1.1 Overview
Public procurement is the process by which public bodies acquire supplies, services and works from third parties to meet customer and service user needs. Procurement covers all activities from identification of a requirement through to the end of the useful life or disposal of an asset.
The impact of procurement is far greater than this definition of a ‘process’. As detailed in the Council’s Procurement Strategy for 2025/28, strategic procurement arrangements can increase commercial excellence throughout the organisation, ensuring that our services deliver best value. Effective procurement arrangements can make significant contributions to a wide range of Council objectives including a successful local economy, a thriving voluntary sector, community involvement and environmental issues as well as delivering value for money. Strategic procurement recognises that it is essential that procurement decisions are taken with a focus on the outcomes that the Council is seeking to achieve.
1.2. Best Value
All purchasing must take place in accordance with the Council’s statutory duty to secure best value under the Local Government in (Scotland) Act 2003. This requires the Council to:
Secure continuous improvement in performance whilst maintaining an appropriate balance between quality and cost; and in making those arrangements and securing that balance, have regard to economy, efficiency, effectiveness, and equal opportunities requirements and to contribute to the achievement of sustainable development.
1.3 Savings
Savings from Procurement should be recorded in line with Supplementary Guidance Note 16 – Savings and Benefits Collating and Reporting Methodology and current Scottish Government Guidance on Procurement Benefits Reporting.
1.4 Legal Context
Underpinning the duty to achieve Best Value, there are several layers of procurement regulation that dictate how public procurement must be conducted by the Council:
Much of Scotland’s public procurement legislation comes from European Directives. Following the UK exit from the EU on 31st December 2020 – some technical changes are being made to the procurement regulations (addressed at point 1.5 below);
Scottish legislation and guidance (addressed at point 1.6 below);
Council Contract Standing Orders (addressed at point 1.8 below)
1.5 The European context and transition
The UK left the EU on 31 December 2020. It is important to note that most procurement processes and procedures have not changed. References to the EU and EU procurement legislation are being updated or removed nationally and throughout this Manual; any associated Guidance; templates and links to external websites. The powers to make the changes are included in the European Union (Withdrawal) Act 2018 – it should be noted that there are no powers to undertake a wider review of procurement legislation. The changes are largely technical in nature - our procurement procedures remain largely unchanged.
What has not changed - The basic requirements to advertise contracts, observe minimum timescales, and follow rules on technical specifications and award criteria, for example, will remain in place. The requirement to afford equal treatment to bidders from countries which are signatories to the World Trade Organisation’s Government Procurement Agreement (the GPA) will also remain. PCS remains the main advertising portal for Scottish Public Bodies.
What has changed – changes are largely technical in nature - for example:
- Notices for procurements started after the end of the Transition Period will be routed to Find a Tender (FTS) rather than Official Journal of the European Union (OJEU)
- The ESPD has been renamed the Single Procurement Document (SPD) for new procurements and includes minor revisals to exclusion grounds to remove, for example, offences relating to fraud affecting the European communities financial interests.
- Scottish Ministers will be responsible for reviewing and revaluing the financial thresholds every two years – next review due 2028 which will be consistent across the UK and there is no scope to introduce threshold values that vary from the GPA or OJEU.
1.6 Scottish Legislation and Guidance
EU Directives were given effect by:
- The Public Contracts (Scotland) Regulations 2015 (the Regulations)
- The Procurement Reform (Scotland) Act 2014 (The Reform Act)
- Procurement (Scotland) Regulations 2016
- Concessions Contract (Scotland) Regulations 2016 and
- Utilities Contract (Scotland) Regulations 2016
1.7 Thresholds: Regulatory
Procurement Threshold and Contract Value Estimation Changes
Post the UK exit from the EU, the UK is an independent member of the World Trade Organisation Agreement on Government Procurement (WTO GPA).
A new Scottish Policy Note SPPN 4/2025 has been released to communicate threshold changes.
The WTO GPA procurement thresholds changed on 1 January 2026.
From this date when you calculate the estimated value of your contract you must include VAT (if applicable) at the appropriate rate for your contract (or apply the standard UK VAT rate of 20%). More information is detailed below.
The Procurement Reform (Scotland) Act 2014 threshold values for regulated procurements are not changing i.e. they remain at £50,000 (ex VAT) for Supplies and Services and £2million (ex VAT) for Works.
