Reserved Contracts

City Building’s unique social ethos and long heritage of providing opportunities to people of all abilities is reflected in our unique manufacturing facility at Royal Strathclyde Blindcraft Industries (RSBi).

Specialising in manufacturing a wide range of furniture products, RSBi is also dedicated to “making a difference” in the community. From its roots as a supported facility for the visually impaired, RSBi is today committed to providing opportunities for people with disabilities, as well as helping towards the economic regeneration of the local community and beyond. This contribution makes RSBi one of the country’s leading examples of social enterprise, combining commercial success with socially responsible practices.

The Scottish Government guidelines – updated March 2016 – is as follows:

RSBi is classified as a “supported business,” under the new terms of recent Legislation.

The Scottish Government implements reserved contracts via Scottish regulations. European Directives (ED) which have set a change in scope for the award of reserved contracts that we must transpose in to Scottish Law.

The definition of those businesses who can benefit from access to reserved contracts is in two parts:

Firstly, a supported business’ primary aim is the social and professional integration of disabled or disadvantaged persons. This is an entirely new condition. This may be evidenced in the Memorandum and Articles of Association, or similar documentation that underpin the formation of the business.

Secondly, at least 30 per cent of the employees of those businesses should be disabled or disadvantaged. The precise proportion of staff may fluctuate over time. However with this requirement being underpinned by the main aim of the business being the social and professional integration of disabled and disadvantaged people, then assurances should be evidenced through the HR and resourcing policies of the business.

Notwithstanding further guidance that may be issued by the European Commission, reference should be made to EU Directive 2014/24/EU, recital 36, for what may be considered as disadvantaged.

“In order to be considered for a reserved contract, businesses will need to fulfil both parts of the definition.”

EU Directive 2014/24/EU regarding public procurement, recital 36 states:  

“Employment and occupation contribute to integration in society and are key elements in guaranteeing equal opportunities for all. In this context, sheltered workshops can play a significant role. The same is true for other social businesses whose main aim is to support the social and professional integration or reintegration of disabled and disadvantaged persons, such as the unemployed, members of disadvantaged minorities or otherwise socially marginalised groups.  However, such workshops or businesses might not be able to obtain contracts under normal conditions of competition.  Consequently, it is appropriate to provide that Member States should be able to reserve the right to participate in award procedures for public contracts or for certain lots thereof to such workshops or businesses or reserve performance of contracts to the context of sheltered employment programmes.”