New Supplier SME

By 2022, the government plans that one third of its spend on goods and services will be with SMEs including VCSEs, either directly or through the supply chain.

The challenge for SME’s is navigating the procurement process, for suppliers without big bid teams or appropriate expertise this can be a daunting task.

The main factors determining whether an enterprise is an SME are:

1. staff headcount
2. either turnover or balance sheet total

Company category	Staff headcount	Turnover	or	Balance sheet total
Medium-sized	< 250	≤ € 50 m	≤ € 43 m
Small	< 50	≤ € 10 m	≤ € 10 m
Micro	< 10	≤ € 2 m	≤ € 2 m

SME’s perceive public procurement as being a frustrating process that is biased towards larger companies.

We can do more to encourage participation by keeping requirements outcome based, not overly prescriptive and using plain English.

Here are some ways an SME can get involved as a new supplier

• Subcontracting is one way to get SME new suppliers on board. If the procurement is for a large contract there are opportunities for suppliers to express an interest as a sub-contractor to support the prime contractor.
• SME’s can form a consortia to bid for contracts
• SME new suppliers can look out for opportunities on Contracts Finder, public sector departments should be advertising requirements £10-£25K+
• SME new suppliers do not have to fill in a lengthy PQQ for below threshold contracts this should make it easier and less burdensome for suppliers to participate

The Government is supporting SME participation by providing opportunities:

• Contracts Finder – BEIS publishes all in-scope opportunities (those valued over £10k in Core BEIS and those valued over £25k for BEIS partner organisations) on Contracts Finder. This open market approach improves visibility and makes it easier for SMEs to find the available opportunities;
• Small Business Research Initiative (SBRI) – BEIS has been an early adopter of the SBRI procurement route, which is a scheme that allows access to companies with innovative products and ideas, that is particularly suited to SMEs;
• Short-form Terms and Conditions – BEIS has adopted a simplified version of Terms and Conditions for its procurements valued below £100k. These proportionate and balanced terms reduce the burden on suppliers, which can otherwise discourage SME involvement;

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/783765/BEIS-SME-Action-Plan.pdf

If you like the New Supplier SME post you might want to consider looking at the RFP template