Procurement and contract management strategy 2024 to 2029 (refresh 2026 to 2027)

North Yorkshire Council’s procurement and contract management strategy has been refreshed for 2026 to 2027 to align with the council plan 2025 to 2029, which sets out four strategic ambitions:

• thriving places and empowered communities; 
• sustainable and connected places; 
• safe, healthy and living well; 
• maximising the potential of people and communities, underpinned by the One Council ambition.

Procurement supports delivery of the council plan by strengthening local economic resilience, supporting environmental sustainability and Net Zero objectives, ensuring high-quality and safe services, and promoting skills development and high-quality employment in supply chains.

This refreshed strategy incorporates requirements from the national procurement policy statement 2025, including supporting small and medium-sized enterprises and voluntary, community and social enterprises, delivering social and economic value, strengthening commercial capability, and ensuring high-quality, fair, and transparent procurement. These ambitions align with council plan for economic growth, social value, innovation, and transparency.

Outline direction of travel towards 2029

2023 to 2029 procurement and contract management strategy

• new rules of operation for North Yorkshire Council
• process and documentation in line with best practice, providing proportionate governance and controls
• data assimilation to master categories to support visibility of spend within supply chains and data driven decision making
• onboarding of suppliers
• improved value for money as combined opportunities are identified

2023 to 2029 safe, legal and compliant

• to procure and ensure efficient and effective management of all third party spend ensuring the new council is safe, legal and compliant from vesting day, 1 April 2023 onwards
• enactment of the regulatory reform, from 24 February 2025 onwards
• contract management - boosting commercial capability around contract management across the council

2023 to 29 local and sustainable

• local and sustainable: corporate goals on carbon reduction, sustainability and the circular economy, mitigation of environmental impact, alignment to regional aspirations, defining what local means for the new council and balancing delivering social value and commercial pressures

The procurement and contract management strategy continues to build on the delivery of value to the council. Savings continue to be delivered by the service and future saving opportunities identified will continue to support of the council’s transformation programme.

The service has successfully transformed to ensure deliverability. In alignment to the creation of the new council and introduction of the Procurement Act 2023, internal procurement and contract management governance has been modernised and improved to support an agile delivery model. The service is an award-winning team, with nationally recognised professionalism and skill. 

Contract management remains core to ensuring value creation post award and the service continues to promote best practice across the council and engage with contract managers to ensure optimal delivery remains front and centre to the supplier relationship.

This refreshed strategy continues to build on the work to date.

North Yorkshire Council currently spends in the region of £830 million externally each year, across both revenue and capital. Across the life of this strategy we will manage spend around £4.15 billion. We use a variety of contracts, from simple purchase orders to long-term complex contractual agreements. Some contracts are with a single supplier, others are framework agreements with multiple suppliers.

The council procures a wide range of goods, works and services, including front-line direct services and indirect back-office support. Examples include adult and children’s social care, highways repairs and maintenance, IT, utilities, food, transport, waste collection, housing, elections and licensing.

This strategy sets out the plan to achieve best value, efficient use of resources, use of technology, innovation in our practices and procedures to ensure we make the best use of that spend. The council will seek to influence new national policies and we will adapt this strategy to take on board new recommendations and join others in influencing policies locally, regionally and nationally.

This strategy applies to all directorates and services across the council. All officers of the council are required to have due regard to this strategy and to comply with the procurement and contract procedure rules when undertaking procurement activity and managing contracts. This includes service planning and commissioning decisions that necessitate procurement exercises.

To enable effective delivery of this strategy and to support the broader ambitions of the Procurement and Contract Management Service, it is essential that the roles of commissioning, procurement, purchasing and contract management are clearly defined and consistently understood across the council.

Commissioning is the process of assessing needs, resources and existing services to design how best to use available resources to achieve desired outcomes. It involves determining what should be delivered to meet the council’s priority outcomes for communities. Commissioning activity is frequently enabled and supported by procurement. 

Procurement is the strategic, end-to-end process of acquiring goods, works and services, from both external suppliers and in-house providers. It encompasses the full procurement life cycle from identifying needs, evaluating options and making “make or buy” decisions, through to the end of a works or services contract award, delivery and ultimately contract closure or asset end-of-life. Its purpose is to secure the most advantageous commercial outcomes that effectively support commissioning plans.

Purchasing (or buying) is the transactional element of the process covering the ordering and payment for goods, works and services. Although related to procurement, it is distinct and represents the operational steps within the procurement cycle.

Contract management is a critical component of the commercial lifecycle. It ensures that contracts deliver the intended outcomes efficiently and effectively, that risks are actively managed, and that both parties remain accountable for performance throughout the life of the contract.

