Scottish Government procurement: annual report 2024 to 2025

3. Summary of Scottish Government Procurement Activity

3.1 Overview

The sections that follow provide a more detailed analysis of our contribution across each of the four national outcomes, demonstrating how procurement continues to play a central role in supporting a fair, sustainable and resilient economy.

3.2 Good for Businesses and their Employees

“Maximise the impact of procurement to boost a green, inclusive and wellbeing economy, promoting and enabling innovation in procurement.”

The Scottish Government continues to use procurement as a lever to strengthen Scotland’s business base, support high-quality employment, and ensure that public contracts are accessible, fair and supportive of sustainable economic growth. By ‘business’, we mean all organisations engaged in commercial, industrial or professional activity, including voluntary organisations, charities, social enterprises, and for-profit and non-profit entities.

During 2024–2025, we continued to expand opportunities for SMEs, the third sector and supported businesses; improve access to public contracts; and embed innovation across procurement processes and markets.

3.2.1 Access to Contracts

We remain committed to ensuring that suppliers, particularly SMEs, third sector organisations and supported businesses, can engage confidently and effectively with public procurement.

Our national Supplier Journey continues to provide free, practical guidance to support suppliers at every stage of the procurement process, from finding opportunities to preparing bids and understanding feedback. While our Single Point of Enquiry (SPoE) offers impartial support for concerns about procurement exercises undertaken by Scottish public bodies.

We continue to part fund and support the Supplier Development Programme (SDP), an independent initiative that provides free training, resources and events to help suppliers prepare, submit and win public sector bids. SDP supports bidders to understand public procurement systems, navigate national eProcurement tools, and embed sustainable procurement practices into their bids.

From April 2024 to March 2025:

We also supported the SDP national and regional ‘Meet the Buyer’ events that bring suppliers and public sector buyers together. Meet the Buyer are networking events, where buyers can engage with suppliers to discuss new projects, contracts, framework opportunities and supply chain developments.

• 1,935 Scottish SMEs registered with SDP, bringing the cumulative total to 25,487.
• 6,756 organisations (including 4,131 unique Scottish SMEs) attended 116 SDP events, a 9% increase on the previous year.
• SME participation rose by 41% compared to 2023–24, showing strong demand.
• SDP hosted nine in-person Meet the Buyer events, attracting 7,661 bookings and 3,930 attendees, including 1,990 Scottish SMEs.

These events help suppliers explore new contract opportunities, network with buyers, and build capability to compete successfully. Our continued investment in SDP supports inclusive access, improved competition and greater market diversity, strengthening Scotland’s procurement ecosystem.

Our national eProcurement and Management Information Shared Service continues to support public bodies and suppliers by streamlining processes from advertising contracts to paying invoices, making it easier and more efficient for suppliers to do business with the public sector.

Between 10 September and 19 November 2024 the Scottish Government carried out an online survey of suppliers to the public sector in Scotland. This survey followed a previous one conducted between 2 November and 11 December 2020. The survey aimed to help us better understand the Scottish public procurement process from the perspective of suppliers. The main sections of the survey covered respondents’ bidding patterns, feedback received on their bids, the journey for suppliers, the Sustainable Procurement Duty, challenges and support for bidders, consortium bids, sub-contracting, training and capacity building, and overall perceptions of public procurement in Scotland.

The Scottish Government will use the report of the main findings from the survey to help inform our ongoing work to make public procurement processes in Scotland more efficient, transparent, and responsive to the needs of suppliers.

3.2.2 Small and Medium-Sized Enterprises (SMEs)

We remain committed to making it as straightforward as possible for SMEs, third sector organisations and supported businesses to bid for and win public procurement contracts. The Sustainable Procurement Duty requires public bodies to actively consider opportunities to facilitate SME and third sector involvement throughout the procurement process.

Although not every organisation chooses to bid for Scottish Government contracts, engagement levels remain high, with many SMEs and third sector organisations regularly winning regulated and unregulated opportunities.

