Before you start your Procurement Journey, please consider the following points:

1. Are the good/services you are buying business critical?
2. Is there a significant risk to your Organisation's reputation or ability to deliver if something went wrong with what you are buying?
3. Is the estimated value of the goods/services that you are buying more than £50,000 (excluding VAT) over the lifetime of the contract?  If so, this means that Route 1 cannot be used, as the contract needs to be advertised and formally tendered.

To calculate the estimated value of the contract you should add the spend for the full contract duration, including any contract extensions. 

For example, a contract of £10,000 per year (excluding VAT) over three years plus a 1 year £10,000 extension (excluding VAT) is a £40,000 contract i.e. 3 x £10,000 + £10,000.

If you are unable to estimate the value of a contract, that contract must be clearly made subject to the procurement rules.

Please note, requirements must not be 'split' into contracts of lower value, or contracts reduced in duration, to avoid the need to advertise/conduct a full tender exercise.

Points for consideration

1. Are existing contracts already available that you could use e.g. call off from?
2. Does your Organisation have a lower advertising threshold?  If so, should you follow the Route 2 process?  This information will be held with your Finance Department or Procurement Function
3. Is there a conflict of interest? Do you or someone in your Organisation stand to benefit from the outcome of the procurement?  For example: benefit financially? Have friendships with suppliers? Previously worked for suppliers? If so should the buyer and/or evaluating team be changed? 

If you have answered 'yes' to any of the above questions please contact your local Procurement Function or Centre of Expertise (CoE) before proceeding.

You should keep a file for your Route 1 procurement documents, in case of future audit.

You should make sure you are familiar with:

• your Organisation's document retention policy
• any guidance which may impact on the project before starting.

Please note that purchases of goods and services may routinely be the subject of Freedom of Information (FoI) requests.

Quote Distribution

Your quote should be sent to the suppliers you want to participate in your quote.  This can be done using the Quick Quote functionality in Public Contracts Scotland (PCS) or by other means e.g. in writing via email or by post.

PCS is recommended as:

• you can search through a register of suppliers to select those you want to bid;
• questions and answers can be provided through this system;
• this will provide an audit trail for your quote.

Procurement Documents 

Your quote should include all of the documents a potential bidder would need to decide whether to bid or not e.g. your specification, and all the documentation required to be able to respond to your request for a bid e.g. a pricing spreadsheet that the bidder needs to complete. 

Prepare Documents provides a checklist of documents that should be included in your quote as a minimum. 

If using Quick Quote in PCS for your quote please note that the following file size restrictions apply for uploading documents:

• 10Mb per document with a maximum of 40Mb for the Buyer
• 10Mb per document with a maximum of 30Mb for the Supplier.

Contract Award 

Once you have completed all stages of your procurement you must seek approval on who to award your contract to. This approval process must follow your Organisation’s governance requirements.

Once approval has been received you should notify the successful and unsuccessful suppliers of the outcome in writing.  More information, including letter templates, can be found in the Contract Award station. 

Before you start your Procurement Journey, please consider the following points:

1. Is the product/service you are buying business critical?
2. Is there a significant risk to your Organisation's reputation or ability to deliver if something went wrong with what you are buying?
3. Is the estimated value of the goods/services that you are buying more than £50,000 over the lifetime of the contract?  If so, this means that Route 1 cannot be used as the contract needs to be advertised and formally tendered.

To calculate the estimated value of the contract you should add the spend for the full contract duration, including any contract extensions. 

For example, a contract of £10,000 per year (excluding VAT) over three years plus a 1 year £10,000 extension (excluding VAT) is a £40,000 contract i.e. 3 x £10,000 + £10,000.

Please note, requirements must not be 'split' into contracts of lower value, or contracts reduced in duration, to avoid the need to advertise/conduct a full tender exercise.

1. Are existing contracts already available that you could use e.g. call off from?
2. Does your Organisation have a lower advertising threshold?  If so, should you follow the Route 2 process?  This information will be held with your Finance Department or Procurement Function
3. Is there a conflict of interest?  Do you or someone in your organisation stand to benefit from the outcome of the procurement?  For example: benefit financially? Have friendships with suppliers? Previously worked for suppliers? If so should the buyer and/or evaluating team be changed? 

If you have answered 'yes' to any of the above questions please contact your local Procurement Function or Centre of Expertise (CoE) before proceeding.

You should keep a file for your Route 1 procurement documents, in case of future audit.

You should make sure you are familiar with:

• your Organisation's document retention policy; and
• any guidance which may impact on the project before starting.

Please note that purchases of goods and services may routinely be the subject of Freedom of Information (FoI) requests.

