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Procurement

Part F of the Framework was published in October 2004 and aims 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.

The procurement part of the Framework takes forward the recommendations from the Sustainable Procurement Group's (SPG) report published in October 2003. It also incorporates the revised Defra-OGC Joint Note on Environmental Issues in Purchasing and the commitment, that from November 2003, Departments should buy certain products that meet minimum environmental standards - called 'Quick Wins'.

The UK Government is a significant player in procurement with a goods and services purchasing budget of over £13 billion per annum. The procurement policies and practices of Government Departments therefore send a strong signal to both industry and markets and can help to serve as a benchmark for sustainable procurement expectations and performance and stimulate the market in environmental technologies.

The OGC is 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.

As Part F was not published during the 2003-04 reporting period, performance data for this report has been collected in line with previous years. Below is a summary of activity and best practice in relation to various procurement categories including timber, paper and food.

Timber

In 2002-03, all Government Departments provided a breakdown on their timber expenditure. Overall, £19 million was spent on timber from a recognised certified source and just under a further £10 million was spent on timber with evidence of sustainable and legal sourcing but not certified. Together this accounted for 99.4 per cent of the total timber purchased by the Government.

Several Departments, including DfID and HO, indicated in their responses that it was difficult to obtain third party verification certifying the source of timbers used. This presented a fundamental challenge to Departments to correctly report timber usage. Other Departments indicated that due to existing contractual arrangements, it was difficult to obtain data relating to timber sourcing, although they did indicate that future contractual arrangements would be changed to rectify this problem.

Where Departments were able to report fully in 2003-04, a break-down on timber spend between construction timber and manufactured timber products (e.g. joinery, fittings, furniture and veneers) is outlined below:

Construction Timber

For the period 2003-04, five Departments (DWP, DfT, FCO, CO and DCA) were unable to provide data on their construction timber spend. Seven other Departments (DfES, DoH, DTI, ECGD, HMT, LOD and ODPM) reported zero spend.

Based on the data submitted by the remaining eight Departments, £2.5 million was spent on timber for construction in this period. Of this, £885,278 was spent on construction timber from a recognised certified source and a further £898,000 was spent on construction timber with evidence of sustainable and legal sourcing but not certified. This presents a total of 71 per cent of total spend. Two Departments (DCMS and HO) spent a total of £32,260 on construction timber with no evidence of sustainable and/or legal sourcing. The MoD spent a total of £800,000 on construction timber but changes in data collections system prevented a detailed break down of its source.

Figure 13 outlines the source of construction timber purchased in 2003-04.

Figure 13: Source of Construction Timber Purchased 2003-04

Figure 13: Source of Construction Timber Purchased 2003-04

Dept	% of Construction Timber from a certified source	% of Construction Timber with evidence of legal sourcing	% of Construction Timber with no evidence of legal sourcing
HO	58	39	1.8
MoD		12
Defra	100
DCMS	80		20
IR	100
C & E	100
ONS	100

Manufactured Timber Products (MTP)

Data collection for manufactured timber products was more complete with only three Departments unable to provide information (CO, DWP and DCA). The other seventeen Departments reported a total spend of £17.5 million on manufactured timber products. Of this, 78 per cent was spent on timber products from a recognised certified source and 19.5 per cent was spent on timber products with evidence of sustainable and legal sourcing but not certified. A total of 2.5 per cent had no evidence of legal sourcing.

Figure 14 provides a more detailed breakdown of performance by Department.

Figure 14: Source of Manufactured Timber Products Purchased 2003-04

Figure 14: Source of Manufactured Timber Products Purchased 2003-04

Dept	% of MTP certified to recognised standard	% of MTP not certified but have evidence of legal sourcing	% of MTP with no evidence of legal sourcing
C & E	100
DCMS	100
DEFRA	95	5
DfES	100
DfD	100
DfT	98	0.8	1.2
DoH	8	7.7	84
DTI	98
ECGD	100
FCO	77	23
HMT	78		22
HO	64	34	1.5
IR	38		62
LOD	100
MoD	80	20
ODPM	100
ONS	4	96

Seven Departments (C&E, DCMS, DfES, DfID, ECGD, LOD and ODPM) sourced 100 per cent of their manufactured timber products from a recognised certified source. A further five Departments sourced 100 per cent of their manufactured timber products from either a recognised certified source and/or had evidence of sustainable and legal sourcing but not certified (Defra, DTI, FCO, MoD and ONS). DfT and HO were close with 99 per cent.