To strengthen this further, we published the Scottish Government’s first SME and Third Sector Procurement Action Plan 2024-2026. in April 2024. Developed in collaboration with suppliers, representative bodies and public sector partners, the plan focuses on:

• reducing barriers to participation
• simplifying processes and increasing transparency
• improving access to bidding support
• enhancing visibility of opportunities
• ensuring proportionate requirements within procurement exercises

This work contributes directly to Scotland’s National Outcomes, particularly ensuring that businesses are thriving and innovative, offering quality jobs and Fair Work, and supporting sustainable economic growth across the country.

Further details about our engagement with SMEs and the third sector can be found in Section 3.5.3.

Our spend with SMEs

Data from the Scottish Procurement Information Hub shows the continued strength of SME engagement:

Table: Direct Spend with SMEs supplying goods and services to core Scottish Government

Financial Year	2020/21	2021/22	2022/23	2023/24	2024/25
Spend with SMEs	£105,957,790	£174,133,835	£380,427,467	£299,876,754	£197,539,994

Key highlights include:

• of the £489 million core Scottish Government spend with suppliers, over £197.5 million (40.3%) went directly to SMEs
• just over £240 million (49.1%) of core Scottish Government spend was with suppliers based in Scotland, with more than £131 million spent with Scottish SMEs

SMEs winning Scottish Government contracts

Through core Scottish Government procurement activity, we awarded 91 contracts to SMEs out of 138 regulated contracts, representing 66% of awards with a combined value of over £89 million.

This reflects our ongoing commitment to ensuring SMEs remain integral to Scotland’s public service delivery landscape.

3.2.3 Third sector

The third sector, including social enterprises, community enterprises and charities, plays a vital role in Scotland’s economy and social fabric. Under the Procurement Reform (Scotland) Act 2014, ‘third sector bodies’ are defined as organisations that exist wholly or mainly to provide benefits for society or the environment.

Throughout 2024-2025, we continued our support for the sector in several key areas. In addition to part-funding the Supplier Development Programme (SDP), we maintained funding for the Just Enterprise programme, which provides free, specialist business support tailored to third-sector organisations. This support includes training on tendering, bid writing, and forming consortia to pursue larger public contracts through Partnership for Procurement.

To further support visibility and access to opportunities, Scottish Government funded an update to the Supplier Profile Finder functionality on Public Contracts Scotland (PCS) in November 2024. This enhancement enables organisations to self-identify as third sector organisations, allowing contracting authorities to:

• more easily identify third sector suppliers
• directly invite them to Quick Quotes
• reduce barriers to participation
• target engagement for unregulated procurements

Although the change was introduced late in the financial year, its full impact will begin to materialise in 2025–2026 as awareness and usage increase.

Our investment in the Supplier Development Programme ensures the third sector and Scottish SMEs can access the same tendering support as private sector suppliers. In 2024-2025, 55 attendees from 53 organisations classed as a Scottish Social Enterprise/ Charity or Supported Business attended^[2] SDP Core Training. From 1st April 2024 to 31st March 2025, 6756 people including representatives from over 4000 unique Scottish SMEs attended 116 training events with SDP.

All national collaborative frameworks remain fully open for use by third-sector organisations, enabling them to benefit from value-for-money arrangements and participate in wider public sector supply chains.

3.2.4 Supported Businesses

Supported businesses form an important part of Scotland’s procurement landscape, providing accessible employment for disabled and disadvantaged people and contributing to a more inclusive economy. The Scottish Government continues to encourage engagement with supported businesses through policy, guidance and the development of accessible commercial routes, including the Supported Business Framework and the Supported Business Dynamic Purchasing System.

At the time of publication, validated FY 2024/25 supported business spend data is not yet available. The Scottish Procurement Information Hub dataset for this period will be released after the deadline for this report. To maintain accuracy and consistency, this section therefore references the most recent verified figures (FY 2023/24).

• In FY 2023/24, Scottish public bodies spent £22.8 million with supported businesses and awarded 128 contracts, helping to sustain employment and skills development for disabled and disadvantaged individuals.

Once the 2024/25 Information Hub dataset is published and analysed, updated spend and contract-award figures will be incorporated into the next Annual Procurement Report.

The Scottish Government continues to work with the British Association for Supported Employment (BASE) and other partners to increase awareness, build capability and expand opportunities for supported businesses within public sector supply chains.

