The government wants to buy from small and medium sized enterprises (SMEs) every time they are the best value for money. The Government has changed the way they buy goods and services to help more SMEs to bid for our contracts.
The government has made changes to help SMEs bid for public sector contracts. These include:
- requiring the entire public sector supply chain to be paid within 30 days
- buying in a simpler and quicker way eg abolishing pre-qualification questionnaires for low value public sector contracts
- requiring the public sector to publish its contracts on Contracts Finder
Tips for SMEs bidding for government contracts
Build below the threshold
The quickest way to build up a government customer base is to start with low value procurements. To start with, aim for opportunities under £100,000 where government has abolished Pre-Qualification Questionnaires (PQQs). Building up your base this way is a great foundation for competing for bigger sales in the future.
Be part of the conversation
If the first time you spot the opportunity, it’s already formally gone to the market, you are behind the game. Pre-market engagement is your opportunity to shape the formal tender:
- sign up for email alerts on Contracts Finder
- monitor PINs and register your interest in future procurements
- attend information days and public sector ‘product surgeries’
- register with the eSourcing tool for future opportunities
Play to your strengths
Recent studies of public sector procurers show that they see SMEs as flexible, quicker to react and able to offer better prices. Use the pre-market engagement to show this by reacting quickly to questions, offering options and evidence of where you’ve responded to change in the past. Recognise that you are likely to be cheaper than bigger players and show evidence that you offer value for money.
Look good in the exam
Understand that no matter how good you are you will not win unless you make your strengths clear on paper too. Think of it as an exam – answer the question, don’t elaborate and think about getting advice if it’s your first time. The public sector is making the process simpler but remember that it will rightly be held accountable for the procurement decisions it makes, in a way the private sector is not. Take the exam seriously.
Cite evidence in your bid. If you say your system will show or do something, prove it: include a screen shot of how it works or other tangible evidence.
Mystery Shopper service
The Mystery Shopper service allows government suppliers and potential government suppliers to raise concerns anonymously about unfair public sector procurement practice. The government can then investigate and resolve these concerns. It also conducts spot checks on government buyers.
By February 2015, the Mystery Shopper service had investigated 818 cases: 4 out of 5 of these resulted in a positive outcome where changes are made to existing procurements or recommendations are accepted for future contracts. These outcomes included government changing current or planned procurements, or the supplier gaining a better understanding of the procurement process. Mystery Shopper also made 511 spot checks of procurement opportunities advertised on Contracts Finder.
Small and Medium Enterprises
The Prompt Payment Code has been updated and extended by BEIS.
The most important and significant change will be an additional requirement to pay 95% of invoices, raised by businesses with fewer than 50 employees, within 30 days. There will be no change to the previous requirement to pay 95% of all invoices within 60 days to companies of all sizes.
This strengthening of the Code will support the smallest businesses to get paid swiftly and show the commitment of signatories to help maintain the cashflow of their smallest suppliers.
Today at the Cabinet Office SME Panel meeting in Whitehall, I met Lord Agnew, the new Minister of State for the Cabinet Office.
His key priority for 2020 was the introduction of a ‘tell us once’ system.