UK contractors will be pleased to learn that the government has committed to overhauling the process by which SMEs compete for public sector contracts.
This will be achieved by cutting bureaucracy and becoming more open and transparent in its dealings.
The national chairman of the FSB, John Walker, says this is a victory for small businesses in the UK. The FSB has been campaigning for SMEs to have the same opportunities to public sector contracts as large organisations do. The new measures to get rid of red tape and open up transparent communications channels, which were outlined on Monday, are most welcome, he said.
There also needs to be a genuine change in culture within government procurement when it comes to dealing with SMEs, Walker added.
According to the Federation’s statistics, 70% of smaller businesses rarely bid for public sector contracts because of lack of awareness.
The situation is so bad that the UK ranks 24th out of 27 member EU states as far as access to public procurement markets goes. Only 24% of public sector contracts are awarded to small businesses in the UK, compared to 44% in France.
The REC has also been campaigning for a change in procurement practices for several years. Kevin Green, the chief executive of the REC, said that at last we are seeing action instead of mere words. The REC wants to see a competitive, dynamic market where recruiters can compete based on their capabilities and competences. He added that the REC will monitor the implementation of the new measures and will continue its constructive work with the Cabinet Office and OGC.
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