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Barriers to SMEs supplying the public sector

May 27, 2012

The National Computing Centre website discusses the barriers that restrict SMEs in the IT industry from supplying the public sector. "The first and most obvious barrier to SMEs bidding for public sector contracts relates to the 10% rule, which often excludes SMEs at the first hurdle – the Pre-Qualification Questionnaire (PQQ) stage. This rule is rarely addressed upfront in tender documentation and, as a result, many SMEs invest effort in bidding for business they will never win due to a simple financial check – namely, the total bid price exceeds 10% of their prior year’s turnover..." "The other barriers that exclude SME suppliers from public sector bids are based around lack of knowledge..." For the full article, click here.

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