Procurement and commissioning - the relationship

Procurement and commissioning are intrinsically linked. The procurement function is designed to deliver and support commissioners’ intentions in a legal and compliant manner, delivering the best outcome. Whilst the procurement function sits centrally within the council and commissioning sits within directorates, it is key that we develop and maintain strategic links to all commissioners to ensure procurement activities are undertaken efficiently and economically.

The council’s category management approach to procurement brings together the expertise from procurement and commissioning across the council to identify the most appropriate and effective approach to deliver required outcomes.

Legal context

Public procurement is governed by a legal and regulatory framework which has been transformed under the Procurement Act 2023 to create a system with openness and transparency at its core. Failure to adhere to public procurement law can expose the council to costly legal challenges. In that context, this strategy is intended to support compliance with the council’s Procurement and Contract procedure rules and relevant legislation and regulations and have regard to the National Procurement Policy Statement. Developments in this area will be considered and acted upon over the duration of this strategy.

The procurement lifecycle

The procurement lifecycle is a continual cycle consisting at the core of:

Requisitioning

• search catalogue/create online shopping cart
• create requisition
• requisition workflow and approval

Purchasing and spot buys

• purchasing/spot buys
• goods receipt
• monitor supplier performance

Payment

• invoice receipt
• invoice reconciliation and workflow
• payment settled, update accounts payable

Spend analysis

• gather spend date from accounts payable
• analyse spend
• determine compliance
• identify sourcing projects

Strategic sourcing

• identify sourcing projects which overlaps a small amount into strategic sourcing
• identify markets/suppliers
• run discovery events/tender exercises
• evaluate responses
• select supplier which overlaps a small amount into strategic sourcing

Contract management

• select supplier
• execute contract
• manage contract and catalogues
• maximise operational and financial performance

The above are all involved continually in a cycle of source-to-contract, which in turn is in a cycle of source-to-pay. 

Our purpose is to ensure commercial arrangements deliver optimum outcomes and contribute positively to North Yorkshire’s communities. In line with the council plan, procurement supports thriving local economies, environmental sustainability, health and wellbeing, and skills development.

The National Procurement Policy Statement 2025 strengthens this by requiring us to maximise opportunities for small and medium-sized enterprises and voluntary, community and social enterprises, embed social and economic value, build organisational commercial capability, and promote ethical and sustainable supply chains.

The procurement and contract management service are responsible for:

• providing expert commercial insight, professional advice and strategic, guidance on markets, suppliers and contractual options to help support service delivery and continuous improvement
• leading the development of forward-looking procurement and commissioning plans that ensure our expenditure with private, public, and voluntary, community and faith sector suppliers delivers optimal value
• ensuring all contracts are designed, tendered, awarded and managed in line with recognised best practice, supported by strong supplier relationship management and robust governance standards
• overseeing proactive, data driven contract management to manage risk, improve performance and achieve measurable outcomes
• driving social value through targeted engagement with local businesses and small and medium-sized enterprises, and by identifying opportunities for apprenticeships, skills development and wider community benefit across our supply chain

At the heart of this strategy is our commitment to delivering the leading local authority Procurement and Contract Management Service in the country, where we: 

• achieve tangible savings, efficiencies and long-term value for North Yorkshire’s communities
• support the delivery of high-quality customer centred outcomes
• align procurement activity with the wider ambitions of the council and its partners, ensuring commercial decisions enable strategic goals.
• support the wider ambitions of the council and its partners 
• develop a deep understanding of customer needs and service requirements 
• influence markets and apply commercial acumen to leverage supplier capability and innovation 
• maintain strong, transparent, and accountable contract management governance.
• practice robust contract management governance
• attract diverse, high-quality suppliers and from all sectors who are motivated to work with the council
• attract, retain and develop talented procurement and contract management professionals, and
• be recognised nationally as a centre of excellence and expertise in procurement and contract management. 

Our ambition is therefore summed up in our procurement and contract management vision: 

"Drive collaborative, commercially focused procurement and contract management that delivers efficiencies, value for money, and sustainable, high quality outcomes for North Yorkshire’s communities."

Our commitment is to provide a modern and innovative procurement and contract management service, which delivers more efficient services, ensures compliance, improves viability, and attracts and retains high quality staff. This will be achieved by the combination of the right people, the right structure, the right skills, and the right technology and processes for our staff and our suppliers.

The theme of commercial capability, efficiency and value for money has two key focusses: Technology and People and Skills.

