SUPPORT
Alison Watson , pictured with colleagues at Muckle , says the new Procurement Act will support small businesses and SMEs in bidding to win public sector contracts .
Unlocking opportunities
How public sector procurement can accelerate SME growth
The public sector is the biggest purchaser of goods and services in the UK , but many SMEs struggle to win contracts in the face of competition from much larger businesses .
The new Procurement Act 2023 ( the Act ) includes provisions that are intended to support small and medium-sized enterprises in winning a greater share of the public sector ’ s approximately £ 300bn expenditure per year .
Alison Walton , head of procurement at local law firm Muckle LLP , discusses what this means for businesses in Teesside .
Greater access to public sector contracts Alison says bidding for public sector work can seem like an uphill battle for SMEs . “ When a quick glance at a tender ’ s current providers shows that you ’ re up against larger businesses with huge resources , it can be frustrating , especially when you know you can do the work well ,” she says .
“ The Act aims to level the playing field , requiring public sector bodies to consider whether SMEs face barriers to participation and whether they can be removed or reduced .
“ As an SME ourselves , Muckle has been fortunate to be appointed to a number of national and local frameworks , including TVCA and most recently NEPO , the North West Legal Consortium and Pagabo , which itself had provisions for SMEs in its bidding process .”
Transparency One of the key changes focuses on increased transparency throughout the life of a contract , not just in the procurement stages . Bidders will be able to see who else
is bidding , what contracts look like , contract performance , which contracts are directly awarded , to whom and for what reason .
Alison says : “ The transparency of how public money is spent is a good thing and , hopefully , the more open the process , the more it will help SMEs understand decisions , start preparation for tender processes earlier and bid more successfully going forward .”
The Act also stipulates contracting authorities should not place onerous requirements on suppliers . For example , organisations will only have to show proof of insurance after contract award rather than during bidding , sparing unnecessary costs pre-award when it ’ s not guaranteed they ’ ll need them .
Social value Until now , there has been an emphasis on public sector organisations to consider how contract awards will benefit the wider community outside the scope of the delivery of the work .
Alison says : “ Although there aren ’ t any specific provisions for social value in the Act , there ’ s a clause requiring public sector contracts to maximise public benefit , so it ’ s still something that businesses should be mindful of .
“ Social value will continue to be front and centre of public procurement policy via the National Procurement Policy Statement , which authorities will have to keep in mind when designing their procurement
Muckle will be running a series of supplier briefings on navigating public sector tendering soon , so sign up for the mailing list via the QR code here : processes . It ’ s an area where SMEs can set themselves apart – they tend to be already part of the community , understand local priorities and can directly influence things like job creation and innovation on a local level .
“ Muckle already carries out a lot of social value in our area and was awarded B Corp certification at the start of 2024 . We ’ ve been doing this for as long as the firm has been in business and will continue to do so , despite our public sector commitments – but it does set us apart during the bidding process .”
Prompt payments Alison says : “ Delayed payments can be a financial burden for any organisation , but it ’ s especially hard on SMEs . Under provisions in the Act , public sector bodies are required to make payments within 30 days , alleviating the pressure and making bidding for contracts more attractive to SMEs .”
Opening up opportunities The government recognises that SMEs are the backbone of the business community . Opening opportunities to bid for public sector contracts will help stimulate local economies , create jobs , and increase social value .
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