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Report

Annual Procurement Report 2024/2025

Updated 10 September 2025

Note: To see tables in full, select the landscape layout option.

1. Introduction

The Procurement Reform (Scotland) Act 2014 (The Act), the Public Contracts (Scotland) Regulations 2015 and the Procurement (Scotland) Regulations 2016, govern how Scottish public bodies purchase their goods, services and works, in a way that boosts economic, environmental, and social value. The Act requires all public organisations with annual regulated procurement spend of £5 million or more to publish a procurement strategy and to prepare an annual procurement report on its regulated procurements.

Regulated procurements are governed by The Act and equal or exceed £2,000,000 for works contracts and £50,000 for goods and services contracts (including health & social care). This report covers the period from 1 April 2024 until 31 March 2025 and applies to all regulated North Ayrshire Council external supplier expenditure.

The Procurement Strategy was published in November 2023, and it sets out how North Ayrshire Council will approach its external expenditure on goods, services and works over the period 2023-2026. This strategy is refreshed annually and performance against strategic objectives is reviewed every 6 months and reported to the North Ayrshire Council Procurement Board, which is chaired by the Finance Head of Service.

North Ayrshire Council recognises the importance and the benefits of effective procurement, and The Procurement Strategy sets out the strategic objectives that will improve, innovate, and transform how North Ayrshire Council procures goods, services, and works. The five strategic objectives are noted below.

Strategic Objectives  Develop our team to deliver a professional procurement service, Deliver financial sustainability and optimise commercial acumen, Tackle climate change and embrace a circular economy on out net-zero journey, Create an inclusive North Ayrshire with access to fair jobs, Support sustainable resilient supply chains and optimise opportunities for local suppliers

The Annual Procurement Report includes:

  • a summary of the regulated procurements and non-regulated procurements, that have been awarded
  • a review of whether those procurements complied with The Procurement Strategy 2023-2026 and details of any non-compliance, with rectification measures for future compliance
  • a summary of any community benefits delivered
  • a summary of steps taken to facilitate the involvement of supported businesses
  • a summary of steps taken to reduce climate change impact
  • a summary of continuous improvement projects/activities
  • a summary of commercial activity to generate savings and income
  • a summary of the regulated procurements North Ayrshire Council expects to commence in the next two financial years

Report Owner

The Annual Procurement Report owner is Suzanne Bignell, Senior Manager (Corporate Procurement).

2. North Ayrshire Council Context

Despite some locational strengths, North Ayrshire has levels of inequality, particularly poverty and the associated effects this has. North Ayrshire is one of the most deprived areas in Scotland and deprivation levels are significantly higher than the Scottish average. 40.9% of North Ayrshire residents live in the most deprived Scottish Index of Multiple Depravation area.

Two rows of stick figures, 3 on top 5 on bottom with 'Population 134,220' written to the right of it and to the right of that an adult and child stick figures holding hands with the text '24.3% of children live in poverty' to the right of it

North Ayrshire Council aims to improve the North Ayrshire economy by using North Ayrshire’s land and coastal assets, infrastructure, and location-based strengths, to draw investment and stakeholder activity to create opportunities for our local business base and increase access to fair employment opportunities.

The Council Plan

In 2023, North Ayrshire Council published its latest Council Plan 2023 to 2028 which builds on previous plans and has a vision of a North Ayrshire that is fair for all and a mission to work together to improve the lives of our people in North Ayrshire.

The Council Plan states:

Quote: We are aware that many of the issues we face in North Ayrshire are extremely complex and will take longer than a five-year Council Plan to fully resolve. With this in mind each Council Plan should be viewed as a substantial step towards addressing significant challenges such as child poverty in our communities and the impact of climate change. By building on each plan, we can drive immediate and longer-term sustainable improvements to the lives of our residents. Our communities are at the heart of everything we do and as we move to deliver our Council Plan, we would like you to hold us to account.

