Simplified public procurement opportunities for SMEs
14 February 2011
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Many small and medium-sized enterprises (SMEs) are often deterred from competing for public sector contracts by red tape and competition from big businesses but, as part of its commitment to award 25% of public contracts to SMEs, the Government has announced a raft of changes to make the process fairer and easier. In this article, we look at the proposed improvements to the system and tell you how firms can improve their chances of success.
Key measures announced to improve the procurement process for SMEs include:
  • Procurement opportunities will now be available for everyone to see, free of charge at the Contracts Finder website. The new online facility can be used to find public sector contracting opportunities over £10,000 and is intended to make the Government's procurement process totally transparent.

  • Businesses can sign up and specify which contracts they are interested in and details will be emailed free of charge when opportunities become available.

  • A new Crown Commercial Representative for SMEs, Stephen Allott, has been appointed to give smaller suppliers representation in government from 1 April 2011. He will lead SME ‘product surgery' events where SMEs will have the chance to pitch innovative products and services direct to a panel of senior procurement professionals from central government and the wider public sector.

  • A completely new approach to assessing companies and organisations who want to do business with Government, so that SMEs are not disadvantaged including:
    • Seeking to eliminate PQQs (pre-qualification questionnaires) for all central government procurements under £100,000.
    • Allowing firms to submit their prequalification data once for all procurements in common commodities, meaning companies won't have to submit the same data again and again, saving them time and money.

  • Businesses can continue to tell government where there are problems with procurement at www.number10.gov.uk/problemwithprocurement. Plus, suppliers will be able to contact the Government if they see a tender that they don't understand, or if they think procurers could be even more open and transparent.

Top tips on getting 'tender fit'

  • Get reliable and timely information on available contracts from various sources including the Contracts Finder website (businesses can continue to find lower value tenders at supply2.gov.uk until 31 March 2011) and paid-for services such as TendersDirect.co.uk and TenderMatch.co.uk, many of which offer one month's free trial.

  • If your business is based in Scotland, Wales or Northern Ireland, your government will have its own dedicated public sector procurement portal. These are Sell2Wales, Public Contracts Scotland and eSourcing NI.

  • Ensure your business is prepared for questioning. You will be asked about your standards and policies on issues ranging from HR and the environment to quality assurance and full financial disclosure. Producing all this information may be tedious, but once in place there should be a large number of contracts you can bid for.

  • Until PQQs are eliminated or reformed, you will still need to fill in the questionnaire correctly. This is critical if you are to progress, so take it as seriously as if it is the final stage. 

  • Avoid surprises. Find out as much as you can about each specific tender process and expectations. If you are given the opportunity to ask questions, do so. If there is a phone number or email address, use it.

  • Try to build a relationship with the buyer. This can often be difficult, but it is the most powerful tool in winning contracts. It may help to aim for smaller contracts, at first, to build contacts and a good track record.

  • Put yourself in the shoes of the person who will be reading the tender document. Keep it short, neat and relevant and include relevant images. Consider what will make you stand out and get you into the ‘yes' pile?


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