DH and IR accounted for the majority of spend on manufactured timber products with no evidence of sustainable and/or legal sourcing, with 25 per cent and 62 per cent respectively. DfT, HMT and HO have also sourced small amounts with no evidence of legal sourcing.

Paper / Paper Products

For 2002-03, Departments were required to provide information on two main types of paper: 'desktop' paper for printers and photocopiers and paper for printed publications. In 2003-04, Departments were also asked to provide information on a third category - kitchen and toilet tissue.

Desktop Paper

Figure 15: Departmental Use of Recycled Desktop Paper, 2002-03 to 2003-04

Figure 15: Departmental Use of Recycled Desktop Paper, 2002-03 to 2003-04

Dept	% of desktop paper meeting 80% post consumer waste specification 2003-2004	% of desktop paper meeting 80%37; post consumer waste specification 2002-2003
ONS	100	100
DCMS	100	100
HMT	85	100
CO		100
ECGD		100
DfD	87	99
C & E	75	98.6
DfT	99	98
FCO	93	96
ODPM	87	92.5
LOD	85	86.6
DoH	98	85
IR	5	83
DTI	91	76
DEFRA	42	61.9
DfES	41	17
DWP	3	5
MoD	2	1.6
DCA	3
HO	32

In 2003-04, 6.8 million reams of desktop paper were purchased by eighteen Departments (HO and DCA did not provide data). Thirteen Departments (up from eleven in 2002-03) met the 80 per cent post consumer waste specification with five Departments (DCMS, ECGD, HMT, ONS and CO) reporting 100 per cent achievement against this specification. DCMS and ONS both achieved 100 per cent in line with 2002-03 and DfT remained at 99 per cent. Fifteen Departments had shown an overall improvement since 2002-03. In particular, IR improved from 5 per cent in 2002-03 to 83 per cent in 2003-04 due to the Department's decision to move towards use of recycled paper following its contract management team securing better pricing.

Despite these improvements, only 36 per cent of the total amount purchased met the post consumer waste specification. The key reason for this was that two Departments, DWP and MoD, who accounted for 61 per cent of total desktop paper purchased, only achieved five per cent and two per cent of the waste specification respectively. This reflects a similar situation in 2002-03. MoD are negotiating with their main supplier to purchase a100% recycled paper with a minimum 75% post consumer waste. At the present time their supplier cannot meet this requirement without entailing excessive costs.

Printed Publications

Government Departments are required to use paper with 75 per cent recycled fibre content for all printed publications. In line with previous years, less information is available on paper bought for printed publications because purchases are often not made centrally or are contracted out.

Ten Departments provided data for 2003-04. These Departments used a total of 36,761 metric tonnes of printed paper. ODPM, CO and DfT reported that 100 per cent of paper used for printed publications was in line with the recycled content specification. In addition, Defra met the 75 per cent target as did the one DTI site that provided information. The five remaining Departments (C&E, DWP, DfES, ONS and IR) who provided information were significantly behind meeting the 75 per cent recycled fibre content target, with figures ranging from 0 per cent to 26 per cent. ONS reported that its reprographics unit were not prepared to use recycled paper due to quality issues.

Figure 16 outlines printed publications with 75 per cent recycled content 2003-04.

Figure 16: Printed Publications with 75 per cent recycled content, 2003-04

Dept.	Total paper purchased for printed publications (metric tonnes)	Total paper purchased that met 75% recycled fibre content (metric tonnes)	% of paper that met 75% recycled content specification
DfT	835	835	100%
CO	131	131	100%
ODPM	1000	1000	100%
Defra	1169	1041	89%
DTI	0.4	0.3	75%
C&E	15520	4000	26%
DWP	5655	242	4%
IR	10095	93.7	1%
DfES	2196	6.6	0.3%
ONS	159	?	0%
DCA	?	?	?
DCMS	?	?	?
DfID	?	?	?
DoH	?	?	?
ECGD	?	?	?
FCO	?	?	?
HMT	?	?	?
HO	?	?	?
LOD	?	?	?
MoD	?	?	?
Total	36761	7350	20%

Note: ? - data not provided; DTI only provided data for one site.

Kitchen and Toilet Tissue

From 1 November 2003, all new contracts for kitchen and toilet tissue across central Government Departments had to meet a 100 per cent recycled content standard. For this first reporting period, thirteen Departments had submitted information. In 2003-04, they purchased in total, 2.15 million kilograms of kitchen and toilet tissue. Overall, 93 per cent of tissue purchased met the 100 per cent recycled content standard.

