What is Sustainable Procurement?
The UK Government's definition of Sustainable Procurement is:
"A process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment" (Sustainable Procurement Taskforce, Procuring the Future, June 2006).
Put simply, Sustainable Procurement requires the incorporation of Sustainable Development (SD) into all procurement activities.
Thinking about following basic questions will help ensure that Defence Estates' (DE) procurement processes are sustainable:
a) Is there a more environmentally friendly alternative option?
b) What materials are used in the product? Are there better alternatives?
c) Is there a more resource or energy efficient way of producing the product?
d) Are you really aware of what is happening in the supply chain?
e) Are we inadvertently supporting exploitation of workers?
f) Will any social impacts arise during production or when I use it?
MOD Approach
SP is championed from a senior level within MOD with each Top Level Budget-Holder (TLB) represented at the SP Programme Board (SPPB) which oversees SP delivery. The SP Team within Defence Equipment & Support (DE&S) provides secretariat to the SPPB and is tasked with leading on SP issues for the whole of MOD. Defence Estates’ role is to support the work of the SP Team by ensuring that SP is integrated into estate activities.
DE is currently working on a number of work programmes that include:
• producing specific SD contract clauses for future estate contracts
• developing a revised whole life costs policy and
• ensuring procurement staff are appropriately trained in SD.
The production of the Integrated Projects Guide provides project teams with a step-by-step guide to integrating SD within the estate projects process. The SP Practitioner Guide (see related pages) has also been developed to provide an overview to SP, how it should be applied and outlines the mandatory requirements for MOD.
The MODs Acquisition Operating Framework (AOF) (see related pages) which provides information, guidance and instruction for MOD and industry staff in acquisition has also been updated to reflect the SP agenda.
MOD Sustainable Procurement Policy
SP Policy is outlined within chapter 17 of Joint Service Publication (JSP) 418 (see related pages).
MOD Procurement staff must ensure that the principles of SP are applied throughout new and existing procurement activity. All Investment Approvals Board (IAB) business cases must ensure that they address SD and SP issues. The IAB is the MOD's senior approving authority for all high value defence projects.
It is MOD policy to implement a Whole Life Cost (or commonly termed 'through life finance') process. This process ensures that the MOD assesses the whole life cost of a particular procurement (i.e production, in-use and disposal) rather than focussing on just the initial cost.
There are a number of key mandatory requirements to which MOD must comply, these include:
1. 'Buy Sustainable – Quick Wins' Product Specifications
2. Sustainable Timber policy
3. Site Waste Management Plans
4. Code for Sustainable Homes
All of the above mandates and more policy requirements can be found in the Related Pages section.
MOD Sustainable Procurement Targets
MODs high level objective is to:
Become a national leader in SP (by 2009)
Key Targets:
• Achieve Level 3 of the Sustainable Procurement Task Force (SPTF) National Action Plan's Flexible Framework in all themes (and Level 5 in Engaging Suppliers) by December 2009 (Government target).
• Ensure that all new contracts comply with appropriate sustainability standards, such as Office of Government Commerce's 'Buy Sustainable - Quick Wins' minimum requirements.
• Continue to roll out the SP Charter with Defence Suppliers.
DE Key Targets:
• Work with our industry partners to accurately report their sustainable performance against agreed set of 11 Key Performance Indicators (KPI)s.
• Develop initial Sustainable Development requirement for our next Generation Estate Contracts to ensure sustainable estate solutions, procured sustainably, based on whole life value.
• Achieve Level 3 in all Flexible Framework themes and Level 5 in "Engaging with Suppliers" for estate related procurement.
• Continue to roll out the SP Charter with DE Suppliers and follow-up with delivery action.