As an SME bidding in the public sector, it can often feel as though things are stacked against you. As always, with bigger businesses having more resources at their disposal, any change that helps Small and Medium-sized Enterprises (SMEs) is a win.
The new procurement changes are designed to benefit SMEs significantly; designed to simplify the bidding landscape, create fairer competition and ensure timely payments. Here are just a few ways the changes may benefit your small business going forward:
- Streamlined Bidding
The bidding process has been revamped to encourage greater collaboration between the public sector and SMEs. The new ‘competitive flexible’ procedure will facilitate more innovative and tailored solutions, providing SMEs with opportunities to better showcase their capabilities. This means a more SME focussed approach, helping your business stand out among bigger fish.
- Flexible Frameworks
Changes to commercial frameworks aim to increase flexibility, ensuring that SMEs are not excluded from the bidding process for lengthy periods as they have been before. By allowing more frequent participation, these frameworks help maintain a competitive supplier pool and encourage continuous innovation.
- Minimised Barriers
Contracting authorities are now required to actively minimise the barriers SMEs face throughout the procurement lifecycle. This initiative will help small businesses compete more effectively, broadening their opportunities to secure public sector contracts.
- Prompt Payment
The importance of financial stability for SMEs is being recognised, with enforced 30-day payment terms on a broader range of public sector contracts. This should completely resolve many of the cash flow issues that often leave small businesses in debt waiting for payments to be made.
- Stronger Supplier Management
A more robust exclusions framework is being implemented to deal more effectively with underperforming suppliers. This will improve outcomes and uphold the integrity of the procurement process.
For any questions or guidance on navigating the Procurement Act changes, assistance is readily available. Feel free to contact us on 01202 985264 or email us at info@thebusinessofbidding.co.uk. Proactively engaging with these changes can provide SMEs with a competitive edge in the evolving public sector market.