LIS PROCUREMENT NOTE: E-AUCTIONS Meeting Scottish Government: 29.04.14 Atlantic Quay, Glasgow

LIS PROCUREMENT NOTE: E-AUCTIONS

Meeting Scottish Government: 29.04.14
Atlantic Quay, Glasgow

Present
Cara Davidson – Scottish Government, Renewables Routemap, Energy & Climate Change
Allen Hughes – Scottish Government, Renewables Routemap, Energy & Climate Change
Marc van Grieken – LUC
Rachel Tennant – LIS
Apologies
Gordon Patterson – Scottish Government, Renewables Routemap, Energy & Climate Change
Key issues raised by LUC
• No problem with procurement and tendering in general as long as it is on a fair and reasonable basis. In the e-auction tendering process (Introduced by one of Scotland’s leading energy supplier and renewable energy development companies) qualitative assessment takes place often with extensive clarifications. This is very expensive for practices to take part in – often up to £10,000.00
• 3 tenderers are selected to go through to the final auction on the basis of a qualitative assessment (benchmark figure over 50%)
• Price by auction takes place. Lowest price and your own bidding price is displayed and there is a 30 minute time frame to improve your bid. The figure that is scored in the quality assessment has no bearing on the final price even if your quality score is 80% and others are only 51%
• Often large multi-disciplinary /international firms can buy the work
• Ultimately this will lead to loss of quality, delays to project and possible increase in length of inquiries – impacts on deliverability of renewables across Scotland
• LUC are considering withdrawing form this type of bidding which will lead to loss of skills in this sector Scotland

LIS comment
• Whilst Scottish Power are not governed by public procurement rules – renewable’s are dependent on public money through subsidies
• Currently through the Public Reform ( Scotland Bill) questions have been raised about why he regulations are not covering Arms Length External Organisations ( ALEO’s) eg Scottish Water and Hubco’s
• The high price of tendering has ultimately to be recouped by tenderers which will have an impact on the economy
• Loss of a skills base and impact on SME’s which are covered by the Public Reform ( Scotland Bill)

Scottish Government Response
• Simon Coote in Scottish Government has raised this issue with Scottish Power
• Loss of quality is a concern with the Scottish Government as this may lead to delays and expensive on-costs to the renewable programme
• New EIA directive which will form part of new EIA regulations bought into legislation within the next 3 years. Focus is on improving quality of EIA’s. There will be a series of workshops and a review of what ‘competent experts’ will mean. Will impact on practioners, project managers, consenting authorities and clients
• Recommended that LUC also raise this issue direct with the Scottish Renewable’s Group

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