E-sourcing procurement portal

A key element of our strategy is ensuring the use of an optimal e-sourcing procurement portal. The current system for the Yorkshire and Humber Region is YORtender and we aim to ensure that we are using the full functionality of the system to ensure a simple, secure and efficient means for managing tendering and quotation activities to reduce the time and effort required for both the council and our suppliers.

As the existing contract approaches a re-procurement option, we will explore opportunities for improved value for money and efficacy from potential e-sourcing procurement portal solutions.

E-purchasing

E-purchasing is integral to the overall success of procurement processes and involves the use of an electronic system/s to acquire and pay for supplies, services and works. The council has invested in a new financial management system and the service is working closely with the project to ensure optimal utilisation around e-purchasing. 

Ultimately, the aim is to enable many operational tasks in the Procure-to-Pay cycle to become automated and / or self-service with the Procurement and Contract Management Service sourcing the contracts the council buys from.

SharePoint and Power BI

To support the council’s category management approach, Power BI is utilised to collate and analyse data across the council to allow for the creation of personalised dashboards and interactive reports. SharePoint has been established across the council for file storage and, collaborative working processes.

The council’s procurement pipeline and contract register information along with financial spend data are the prime data sets which have been incorporated into PowerBI dashboards to facilitate decision making around procurement and contract risk management activity. This supports the organisation in making data driven decisions.

We will explore further and innovative use of SharePoint and Power BI to identify opportunities, most notably in supporting contract management processes across the council and administrative tasks within the team.

Project and portfolio management

One of the most critical and ongoing decisions within the council is how to allocate finite resources. Project and portfolio management software is utilised for resource management to allow for work allocation to be planned, monitored, and optimised across the team, taking a risk based approach. The Procurement and Contract Management Service utilise project and portfolio management to monitor resource usage and are involved with the project team in developing the new system’s use to support improved forward planning around capacity. 

Data North Yorkshire

In partnership with North Yorkshire Fire and Rescue and North Yorkshire Police, Data North Yorkshire was produced to unlock the potential of Open Data and is a catalogue of data for anyone to use. This allows for the publication of procurement information which includes the council’s contract registers and procurement pipeline to facilitate transparency requirements. This data provides an early indication to suppliers of future contracting opportunities.

Innovative technology

With the fast pace of technological change the council needs to be aware of new opportunities to improve service efficiency both within our supply chains and internally. Artificial Intelligence is one such area that is picking up pace in terms of improvements in usage. This relates to suppliers using AI to assist in bid writing; AI in delivery of contracted services as well as the capabilities of AI to support the team in the delivery of tasks.

Other technology-related opportunities will also be explored to seek improvements and service efficiencies.

People and skills

We will continue to invest in and develop the procurement and contract management skills and capacity of our staff, to ensure we are recognised nationally as the best local authority Procurement and Contract Management Service in the country. Two of the key areas for skills investment across the team is Chartered Institute of Procurement and Supply certification and the Government Commercial Function Contract Management Pioneer Programme training.

Our aim is to create a team of highly skilled and motivated staff within a robust structure that supports effective service delivery, aligned with career development opportunities and support. We will aim to attract, retain and motivate high-quality, skilled commercial professionals where we are unable to develop from within.

As part of our workforce development strategy and the Council’s People Strategy, a full-service review has been undertaken, this has included a newly defined service structure with a review of all roles and responsibilities. This has provided the opportunity to develop and improve our career path and support our “grow your own strategy”. Furthermore, it has given opportunity for the team to develop a wider range of professional knowledge and expertise, supporting our ambition to improve commercial capabilities across the breadth of procurement and contract management.

Our staff will maintain and develop good skills in strategic thinking with commercial acumen, along with operational and practical procurement and contract expertise. We will be effective relationship managers with the ability to influence, have good emotional intelligence and communication skills. This will help us to be credible with stakeholders and suppliers. To ensure all staff can develop these skills we invest in training and identify training requirements which are specific to various aspects or roles within the team.

Our staff will know their supply markets, cost drivers and understand the regulatory environment in which they work. Investing in training and development programmes for our staff will bring growth and succession planning to the service. Engagement with strategic suppliers will support in developing our staff’s understanding of market factors, risks and opportunities.

The Procurement and Contract Management Service also has a wider role to play in the development of contract management and commercial skills across the council, our partners and our customers. We will develop and deliver a high quality training offer to our customers and suppliers, including skills in tendering, maximising Social Value, and behaviours to enable improved contract management. Targeted “deep dive” engagement on strategic contracts will further support in skills growth across contract management practices in the council.

Our commercial capability as a service will also be benchmarked against other Contracting Authorities using the appropriate professional standards and associated tools.