Figure 17 illustrates current progress against this target.

Figure 17: Kitchen and toilet tissue purchased with 100 per cent recycled content, 2003-04

Dept.	Total amount of kitchen and toilet tissue purchased (kg)	Total amount purchased with 100% recycled content (kg)	% of kitchen and toilet tissue with 100% recycled content	100% recycled content target met?
C&E	19,000	19,000	100%	Yes
DfES	24,529	24,529	100%	Yes
DfID	5,356	5,356	100%	Yes
FCO	32,667	32,667	100%	Yes
HO	966,500	963,400	100%	Yes
MoD	823,555	793,625	96%	No
DTI	78,219	71,306	91%	No
IR	44,714	37,000	83%	No
ONS	42,942	34,231	80%	No
Defra	31,319	20,380	65%	No
HMT	13,795	4,067	29%	No
DCMS	61,212	0	0%	No
LOD	6,755	0	0%	No
CO	?	?	?	?
DCA	?	?	?	?
DfT	?	?	?	?
DoH	?	?	?	?
DWP	?	?	?	?
ECGD	?	?	?	?
ODPM	?	?	?	?

Note: ? - data not provided.

Five Departments (C&E, DfES, DflD, FCO and HO) achieved the 100 per cent recycled content standard. MoD and DTI were close to this target.

Energy Efficient Electrical Products

As part of the 2003 Energy White Paper, the Government announced in February 2003 that for certain product types where energy manufacture and energy use is well understood in procurement terms (e.g. computers, televisions, light bulbs) it would only procure those with specified energy efficient criteria, while also delivering value for money.

In 2002-03 eighteen Departments reported they used the mandatory EU energy labelling scheme or a similar scheme to inform electrical product purchasing decisions.

A similar picture was reported for 2003-04. Thirteen Departments reported that they used the mandatory EU energy labelling scheme as a decision aid for procuring electrical products during 2003-04. DTI use the American standard Energy Star Accredited (ESA) approval rating. ONS, Defra and DfT use alternative guidance to inform some of their procurement decisions. CO reported that it did not use any guidance as its procurement of electrical products was negligible. However, it stated that it would encourage its facilities management provider to incorporate the use of the EU energy labelling scheme in any future purchases. DWP and DCA did not provide a response to this question.

Food and Catering Services

The Sustainable Food Procurement Initiative was launched by the Government in August 2003 in order to help the public sector "promote public procurement of food that supports delivery of the Government's Sustainable Farming and Food Strategy for England". The objective is to encourage the public sector to procure food in a manner that promotes sustainable development and increases the opportunities for small and local suppliers to compete for public sector food and catering contracts.

As part of this initiative, Departments are required to produce a food procurement action plan. In 2002-03, fifteen Departments had already reported that they had developed an action plan. IR had not developed a plan at this stage and both ODPM and FCO did not respond to the question. ECGD and LOD had no direct involvement with food procurement.

This situation has improved in 2003-04. FCO has now developed a food action plan and participate in the Sustainable Food Procurement Initiative. IR reported that it is currently developing its action plan in conjunction with Defra as they share the same catering supplier. ODPM reported that it still has not developed an action plan but did not provide justification.

Each Department is also responsible for publishing its action plan and for reporting on progress. During 2003-04, only three Departments (ONS, DoH and MoD) had posted their action plan on their Departmental websites.

The majority of Departments had submitted examples of how they are implementing their food procurement action plans (see box below for illustrative examples). CO has stated that it has not had the resources to begin implementation of its action plan.

Food Procurement Action Plans - Departmental Examples

At DWP, catering is the responsibility of its Estates Partners as part of the PFI contract. DWP has worked closely with them and its service providers to develop a Food Procurement Action Plan and has met regularly to review progress. During 2003-04 they have rolled out The Healthy Way - healthy option meals at all canteens. This has been accompanied by a campaign to raise awareness of healthy eating, with leaflets and posters used within canteens. DWP agreed to a pilot exercise to assess the feasibility of introducing organic food across all catering outlets. It has also agreed to provide Fairtrade tea and coffee as an option within vending machines and for hospitality tea and coffee. Articles on the Food Action Plan have been included within the SD magazine for staff.

HMT ensures that its PFI contractors use recycled and biodegradable items and that waste oil is recycled. Good food practices are promoted and policies are adopted to reflect environmental policies. Reputable suppliers are used and audited. Fairtrade and the use of organic and environmentally sound products are also promoted amongst suppliers. Fresh meat products are traced from field to fork. To guarantee freshness, the PFI contractor always uses regional suppliers.

