Leidos, a Fortune 500 science and technology company, has been awarded a £26.9m, five-year contract to support the Scottish Government’s national Purchase-to-Pay (P2P) Shared Service.

The digital service connects public sector procurement teams with suppliers, managing everything from the initial order through to final payment. It is available to any Scottish public sector authority and is in use across NHS Boards, central and local government, universities and colleges across Scotland.

The P2P service processes approximately 230,000 supplier orders each month, over £5b per year. It helps to eliminate paperwork, cuts processing costs, provides a clear approval workflow, and gives both suppliers and the public sector purchaser better visibility into payments, the company said in a statement.

Leidos will provide data hosting, integration, reporting and deployment services for the system. Wider responsibilities include services desk and contract management activities with public sector users of the P2P service.

“P2P is about faster, simpler and more straightforward supplier relationships,” said Matt Wiles, chief executive of Leidos UK. “It is the lynchpin driving efficiency in Scotland’s public services’ supplier relationships, and we are delighted to extend our work with our partners in the Scottish Government to deliver this vital shared service to the public sector.”

The P2P contract builds on Leidos’ experience in digital transformation in Scotland, the statement added. It has worked with the Scottish Government’s insolvency service, “advancing [the] Accountant in Bankruptcy towards an entirely paperless system, and providing technology support to Scottish clients including the Scottish Government, Skills Development Scotland and the National Records of Scotland.

“The P2P contract will also benefit from Leidos’ expertise in supplier relationships, including those developed through the ongoing multi-million pound Logistics Commodities & Services Transformation Programme for the MoD, designed to manage the UK’s global defence supply chain.”