We ensure compliance with public procurement legislation as well as the council’s Procurement and Contract Procedure Rules, as set out in the council’s constitution, through robust governance and best practice processes which are reviewed and updated regularly to ensure they remain fit for purpose and effective.

We have clear processes for planning, delivering and monitoring procurement and contract activities. These processes enable us to optimise commercial outcomes which are delivered in a fair, open and accountable manner with a commitment to transparency, integrity and value for money.

We engage with members and senior managers by championing the impact and benefits of good procurement and contract management and ensuring a professional and consistent approach through the continued development of best practice processes and toolkits. 

The Procurement Act 2023 aims to improve the way public procurement and contract management is regulated to simplify procedures and embed transparency throughout the commercial lifecycle, including openness about supplier performance. 

We will embed and maintain compliance with the act through the following measures:

• value for money – procurement processes are designed to deliver the best mix of quality and cost
• fair treatment of suppliers – ensuring access to opportunities, removing barriers and non discriminatory and transparent evaluation
• open competition – avoiding restrictive specifications and make public procurement more accessible to small and medium enterprises / voluntary and community sector
• integrity and accountability – maintaining audit trails via our governance processes, managing conflicts of interest and reporting transparently

The Provider Selection Regime removed the procurement of health care services from the scope of the Public Contracts Regulations 2015 and new Procurement Act 2023. We will continue to embed best practice from lessons learnt to ensure that the intended benefits of the regime are realised, such as flexibility, proportionality, and greater integration and collaboration across the health system.

We will demonstrate clear ownership and accountability within our procurement and contracting activities, with structured governance and assurance, to ensure clear, timely, evidence based and transparent decision making. To support such decision making, we are developing a data driven performance dashboard. All procurement and contracting activity is accountable to the Corporate Procurement Board, chaired by the Corporate Director – Resources.

We will operate transparently, with a visible and accessible contracts register and procurement pipeline. We will ensure our bid and tender processes are clear and proportionate, and our practices support harder to reach markets.

We will ensure that our processes support Contract Managers in managing supplier performance. Our team will provide targeted support to Contract Managers across the council who may need some advice, guidance, or short-term practical support to manage a contract. There are established processes in place to support:

• the segmentation of contracts in relation to spend and criticality to the council, working with Contract Managers to assess and baseline contract management activities against best practice for strategic contracts
• the design of targeted training and support for Contract Managers, ensuring they have the knowledge, skills and tools to manage their contracts
• the monitoring of the financial health of the councils key strategic suppliers
• a rolling-programme of contract deep-dives to identify areas for improvement/ share best practice / understand risk management and mitigation

We are committed to reviewing our internal governance policies and processes regularly to incorporate lessons learnt, changes in legislation, organisational priorities, market trends and audit findings to remain agile and responsive to the council, our colleagues, and our markets.

By 2029, North Yorkshire Council will use its commercial influence to stimulate local economic growth, strengthen supply chains, and create a more resilient, diverse, and competitive local marketplace. Procurement will act as a lever for economic development supporting small and medium-sized enterprises and voluntary, community and social enterprises and social enterprises to thrive.

What we will do

Expand access to local suppliers

Following Local Government Reorganisation, the council now has access to a broader and more diverse supplier base. Over the strategy period, we will:

• actively identify and onboard local suppliers across all service areas
• promote upcoming opportunities through targeted local engagement
• use market‑warming events to help suppliers understand our needs and commercial expectations
• increase visibility of our pipeline to encourage early supplier preparation

Leading to a larger, more competitive pool of North Yorkshire suppliers ready to bid for council work.

Strengthen business engagement and development

We will build a more proactive relationship and contribute to the councils Business Engagement Strategy by working with the local business community; by:

• creating new engagement routes for small and medium-sized enterprises and voluntary, community and social enterprises, micro‑businesses, and rural enterprises
• working with internal and external stakeholders to align procurement with wider economic development programmes
• attending the quarterly Business Advisory Board to provide advice and support and hear first hand the support local businesses need to assist them in bidding for our contracts
• offering supplier development sessions on bidding, compliance, and contract management
• raising the profile of North Yorkshire Council as a fair, transparent, and commercially attractive client 

This will make local businesses feel confident, informed, and supported to compete for public contracts.

Grow a thriving local supply chain

We will use procurement to help retain economic value within North Yorkshire by:

• encouraging prime contractors to subcontract locally
• embedding social value commitments that prioritise local employment, skills, and supply chain spend
• mapping key supply chains to identify gaps, risks, and opportunities for local growth
• supporting innovation and diversification in rural and coastal economies

Enabling more council spend stays within North Yorkshire, generating wider economic and social benefits.

