Chamber and committees

Scottish Government policy is as set out by the First Minister. We agree with the assessment by the Institute of Chartered Accountants of Scotland that discussions on this issue between the Scottish Government, the UK Government and the EU should start as soon as possible.

I refer the member to the answer to question S4W-16616 on 2 September 2013. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

I refer the member to the answer to question S4W-16616 on 2 September 2013. All answers to written parliamentary questions are available on the Parliament’s website, the search facility for which can be found at:

http://www.scottish.parliament.uk/parliamentarybusiness/28877.aspx.

Background on company ownership was provided by bidders as part of the IT Managed Services Framework Pre-Qualification process. Under EU procurement law it is not possible to specify company ownership requirements as a specific evaluation criterion.

When a contracting organisation is conducting a mini competition under the framework, they will invite all suppliers (on the appropriate Lot) to participate for their requirement.

However, there is no contractual obligation on suppliers to bid for at least 50% of all contracts.

The IT Managed Services framework agreement comprises of two lots:

Lot 1 for large projects (typically greater than £1 million) has four framework suppliers; and Lot 2 for small projects (typically less than £1 million) has ten framework suppliers.

It should be noted that all four suppliers within Lot 1 are also suppliers within Lot 2 which results in a total of ten framework suppliers.

Two of the ten framework suppliers, detailed below, have headquarters in Scotland and both of these suppliers are Scottish registered:

Amor Business Technology Solutions Ltd have headquarters in Renfrew and Prosource.it (UK) Ltd have headquarters in Aberdeen.

From the remaining eight suppliers, seven suppliers, named below, have staff and premises in Scotland:

Atos IT Services UK Ltd, British Telecommunications Plc, Capita Business Services Ltd, CGI IT UK Ltd (formerly Logica UK Ltd), Dell Corporation Ltd, Fujitsu Services Ltd and Maindec Computer Solutions Ltd.

Kainos Software Ltd are headquartered in Northern Ireland and is the only supplier that does not have staff or premises in Scotland.

At the time of the framework award (March 2011) three of the ten successful suppliers were categorised as SMEs. These suppliers were,

Kainos Software Ltd, Maindec Computer Solutions Ltd and Prosource.it (UK) Ltd.

Kainos Software Ltd is now categorised as a large company.

The procurement strategy for the IT Managed Services framework included a full analysis of the Scottish market, and the approach to market adopted was designed specifically to maximise opportunities for small and medium sized enterprises to compete. Under EU procurement law it is not possible to specify employment in Scotland as a specific evaluation criterion.

From management information received from the suppliers, the IT Managed Services Framework has seen the creation of some 28 new jobs in Scotland. It is also likely that the business generated under the framework has also safeguarded a number of other jobs in Scotland.

Scottish Ministers have asked Robin Crawford and Ken Lewandowski to carry out an independent review of the way in which the public sector in Scotland procures construction work, and they have consulted the Federation of Master Builders as part of their review.

That report is expected later this summer, and Scottish Ministers will respond to its recommendations then.

Improving speed of payment to sub-contractors is one of the key thrusts of the Federation of Master Builders’ report, and Mr Crawford and Mr Lewandowski have already made one early recommendation in this regard, to trial the use of project bank accounts in Scotland. I have accepted this recommendation, and a suitable trial is now being sought.