, etc.) is the key tool to sensible decision making in incorporating sustainability criteria into any individual procurement. It concludes that within the policy and legal framework and within the context of achieving value for money, scope and opportunities exist for relevant sustainable development considerations to be taken into account in public procurement. Ministerial StatementAt the same time as the announcement of the SPG report, the Government reaffirmed its commitment to sustainable public procurement. In a Written Statement to the House of Commons, the Chief Secretary to the Treasury and the Secretary of State for Environment, Food and Rural Affairs, stated that: "central Government procurement can and should support sustainable development within the framework of the Government's procurement policy and its overarching aim of achieving value for money, and the EC procurement rules". The Written Statement stated that the Government's "first priority is for environmental procurement to become embedded across the board" in government purchasing. Minimum environmental standardsMinisters announced that from 1 November 2003, all central government departments must apply minimum environmental standards in new contracts when purchasing certain types of product, which cover aspects such as energy efficiency, recycled content and biodegradability. To assist departments in achieving this standard, the SPG identified a number of environmental "Quick Wins". To further support this initiative, OGCbuying.solutions has published on its website a list of "Quick Wins" products and services included in its Framework agreements. The list will be kept under review and its coverage widened over time. OGC/Defra Joint Note on Environmental Issues in PurchasingThe new emphasis on environmental standards represents a significant shift in public sector purchasing practice. To assist Government Departments in meeting this aim, the Joint Note on Environmental Issues in Purchasing, which provides guidance to public buyers, has been revised by the Office of Government Commerce and Defra. Published separately from the "Quick Wins" on 30 October 2003, the Joint Note demonstrates, through practical examples, how environmental issues can and should be integrated appropriately into each stage of the procurement process. It makes clear that the Government's policy of achieving value for money in procurement applies to the award stage of procurement processes. It is for Departments to decide what to buy and to set the specification, in the context of their overall objectives and subject to the normal public expenditure tests of need, affordability and cost-effectiveness. It is at this early stage that there is most scope to consider environmental issues. Ongoing workOGC is currently working with other departments to prepare guidance on how to take social issues into account during the procurement process. Work is also underway to explore the scope for Government procurement to stimulate the market in environmental technologies. The Framework targets below relate primarily to environmental issues in procurement. However, Departments should commit to implement guidance on social issues and innovation once guidance in these area have been agreed and published. UK objectives and indicators of sustainable developmentMost Headline and Core Quality of Life Indicators are relevant to procurement issues, but particularly notable are: A6: Materials
recycling Aim of this documentThe aim of this Part of the Framework is to ensure that in purchasing goods, works and services, Government Departments contribute to wider Government sustainable development objectives. This should be consistent with value for money principles, Government Accounting rules, public expenditure constraints and EC rules. Potential benefits of sustainable procurement
Departments should be aware of the close links between this document and the commitments set throughout the other parts of the Framework, for example sustainable procurement in construction is addressed in the estates management and construction section. |
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Updated: 07 March 2005 |
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Procurement