The National Picture

Policy Context

The Scottish Government is keen to promote the participation of the Voluntary or Third Sector (preferred Scottish Government collective term for voluntary organisations, social enterprises, charities and community groups) in delivering public sector contracts. In its publication "Enterprising Third Sector Action Plan 2008-11", it states:

"There is a role for the third sector in helping to ensure that services are reaching the most vulnerable and in ensuring that we maximise the opportunities for the most disadvantaged in Scotland. The third sector is in a unique position to reach and engage with individuals facing a wide range of challenges …. We want to ensure that the third sector is given the opportunity to bid for those contracts, particularly where it can transform people's lives. We will do this in the context of the European procurement regulations and the requirement for best value. For the public sector, this means purchasing services intelligently, which includes involving the third sector in service design, assessing bids on quality and using community benefit clauses where appropriate."

However, as yet, different contracting authorities are taking different approaches to purchasing services, and for small and medium sized enterprises (SMEs), including those in the Voluntary Sector, this will have a significant impact on their ability to compete for public sector contracts. It also has implications for service users; as the Scottish Government has indicated, the Voluntary Sector is in a unique position to understand the needs and concerns of those who use services, particularly those who are most vulnerable in our society. This understanding and ability to adapt service provision accordingly, along with the wider community benefits delivered by Voluntary Sector organisations, are crucial motivations for contracting authorities to examine their procurement procedures and assess options for enabling Voluntary Sector participation in contracting.

Impact of Tendering

As outlined previously, health and social care services are classed as Part B services under the Public Contracts Regulations. With Part B services, contracting authorities, while still having to follow the principles of openness and fairness, have a greater degree of flexibility in deciding whether or not to go down the tendering route. A key consideration for most authorities will be impact on service users; Community Care Providers Scotland published a research report (202KB PDF) in 2008 conducted across a range of member organisations across Scotland which highlights some serious concerns about the rationale for and impact of retendering.

In some areas of Scotland, service users have begun to campaign for a greater voice in relation to changes to service provision brought about by retendering exercises. In East Lothian, the Council's petition committee heard a delegation from the community campaign in April 2009. The petition called for a rethink on East Lothian Council's decision to put housing support services for people with learning disabilities and other support needs out to competitive tender. It asked that East Lothian Council puts this process on hold until those affected have an opportunity to consider alternatives to tendering. In particular, service users wanted Councillors to ensure that people with learning disabilities "participated" in the process rather than simply being "consulted". For more information, see the Campaigns section of the Learning Disability Alliance website.

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