Procurement and contract management strategy 2024 to 2029 (Refresh 2025-26)

North Yorkshire Council became operational on 1 April 2023, following the Local Government Review, which consolidated eight separate local authorities in the region into a single, stronger entity.  This refreshed plan aims to build upon the initial roadmap and aligns with the new council’s plan and the Government's amended National Procurement Policy Statement, following the introduction of the new Procurement Act 2023 on 24 February 2025. The strategy also reflects our aspirations to support local suppliers and reduce carbon impact.

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 (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 that optimal delivery remains front and centre to the supplier relationship.

This refreshed strategy continues to build on the work to date, and combines the expertise, skill and good practice available from all the former authorities which have come together to form the new council, alongside the regional and national expertise from all sectors.

North Yorkshire Council currently spends in the region of £792m externally each year, across both revenue and capital. Across the life of this strategy we will manage spend around £3.96billion. 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.

North Yorkshire County Council's master category spend

• professional: £167m - 21%
• place: £237m - 30%
• people: £388m - 49%

This strategy applies to all directorates and services across the council. All officers of the council must have regard to the strategy and the procurement and contract procedure rules when undertaking procurement activity and managing contracts – including service planning and commissioning decisions which will require procurement exercises to be undertaken.

To support the delivery of the strategy and wider ambitions of the service, commissioning, procurement, purchasing and contract management need to be defined and understood throughout the council.

Commissioning is the activity of assessing needs, resources and current services, to develop a strategy to make best use of available resources to meet the assessed needs and desired outcomes. It is the informed design of what we want to deliver in meeting our priority outcomes for our communities. Commissioning is frequently facilitated by procurement activity. 

Procurement is the strategic process of acquiring goods, works and services, covering acquisition from both third parties and in-house providers. The process spans the whole procurement life cycle from identification of needs, through to the end of a works or services contract or the end of the useful life of an asset. It involves options appraisal and the critical ‘make or buy’ decision. Procurement seeks the most advantageous outcome in how we deliver commissioning plans.

Purchasing or buying is the transactional process of ordering and paying for goods, works and services. This is connected to, but separate from procurement, and is illustrated in the lower half of the procurement cycle.

Contract management as a critical part of the commercial lifecycle is focused on ensuring contracts deliver the intended outcomes efficiently and effectively, risks are managed, and accountability is upheld.  

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.

Contract management is the process of managing contract creation, execution and analysis to maximise operational outcomes and financial performance, while managing risk.

Legal context

Public procurement is governed by a legal and regulatory framework which has been transformed under the Procurement Act 2023 to create a simpler and more commercial 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 regulation, 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 (overlaps a small amount into strategic sourcing)
• identify markets/suppliers
• run discovery events/tender exercises
• evaluate responses
• select supplier (overlaps a small amount into strategic sourcing)

Contract management

• select supplier
• execute contract
• manage contract/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. 

We will ensure that commercial arrangements and contracts awarded by the council provide optimum outcomes. We will also use our procurement spend to provide the very best social value for our communities.

The Procurement and Contract Management service are responsible for:

• providing professional advice, guidance and insight regarding markets, suppliers and contractual options to help support service delivery and improvement
• leading the development of plans for how we spend our money with suppliers from across the private, public and third sectors
• ensuring that our contracts are developed, awarded and managed in line with best practice, including developing strong relationships with our key suppliers
• driving social value by encouraging spend with local firms and identifying apprenticeship and skills opportunities through our supply chain.

At the heart of this strategy sits our ambition to deliver the best local authority Procurement and Contract Management Service in the country, where we:

• achieve savings and value for money for the communities of North Yorkshire
• support the delivery of quality outcomes for customers
• support the wider ambitions of the council and its partners
• develop a deep understanding of customer needs
• influence and operate commercially, understanding supply market capabilities
• practice robust contract management governance
• attract suppliers of all sizes and from all sectors to want to work with the council
• attract procurement and contract management professionals to want to work for the council
• be recognised nationally as a procurement and contract centre of excellence and expertise

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

"Working collaboratively to deliver efficiencies, value for money, optimal outcomes and sustainable quality through a proactive commercial approach to procurement, contract management and commissioning for the communities of North Yorkshire."

Our commitment is to provide a modern and innovative procurement service, using the right technology and processes for our staff and our suppliers to provide more efficient services, ensure compliance and improve viability. We will lead on continuously reviewing our approach to ensure we respond to feedback and develop the technology and systems we use. This is vital in achieving our ambitions and elements of focus include the following:

YORtender - e-sourcing procurement portal

A key element of our strategy is the use of YORtender, the e-sourcing procurement portal for the Yorkshire and Humber Region. 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.

