Smaller firms need extra help to win public sector contracts

12 August 2008

The government has been urged to introduce special measures to help the smallest of firms pitch for public sector business.

The Federation of Small Businesses (FSB) has given its backing to a review which is examining the practicality of ensuring that SMEs win 30 per cent of all central and local government business in the future.

Announced in the last Budget, the Glover Review is looking at the obstacles encountered by small businesses in their efforts to win government contracts.

As part of its submission to the Review, the FSB said that it welcomed moves to improve SME access to public contracts but argued the case that the 30 per cent target should be more closely focussed on the micro end of the small business sector.

Specifically, the FSB wants the Glover Review to make sure that businesses employing fewer than 10 employees are given a good chance of picking up government work

The FSB's recommendations include guaranteeing all small businesses have a minimum of three weeks for a tender response; ensuring that local authorities hold tender briefing meetings with local micro businesses; and allowing small businesses to complete a Pre-Qualifying Questionnaire (PQQ) just the once.

Clive Davenport, the FSB's trade and industry chairman, said: "The FSB believes that with a target in place, efforts can be implemented to achieving the goal, rather than discussing whether there should be one. Small businesses offer great value to communities and by using small businesses, money is kept in the local economy.

"We are pleased that the government is investigating small businesses and procurement. What we would like to see now are targets to be implemented to ensure small businesses win public sector contracts and reduce the barriers small businesses face."

Other proposals put forward by the FSB to the Glover Review would see larger contracts broken into smaller lots, more training given to procurement officers in handling micro businesses in the tendering process, and a mandatory provision that all local authorities sign up to the Cabinet Office Small Business Friendly Concordat.