Quote from: North Ayrshire Council Plan 2023 to 2028

To achieve the above, North Ayrshire Council has set four strategic aims, to achieve the vision and mission:

Wellbeing including a community wealth building approach to a wellbeing economy, Communities and Local Democracy to develop strong relationships with communities and partners, including third sector and voluntary sector, climate change to achieve net-zero by 2030, A sustainable council including maximising financial flexibilities to help support delivery of priorities

Each strategic aim contributes to the delivery of Scotland’s 11 National Outcomes under the Community Empowerment (Scotland) Act 2015, and these are published within the National Performance Framework which aims to create a more successful country with more opportunities and better wellbeing for the people of Scotland.

The Corporate Procurement Unit works with stakeholders to support the achievement of the strategic aims of the Council Plan and the Procurement Strategy objectives align with and will contribute to the Council Plan.

Community Wealth Building Strategy

The five pillars of community wealth building, see page 11 of our Community Wealth Building strategy for details

Community Wealth Building has been at the heart of everything we do at North Ayrshire Council, since it was launched in 2020. The Community Wealth Building Strategy 2024-2027 document states:

Quote: Now more than ever we need to take an inclusive and people-centered approach to developing our local economy and ensure fair distribution of wealth and opportunities for our communities.

Quote from: Community Wealth Building Strategy 2024-2027

The Council Plan states:

"Community Wealth Building is embedded as an approach and is contributing to the delivery of a wellbeing economy.

Community Wealth Building aims to increase wealth within our area and create a healthier and more resilient North Ayrshire. This is achieved by encouraging organisations to use their economic power, to work closely with communities and invest within North, South and East Ayrshire."

There are five key pillars within the strategy, one of which is procurement.

Procurement - Buying goods and services locally to create dense local supply chains and maximising community benefit clauses

The Community Wealth Building procurement objective is for North Ayrshire Council to:

"Use spend to actively encourage and support a growing, diverse, and resilient local business base, and to support our net zero carbon ambition."

The Corporate Procurement Unit and the Business Support and Development Team continue to work together to support local businesses to optimise their chances of winning contracts within the limitations of public sector procurement legislation. Visibility of future procurement opportunities and support and training is provided, to help local businesses to be more competitive and therefore win a greater number of North Ayrshire Council contracts.

Another pillar of the Community Wealth Building Strategy is Fair Employment.

Fair Employment - Encouraging fair pay, local recruitment, progression and training opportunities and supporting residents to reach their full potential

The Community Wealth Building fair employment objective is for North Ayrshire Council to:

"Encourage the creation of fair and meaningful jobs with progression opportunities to unlock the potential of our residents."

North Ayrshire Council procurement exercises include mandatory requirements for all suppliers to adopt Fair Work First principles and encourage payment of the Real Living Wage. Community benefit clauses relating to local employment and training are also included in all appropriate procurement exercises.

Sustainable North Ayrshire Strategy

On 11 June 2019, North Ayrshire Council declared its own Climate Emergency, committing to act on climate change. The Sustainable North Ayrshire Strategy 2024-2027 has been developed to support the delivery of North Ayrshire Council’s priorities and continues to work towards a sustainable environment.

Carbon net zero

The strategy states:

"This ‘Sustainable North Ayrshire’ strategy has been developed to support the Climate Change priority and the continuing strategic aim of achieving net-zero carbon emissions by 2030."

The Procurements Strategy strategic objective to tackle climate change and embrace a circular economy on our net-zero journey, aligns with this strategy.

Prioritising sustainable transport, 1. walking and wheeling, 2. Cycling, 3. Public transport, 4. Taxis and shared transport, 5. private car

North Ayrshire Council Spend

Procurement is a significant activity across North Ayrshire Council and in 2024-2025, approximately £300.5m was spent, across 30 different categories of goods, services, and works, with over 3,400 suppliers, resulting in over 85,000 invoices.

Just over 54% of the external procurement expenditure was spent with small and medium sized enterprises and around 27% was spent with local suppliers within North Ayrshire, which meant the 27% 2024/2025 Council Plan target was met. Since the previous year local spend increased from £71.5m to £80.5m and the local spend percentage increased from 24% to 27%.

