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How small businesses can benefit from The Procurement Act
Public procurement is one of the largest areas of government spending in the UK, with approximately £ 300 billion of taxpayers’ money being used to purchase goods and services across sectors such as healthcare, infrastructure and more. As part of broader reforms aimed at lowering barriers to SMEs obtaining public sector contracts, the UK government introduced the Procurement Act in February. Rob Rees, Divisional Director of Markel Direct, a specialist insurer of small businesses, explains what the new act means for SMEs and shares advice on how to increase your chances of success when bidding for government contracts.
The Procurement Act 2023 is being introduced to consolidate several existing regulations, such as the Public Contracts Regulations and Concessions Regulations, into one set of rules. The aim of doing this is to benefit SMEs by increasing transparency, streamlining procurement processes and generally creating more opportunities to access government contracts, all of which should allow small businesses to compete more fairly with larger organisations.
Simplified bidding processes
The previous rules, based on EU directives, consisted of complex procedures that put SMEs off from participating in bidding processes. The new act will assist in streamlining the tenders, making it easier for SMEs by introducing a simplified digital bidding platform where suppliers can register their company’ s details, bid on contracts and track all opportunities in one place.
Increased transparency
One of the current pain points is the lack of transparency. Businesses were often left without any explanation as to why certain bidders were chosen instead of others, which led to concerns about favouritism. The new framework aims to enhance transparency throughout the entire process, fostering greater trust and fairness in the system, with the intention of encouraging more SMEs to bid for public contracts. www. intelligentcxo. com
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