Use procurement reform to support local small and medium-sized enterprises

New procurement reforms give councils the ability to reserve certain lower‑value competitions for suppliers within a defined local area. Over the strategy period, we will:

• introduce reserved competitions where appropriate and legally permitted
• simplify processes to reduce barriers for small and medium-sized enterprises and voluntary, community and social enterprises
• use proportionate requirements for financial standing, insurance, and accreditations

Resulting in an increase in local small and medium-sized enterprises winning work, building capability, and contributing to a stronger North Yorkshire economy.

The Public Services (Social Value) Act 2012 and National Procurement Policy Statement, places an obligation on the council to consider economic, social and environmental well-being within any procurement for public service contracts above the relevant threshold amount. The council endeavours to not only meet the legal requirements, but exceed them, through consideration of Social Value within all procurement activity.

In line with the Council Plan the following ambitions will be considered regarding social value opportunities for all procurement activity: 

• place and environment – mitigating the causes and impacts of climate change, promoting green energy / technologies, minimising waste and preserving the natural beauty of North Yorkshire
• economy – growing a resilient local economy by increasing opportunities for small and medium-sized enterprises and voluntary, community and social enterprises, micro-businesses and local suppliers; and supporting fair work, fair terms and good working conditions across our supply chains. 
• health and wellbeing – improving the health and wellbeing of residents of North Yorkshire by ensuring services designed and commissioned contribute to healthier lifestyles, reduced inequalities and accessible provision for all
• people – strengthening life chances by encouraging suppliers to create local employment, apprenticeships, work placements and skills pathways, particularly for those experiencing hardship or disadvantage, allowing people to achieve their full potential through lifelong education and learning.
• organisation – ensuring a well led and managed, financially sustainable organisation which role-models ethical, inclusive and commercially mature procurement practice.

Delivery of social value is intrinsically linked to commissioning which assists with innovation, creating optimal outcomes and social outcomes. 
There has never been a more influential time to bring social value to the front and centre focus of project delivery; commissioning, procurement and contract management all have an intrinsic part to play in ensuring support and development of the local communities and environment the council serves.

The Procurement and Contract Management Service will:

• continue to build its confidence to explore the social, economic and environmental impacts that can deliver and support the council’s aspirations for a carbon negative by 2030 and sustainable future
• work to upskill small and medium-sized enterprises and voluntary, community and social enterprises and local suppliers to turn their social, economic, and environmental ambitions into practical actions
• support small and medium-sized enterprises and voluntary, community and social enterprises, micro enterprises and local suppliers by simplifying processes, offering capability building support and ensuring procurement routes are accessible to all
• contribute to the council’s modern slavery statement and ensure procurement and contracting activity monitors this area
• explore how we can support our children and young people in care with employment opportunities within our supply chains through the Young Person’s Employability Charter
• routinely engage with key strategic suppliers to understand their social value performance, environmental contributions and opportunities for collaboration
• explore opportunities for suppliers to contribute to local community initiatives and inclusive growth
• engage with our supply chain through proactive market engagement to understand maturity around ethical sourcing, labour conditions and transparency throughout tiers of the supply chain

Thriving places and empowered communities

• strengthening resilience of communities
• attract inward investment and advance key industries
• support small and medium enterprises
• implementation of destination management plan
• affordable, high-quality housing
• establish up to 30 multi-agency community partnerships

Sustainable and connected places 

• protect and enhance our environment
• tackle and reduce environmental crime
• net zero by 2034 and carbon negative by 2040
• harmonise approaches to recycling across the county
• major infrastructure upgrades to improve transport connectivity
• advancing digital connectivity across the county

Safe, health and living well 

• support families in difficulty at the earliest opportunity
• provide a framework to ensure children are safe, healthy and happy
• promote safer communities
• support people to live independently in their home of choice

Maximise the potential 

• all children have access to high quality education
• promote inclusion in mainstream education
• clear opportunities to access learning after education
• focused support to individuals and communities that require it 

One council 

• ensure the council is financially sustainable
• improving efficiency and joining up services
• considering opportunities for transformation and optimising the way services are delivered

Programme of activity 2026 to 2027

• embed and benefit from flexibilities of the Procurement Act 2023
• explore AI in procurement and contract management
• review ways of working, ensuring flexibility and agility
• support the transformation programme
• proactive talent management
• deep dive contract management - review programme
• embed social value delivery as part of market engagement
• roll out council wide mandatory contract management training 
• improved visibility of data and information linked to the financial management system
• improve self-service
• benchmark commercial capability regionally
• efficiency realisation linked to improved ways of working