E-purchasing

E-purchasing is also 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. We have invested in the Oracle iProc tool which offers e-purchasing and spend analysis capability to assist in alleviating the pressures faced by operational buyers.

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.

Power BI

To support the council's category management approach Power BI is being utilised to collate and analyse data across the council to allow for the creation of personalised dashboards and interactive reports. The councils forward procurement plan and contract register information along with financial spend data are the prime data sets which have been incorporated into Power BI dashboards to facilitate decision making around procurement activity. This will support the organisation in making data driven decisions.

Project and Portfolio Management (PPM)

One of the most critical and ongoing decisions within the council is how to allocate finite resources. PPM software is utilised for resource management to allow for work allocation to be planned, monitored, and optimised across the service. The Procurement and Contract Management Service utilise PPM to monitor resource usage and are developing the 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 forward procurement plans to facilitate transparency requirements. This data provides an early indication to suppliers of future contracting opportunities.

Innovative technology

With the fast pace 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.

We are responsible for ensuring compliance with the Procurement and Contract Procedure Rules, the council’s constitution, and public procurement law in order to manage procurement risk and to comply with legal requirements. We will continue to engage with members and senior managers by championing the impact of good procurement and contract management practices, developing and maintaining the council’s procurement and contracts procedure rules and together ensuring a professional and consistent approach through the continued development of good practice documents and toolkits.

One of the key future changes to legislation is the new procurement regime which is the biggest change to UK public procurement since 2015. This is anticipated to take effect from October 2024 after the creation of all the secondary legislation and a 6-month implementation period.

The new Procurement Act 2023 aims to improve the way public procurement is regulated in order to simplify procedures, open up public procurements to small and medium enterprises (SMEs) / voluntary and community sector (VCSEs), embed transparency throughout the commercial lifecycle and allow tougher action on underperforming suppliers. All these changes will be adopted into the council’s Procurement and Contract Procedure Rules and associated processes / procedures to ensure compliance and best practice are adopted across the council.

Furthermore, the Provider Selection Regime legislation has removed the procurement of health care services by relevant authorities from the scope of the Public Contracts Regulations 2015 and future Procurement Act 2023. The Provider Selection Regime (PSR) came into force on 1 January 2024 under the Health Care Services (Provider Selection Regime) Regulations 2023 and has been incorporated into the council’s Procurement and Contract Procedure Rules and associated processes / procedures. The Procurement and Contract Management Service will embed best practice from lessons learnt as the new regime is utilised.

We will demonstrate clear ownership and accountability within our procurement activities, with structured governance and assurance, to ensure clear, timely and transparent decision making. All procurement activity is accountable to the Corporate Procurement Board, chaired by the Corporate Director – Resources.

The Procurement and Contract Management Service will provide appropriate central support and challenge, ensuring lessons are learned and shared, to drive continuous improvement in the council’s procurement activities.

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

Our ambition is to be recognised as a contract management leader in the public sector. We will achieve this by delivering efficiencies, savings and service quality improvements through an assertive, proactive, consistent approach to supplier relationship and contract management.

This will include the management of risks such as contract management capability, supplier performance, changes in requirements, and stakeholder relationships. Where appropriate contract management plans will be utilised in order to ensure that value is created throughout life of the contract:

Contract value

• the contract value increases over time up to the critical point of leverage when the contract is signed
• after the contract is signed there is an initial period when the contract value is maintained at that level and then over time there are three potential scenarios:
  a) contract management maintains that level of value
  b) collaborative contract value creation brings a 10% potential value increase
  c) contract neglect brings a 10% potential value erosion

In order to embed best practice the Procurement and Contract Management Service have participated in the contract management pioneer programme (CMPP) which aims to boost commercial capability across the public sector. From this several areas of recommendation have been identified and the following workstreams have been established:

• risk and finance
• governance, including processes/ documentation review
• communication and training

Contract management responsibilities

Contract management responsibilities include:

• maintaining a comprehensive contracts register
• ensuring contracts align with the objectives of the council and offer value
• ensuring contractual obligations are met by both parties
• managing contracts throughout their lifecycle, including variations and extensions

The Procurement and Contract Management Service will:

