21 November 2013

UK Government makes public contracts more accessible to SMEs

UK Government makes public contracts more accessible to SMEs

Public sector procurement rules in the UK are changing to make public contracts more accessible to small and medium enterprises (SMEs). The move follows recommendations made in a recent Government consultation on public procurement. The document criticised the current set up with regards to SMEs, saying: “SMEs have historically been shut out of government business and have found bidding for public sector contracts excessively, and sometimes prohibitively, bureaucratic, time-consuming and expensive.”

The revised approach will see a "simple and consistent approach to procurement across all public sector authorities so that SMEs can gain better and more direct access”. The main changes include re-qualification, including eliminating the use of pre-qualification questionnaires (PQQs) for low value contracts, mandating a core PQQ with standard questions for high value contracts, and allowing suppliers to provide PQQ data only once.

Greater transparency will also be achieved through ensuring all new contract opportunities and contract awards are advertised online, and that the public sector reports its performance with SMEs and centrally negotiated deals. The revisions will also try to ensure that contractors pay their suppliers on time, and will encourage the use of e-invoicing in the public sector.

For more information, click here.