The Contract Manager is, ideally, one person (or small team) and should be responsible for the contract. This helps with continuity, relationship building and knowledge retention.

The Contract Manager may not be the same person who awarded the contract, this can be beneficial because it allows fresh oversight.

Their responsibilities should be clear:. Roles, accountability, resources and time commitment should be defined.

The level of engagement should be proportionate to risk and value. For example:

It is good practice for the contract manager to publish, in advance, a schedule to the supplier and those who will be involved in the operation of the contract.

This schedule could include the contract management activities, including objectives and Key Performance Indicators (KPIs) and ensure that these are an embedded part of contract management activities from the beginning.  

For a Route 1 contract, which is low value, low risk (or both) this schedule can be very brief.

Suggested Responsibilities/Considerations

• understanding requirement specification/contract scope and deliverables
• confirm roles and responsibilities
• review contract documents, KPIs and reporting requirements
• involvement of procurement
• risk assessment
• financial checks

Why it is Important

• it’s the bridge between procurement and delivery
• ensures both buyer and supplier understand what’s been agreed, what needs to happen next, and how performance will be measured
• prevents confusion or misalignment once the contract goes live
• makes sure the supplier is ready to deliver as promised from day one
• confirms pricing structures, invoicing processes, and performance measures are clearly understood
• avoids costly misunderstandings, disputes, or delays later in the contract
• reduces operational disruption when switching from an outgoing supplier or starting a new service

Suggested Responsibilities/Considerations

• ensuring documentation is correct and accessible (contract, terms, annexes).
• contract handover—who does what – complete a contract handover document (a template can be found at the bottom of the page for you to use).
• ensure contract documentation is accessible.
• complete handover checklist (a checklist document can be found at the bottom of the page for you to use).
• once the handover is complete, responsibility for day-to-day performance management sits with the contract manager, with procurement available for advice and escalation.

Why it is Important

• avoids gaps in knowledge or responsibility
• transfers all key documentation, risks, decisions, and supplier commitments to the contract manager
• makes sure everyone understands the contract’s intent, scope, and deliverables before work starts
• establishes who will manage, monitor, and approve key activities
• confirms reporting, meeting structures, and escalation routes
• ensures the right oversight mechanisms are in place from day one (e.g., performance reviews, KPI tracking)
• sets up systems for invoicing, reporting, risk logs, and performance data
• confirms all insurances, financial checks, and onboarding requirements are complete
• makes sure the contract is stored in the right system and accessible to relevant teams
• reduces the likelihood of early-stage delivery problems or compliance failures

A CSM Handover document and a CSM Handover Checklist are available for you to use, these can be found at the bottom of this page.

Suggested Responsibilities/Considerations

• for low-risk contracts, monitoring may simply be occasional check-ins and good recording-keeping. Before continuing, consider how much management your contract needs.
• schedule regular performance meetings (agree frequency of reporting – e.g. monthly, quarterly etc.)
• what performance data should be tracked (cost, time, quality, supplier risk etc).
• track KPIs, SLAs, and delivery milestones.
• record issues and actions taken.
• maintain accurate records for audit.
• consider how to capture benefits / savings / sustainable outcomes achieved.

Why it is Important 

• ensures continual oversight
• allows identification of trends or issues early
• confirms that the supplier is delivering the goods, works, or services as specified in the contract — on time, to the right quality, and within budget
• highlights early if there are any deviations, delays, or performance shortfalls
• keeps both parties accountable to the agreed Key Performance Indicators (KPIs) or Service Level Agreements (SLAs).
• without monitoring, you’re managing on assumptions — not evidence
• regular reports provide clear data on performance, costs, and outcomes
• enables managers to make informed decisions about renewals, extensions, variations, or corrective actions
• creates an auditable trail showing how performance was managed and value was achieved
• confirms that payments are linked to actual performance and outcomes
• encourages suppliers to focus on continuous improvement and efficiency
• regular reporting and performance reviews create open communication channels.
• encourages collaboration, transparency, and shared problem-solving
• builds trust and helps maintain a positive working relationship — even when issues arise
• demonstrates that the organisation is managing contracts responsibly, in line with policy, audit, and statutory requirements (e.g. procurement regulations, public spending controls)
• provides assurance to senior management and auditors that contracts are being managed effectively
• enables tracking of trends over time — spotting patterns in performance data and identifying opportunities for improvement
• encourages innovation anvalue through lessons learned and supplier feedback

Variations (changes to requirements) and extensions to the contract should be exceptional, not routine.

Contract variations should only be permissible where changes do not significantly alter the original contract’s scope, value or duration.

A significant change could be to the:

• contract scope
• contract value
• contract duration

If a proposed change is significant (change in scope, large value increase, much longer duration) then you may need to conduct a new procurement exercise.

