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5 Top Tips for SMEs When Competing to Win Public Sector Contracts

on Wednesday, 25 October 2017.

It is a key priority for government procurement to increase the portion of government contract spend that reaches small and medium-sized organisations. We look here at ways in which SMEs can maximise their chances of winning a piece of that business.

5 Top Tips for SMEs

  1. Search on Contracts Finder
  2. Target Sub-Contractor Opportunities or Bidding for a 'Lot'
  3. Read the Tender Documents Carefully
  4. Collaborate / Form a Consortium
  5. Know Your Rights (and Refer Issues to the CCS Mystery Shopper Service)

Bidding for public sector contracts may at times seem like a 'closed shop' for SMEs. However it is a key priority for government procurement to increase the portion of contract spend that reaches  small and medium-sized organisations.

According to the most recent statistics published by the National Audit Office, the government exceeded its target for 25% of its contract spend to reach SMEs by 2015. The statistics show that contracts awarded directly to SMEs totalled £4.9 billion which accounts for 27% of total spend in 2015. This target has been increased to direct 33% of total contract spend to SMEs by 2020.

There are tools and resources that the savvy SME can use to maximise their opportunity to win a slice of this spend. Our 5 top tips to give your business the best possible opportunity to win public contracts are:

1. Search on Contracts Finder

Central Government is required to advertise all contracts with an estimated value of more than £10,000 on Contracts Finder. For most other contracting authorities the threshold is £25,000. Targeting 'lower value' contracts should be less onerous in terms of bid submission requirements as there is no shortlisting to down-select those invited to bid and fewer stages during the bidding process.

2. Target Sub-Contractor Opportunities or Bidding for a 'Lot'

Target opportunities to act as  a sub-contractor. A common trend in procurement is for the public sector to seek 'social value' though the delivery of high value public services contracts. This could be achieved by the main contractor using local SMEs to deliver part of the services to bring about the benefits of employing local people to deliver local contracts. 

Linked to this, contracting authorities must consider dividing every high value contract into 'Lots'. This may provide you with an advantage to win a 'Lot' where this part of the contract aligns with your organisation's specialist expertise.

3. Read the Tender Documents Carefully

Consider carefully which contracts you should bid for and those that you should not. Participating in public procurements is time consuming and is often done outside of normal working hours. Pay particular attention to 'mandatory', 'minimum' and 'must have' requirements. If you cannot deliver one of these requirements, it is likely your bid will not be considered further. If you are not sure about whether or not a requirement fits into this category, clarify this with the contracting authority.

4. Collaborate / Form a Consortium

The procurement rules allow a group of companies to form a consortium in order to deliver a public contract. Use your contacts to fill gaps that otherwise may prevent you from bidding for the contract. In order to meet any minimum requirements of expertise or financial standing you can rely on other members or parent companies of the consortium.

5. Know Your Rights (and Refer Issues to the CCS Mystery Shopper Service)

If you have been treated unfairly or if the procurement rules or bid documents have not been followed, you could complain to the Crown Commercial Services 'Mystery Shopper' service which has powers to investigate and make recommendations to address procurement practice. This could provide you with an opportunity to address issues 'in-flight' and keep alive your chance of winning the contract before it is awarded.


For further information, please contact Stephanie Rickard in the Public Procurement team on 0117 314 5675. 

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