An additional £15.4m of local sub-contracted spend was also reported (an increase of £5.4m from the previous year) which, if considered, would have increased the local spend percentage to 32%.

North Ayrshire Council aspires to increase expenditure with local businesses and the Corporate Procurement Unit, and the Business Support and Development Team work together to support and develop local businesses to be more successful in winning North Ayrshire Council contracts.

The Corporate Procurement Unit has created a local business database to help identify local businesses who have the capability and capacity to bid for and deliver North Ayrshire Council contracts, and a local subcontracting process has been set up to encourage award of local sub-contracts.

North Ayrshire Council are also a member of the Supplier Development Programme and attend hosted meet the buyer events and encourage SMEs to reach out to the programme for support, where appropriate.

Supplier Development Programme Helping You Bid Better

3. Summary of Regulated Procurements Completed

North Ayrshire Council completed 72 regulated procurements with a value of £103,310,934.56 during the period of the report. Table 1 below shows a summary of regulated procurement activity.

Table 1 - Regulated Procurement Award Summary
ActivityDetails
Total number of completed procurements72
Estimated value of all completed procurements£103,310,934.56
Estimated savings to be delivered from the awarded contracts4,085,610.2
Number of light touch contracts let during the period0
Average number of bids received4
% of contracts awarded to SMEs73%
Average processing time for a procurement exercise77 hours

Further details of each individual procurement including contract reference, contract description, contact value, supplier name(s), contract start date, contract end date and extension periods can be found in Appendix A, and all current live contracts including regulated procurements are publicly available through North Ayrshire Council’s Contracts Register.

North Ayrshire Council also completed 70 non-regulated procurements, with a value of £8,177,853.22 during the period of the report.

The value and number of regulated contracts awarded for specific categories are detailed in Table 2 below:

Table 2 - Contracts Awarded Category Type
Contracts Awarded Category TypeNumber of contractsTotal Value of ContractsPercentage Value of Contracts
Construction5£67,007,768.6056%
Other Goods & Services9£9,559,783.5418%
Healthcare6£6,653,029.746%
ICT14£5,885,102.726%
Transport7£3,504,426.613%
Professional Services11£3,418,774.793%
Social Care & Services2£1,670,238.002%
Security Equipment & Services1£1,550,750.002%
Vehicles4£1,213,450.001%
Financial Services2£494,670.000%
Utilities & Energy2£474,788.190%
Human Resources1£422,226.450%
Waste & Environmental Services1£409,722.000%
Travel & Accommodation3£361,288.920%
Facilities Management1£292,915.000%
Manufacturing & Machinery1£210,000.000%
Education1£107,000.000%
Arts, Sport & Leisure1£75,000.000%
Grant Total72£103,310,934.56100%

4. Review of Procurement Compliance

Procurements need to be progressed in accordance with North Ayrshire Council’s Procurement Strategy and all relevant legislation. Details of whether these procurements complied with the Procurement Strategy 2023-2026 and areas of development in future years are detailed below:

5. Community Benefit Summary

A summary of community benefits delivered is detailed for the period of the report in Table 4 Community Benefits Delivered below.

North Ayrshire Council has a strong track record in delivering social and environmental benefits through its procurement activity. Community benefit clauses provide a means of achieving sustainability in public contracts.

Community benefit requirements are detailed in North Ayrshire Council’s Community Benefit Policy and are laid out in North Ayrshire Council’s Community Benefits Menu, which allocates points to community benefits based on the value of a contract. The menu is broken down into the following areas:

  • Employment - unemployed person, modern apprentice, graduate apprentice and others.
  • Employability and Skills - work experience, career and employability sessions and job fairs.
  • Small and Medium Enterprises - one-to-one mentoring, encouraging Small and Medium Enterprise sustainability offerings.
  • Third Sector Organisations – workshops.
  • Education – work experience, school projects, career and employability sessions, attendance at school career events.
  • Community Wish List - delivery of community and Third Sector requests for support from the North Ayrshire Council Community Benefit Wish List.
  • Suppliers are also encouraged to sub-contract to Small and Medium Enterprises, Third Sector Organisations and Supported Businesses.

