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SMEs encouraged to bid for public sector contracts

SME Bidding for Tenders

The public sector are actively encouraging SMEs to bid for contracts. Self-certification, framework agreements, value bands and lower thresholds are all steps that have been introduced by the government to extend contract opportunities to SMEs.

Why would the public sector extend opportunities to SMEs?

Tendering for public sector contracts is often viewed as a pursuit for larger companies. Major news stories typically centre on contractors such as Amey, BAM and Mitie, and billion-pound contracts for national infrastructure. However, while a minority of high-value contracts dominate the public perception of tendering, in reality SMEs have a huge role to play in the public sector, with central and local government alike actively looking for ways to extend more opportunities to smaller providers.

Why are SMEs encouraged to bid?

There is clearly a strong argument for opening up opportunities for bidders of all sizes. Buyers throughout the public sector have realised this, and are taking action to include SMEs in their supply chains.

What has the public sector already done?

Central government has already taken great steps to break down barriers that might preclude an SME from participating in a tender:

What is next?

While the steps that the public sector has already taken do help SMEs to benefit from public sector tendering, there is still more work to be done before the playing field is truly level. In many cases, buyers still request high volumes of narrative responses for relatively low values of work. While this is a challenge for everyone, SMEs are less likely to have the resources available to bid, and may therefore be unfairly excluded from certain exercises. Ensuring proportionality between the requirements of the contract and the requirements of the tender would help to remove this barrier.

If you are an SME and you need help or advice in the bidding process, contact our team today to discuss how we can support you throughout any stage of the PQQ or tender process.

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