3.2.5 Prompt Payment

Ensuring prompt payment throughout supply chains remains central to Scotland’s economic wellbeing. During the reporting period:

• 94.3% of valid invoices were paid within 10 days, and
• 98.6% were paid within 30 days

Our model prompt payment clauses ensure 30-day maximum payment terms flow down through supply chains, and we continue to monitor performance, respond to supplier concerns, and promote adoption of prompt-payment practices across public contracts.

Guidance in SPPN 2/2022 sets out the details of how public bodies are to embed prompt payment performance in the supply chain through procurement processes. The Single Point of Enquiry (SPoE) remains available for suppliers experiencing late-payment issues.

3.2.6 Health & Safety

All contractors and subcontractors must comply with the Health and Safety at Work Act 1974, and we continue to monitor incidents closely.

Incidents reported were investigated and appropriate remedial action was taken.

We also encourage suppliers to use our in-house Contractor Safety Management System, which supports accreditation checks, permits and compliance.

3.2.7 Innovation

Innovation remains central to Scotland’s ambition to become one of the world’s most innovative small nations. Procurement plays a pivotal role in enabling that ambition.

Scotland Innovates

Innovation remains central to Scotland’s ambition to become one of the world’s most innovative small nations. Procurement amongst other areas plays a pivotal role in enabling that ambition.

The national supplier-led innovation service, Scotland Innovates, invites business to submit proposals for innovative goods and services for the entire Scottish Public Sector. During the year, Scotland Innovates became further integrated into the Accelerated National Innovation Adoption (ANIA) pathway for NHS Scotland. Innovations such as ECG Patches were taken forward through the process for national adoption. It is anticipated this single innovation will save hundreds of lives in Scotland and achieve efficiency savings of millions of pounds for NHS Scotland.

This reporting year:

• 67 submissions were received
• 16 targeted at non-health sectors
• 51 targeted at health innovation.

CivTech

CivTech remains a leading model for public-sector innovation, driving new approaches to service delivery through open challenges and tech accelerators. Its work continues to deliver practical digital tools, support SMEs and pre-start companies, and leverage private investment into Scotland’s tech ecosystem. Since it launched in 2016, around £20 million of Scottish Government funding has been invested in the CivTech programme, with 90 companies and entrepreneurs helped to grow and develop.

Employment and Investment Minister Tom Arthur said:

“Driving entrepreneurship and innovation is important to helping unlock each of the Scottish Government’s priorities of eradicating child poverty, boosting economic growth, achieving net zero and improving public services.

In CivTech, we have a way to stimulate progress across each of these priorities so that, together, we can improve people’s lives and achieve our ambitions as a nation.

This funding offers a unique opportunity not just to foster and support the innovators and entrepreneurs as part of a vibrant economy, but harness their ideas and inventions to continually test and improve our public services and our way of life.^[3]”

3.2.8 Dynamic Purchasing Systems

We continue to adopt an innovative approach to the procurement of Digital Services and have expanded our use of DPSs across digital technology, cyber services, telephony and Internet of Things, providing flexible, accessible routes to market for suppliers.

• More than 350 suppliers now participate in our DPS arrangements.
• The systems provide access to over £100 million worth of opportunities.
• Over 75% of suppliers are SMEs.

These DPS agreements help simplify access to public sector contracts and support innovation, sustainability and Fair Work.

3.3 Good for Places and Communities

“Maximising the impact of procurement with strong community engagement and development to deliver social and economic outcomes as a means to drive wellbeing by creating quality employment and skills.”

Public procurement has a vital role to play in helping Scotland’s communities to flourish. Through our contracting activity, we support the creation of sustainable jobs, skills development, local economic growth, and increased community resilience. We continue to focus on supporting Scottish SMEs, the third sector and supported businesses to participate in public contracts and supply chains, recognising their contribution to place-based wellbeing and inclusive economic growth.

3.3.1 Community Wealth Building

Community Wealth Building acts as a strategic framework to build on policy actions already underway in Scotland, including in Fair Work, Community Empowerment and asset transfer. During 2024-2025, using existing policy and legislative levers to enable more localised and inclusive outcomes, we continued to focus on what we can do differently and better.

Through our contracts we:

• increase opportunities for local suppliers
• strengthen local supply chains
• deliver Fair Work
• embed community benefits including jobs, training and subcontracting opportunities

The Community Wealth Building (Scotland) Bill as introduced to Parliament in March 2025.