Community benefits are an important element of the sustainable procurement duty and the steps taken by North Ayrshire Council to include community benefit requirements demonstrates compliance with that duty.

The Act states community benefits must be considered for all procurements at or above £4 million in value. North Ayrshire Council requests community benefits for all procurements from £50,000 to £499,999 for supplies and services and £100,000 to £499,999 for works on a voluntary basis and for procurements above these values on a mandatory basis. This is a lower threshold, therefore achieves significantly more community benefits across wider contracts.

Table 3 below provides details of all community benefits delivered for contracts over £50,000 for supplies and services and over £100,000 for works, and not just regulated contracts.

Table 3 Community Benefits Delivered
Community Benefits DeliveredTotal
Total contracts awarded with community benefit requirements41
Total contracts awarded over £4 million3
Total contracts awarded over £4 million with community benefit requirements3
Number of jobs filled by priority groups841 weeks (16 jobs)
Number of apprenticeships filled by priority groupsPriority 1002 weeks (19 jobs) and Non-Priority 703 weeks (14 jobs)
Number of other jobs filled1355 weeks (26 jobs)
Number of work placements for priority groups4
Number of SME workshops3
Number of TSO workshops1
Number of school projects5
Number of community projects/support for community groups7
Number of wish list projects delivered39
Other community benefit delivered18 career fairs (schools)
Other community benefit delivered9 job fairs
Other community benefit delivered4 employability session
Other community benefit delivered18 employability session (schools)

6. Supported Business Summary

A summary of the steps taken to facilitate the involvement of supported businesses in regulated procurements during the year covered by the report are noted below.

  • Reserving contracts to supported businesses is considered when the contract strategy is being developed and is applied, if applicable.
  • The Scottish Government Requirements Reserved For Supported Business Dynamic Purchasing System is published on North Ayrshire Council’s intranet site to encourage spend through the framework, where appropriate.

The total spend with supported businesses for the period covered by the Annual Procurement Report was £451,218.14, which was an increase of £12,460.14 from the previous year.

This spend relates to spend with 5 supported businesses and includes kitchen unit materials, sanitary products, and signage.

7. Climate Change and Sustainable Procurement

Tackling Climate Change

North Ayrshire Council declared its own Climate Emergency on 11th June 2019, committing to act on climate change. The Sustainable North Ayrshire Strategy 2023-2027 has been developed to support the delivery of North Ayrshire Council’s priorities and continues to work towards a sustainable environment. The Procurement Strategy strategic objective to:

Quote: tackle climate change and embrace a circular economy on our net-zero journey

Quote from: Procurement Strategy strategic objective

Supports the Sustainable North Ayrshire Strategy by utilising the Scottish Government sustainable procurement tools to ensure climate change and sustainable procurement is addressed in all procurement exercises.

Sustainable Procurement Tools

The tools utilised include:

  • Flexible framework assessment tool,
  • Prioritisation tool,
  • Life cycle impact mapping,
  • Sustainability test,
  • Climate literacy training eLearning.

Selection and Award Criteria

Selection and award criteria aimed at reducing climate change impact is also included in all relevant procurements.

Climate Change Steering Group

The Climate Change Steering Group is chaired by North Ayrshire Council’s Cabinet member for Economy and Climate Change for North Ayrshire Council and other group members include North Ayrshire Council representatives and representatives from Ayrshire College, Police Scotland, Scottish Fire & Rescue Service, NHS Ayrshire & Arran, KA Leisure, Community Groups, Industry Sectors, and youth representatives.

The remit of the groups is to:

  • Act as a sounding board and critical friend to support and challenge the implementation of the Sustainable North Ayrshire Strategy,
  • Bring ideas, lessons learned and best practice from elsewhere in the UK and internationally around climate change mitigation and adaption,
  • Advise on approach to achieving net zero carbon by 2030,
  • Contribute wider policy knowledge on the sustainability and climate change agenda,
  • Promote North Ayrshire’s actions on climate change,
  • Contribute to the review and refresh of the Sustainable North Ayrshire Strategy as required.