The Public Contracts (Scotland) Regulations 2015 (the Regulations) have been increased commensurate with the addition for VAT. Unless you can show that your contract has no VAT or a lower rate of VAT, it is recommended best practice to add 20% to the net estimated value of your contract. 20% is the current standard rate of VAT. Adding this standard rate will:
- remove the risk of underestimating the contract value and therefore
- ensure you follow the correct procurement route and advertising requirements in line with the new procurement threshold
If VAT is applicable, you must include an allowance in your calculation of the estimated value of the contract to determine whether the contract equals or exceeds the new threshold values.
Summary of Threshold Levels from 1st January 2026
| The Public Contracts (Scotland) Regulations 2015 | New Threshold Value | Indicative Value excl 20% VAT |
|---|---|---|
| Supplies and services (except subsidised services contracts) | ||
| Schedule 1 bodies |
£135,018 |
£112,515 |
| Others |
£207,720 |
£173,100 |
| Subsidised services contracts (all bodies) |
£207,720 |
£173,100 |
| Works (including subsidised work contracts – all bodies) |
£5,193,000 |
£4,327,500 |
| Light touch regime for services (all bodies) |
£663,540 |
£552,950 |
| Small lots - Supplies and services |
£70,778 |
£58,982 |
| Small lots - Works |
£884,720 |
£737,267 |
Summary of Threshold Levels from 1st January 2026
| The Utilities Contracts (Scotland) Regulations 2016 | New Threshold Value | Indicative Value excl 20% VAT |
|---|---|---|
| Supplies and services (all sectors) |
£415,440 |
£346,200 |
| Works (all sectors) |
£5,193,000 |
£4,327,500 |
| Small lots - Supplies and services |
£70,778 |
£58,982 |
| Small lots - Works |
£884,720 |
£737,267 |
| The Concession Contracts (Scotland) Regulations 2016 | New Threshold Value | Indicative Value excl 20% VAT |
|---|---|---|
| Concession Contracts |
£5,193,000 |
£4,327,500 |
| The Procurement Reform (Scotland) Act 2014 | New Threshold Value excl VAT |
|---|---|
| Public Contract (other than Public Works) |
£50,000 |
| Public Works Contract |
£2,000,000 |
1.8 Thresholds: Local - Contract Standing Orders
Argyll and Bute thresholds which include the current financial thresholds and recommended routes are as follows:
| Value | Action |
|---|---|
| £0 - £999 | Pricing agreement should be reached prior to purchase, can be done verbally but file note must be kept/ Quick Quote can be carried out if required |
| £1,000 - £49,999 |
Quick Quote/Invite to Quote (or single or dual stage tender if required), use Public Contracts Scotland or Mini-comp/direct award from an established framework. |
| £50,000 - £173,100 - indicative value including 20% VAT £207,720 |
Regulated Contracts (single or dual stage tender) or Mini-comp/direct award from an established framework. |
| >£173,100 - (indicative value including 20% VAT £207,720 |
Tender - for procurement processes launched after 31st Dec 2020 must be a Find a Tender (FTS) Notice (Open or Restricted tender) or Mini-comp/direct award from an established framework |
** As part of a pilot project for CSM Property Services only the lower threshold for consultancy services shall be increased to £5,000 – and Property Services shall work with PCCMT to ensure relevant controls are in place, including the mandated use of PCS, to ensure best value can be demonstrated.
