The contract award for seven new CalMac ferries to a Polish firm has highlighted the use of social value in Scottish procurement. In this briefing, we explain how social value should work and highlight other weaknesses in the procurement process, including the Subsidy Control Act.
We argue that the current rules have more flexibility than the Scottish Government believes, and they are being constrained by regulatory freeze rather than by the legislation itself.
We also suggest that the legislation needs reform, as it is more than ten years old and predates Brexit. We set out a series of reforms, many of which could be undertaken under the existing provisions. These would help strengthen the Scottish economy with more public contracts awarded locally and help deliver government policies around Fair Work, climate change, and tax avoidance.
Jimmy Reid Foundation Director Dave Watson said:
“Scottish procurement legislation is more than ten years old and needs updating, as the UK legislation has been. However, ministers must also escape the regulatory freeze and be bolder in using existing provisions. They must fully use direct awards and take account of taxation, social value, and other factors in bid evaluation.”