Small Business Guide
Smaller Supplier, Better Value?
The Public Sector spends a huge amount each year on goods and services and is always looking for new suppliers. However small the business, there are always opportunities to be a supplier to this market whether through a direct contract or by becoming a sub contractor. Even if you are already a supplier to one part of the public sector, it is worth looking for opportunities in other areas.
The public sector in the UK includes:
- central government departments and agencies
- the NHS and local trusts
- the Ministry of Defence
- local authorities
- universities
- colleges
What are the benefits to the supplier?
Public Organisations are good customers. They have to be fair, open and transparent in the way they choose suppliers and in any dealings with them. They have to pay within 30 days or any other agreed period per sector, of receiving a valid invoice.
All public sector organisations buying goods and services must obtain best value for money. This means that they will accept the bid that offers the optimum price and quality to meet the user’s requirements not just the lowest price.
What are the benefits to the public sector?
There is a commitment to helping small and medium size businesses compete for government contracts to obtain better value for money for the public sector. Small firms offer:
- greater competition
- lower costs
- new ideas
- flexibility
- specialisation
- quality of service
For details on where to find contract opportunities advertised go to the Supplier Portal Home page.
Business Link also provides the information, advice and support you need to start, grow and maintain your business. For details go to the Business Link website www.businesslink.gov.uk
Other routes in
- Subcontracting Opportunities. Many of the highest value contracts go to large companies but small companies can play a part in these contracts as sub contractors or by forming a consortium with other smaller companies.
To see who has won the larger contracts go to Tenders Electronic Daily (www.ted.europa.eu) website where all contracts above the EU threshold are advertised.
- Approved Supplier Lists. Many public sector organisations hold lists of potential suppliers for certain types of work, usually lower value contracts below the EU thresholds. For all contracts above the EU threshold they still need to advertise in the normal way.
The nature of these lists varies between organisations but all lists should be regularly reviewed to include new suppliers and ensure existing suppliers still provide good value for money.
If you would like to receive training on the public sector tender procedure go to the events tab on this website for information on training events taking place in your area.
