Partner Article

2018: £670m of expiring government contracts up for grabs in “SME goldmine”

At least £109 million of government awards in Estates & Infrastructure are due to expire this year, with this figure rising to £565 million for awards in the Digital & Technology sector, a comprehensive online database of public tenders and government contracts in the UK.

Meanwhile, the number of SMEs winning government contracts each month increased 11% between 2016 and 2017. Andrew Coulcher, Group Director, Chartered Institute of Purchasing and Supply, said:“It makes good procurement sense to understand the extent of the pool of possible suppliers in readiness for an open and transparent exchange of information. Offering support such as training or guidance on any templates you use means you’ll have more suppliers and potentially more creative solutions to choose from. Building strong foundations early in the procurement process with suppliers is key to commercial outcomes.”

SMEs have consistently made up a majority of government suppliers, constituting two-thirds of the 23,100 suppliers awarded government contracts in 2017, with every level of government awarding more contracts to SMEs in 2017 than the previous year.

Benjamin Taylor, Chief Executive, Public Service Transformation Academy, said: “To get best value from commissioning and procurement, you have to see the bigger picture. That means real pre-engagement with potential suppliers from all sectors - and really thinking about the implications of how you interact with the market”

SMEs made up 67% of Estates & Infrastructure suppliers, making this the sector with the highest representation of small business suppliers. Corby Ganesh, Portfolio Director of the Public Sector Show 2018, said: “SME representation among government suppliers is growing fast. With over £780 million of government contracts set to expire this year, there is a potential goldmine of opportunities for SMEs to gain a greater share of government spend.”

With hundreds of millions of pounds worth of government contracts due to expire by the end of the year, pre-engagement will be vital to securing high-quality bids and a smooth tender process. Supporting public servants to achieve value for money is one of the key themes of this year’s Public Sector Show, the UK’s must-attend event for those leading, delivering and managing public services.

This was posted in Bdaily's Members' News section by Rebecca .