Sustainability Case Studies

The Corporate Procurement Unit created three sustainability case studies (contracts listed below) in collaboration with the relevant internal service teams. These case studies are detailed in Appendix 3.

  • NAC/MC/5119 Construction of 50 New Build Council Houses at the Site of the Former Garnock Academy, Kilbirnie
  • NAC/MC/5147 Construction of Council Houses at the Former Ayrshire Central Maternity Hospital, Irvine
  • NAC/DA/5100 Supply, Installation and Maintenance of Electric Charging Equipment

Net-Zero Road Map

The Corporate Procurement Unit are also maintaining a net-zero roadmap in collaboration with the appropriate service teams leads, that aligns with the Sustainable North Ayrshire net-zero road map. The road map demonstrates how the Corporate Procurement Unit supports North Ayrshire Council to achieve its net-zero ambitions.

FNT2030 Templates

The Corporate Procurement Unit has also completed and are monitoring five FNT2030 templates in collaboration with the Waste (including Streetscene), Transport, ICT, Energy and Sustainability and Building Services Teams, that demonstrate and monitor how each category of spend will achieve its net-zero ambitions by 2030.

Climate Change Reduction Contracts Awarded

The contracts detailed below in Table 4 were awarded during the Annual Procurement Report year. These projects support reduction of climate change impact and sustainable procurement and are a mixture of regulated and non-regulated procurements:

Table 4 Climate Change and Sustainable Procurement Contracts
Contract ReferenceContract Title
NAC/MC/5119Construction of 50 New Build Council Houses at the Site of the Former Garnock Academy, Kilbirnie
NAC/MC/5147Construction of Council Houses at the Former Ayrshire Central Maternity Hospital, Irvine
NAC/DA/5086B714 Final Business Case (FBC)
NAC/DA/5100Supply, Installation and Maintenance of Electric Charging Equipment and Associated Products
NAC/MC/5155Supply and Delivery of HVO Fuel, North Ayrshire
NAC/STA/5240Maintenance, Warranty and Data Sim Contract for EV Charge Points
NAC/DA/5078Construction of Ardrossan Community Campus: Pre-Construction Services Delivery Agreement (PCSDA)
NAC/MC/5157NEC4 Supervisor, Ardrossan Campus
NAC/STA/5247Extension of Project Manager Services and Provision of NEC4 Project Manager Services – Ardrossan Campus
NAC/STA/5249Quantity Surveyor and Technical Advisor Services – Ardrossan Campus
NAC/DA/5071Energy Smart Programme Works
NAC/DA/5089Replacement Rapid and Relocation of EV Chargers in Arran
NAC/QQ/5299Supply and Delivery of LED Lanterns, North Ayrshire
NAC/QQ/5326Purchase of an Electric Powered Forklift Truck
NAC/STA/5265Felling and Removal of Trees Affected by Ash Dieback Disease (Lawthorne Mount)
NAC/QQ/5334Proposed Internal Lighting Refurbishment, West Byrehill Transport Garage, Kilwinning
NAC/QQ/5333Electrical Upgrades, Repairs, Inspection and Testing, North Ayrshire
NAC/STA/5235Culvert Defect Repairs, North Ayrshire
NAC/QQ/5312Replacement of Building Management System, Dalry Primary School/Early Years and Beith Primary School

Climate Change (Duties of Public Bodies: Reporting Requirements)

North Ayrshire Council also complies with the Climate Change (Duties of Public Bodies: Reporting Requirements) (Scotland) Order 2015 which requires Public Sector Bodies to publish annual climate change reports. The report for 2023/2024 was submitted in November 2024.

The Corporate Procurement Unit contributes to compliance with climate change duties by procuring and awarding contracts that reduce climate change impact, using sustainable procurement tools (detailed above) and including appropriate selection and award criteria in relevant procurements.