3.3.2 Fair Work

Fair work means secure employment with fair pay and conditions, where workers are heard and represented, treated with respect and have opportunities to progress. It is vital in tackling poverty. It balances the rights of employers and workers and is good for society and the economy.

Fair work and reducing workplace inequalities are central to our work to transform Scotland’s economy, ensuring that everyone is able to contribute and procurement remains one of the most powerful tools to drive Fair Work across supply chains.

Our Fair Work First (FWF) policy is central to this. It sets out seven criteria which we expect suppliers to adopt where relevant and proportionate:

• payment of at least the real Living Wage
• genuine channels for worker voice such as trade union recognition
• investment in workforce development
• no inappropriate use of zero-hour contracts
• action to address inequalities in pay and employment outcomes
• flexible and family-friendly working practices from day one
• opposition to fire-and-rehire practices

We routinely incorporate FWF provisions in our tender documents and evaluate them alongside other relevant criteria.

In June 24 the Economy and Fair Work Committee published its report on post-legislative scrutiny of the Procurement Reform (Scotland) Act 2014. The Committee had wanted to know if the Act was achieving its aims. The Committee also wanted to know what the experience of bidding had been like since the Act, particularly for those it had sought to open up the process to, and were interested to know what the administrative burden for bidders had been. The Scottish Government submitted its response in November 2024 and are addressing the report’s recommendations.

3.3.3 Payment of at Least the real Living Wage

The Scottish Government is an accredited Living Wage employer. We pay at least the real Living Wage to all directly employed staff and all contracted workers who regularly deliver services on Scottish Government sites. We also mandate payment of at least the real Living Wage in our contracts where appropriate and proportionate.

Following consultation with public bodies, business and trade unions, in March 2024, we published updated Fair Work First guidance. In December 2024 we followed this up with complementary e-learning on Fair Work First in Procurement. The eLearning is broken into three modules:

• Fair Work and Fair Work First – understanding the definitions and context
• Fair Work First in Procurement – key principles and tools
• Applying Fair Work First in Procurement – practical tips for the procurement process including new best practice case studies

The guidance and e-learning is available through the Building Community Wealth in Scotland: consultation analysis and Sustainable Procurement Tools.

3.3.4 Community Benefit Requirements Across Core, Sectoral and National Contracts

Community benefits remain a key mechanism for ensuring procurement delivers wider social and economic value. We considered community benefits in all regulated procurements during the reporting period and included them where relevant and proportionate.

Key figures for 2024-2025

• 39 contracts were awarded containing community benefit requirements.
• We now have 144 live contracts with community benefits, with a combined value of more than £2.6 billion.
• Our contracts helped create 807 new jobs 56 apprenticeships, 46 work placements for pupils, students and graduates, and 9 work placements for priority groups, and enabled 1,230 qualifications to be achieved.

These outcomes support people across Scotland with training, employment and progression opportunities, contributing directly to stronger, fairer communities.

3.3.5 Climate Change

The Scottish Government is committed to using procurement to support the transition to a resource-efficient, low-carbon economy. Our procurement approach is aligned with the National Performance Framework, the UN Sustainable Development Goals and the Public Bodies Climate Change Duties.

Our policy framework is set out in Scottish Procurement Policy Note (SPPN) 3/2022, which requires public bodies to integrate climate considerations throughout the procurement lifecycle.

Supporting Procurers to Take Climate Action

We have continued to strengthen our suite of Sustainable Procurement Tools, which help buyers identify climate risks and opportunities when planning procurements. These tools include:

• Climate Literacy and Circular Economy e-learning
• model wording on climate, biodiversity, waste and energy efficiency
• sustainability tests and guidance for specific commodities
• case studies from across the public sector

They were applied across Scottish Government contracts and frameworks this year, including major national agreements such as the Heat in Buildings Scotland National Scheme and the Civil Engineering (Scotland) Framework.

Our updated Single Procurement Document (SPD) requires bidders to provide a Climate Change Plan for relevant contracts, with a proportionate approach developed to encourage SME participation.

Building Capability

• Climate literacy training is mandatory for SPPD staff.
• By March 2025, 1,458 people across the public sector had completed Climate Literacy e-learning.