If you are unable to estimate the value of a contract that contract will be explicitly made subject to the procurement rules.

If a significant change to the contract is proposed, you must contact your local Procurement Function or Centre of Expertise for advice on how to proceed before making changes.

Suggested Responsibilities/Considerations

• when permitted.
• process to follow - all changes must follow formal change control procedures.
• procurement must be involved in significant amendments.
• escalation should be earlier for high-risk/strategic suppliers, and proportionate.

Why it is Important

• variation, extension, or amendment changes the terms of a legally binding agreement
• proper management ensures changes are authorised, documented, and compliant with procurement and governance rules
• prevents disputes or claims later about what was or wasn’t agreed
• without a formal process, even small changes can invalidate parts of the contract or create ambiguity
• public sector organisations must show that all contract changes are fair, transparent, and traceable
• clear records of variations support audit, governance, and reporting requirements
• demonstrates accountability for decision-making and use of public funds
• A structured variation process creates documented evidence of:
• what changed and why
• who approved it
• when it was implemented
• the impact on cost, scope, and delivery

This is vital for governance, risk management and lessons learned.

A Contract Variation Request Form is available for you to use and can be found at the bottom of this page.

Suggested Responsibilities/Considerations

• escalate issues early to procurement or legal.
• follow dispute resolution procedures set out in the contract.
• document the exit strategy/reasons.

Why it is Important

• ensures staff know what to do when things go wrong
• avoids delay or avoidance of necessary action
• every contract sets out obligations, rights, and remedies for both parties
• having a clear dispute resolution and termination process ensures the organisation can enforce those rights lawfully if things go wrong
• prevents informal, inconsistent, or unlawful actions that could lead to legal claims, damages, or reputational harm
• proper procedures protect both the buyer and supplier — ensuring fairness and due process
• disputes or terminations are moments of high risk
• a structured process helps the organisation stay in control, following a calm, documented, and compliant approach rather than reacting under pressure
• ensures key stakeholders (legal, finance, governance) are engaged early
• quick, well-managed resolution of issues helps avoid service disruption or cost escalation
• enables timely negotiation or corrective action before problems worsen
• if termination is unavoidable, ensures a smooth and cost-effective exit, minimising penalties or loss
• Your exit strategy should be created/agreed during the Tender stage and revisited at the Contract Award/Handover stage. This can be updated during the lifetime of the contract, if agreed with the supplier(s). If this was not done at the Tender stage, it can be done now in conjunction with the Procurement team. 

A CSM Exit Strategy Template is available for you to use at the bottom of this page.

The below sets out some key activities that you may feel are relevant for low value or low risk contracts: 

You can apply the following simplified framework for your own scenario: 

1.Segment the contract (see Route 3 for detailed Segmentation Guidance)

• Confirm that the contract is truly lower-value / lower-risk (standard items, multiple suppliers possible, non-critical, or easily substituted).
• Use the Kraljic Matrix to identify it as a “routine” (low impact / low risk) so simpler processes apply.

 2.Before the contract starts

• Develop contract templates with suitable terms (KPIs, simple clauses) but not overly complex.
• Include review clauses (price indexation, supply disruption triggers) as appropriate.

3.Contract award/Handover

• Ensure contract includes Key Performance Indicators (KPIs).
• Set up periodic review (less frequent than strategic suppliers, but still consistent).

4.Monitoring and Reporting

• Monitor performance against the agreed KPIs.
• Maintain basic risk monitoring: e.g. supplier’s supply base changes, logistic/disruption risks, regulatory/compliance issues.
• Engage supplier proactively: keep communication open even for lower-risk contracts so you are aware of emerging issues early.

5.Contract renewal or termination

• Before renewal, review performance, market conditions, supply chain risk changes.
• If performance has been acceptable and risks unchanged, renewal can proceed with minimal negotiation; if changes appear, seek substitute or renegotiate terms.
• Maintain “off-ramp” planning: even for lower risk contracts, have a fallback plan if the supplier fails.

6.Documentation & risk register

• Maintain a register of risks (even for low-value contracts) e.g. supply interruptions, price spikes, regulatory changes.
• Track actions taken to mitigate those risks (dual sourcing, inventory buffer, alternative supplier list).
• Keep contract repository and clear versioning—so even lower-value contracts are managed, not ignored. 

A low value, low risk contract typically involves: 

• A contract value below the regulated procurement threshold (usually under £50,000 for goods/services
• Minimal business criticality or reputational risk
• Straightforward requirements with limited supplier dependency and a competitive market

Yes — but at a proportionate level. 
Contract management should ensure: 

• The supplier delivers as agreed
• Value for money is maintained
• Any issues or risks are identified early

A light-touch approach is appropriate — for example, simple performance checks and informal review meetings rather than detailed reporting or governance structures. 

