7 Reasons why winning public sector contracts is achievable for SMEs (updated)
Are you an SME who wants to grow but you’re unsure of how to secure public sector contracts? Are you unsure of the tendering process and think you should leave it to bigger companies?
Often larger contracts go to large companies. However, this is happening less and less. If you are an SME wanting to grow don’t let this discourage you. In our experience there are more and more contract and tender opportunities open to SMEs.
For larger contracts Contract Notices can be a source of information for smaller companies. They can give you a clue as to who to approach for partnering or subcontracting opportunities.
16,250 new public sector business opportunities were advertised last year (2018/19). Of these 77% were Quick Quotes. Most of these contracts were valued less than £50,000. Find out more about how to be invited to apply for Quick Quotes here.
Around 6 out of 10 public sector contracts in Scotland are now awarded to small and medium businesses.
In 2017/18 of the 16,250 contracts advertised through Public Contracts Scotland, 14,709 were awarded to SMEs, of which 12,089 were Scottish businesses.
The Procurement Reform Scotland Act commits public sector bodies to ensuring their procurement practices are open to SMEs.
Public bodies now have the legal duty to pay supplier invoices within 30 days. In fact in Scotland 99% of public sector invoices are paid within 10 working days (in 2017/18).
There is a duty on the public sector to facilitate the involvement of SMEs, third sector bodies and supported businesses in the procurement process.
Large contracts can be split into smaller lots. This creates even more opportunities, particularly for SMEs.