The Climate and Procurement Forum, co-chaired by Scottish Government and APUC, continues to drive consistency and share learning across sectors.

Examples of procurement contributing to climate outcomes

The following examples demonstrate how procurement activity is directly supporting Scotland’s climate ambitions. They highlight the breadth of our work, from large national frameworks to more targeted initiatives, and show how suppliers and public bodies are collaborating to reduce emissions, minimise waste, increase resource efficiency, and drive innovation across key sectors.

Water and Waste Water Framework

The national Water and Waste Water Framework continued to help public bodies reduce both water use and carbon emissions. Through initiatives such as proactive leak detection, efficiency monitoring and meter re-sizing, organisations across Scotland have achieved measurable reductions in water consumption and associated environmental impacts. The framework also includes a dedicated Water Efficiency Fund, allowing public bodies to secure support for projects that deliver further environmental and financial savings.

Non Domestic Energy Efficiency Framework

The Non-Domestic Energy Efficiency (NDEE) Framework has enabled major improvements in the energy performance of public buildings. By supporting the installation of more efficient technologies and improvements to building systems, the framework helps organisations cut energy use, reduce operational costs and contribute to long-term carbon-reduction targets. It plays a key role in supporting public bodies to meet their statutory climate change duties.

Civil Engineering (Scotland) Framework

The Civil Engineering (Scotland) Framework embeds climate considerations throughout the delivery of infrastructure projects. Suppliers are required to demonstrate how they will minimise energy use, reduce waste, lower embodied carbon and protect the natural environment. Climate Change Plans, carbon monitoring and circular-economy measures ensure that civil engineering works support Scotland’s transition to net zero while promoting innovation and sustainable construction practices.

Heat in Buildings Scotland National Scheme

The Heat in Buildings Scotland National Scheme supports Scotland’s net-zero goals by increasing the installation of zero-emission heating systems and improving household energy efficiency. The scheme contributes to lower emissions, reduced fuel bills and improved comfort for households. Suppliers are required to meet high sustainability standards, including commitments to reduce their own carbon footprint and increase the proportion of renewable heating systems installed each year.

General Office Supplies Framework

The General Office Supplies Framework promotes greater sustainability in everyday office purchasing. It includes commitments to eliminate single-use plastics, reduce packaging, and increase access to recyclable and environmentally responsible products. Low-emission delivery vehicles and efficient logistics also help reduce carbon emissions associated with the supply of office goods to the public sector.

Client Devices Framework and ICT Equipment

The Client Devices Frameworks ensure that ICT equipment purchased by public bodies meets high environmental standards. All devices are EPEAT-certified, meaning they are more energy-efficient, contain fewer harmful materials, and are easier to recycle. Over their lifetime, these devices contribute to significant reductions in electricity use, greenhouse gas emissions, water consumption and waste, supporting greener digital operations across the public sector.

The Global Electronics Council estimated that over their lifetime, IT products purchased through Scottish Procurement frameworks in 2024 will deliver substantial environmental benefits, including:

• 95,038,377 kWh of electricity saved (equivalent to the annual electricity consumption of 32,771 UK households)
• greenhouse gas emissions reduced by 18,000 metric tons of CO₂e (equivalent to removing 12,978 average UK passenger cars from the road for a year)
• 1,968,454 kg of solid waste avoided (equivalent to the annual waste generation of 1,249 UK households)
• 291 million litres of water saved (equivalent to 117 Olympic swimming pools)
• 5.4 metric tons of hazardous waste avoided

These outcomes demonstrate the significant environmental impact that can be achieved through responsible ICT procurement and the use of EPEAT-certified products across the public sector.

3.4 Good for Society

Ensure that we are efficient, effective and forward thinking through continuous improvement to help achieve a fairer and more equal society.

The Scottish Government Procurement Strategy outlines our commitment to ensuring procurement is efficient, effective and forward-thinking, supporting a fairer and more equal society. Through the way we buy goods, works and services, we aim to deliver economic, social and environmental outcomes that contribute to Scotland’s national wellbeing. We continue to use procurement as a lever to promote Fair Work, advance equality, embed ethical practice, reduce carbon emissions and deliver positive social impact across Scotland’s communities.

