What do the public sector buy?
We speak to business owners who have never considered selling to the public sector. One reason is that they do not think the public sector would buy from them.
The public sector is massive. In 2019 it is estimated the UK Government spent £644.5 billion, local authorities £176.5 billion. This can be split down to the following functions/departments:
Pensions £161.1 billion
Healthcare £162 billion
Education £91.8 billion
Defence £50.3 billion
Welfare £126.3 billion
Protection £33.3 billion
Transportation £34.7 billion
General Government £16.9 billion
Other spending £117.9 billion
Everything that public sector organisation’s needs, from pencils to buildings to care at home services, has to be purchased.
The public sector groups what they have to buy into goods, service and works.
We’ve had a look at some the contract notices and contract award notices which have been published on the Public Contract Scotland portal this year and found a huge range. Some of what the Scottish Public Sector have purchased this year are:
Search Engine Optimisation
Demolition works at council yard
Provision of Occupational Health and Wellbeing Services
Creative Services
Purchase of Installation of Modular Buildings
Lease Cars and Associated Service
Peer Support Services
Document Solutions Centre Print Devices
Services to Support Educational Attainment
Core Banking Services
Digital Signage
Office Refurbishment
Flooring Contract.
All public sector contracts equal to or above £50,000 (excluding VAT) for goods and services must be advertised (in Scotland on Public Contracts Scotland). Some public sector bodies also use PCS to contact suppliers directly to invite quotes (Quick Quotes) for opportunities below this value.
If you are interested in selling to the public sector get in touch for a chat about the first steps to take.