Public Sector Contracts FAQs
Q. How can we win more public sector contracts?
 
Tim Williams, Managing Director of Millstream Associates and the FPB's adviser on public sector tendering, replies:
 
A. First, you need some information on the contracts that are available. There are a number of information sources, some free and some that require a subscription. A Google search of phrases such as ‘public contracts' will identify a range of providers.

Secondly, the public sector is bureaucratic in its approach to selecting suppliers, so you need to make sure your documentation is in order, including financial accounts, insurance certificates, health & safety policy and equal opportunities policy. Almost all contracts will also require a quality assurance system (see ‘A question of standards' below). Producing all this information may seem tedious and unnecessary, but once you have it in place, you should be able to bid for a large number of contracts.

Thirdly, 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 track record.

Q. With public spending being squeezed, I'm worried that my small business will lose public sector business? How likely is this?
 
Tim Williams of Tenders Direct replies:
 
A. How any cuts will impact on your business clearly depends on where they are going to fall. From what the major political parties have said, we can deduce that a freeze on public sector pay and recruitment is very likely. Other likely targets for cuts include the regional development agencies (RDAs), major IT projects (e.g. ID cards) and defence projects (e.g. Eurofighter).

But scrapping the major projects is unlikely to have a direct impact on you, unless you work for a major company such as Accenture or BAE Systems – although consultants working for RDAs and public sector recruitment agencies are also likely to suffer.

On the other hand, freezing pay and recruitment is likely to have a positive impact for many companies, as they pick up the work that would previously have been completed by expensive salaried and pensioned staff. The Government and its agencies will still continue to deliver the majority of the services that they currently provide, so the number and value of contracts on offer will not substantially decline. Indeed, a focus on value and innovation is likely to help many smaller companies to succeed.

Diversify now if you have contracts with the RDAs, or recruit public sector staff. For almost everyone else the public sector will continue to be an excellent source of business.
 
About the author
Tim Williams is Managing Director of Tenders Direct and the FPB's procurement adviser. Tenders Direct is a subscription-based service for suppliers targeting the public sector for new business opportunities. www.TendersDirect.co.uk