• provide targeted, short-term support to contract managers across the council who may need some advice, guidance, or short-term practical support to manage a contract
• contribute towards creating and embedding best practice whilst maintaining a culture of high standards in the performance of contract management functions across the council
• segment contracts in relation to spend and criticality to the council and work with service-based contract managers to assess and baseline contract management activities against best practice for strategic contracts
• work with internal audit to identify shortfalls and create improvement plans to close contract management gaps
• to support the new council, the service will design a targeted training and support for contract managers, ensuring they have the knowledge, skills and tools to manage their contracts
• complete the contract management foundation training on the Government Commercial College and, where appropriate, the contract management practitioners training to upskill staff
• Continue to work with the Government Commercial Function, Contract Management Pioneer Programme to review our practices and embed an improved contract management culture

Contract management will seek to ensure that suppliers and their services are managed effectively, and that continuing quality and value for money is achieved. Contract managers within the council will ensure that effective contracts are in place, and that suppliers deliver according to the terms, conditions and delivery targets contained within the contract. A key outcome is that the council progresses with ensuring that the optimum value is achieved from the relationship with the supplier ideally in a collaborative manner building long-term relationships.

We will continue to invest in and develop the procurement 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. One of the key areas for skills investment across the team is Chartered Institute of Procurement and Supply (CIPS) certification for procurement staff and the Government Commercial Function Contract Management Pioneer Programme training for all contract management staff within the Procurement and Contract Management service.

Our aim is to create within the service the combination of the right people, the right structure, and the right skills, aligned with career development opportunities and support. We will aim to attract, retain and motivate high-quality,
skilled procurement commercial professionals where we are unable to develop from within.

As part of our workforce development 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” pool of talent.

Our staff will maintain and develop good skills in strategic thinking with commercial acumen, along with operational and practical procurement 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 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 programs for our staff will bring growth and succession planning to the service.

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.

The Public Services (Social Value) Act 2012, places an obligation on the council to consider economic, social and environmental wellbeing within any procurement for public service contracts above the relevant Public Contract Regulation threshold. 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’s 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 and preserving the natural beauty of North Yorkshire

• economy – supporting local businesses and ensuring a sustainable economy
• health and wellbeing – improving the health and wellbeing of residents of North Yorkshire and ensuring that appropriate services are accessible to all
• people – supporting people through hardships and allowing people to achieve their full potential through lifelong education and learning
• organisation – ensuring a well led and managed, financial sustainable and forward thinking council with a diverse set of employees who are supported and valued

Delivery of social value is intrinsically linked to commissioning which assists with innovation, creating savings 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 new councils aspirations for a carbon negative and sustainable future
• work to upskill SMEs, VCSEs and local suppliers to turn their social, economic, and environmental ambitions into practical actions
• contribute to the councils 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
• explore how we can support wider job creation through our supply chains including hard to recruit areas and encouraging use of apprenticeships
• look to develop a Social Value charter

Place and environment

• enable delivery of improved places and environments within our communities
• where appropriate, select products and services with the least ongoing environmental impacts
• procurement an enabler of supporting Net Zero
• sustainability embedded in council practice and supply chain

Economy

• supporting SMEs/ VCSE sector and suppliers
• procurement an enabler to deliver wider social value for our local communities
• developing and supporting healthy and reliable supply chain
• driving added value and social value

Health and wellbeing

• procurement supporting the delivery of wider benefits for society and the local economy
• tackling inequality within our supply chains
• supporting choice and control by changing commercial power dynamics

People

• Being well connected to our stakeholders
• ensuring that we are approachable and visible
• delivering excellence
• respected, dependable and trusted
• promoting empowerment and not dependency

Organisation

• ensuring that we are approachable whilst delivering excellence
• forward thinking / helicopter view
• respected, dependable and trusted
• clear operating model
• supporting the collection and analysis of robust data
• championing efficiency and challenging the status quo

Responsive services

• providing an agile approach and flexible solutions
• trusted collaborator
• embedding quality in all procurement and contract management functions
• monitor, review and scrutinise performance against objectives
• constantly learning and evolving

Programme of Activity 2024/25

• implement clear Target Operating Model (TOM) for NYC
• implementation of the Transforming Public Procurement (TPP)
• supporting the wider transformation programme
• team training and skill development
• career development and succession planning
• programme of embedding best practice (CMPP / Local Partnerships Business Process Mapping)
• develop social value within procurement and contracting
• improved visibility of data and information
• launch revised training packages (CM)

2025/2026

• Launch robust intranet self-help platform
• Service review including efficiency realisation