In Part 1 we looked at how new procurement regulations will affect SMEs and provided some background on the changes. Part 2 will look at this in more detail as well as highlighting how companies will benefit from the changes.
The main aim of the changes has been to create a much more flexible procurement process, free from too much red tape and bureaucracy.
The Government’s aim is for transparency and an emphasis on quality service, focussed on green procurement and innovation.
Red Tape: Previously all companies required extensive evidence and supporting documentation. Now only the winning bidder is required to provide full audited evidence. This makes the process much simpler for companies and reduces the time taken to submit a bid.
Turnover: Turnover requirements are being eased so that the contracting authority can now only ask a company to require a turnover no more than twice the contract value. This allows smaller companies to enter the tender process and stand a better chance of success.
Payments: One of the biggest risks for small companies bidding was receiving late payment from buyers. All organisations must now comply with a 30 day pay period, meaning that companies no longer have to worry about not being paid and can maintain a healthy cash-flow.
Smaller Lots: Previously there was no rule to divide contracts into smaller lots, which greatly benefited larger companies. Now contracts must be divided, benefiting smaller companies who provide services more suited to smaller lots.
Innovation: Over the past few years the contracting authority has placed more emphasis on innovation, along with social and environmental implications. This benefits SMEs as they are more capable of adapting quickly to these changes, giving them an edge against larger firms.
With greater opportunities SMEs should be looking to bid for more contracts now. Contracts which were previously unattainable are now well within reach.
Work hard between bids to develop strong bidding material that focuses on innovation and social and environmental factors. Ensure that your company does all it can to be greener and provide benefits to the local area.
Companies should develop a thorough internal bid process adapted to taking advantage of these procurement changes. Always be on the look out for new contracts that can help further grow your company. Consider gaining ISO accreditation to place you even further ahead of the competition.
When submitting a bid, structure your win theme around the innovative benefits your company can offer and stress positive environmental and social aspects.
For more information on how your company can take advantage of these changes, contact us free on 0800 612 5563 or email email@example.com.