not including *health or social care contracts (see below)
| Value | Action |
|---|---|
| £0 - £999 | Pricing agreement should be reached prior to purchase, can be done verbally but file note must be kept/ Quick Quote can be carried out if required |
| £1,000 - £49,999 |
Quick Quote (single or dual stage tender if required), use Public Contracts Scotland or Mini-comp/direct award from an established framework |
| £50,000 - £173,100 - indicative value including 20% VAT £207,720 |
Regulated Contracts (single or dual stage tender) or Mini-comp/direct award from an established framework |
| > £173,100 - indicative value excluding 20% VAT £207,720 |
Tender - must be a FTS notice (Open or Restricted tender) or Mini-comp/direct award from an established framework |
| Value | Action |
|---|---|
| £0 - £999 | Pricing agreement should be reached prior to purchase, can be done verbally but file note must be kept/ Quick Quote can be carried out if required |
| £1,000 - £2,000,000 |
Quick Quote (ITQ or ITT depending on value and scope of works), if applicable use Vendor Rating System (VRS) for distribution list. Use Public Contracts Scotland. Note: If no VRS or other objective method of selection for distribution list use single or dual stage tender from £50k to £2m |
| £2,000,000-£4,327,500 Indicative value including 20% VAT £5,193,000 | Regulated Contracts (single or dual stage tender) |
| >£4,327,500 Indicative value including 20% VAT £5,193,000 | Tender – must be a FTS notice (Open or Restricted Tender) |
*** As part of a pilot under the CSM project for Property Services only the lower threshold for works shall be increased to £10,000 – and Property Services shall work with PCCMT to ensure relevant controls are in place including the mandated use of PCS, to ensure best value can be demonstrated.
The undernoted table summarises the different rules that apply to health or social care contracts
| Value | Action | Note |
|---|---|---|
| Below £50,000 | May award without seeking offers, but should consider the fundamental procurement principles where relevant. | Non-regulated procurement |
| £50,000 - £552,950 Indicative value including 20%VAT £663,540 | May award without seeking offers, but should consider the fundamental procurement principles where relevant. For contracts over £50,000, an award notice must be published on PCS and certain other rules apply (See Supplementary Guidance Note 18: Health and Social Care Contracts) | May choose to seek offers: in which case all provisions of the Procurement Reform (Scotland) Act 2014 apply |
| £552,950 and above Indicative value including 20%VAT £663,540 | Must be advertised in FTS and the light touch provisions in the Public Contracts (Scotland) Regulations 2015 apply |
Public Contracts Scotland (PCS) remains the main advertising portal for Scottish public bodies. This means that at the practical level there should be no changes in the way that we submit contract opportunity notices – they should still be submitted to PCS in the first instance.
In addition to publication of these notices on PCS, for procurements that have started but not concluded before the end of the Transition Period, notices will also require to be published on Tenders Electronic Daily (OJEU/TED) and will be routed there via PCS. Notices for procurements started after the end of the Transition Period will be routed to the Find a Tender (FTS).
The tables above reflect legal obligations and ensure that we demonstrate value for money and that public money is spent properly. It is important for those carrying out procurement activity to realise the agreed process are about legal compliance and to underpin the commercial approach for achieving value for money and efficiency.
Where compliance with the requirements of the tables referred in the preceding paragraph may not be possible or appropriate due to exceptional circumstances, decision making must be recorded via the following process: the completion of the agreed pro forma known as the justification for non-competitive action (JNCA); advice and involvement of the Procurement, Commercial and Contract Management Team (PCCMT) is essential to ensure a clear audit trail and record the reasons for the justification and authorisation at senior level. The JNCA process is outlined in Supplementary Guidance Note 18 – JNCA Process & FAQs.
1.9 CARR Approvals Thresholds
|
Value |
Who can sign? |
|---|---|
|
£1,000 – £50,000 |
Head of Service* |
|
£50,000 – £173,100 |
Service Director |
|
Over £173,100 |
Executive Director of Customer Services |
|
Value |
Who can sign? |
|---|---|
|
£1,000 – £2,000,000 |
Head of Service* |
|
£2,000,000 – £4,327,500 |
Service Director |
|
Over £4,327,500 |
Executive Director of Customer Services |
* Below this level, individual members of staff may be authorised to approve lower value CARRs – please check the Creditors Authorised Signatories for full details.
The above values are excluding VAT.
1.10 Timeframes
Where contract values exceed the threshold, there are also sets a minimum timescale for tender returns. Timeframes in relation to the different routes of procurement are in Supplementary Guidance Note 1 –Time Limits.
1.11 Sustainability as Part of the Procurement Activity
Sustainable procurement means taking into account those social, economic and environmental considerations as part of the procurement process. As a matter of good practice sustainability needs to be built in to the earliest stages of the Journey, when requirements are being identified and specified. With the Procurement Reform (Scotland) Act 2014 the Sustainable Procurement Duty applies to all regulated procurements which commence on or after 1st June 2016. See Supplementary Guidance Note 2 – Sustainable Procurement and Types of Community Benefits for full details.