Typically: 

• Award letter or purchase order (with terms and conditions)
• Specification or scope of work
• Basic contract management plan or record, noting key contacts, deliverables, review schedule, and expiry date

For very low value arrangements, a simple record of engagement may be sufficient. 

Usually, the contract owner or requisitioner within the service area. 
Procurement staff may provide guidance, but day-to-day management (e.g. approving invoices, monitoring delivery) should be handled by the business area benefiting from the contract. 

Use simple, proportionate methods, such as: 

• Checking delivery times and quality
• Reviewing invoices against purchase orders
• Holding occasional check-ins with the supplier
• Logging any issues and resolutions

A basic performance log or tracker can help maintain accountability. 

A formal plan isn’t always required for low value, low risk contracts. 
However, a short summary or checklist noting key deliverables, contacts, and review points supports consistency and audit readiness. 

• Raise issues informally first — e.g. email or call to resolve quickly
• Record actions and outcomes in case escalation is needed
• If unresolved, follow your organisation’s escalation or contract termination process

Keeping a brief audit trail is recommended, even for low-value cases.

• Apply proportionate effort — don’t over-manage
• Maintain clear communication with the supplier
• Ensure payments match delivery
• Record key decisions and outcomes
• Close the contract properly — confirm final payment, evaluate performance, and record lessons learned.

Yes, if they were advertised through PCS or awarded following a quick quote. 
However, post-award management can take place locally within the organisation — there’s no need to record every interaction in PCS, unless part of your internal procedure. 

At least: 

• Mid-term (for contracts over one year)
• Before renewal or re-tender
• After major issues or complaints

 Otherwise, informal ad-hoc checks are appropriate. 

All documentation relating to your quotation process must be kept in line with your Organisation's governance arrangements.  This will make sure you have a full audit trail of the quotation activities.

If you are using the Public Contracts Scotland (PCS) Quick Quote facility, a full audit trail will have been automatically maintained by this system. PCS will hold this information for one year.  If you need to keep information longer than one year you must save it before it is deleted from PCS.

Any information you keep must be held in line with the current Data Protection Regulation (DPR) requirements.

Any quote which shows an abnormally low price may be queried with the supplier to identify the reason(s) for this. If this is due to supplier error, you should consult with your local procurement team or Centre of Expertise for further advice on how to proceed.

If any of the quotation responses are received with alternative Terms and Conditions (T&C’s) of Contract to those you published in your quotation, you must inform the supplier in writing that your original T&C’s of Contract apply.

If the supplier continues to challenge your Terms and Conditions of Contract, you should seek advice from your procurement or legal services team or, in their absence, your relevant Centre of Expertise.

In exceptional circumstances, you may consider interviewing/inviting presentations from suppliers in order to assist in the evaluation of quotation responses.  However if you decide to score a supplier presentation as part of the evaluation you should have stated this in the Invitation to Quote documents.

For supplier interviews/presentations, you should provide the suppliers with details of the time, place and format of any interview or presentation, ideally as part of the Invitation to Quote (ITQ).

All suppliers should be treated equally.  Suppliers should be provided with an equal opportunity for interview, presentation or site visits unless the initial evaluation undertaken shows that the supplier could not meet the Invitation to Quote core requirements. 

Records of the interviews/presentations should be kept for audit purposes.

You should use the Quick Quote facility on the Public Contracts Scotland (PCS) website wherever possible when seeking quotation bids, ensuring you include the above documents..

If your Organisation does not use Quick Quote, you can also seek quotes in writing or by e-mail.

Suppliers may ask questions about the published Invitation to Quote documents.  As a result, you may wish to issue further information or provide further clarification not contained within the original document.

In PCS Quick Quote, you can do this via an online bulletin board facility.

Alternatively you can provide clarifications or further information in writing or by e-mail.

If you have issued any clarifications, you should communicate all questions, answers and clarifications in writing to all bidders. This ensures that all bidders are treated fairly and in an open and transparent manner. 

Care should be taken to remove all commercially sensitive information in this process e.g. names of potential suppliers, etc.

The time limit for quotation responses should reflect the complexity of the requirement and be sufficient for the supplier to make a considered response.

You should keep to your original timescales as included in your Brief document.  In exceptional circumstances, you may choose to consider extending the deadline for receipt of quotations.

An example may be that you have had to issue a clarification/further information to all suppliers.  As a result of this clarification, the suppliers now need more time to work on their quotation document, to be able to respond adequately.

Please remember to communicate any deadline extensions to all potential suppliers. It is advised that you consult with your local Procurement Team/CoE for further guidance.