3.4.1 Provision of Food – Using Contracts to Improve Health, Wellbeing and Education

Our Good Food Nation policy continues to guide how we embed healthy, sustainable and ethically sourced food into public procurement. We support the provision of nutritious, fresh and locally sourced food across the public sector, helping improve health outcomes and reduce environmental impacts.

During the 2024-2025 period:

• The Scottish Government catering contract continued to provide menus based on seasonal, fresh produce
• daily vegan options were maintained as standard
• food waste was recorded and monitored, with reductions achieved since contract commencement
• animal welfare remains safeguarded through robust Scottish legislation governing farm practices and slaughter

At national level, we funded the Soil Association to support the Food for Life Scotland programme, which operates in 16 local authorities. The programme:

• increases the volume of healthy, local food in schools
• improves transparency and trust for pupils and parents
• promotes fresh, seasonal produce
• emphasises minimally processed food
• puts more fresh fruit, vegetables, fish and wholegrains on school menus
• supports food education and cultural awareness

These initiatives demonstrate how procurement can directly improve health and wellbeing while supporting Scotland’s food economy and environmental goals.

3.4.2 Equality and Diversity

Equality lies at the heart of procurement through the Sustainable Procurement Duty, which requires public bodies to consider and act on opportunities to improve social wellbeing and reduce inequality.

We support this by:

• ensuring our Procurement Strategy and national policies embed equality throughout
• providing guidance and tools to help public bodies integrate equality into procurement planning
• supporting buyers to apply proportional and inclusive approaches that minimise barriers for smaller, diverse suppliers
• requiring public bodies to track their progress through annual procurement reports
• using these annual procurement reports to inform our overall impact in the Annual Report on Procurement Activity in Scotland

The Scottish Government continues to seek opportunities to advance equality, diversity and inclusion through its procurement activity.

3.4.3 Fairly and Ethically Traded Goods and Services

We expect suppliers to adopt high standards of business ethics and ensure that their supply chains are free from exploitation, human trafficking and modern slavery.

All Invitations to Tender issued during the reporting period included standard provisions requiring suppliers to uphold relevant social, environmental and labour laws. We can terminate contracts if evidence of breaches emerges.

We continue to use the Sustainable Procurement Tools to identify high-risk commodities and apply targeted selection and award criteria. We also engage regularly with partners across Europe and international networks to share best practice on ethical procurement.

Where fairly traded goods or services meet our needs, we actively consider how best to promote their use.

3.4.4 Respecting Human Rights

We take a robust approach to tackling criminal activity in supply chains, including modern slavery, corruption, fraud, exploitation and human trafficking. Respecting human rights is not only a legal obligation but also supports productivity, innovation, quality and supplier reputation.

Our procurement approaches encourage transparency, responsible business conduct and continuous improvement across supply chains.

3.4.5 Social Care Procurement Policy

Work to embed ethical commissioning and procurement in health and social care continued during the reporting period.

Key developments included:

• gathering feedback on draft ethical principles from practitioners, people with lived experience, providers and trade unions
• establishing a Social Care Procurement Subgroup to focus on procurement issues specific to health and social care
• engaging stakeholders on changes proposed through the National Care Service (Scotland) Bill
• initiating workshops with procurement professionals to explore challenges and opportunities, the findings of which will inform updated guidance

This work strengthens ethical practice and supports the future transformation of social care.

3.4.6 Construction

Construction represents a significant proportion of public sector investment, and our procurement activity in this area plays a central role in supporting Scotland’s infrastructure needs, delivering Fair Work, and enabling the transition to net zero. During the reporting period, we continued to strengthen our national approach to civil engineering procurement through the delivery of both the Civil Engineering (Scotland) Framework and the new Civil Engineering (Scotland) Dynamic Purchasing System (DPS).

The Framework, awarded in March 2024, covers projects valued between £5 million and £100 million. It embeds strong requirements on climate action, environmental protection, sustainability, prompt payment, sustainable pricing and Fair Work, ensuring that major civil engineering projects contribute to Scotland’s wider economic and environmental ambitions. Framework suppliers also work collaboratively with Scottish Government, industry bodies and public sector partners through regular engagement sessions and performance reviews.

