SMEs still struggling with public sector procurement
SMEs still struggling with public sector procurement
Small and medium-sized enterprises (SMEs) are still struggling to land contracts through the public sector procurement process, according to a new survey by TechUK.
The vast majority of SMEs (94 per cent) surveyed do not believe that civil servant buyers have a solid understanding of how they can benefit from the services of SMEs. This is a slight improvement on last year’s survey, when 96 per cent of respondents said the same.
SMEs mentioned contract terms and conditions and procurement processes as key factors that prevent them from securing business in the public sector, despite a number of Government initiatives that are intended to increase and simplify this type of access.
These initiatives include the abolishment of pre-qualifying questionnaires (PPQs) and the introduction of Contracts Finder, which aims to provide a single place in which all procurement contracts can be brought together.
Almost two-thirds (65 per cent) of respondents said that Contracts Finder has not helped them enter the public sector market, and just 14 per cent have tried the Government’s Mystery Shopper service.
Naureen Khan, Director of Public Services at TechUK, said: “It is clear that changes must be made to develop simple and accessible procurement processes, and our survey findings show that we need swift action to ensure the public sector benefits from harnessing the very best of UK tech."
The Government stated that in 2014-15, its total spend with SMEs was 27 per cent, which exceeded its target of a quarter of all spending by 2015. It is also committed to increasing that number to one-third (33 per cent) of all spending by 2020.
This includes indirect as well as direct spending, however, which means that large suppliers that pass on their public sector contracts to SME subcontractors can also be counted.
Of the 27 per cent of public spending reported as going to SMEs in 2014-15, only 10.9 per cent consisted of direct expenditure.