General Procurement Policies and Procedures

In addition to the specific information requested on timber, paper, energy labelling schemes and food, Departments were also required to submit information on a series of questions related to their general progress with implementing purchasing policies and procedures. Figure 18 summarises Department responses.

Figure 18: Implementation of procurement policies and procedures

Dept.	Environment Purchasing Policy	Standard environmental clause in all contracts	Environmental risk assessments incorporated into procurement processes	Commitment to follow best practise as set out in the Joint Note on Environmental Issues in Purchasing	Commitment to collect data on procurement activity	Training and awareness program
C&E	yes	yes	yes	yes	yes	yes
CO	yes	yes	no	yes	in part	in part
DCA	?	?	?	?	?	?
DCMS	yes	yes	in part	yes	in part	yes
Defra	yes	yes	yes	yes	yes	yes
DfES	yes	yes	yes	yes	yes	yes
DfID	yes	yes	in part	yes	yes	yes
DfT	no	yes	yes	yes	yes	in part
DoH	no	yes	in part	yes	yes	yes
DTI	yes	yes	no	yes	yes	in part
DWP	yes	yes	in part	yes	in part	yes
ECGD	no	no	no	no	yes	no
FCO	yes	yes	in part	yes	yes	yes
HMT	yes	yes	yes	yes	yes	yes
HO	yes	yes	in part	yes	yes	yes
IR	yes	yes	yes	yes	no	no
LOD	yes	no	yes	yes	yes	yes
MoD	yes	yes	in part	in part	yes	no
ODPM	yes	no	no	yes	yes	no
ONS	yes	yes	yes	yes	yes	no
Note: ?- data not provided

Sixteen Departments had an environmental purchasing policy in place and sixteen had implemented standard environmental clauses in all contracts. Fifteen Departments had at least in part begun to implement environmental risk assessments in their procurement processes and all but the ECGD had committed to following best practice as set out in the Joint Note on Environmental Issues in Purchasing.

Eighteen Departments are committed, at least in part, to collecting, monitoring and reporting procurement performance data and fourteen had already begun to develop and implement training awareness programmes for staff connected to procurement activities.

DoH - National Health Service Purchasing & Supply Agency (NHS PASA)

The NHS Purchasing and Supply Agency (NHS PASA) is responsible for ensuring that the NHS makes the most effective use of its resources by getting the best value for money possible when purchasing goods and services. NHS PASA has been working over the last four years to integrate environmental considerations into its purchasing activities and has a comprehensive, ongoing work programme embedded within its EMS to ensure continual improvement.

PASA offers training to Agency staff and NHS buyers, provide best practice information, share best practice case studies, run the NHS Sustainable Development and Environmental Purchasing and Supply Forum and works to improve the environmental performance of the NHS supply chain.

Detailed information is available on its website: www.pasa.doh.gov.uk.

Quick Wins

Ministers 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 Sustainable Procurement Group (SPG) identified a number of environmental 'Quick Wins' (for more information refer to: www.ogcbuyingsolutions.gov.uk/environmental/products/environmental_quickwins.asp). To further support this initiative, OGCbuyingsolutions has published on its website a list of 'Quick Wins' products and services included in its Framework agreements.

To date, sixteen Departments have already begun to implement 'Quick Wins'. DCA and DWP were awaiting data from their procurement departments. LOD and MoD had not implemented any 'Quick Wins'.

Implementation of Quick Wins - Departmental Examples

DTI incorporated a number of the 'Quick Wins' into its estates and accommodation activities and extended these to its service providers. This includes: energy saving specifications for IT equipment; use of recycled paper, toner recycling; recycled toilet paper and hand towels; long life bulbs where appropriate; environmentally friendly paints; peat free soils in foliage; and recycling of foliage stock.

ONS purchases energy efficient IT and office equipment, recycled desk top paper, low emission diesel cars and encourages its facilities management contractor to use the Quick Wins guidance in purchasing decisions. ONS also includes links to the Quick Wins and other procurement good practice guidance in its major and minor works project procurement forms so that best practice is not overlooked. It is considering introducing a link to Quick Wins in its general procurement RTP form.

Departmental Data

For more detail on the how specific Departments within the UK Government are achieveing these targets, please access our Search Departmental Data section.

Report 2004

Updated: 07 March 2005

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