What is Procurement?

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Procurement is the process the council follows when purchasing works, goods and services.The term applies to all aspects of the purchasing process, from the identification of a need to purchase to the end of the contract or useful life of the item. Procurement activities include buying decisions such as option appraisal, tendering, contract creation and 'purchase to pay' processes.

As with any process, the council's aim is to provide 'Best Value'. The duty to do so is included in the Local Government in Scotland Act 2003. The Act states that, 'an authority which secures Best Value will be able to demonstrate that it is conscious of being publicly funded in everything it does'. The Act also says that a council achieving Best Value is, 'aware of the need to conduct its business in a manner which demonstrates appropriate competitive practice'. In procurement terms, Best Value means:

• choosing a supplier that offers the best balance between the whole life cost (from acquisition to disposal) of goods and services against predefined requirements
• generating savings through corporate or collective action with other public bodies
• generating efficiency savings through streamlining the procurement process

Within the last financial year, Renfrewshire Council procured works, goods and services to the value of approximately £150 million from around 7,000 providers with £80 million being spent within Renfrewshire.