The aim of Argyll and Bute Council’s Sustainable Procurement Policy is to ensure that the Council embeds the principles of sustainability within its procurement activities to ensure that only products and services which can be described as ‘best value’ are selected and that in all cases a balanced consideration of social, ethical, environmental and economic impacts are undertaken throughout the procurement process.
Argyll and Bute Council is one of the region’s major purchasers and as such the PCCMT recognises that its purchasing decisions have social, economic and environmental implications, both locally and nationally, now and in generations to come.
1.12 Overview of the Key Stages of the Tendering Process:
- Planning: Commodity Sourcing Strategy, market testing, stakeholder engagement etc.
- Advertisement on the Public Contracts Scotland website and/or Find a tender (FTS)
- Suppler Selection to establish the resources and capability of bidders using the Single Procurement Document - SPD
- Invitation to tender
- Submission of tenders
- Evaluation of bids
- Award Decision
- Standstill (if relevant)
- Contract Award Recommendation Report
- Contract Management
1.13 The Procurement, Commercial and Contract Management Team - Contact Details
- Anne MacColl-Smith - Team Manager
- Margaret Moncur - Finance Manager
- Liz Munro - Procurement Analyst
Care, Early Years & Housing
Areas covered by this category include (Residential Care, Children and Young People’s Support, Unpaid Carers, Housing/Homelessness, Equipment and Collaborative/National Contracts.
- Samantha Torrie - Senior Procurement Officer
- Elaine Madej - Trainee Contract and Demand Management Officer
- Rona McGillivray - Trainee Contract and Demand Management Officer
Email: procurement.care@argyll-bute.gov.uk
Commercial & Contract Management
Areas covered by this category include Building Works & Services; Infrastructure Works & Services; Construction-related Consultancy Services; Construction-related Supplies; and Environmental requirements (including Waste and Renewables).
- Moira Logan - Commercial Contracts Legal Manager
- Karen Dixon - Solicitor
- Clare McLaughlin - Administration Officer
- Melissa MacCuaig - Administrator Officer
Email: legalcontractsupport@argyll-bute.gov.uk
Construction and Environment
Areas covered by this category include Building Works & Services; Infrastructure Works & Services; Construction-related Consultancy Services; Construction-related Supplies; and Environmental requirements (including Waste and Renewables).
- Elaine Appleby - Senior Procurement Officer
- Ashley MacKay - Contract and Demand Management Officer
- Mirela Simionov - Category Management Officer
- Lewis Cowburgh - Trainee Purchasing Officer
Email: procurement.cons.env@argyll-bute.gov.uk
Corporate and Education
Areas covered by this category include: Education; Transport; ICT; Catering; Sports; Furniture; Cleaning and other miscellaneous corporate requirements.
- Emma Graham - Senior Procurement Officer
- Annabel Travers - Category Management Officer
- Laura McNaughton - Purchasing Officer
- Sharon Brady - Trainee Purchasing Officer
- David Dunlop - Trainee Purchasing Officer
- Danielle MacEwan - Trainee Purchasing Officer
- Lissa Brackley - Administration Officer
Email contacts
- General contact: procurment.cc@argyll-bute.gov.uk
- Agency workers: agency.procurement@argyll-bute.gov.uk
- Corporate Purchasing Team: purchasing@argyll-bute.gov.uk
- Education Purchasing Team: ept@argyll-bute.gov.uk
- DIS Purchasing: dandipurchasing@argyll-bute.gov.uk
- PECOS Admin: pecosadmin@argyll-bute.gov.uk
1.13 Procurement Staff by Specific Projects
Contracts and Supplier Management (CSM)
- Moira Logan
IKEN
- Anne MacColl-Smith
- Liz Munro
Procurement Commercial Improvement Programme (PCIP) Assessment
- Anne MacColl-Smith
- Liz Munro
Procurement Manual, Constitution and Contract Standing Orders
- Anne MacColl-Smith
- Moira Logan
Procurement Strategy and Annual Procurement Report
- Anne MacColl-Smith
- Liz Munro
Procurement Training
- Anne MacColl-Smith
- Moira Logan
Public Contracts Scotland
- Emma Graham
Spikes Cavell - Scottish Procurement Hub
- Liz Munro
Supplier Development
- Anne MacColl-Smith
Sustainability
- Elaine Appleby
