You need not be a million-pound company to be a successful bidder in public procurement. SMEs in the UK now have the same chances as their larger peers to secure lucrative public tenders. Find out what gives SMEs a realistic chance of succeeding in bidding for public tenders.
For SMEs in the UK, a combination of their organisations policy, practical evidence and real-world argumentation is required to win public contracts. SMEs focus on a specific area of public procurement which suits their specialty. Their senior staff have prior experience in the specific sector and they draw on this while drafting the bid.
There are certain things an SME can do to increase its chances of getting the contract. It is important to make sure that those involved in the bid-drafting process have the right commercial skills. The person in charge of the drafting process must have detailed knowledge of the specific sector (competitors, market scenario etc), have contacts in the Government departments concerned and possess excellent communication skills as well as language capabilities. It is also important that the experience and knowledge gained in public procurement is transferred so that past mistakes are not repeated.
The bidding process must be as efficient as possible. This comes down to people as much as processes. Management must try and streamline the processes while drafting the tender responses. The drafting procedure must be reviewed at definite time periods so that any shortcomings can be worked on.
The reason most businesses lose tenders is because they dont understand the public sector tendering process. They are not articulate enough in responding and have not built up capacity to deliver. They need to recognise that the tendering process in Government departments and local bodies is different from the general supply chain contracts and needs to be dealt with accordingly.
The Treasury-commissioned Glover Report, published in 2008, advised public sector authorities to improve opportunities for SMEs in public contracts. The Report recommended a more strategic approach, greater transparency in procurement and a focus on simplicity. It drew attention to the fact that the SME sector is the major growth driver in European economies and, if the public sector engages with SMEs, it will help the economy.
The Report also recommended that the Government consider accreditation as an essential qualification for SMEs bidding for public procurement. Accreditations have certain parameters which help the procuring organisation ascertain the quality of supply. Although the overall report benefitted the SMEs, the stress of accreditation put a large chunk of them at a disadvantage. Accreditation meant investment of time as well as money, and smaller enterprises were hard pressed for both of these. Accreditation schemes were lengthy and top heavy and SMEs just could not afford it.
However, things have now changed for the better. SMEs can now opt for second-generation accreditation standards which are more flexible and less time consuming. These accreditation processes are no doubt challenging, yet are not arduous. SMEs can boost their chances of winning Government contracts by getting themselves accredited.
SMEs have certain advantages over larger companies. They are flexible, willing to bend extra to provide satisfactory service to the clients and have a better understanding of the client requirements. They just need to bring more professionalism to their drafting process and they will see lucrative
public contracts coming their way.