To complement the Framework, our first national Civil Engineering DPS for projects up to £5 million went live in December 2024. The DPS widens access for suppliers, particularly SMEs, and provides public bodies with a fast, flexible route to procure civil engineering works. Early uptake has been strong, and the system is expected to deliver efficiency benefits, improved competition and increased opportunities for smaller, regionally based contractors.

Throughout the year, we worked closely with the Scottish Futures Trust, Transport Scotland, industry bodies and public sector partners to support implementation of both the Framework and the DPS. This included promoting early market engagement, encouraging sustainable construction practices and improving the visibility of upcoming opportunities through the national pipeline tool.

Together, the Framework and DPS strengthen the quality, consistency and sustainability of civil engineering procurement across Scotland, and promote sustainable pricing by embedding the use of Scottish Government’s Graduated Pricing Mechanism. They also support wider policy priorities, including Fair Work First, prompt supply chain payment, community benefits, supply chain resilience and climate leadership. Outside of the frameworks, the Fair Work and Net Zero objectives have been strengthened through the publication of relevant CPNs, and through the continuous updating and development of the Client Guide to Construction Projects and the Construction Capability Assessment Tool.

A detailed example of how the DPS is being used in practice is provided in Annex C.

3.4.7 Procurement Support to Rapidly Developing External Impacts

The Scottish Government procurement function continues to play a critical role in responding quickly and effectively to rapidly emerging external events. During the 2024–2025 reporting period, global and domestic challenges, including geopolitical instability, supply chain disruption and economic pressures, required a coordinated and agile procurement response across government.

A significant area of focus remained the humanitarian response to the ongoing conflict in Ukraine, which continued to place demands on accommodation, logistics and essential services within Scotland. Throughout the year, procurement teams worked closely with the Scottish Government’s Ukraine Directorate to enable rapid, compliant routes to market, including sourcing and awarding contracts for:

• large-scale temporary accommodation solutions
• chartered vessels and associated services
• essential goods and support infrastructure

These procurements were delivered at pace to meet urgent operational and humanitarian needs, ensuring safe and suitable accommodation for displaced people arriving in Scotland.

Procurement teams also provided expert commercial advice, market analysis and governance support through assurance boards and crisis response structures. This guidance helped navigate volatile markets, assess risks and identify viable solutions capable of being mobilised quickly and at scale.

To further strengthen preparedness, an additional contract was awarded to secure world-class humanitarian response capability, improving operational readiness and ensuring that support could continue to be delivered safely, effectively and with dignity.

Beyond the Ukraine programme, procurement teams continued to monitor and address broader external pressures, including inflationary cost increases, constrained market capacity and sector-specific supply-chain challenges. By working closely with public bodies and suppliers, we sought to mitigate risks, maintain continuity of critical services and ensure procurement remained a stabilising and enabling function during periods of uncertainty.

This work highlights the essential role of procurement as a strategic enabler, supporting Scotland to respond with agility, responsibility and compassion to rapidly developing external impacts.

3.5 Open and Connected

“Ensure procurement in Scotland is open, transparent and connected at local, national and international levels.”

Transparency, openness and meaningful engagement are core pillars of Scotland’s public procurement system. These principles help build trust in how public money is spent, support responsible decision-making, and ensure suppliers of all sizes have fair access to opportunities. During 2024–2025, we continued to strengthen our systems, data, partnerships and communication to support a more connected procurement landscape.

3.5.1 Openness and Transparency

We ensure that our procurement activity is conducted with openness, integrity and fairness. Transparency in how we buy and how we spend public funds underpins public trust, while equal treatment and non-discrimination ensure that all suppliers, regardless of size, sector or location, can compete on a level playing field.

Our Procurement Strategy sets out how we plan to conduct regulated procurements, and this Annual Procurement Report provides a transparent account of our performance, achievements and future activity.

During the reporting period, we strengthened openness and fair access through the following actions.

• Public Contracts Scotland (PCS) continued to be used to advertise all regulated contracts and publish award notices. PCS is aligned to the Open Contracting Data Standard, supporting transparency and enabling deeper analysis of contracting activity.
• The Scottish Government continued to publish monthly reports of Electronic Purchasing Card Spend Over £500, ensuring clear visibility of operational spending.
• As one of Scotland’s four Procurement Centres of Expertise, we published and regularly updated a collaborative forward plan of procurement opportunities helping suppliers anticipate upcoming tenders and plan resources effectively.
• All selection and award criteria in our tender documents were clearly explained to suppliers, with open channels for clarification questions to support fair and informed competition.

