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SMEs Public Procurement Rules 2022-10-27

2022-10-27

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Questions & Answers

Q1 Direct Answer
Philip Hollobone
▸ Context
The question arises from the need to improve transparency and reduce complexity in public procurement processes for SMEs.
What steps his Department is taking to help improve the (a) transparency and (b) complexity of public procurement rules for small and medium-sized enterprises?
Jeremy Quin
The Procurement Bill will enable simpler, more flexible procurement processes and increased transparency of planned procurements. These changes will make it easier for small and medium-sized enterprises to compete for and indeed win public contracts.
▸ Assessment & feedback
Response accuracy
Q2 Partial Answer
Philip Hollobone
▸ Context
Hollobone discusses how it is administratively easier for the Government to award contracts to bigger companies, which impacts SMEs negatively. He highlights the need for direct government procurement contracts from SMEs.
When it comes to public procurement, I know that it is administratively easier for the Government to award contracts to bigger companies, as that involves a smaller number of contracts with a smaller number of companies. What happens is that SMEs then become subcontractors of those big national organisations but with reduced margins. It would really help local economies if SMEs could bid directly for Government procurement contracts, because that would raise margins at the local level and be a real boost to the local economy.
Jeremy Quin
The most recent stats, for 2020-21, showed that the Government were spending £9 billion indirectly with SMEs and £10 billion directly with SMEs. The Procurement Bill will make the pipeline easier and more transparent—there will be one core set of data already in the system—which will enable SMEs to focus on the bid itself. It will also ensure more uniformity across Government regulations and process.
▸ Assessment & feedback
specific details on how the Procurement Bill facilitates direct bidding by SMEs for government procurement contracts
Noting Stats But Avoiding Specifics
Response accuracy