Posted on 03-02-2010 at 02:00
Bids and Tender Writing for the Public Sector
Or Never the Twain
The piece below is taken from a recently published paper by “The Supply National SME Engagement Programme” and highlights what many SME think of process for tendering for projects in the public sector.
The piece below is taken from a recently published paper by “The Supply National SME Engagement Programme” and highlights what many SME think of process for tendering for projects in the public sector.
SME experience of public procurement:
• Nearly three-quarters of SMEs rarely or never bid for public sector work
• Over three-quarters of SMEs believe that there is a lack of visibility ofpublic sector opportunities
• Over half of SMEs feel that the process of tendering for public sector contracts requires more time and resource than their business can allow
• Over half of SMEs expect the proportion of their revenue coming from the private sector to increase in the next two years but only one in five SMEs expects their revenue from the public sector to increase within the same period
• On average, SMEs find the private sector easier to sell to than the public sector their rate of success in winning private sector contracts is double their rate of success in winning public sector contracts
• Nearly three-quarters of SMEs feel that the public sector is more difficult to deliver work to than the private sector, due to its greater formality, a lack of responsiveness and unrealistic timescales
These are very worrying findings for both the public sector and the SME firms. The public sector will very probably be missing out on some top rate suppliers and top rate products simply because the SME community are not tendering.
On the other hand SME’s are missing out on sometimes lucrative contracts that they could easily service, simply because they perceive the process as too complicated and the public sector difficult to work with.
The paper says that:
Local government spends around £27 billion on bought-in goods and services
• Regional spend in the NHS is estimated to be around £12 billion
• Civil government spend is estimated to be around £15 billion
• Up to 600 new contract opportunities are published every week
Some of the benefits of supplying the UK public sector are as follows:
• Diverse requirements
• Positively inclined towards SMEs as suppliers
• Little or no risk of bad debt
• Prompt payment terms
• Potential for ongoing work
• Responsibility to provide services irrespective of economic conditions
• Trading successfully with the public sector will also give you added credibility when dealing with private sector customers
It seems like a no-brainer for both sides!! So much so that in a couple of weeks I will be giving some tips for writing bids and tenders for the public sector. If you cannot wait until then just contact me via the client enquiry form and I will talk you through it.
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More on PQQ and tender writing services: Bid and Tender Writing Services
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More on PQQ, Bid and Tender writing services in the Public Sector: Public Sector
More on PQQ, Bid and Tender writing services in the construction industry: Construction
Difference between a PQQ and a Tender: Difference between a PQQ and Tender
What is an Invitation to Tender?: What is an invitation to Tender
Completing a PQQ: Here
Bid and Tender writing pitfalls: Here