The Corporate Procurement Unit has also completed the activities noted below within the report period:

  • Attended the Energy Strategy Workshop with the Energy and Sustainability Team to contribute towards the development of North Ayrshire Council’s new Renewable Energy strategy.
  • Participated in the annual Climate Change Assessment Tool Assessment for the Procurement Section which is incorporated within the annual Public Bodies Climate Change Duties Report.
  • Attended the Public Bodies Climate Change Duties Reporting Consultation with the Energy and Sustainability Team in relation to up and coming legislation and guidance changes.
  • Participated in the annual Climate Adaptation Capability Framework Assessment to demonstrate how Procurement helps reduce the impacts of climate change.

8. Continuous Improvement

North Ayrshire Council’s Corporate Procurement Unit continually assesses processes, procedures, templates, and ways of working, to identify lessons learned and consider ongoing improvement activity in relevant areas. Suggestions for improvement are a standing agenda item at monthly Corporate Procurement Unit meetings and quarterly Procurement Board meetings and post projects reviews are completed for all procurement exercises undertaken. Lessons learned from procurement exercises and contract management are recorded and remedial action is taken for future procurements to ensure continuous improvement.

A Procurement Improvement Action Plan has been created that outlines improvement activities during the reporting period. This plan is reviewed every 6 months. Some of the activities implemented in 2024/2025 are detailed below:

A continuous improvement log is maintained to record details of all improvements implemented and the impact of the changes.

9. Commercial Activity (Savings/Income)

North Ayrshire Council’s Corporate Procurement Unit maintains a savings, income and innovation log to record savings generated from various commercial activities. Details of savings made in the year 2024/2025 are detailed in table 5 below.

Table 5 - Commercial Activity (Savings/Income)
Commercial ActivitySavings/income value
Negotiations£17,443.09
Lease vs buy£3,828.00
Demand management£63,578.70
Competitive procurement savings (award against budget)£2,041,610.20
Framework rationalisation (analysis or mini competitions)£1,959,150.21
Income from projects (advertising on roundabouts and vehicles)£13,543
Amazon business account savings£6,932.79
Income from rebates£123,750.71

Additionally, North Ayrshire Council have implemented a Car Salary Sacrifice Scheme which is a cost-effective way for staff to lease a brand-new electric or hybrid car via salary sacrifice. There is no credit check or deposit required and everything is included, insurance, servicing, maintenance, repairs, MOT costs, road tax and breakdown assistance. This reduces the amount of income tax, national insurance, and pension both North Ayrshire Council and employees pay. The supplier, Northumbria Healthcare NHS Foundation Trust trading as NHS Fleet Solutions also provides discounts on the electric vehicles.

North Ayrshire Council are also investigating all the saving proposals put forward from Scotland Excel’s savings team and will record the benefits realised and report in future annual reports.

During the period covered by the report, North Ayrshire Council secured an additional £11,464.90 rebate from RBS for Procurement Card Spend and achieved a £96,746.57 saving through aggregating Microsoft Licenses as a result of the proposal from the Scotland Excel’s savings team.

10. Future Regulated Procurement Summary

A forward plan of anticipated regulated procurements North Ayrshire Council expects to commence in the next two financial years are included in Appendix B.

82 contracts are expected to be awarded with an estimated approximate value of £263,392,480.57

This information gives suppliers notice of future opportunities in the next two years.

Acting in a transparent and proportionate manner is an effective way for North Ayrshire Council to encourage competition and achieve better value for money in its procurements. It also promotes wider participation in the public procurement process.

Appendix A Regulated Procurement Summary

Appendix B Future Regulated Procurement Summary (April 2025 to March 2027)

Appendix C Climate and Circular Economy Case Studies

NAC/DA/5100 Supply, Installation & Maintenance of Electric Charging Equipment and Associated Products: a good example Climate Change

Contractor: MP Group UK Ltd

NAC/MC/5119 Construction of 50 New Build Council Houses at the site of the former Garnock Academy, Kilbirnie

Contractor: Ashleigh (Scotland) Limited

Two blocks of houses showing the proposed front and read elevations for each

NAC/MC/5147 Construction of Council Houses at the Former Ayrshire Central Maternity Hospital, Irvine

Contractor: Ashleigh (Scotland) Limited

A street with house, people walking and cars on the road