These actions ensure stakeholders, including suppliers, the public and decision-makers, have accessible, meaningful information about procurement processes and outcomes.

3.5.2 Equal Treatment and Non-discrimination

Public bodies must conduct procurement in line with the principles of equal treatment and non-discrimination. We applied proportionate, flexible and scalable procurement approaches that minimise unnecessary burden on suppliers.

This included:

• wide engagement with stakeholders to understand barriers and adjust approaches where appropriate
• prioritising encouragement and enablement where possible
• aligning reporting approaches to avoid duplication for suppliers
• advertising all regulated procurements via PCS and ‘Find a Tender’^[4]
• ensuring clarity and plain language in all tender documents
• authorising only trained and competent staff to oversee regulated procurements
• using standardised templates, procedures and processes to promote consistency

Together, these actions ensure that suppliers, the public and decision-makers have access to meaningful, accessible information about procurement processes and outcomes, while supporting a diverse, competitive and innovative supplier base.

3.5.3 Engagement and Collaboration

We maintained proactive engagement with suppliers and representative bodies to improve transparency and access. This included a review of the Procurement Supply Group (PSG) membership to reflect Scotland’s supply base, targeted roundtables with SMEs and the third sector, and regional engagement events. Insights informed the SME and Third Sector Action Plan and improvements to data, systems and user experience across our eProcurement and MI services

Collaboration across the public sector remains central to achieving value, consistency and innovation. During 2024–2025, we worked closely with public bodies and stakeholders to improve the quality, accessibility and insight of procurement data.

Key developments included:

• progression of a major programme to evolve our Management Information (MI) Platform, enabling improved analysis of procurement’s wider economic, social and environmental impacts
• increasing the availability of data on key policy areas such as SMEs, the third sector and Fair Work
• exploring new ways of presenting data, including visual formats such as maps and graphs, to make insights more accessible for decision-makers
• beginning digital transformation work within the eProcurement and Management Information Shared Service, focused on modernising systems, improving user experience and ensuring future solutions remain adaptable to Scotland’s changing procurement landscape
• extensive engagement with the digital and eProcurement market to understand emerging tools and innovations, helping inform future service design
• working with stakeholders across public bodies to understand business needs and ensure evidence-based improvements to eProcurement services

These collaborative efforts aim to strengthen intelligence across Scotland’s procurement system and support better strategic and operational decision-making.

3.6 Professionalisation and Capability

Developing the capability, confidence and professionalism of Scotland’s procurement community remains a core priority. A highly skilled procurement workforce is essential for delivering value for money, supporting policy delivery, strengthening commercial outcomes and ensuring that procurement continues to contribute meaningfully to Scotland’s economic, social and environmental goals.

During the reporting period, we worked collaboratively with public bodies across Scotland to build capability and capacity at both organisational and individual levels. This included modernising tools and guidance, sharing good practice, and supporting professional development opportunities across the procurement community.

We supported a range of open training programmes and talent initiatives, including aligning sectoral graduate schemes through the Procurement People of Tomorrow (PPoT) programme. This work helps develop Scotland’s future procurement professionals, ensuring that emerging talent is supported into high-quality procurement careers.

We continued to provide tools and guidance, and led on the development of national procurement and commercial standards for Scotland. These are accompanied by aligned training and tailored support, helping public bodies implement good practice consistently and proportionately.

Scotland’s procurement community remains connected internationally, with active engagement across the UK and with international partners including the Organisation for Economic Co-operation and Development (OECD) and the National Association of State Procurement Officials (NASPO). These relationships enable shared learning, benchmarking and the exchange of new approaches.

To deepen understanding of how to apply economic, social and environmental requirements through public procurement, we delivered targeted training and support throughout the year. One-to-one ‘on-shoulder’ support also continued to help embed sustainable procurement tools and good practice across live procurements.

Together, this activity strengthens the capability and resilience of Scotland’s procurement profession, ensuring teams are confident in delivering high-quality commercial outcomes, responding to emerging challenges and opportunities, and supporting Scotland’s wider strategic ambitions.