Understanding Procurement
The Government provides support to SMEs through good practice guides and online information sources. There are also various pieces of legislation applicable to the procurement of goods and services from the public sector, all of which provide a basis for understanding public sector customers and the government marketplace in general.
Although contracts below the EU thresholds are not subject to EU law, the matter is complicated for SMEs because there is no particular policy which all public sector organisations in England are required to follow.
However, the advertisement of below-threshold contracts should still comply with the basic principles of the EU Directives of non-discrimination, equal treatment, transparency, mutual recognition and proportionality. All organisations in the UK, responsible for spending public money "have a duty to operate in an open and transparent way".
View the EC Commission Interpretative Communication 2006
It is important for SMEs to be informed of these rules because they need to be aware that the size of the contract will affect the method by which public organisations procure their services. They also need to be aware that there will be subtle variations between organisations, for example, where they set there limits so a contract which does not need to be competitively tendered for in one borough may well in another. There are also variations between the procurement practices of central government and local government.
View Selling to Guides from individual authorities
The Treasury's policy paper "Transforming Government Procurement 2007" sets out the latest strategy for public procurement. It describes the successes which have followed from policy since the Greshon review and also highlights what should be gained from public sector procurement going forward and how it is to be delivered.
View Transforming Government Procurement 2007
View Peter Gershon's Independent Review of Public Sector Efficiency 2004
The Small Business (SME) Friendly Concordat is a voluntary, non-statutory code of Practice which was developed in 2005 following the National Procurement Strategy for Local Government 2004. The purpose is to set out what small firms and others supplying local government can expect when tendering for local authority contracts. The intention of this report is to include steps that all contracting authorities can take to ensure that SMEs are treated equally.
View the Small Business (SME) Friendly Concordat 2005
View the National Procurement Strategy for Local Government 2004
Providing information
If you decide to bid for a public sector contract there will be a fixed process with a set timetable. Each tender will have a set of deadlines for the required information which you must adhere to. If these deadlines are missed, your bid may be automatically rejected.
In many cases the first step is to complete a formal Expression of Interest (EOI). Buyers may ask you to fill in a questionnaire to give them information about your company’s financial position and technical abilities. This can include information about when your company was formed, what experiences you have had providing the items the contract is for, details of where the buyer can get references from, and details of your company’s finances. If your company is new and you have not got a set of audited accounts, there are other documents you can provide to prove your financial standing.
Use the supplier information service on Supply2.gov.uk to manage your Expression of Interest information. This allows you to complete fields with commonly asked information and send it electronically to the buyer. Supply2.gov.uk also provides a dedicated Resources section where you can access further information to assist you in the tender process.
View Tendering for Public Contracts - A Guide for Small Businesses
Access resources for further information on tendering