To help small businesses apply for public sector contracts, a new process has been introduced to make it easier for small and medium sized enterprises (SMEs) to participate in public tenders. Only the successful bidder is now required to submit all documentation to evidence that they qualify for a contract, making the public procurement process much simpler.
The number of public sector contracts being awarded to small businesses continues to rise. Having beaten its previous 25% target, the Government has now said that it wants 33% of all Government spending to go to small firms by 2020.
The European Public Procurement Document (ESPD) was adopted on 5th January 2016 to make it easier for SMEs to participate in public tenders.
Several key reforms have made it easier for small firms to bid for and win public sector contracts:
- Difficult pre-qualification questionnaires (PQQs) are no longer required for low-value contracts
- Bidding processes have been simplified with the European Public Procurement Document (ESPD) and only the successful bidder is required to submit all documentation
- All public sector contracts are published in one place (UK Contracts Finder); EU Contracts Finder
- Everyone in the supply chain has to comply with 30-day payment terms
- Large contracts are increasingly being split into smaller jobs to allow SMEs to bid