Government awarding more public sector contracts to SMEs
Posted by Natalie Brandweiner in Business trends on Tue, 29/11/2011 - 10:07
The number of contracts awarded to small and medium sized enterprises by the government has increased, according to the Cabinet Offfice.
Some 40% of government contracts were signed with SMEs in September compared with just 5% in January, according to John Collington, the Cabinet Office's recently-appointed chief procurement officer.
Speaking at a supplier conference, Collington highlighted the Olympic Delivery Authority, which is building the Games' infrastructure as the best example of good practice in working with SMEs. Francis Muade, minister for the Cabinet Office, also used the conference to announce the opening up of a £50bn procurement market.
"It has delivered the Olympics in time and on schedule in terms of the work so far and it has done so with openness and transparency,” said Collington.
"We in government must take the same approach. So every procurement must start with the principle, 'what will that supply chain look like and how will SMEs be allowed into that supply chain?'"
Over 1,600 contracts were awarded to SMEs who visited the contracts finder website where businesses can see state tenders. And Collington promised more business with SMEs in the future in the form of new commercial contractual models, more re-use of equipment and systems across government and increased savings and value for money.
Whitehall Departments are being urged to dispense with lengthy pre-qualification questionnaires, which turn SMEs off trying to win their business, he added.
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