As part of the Department of Business, Enterprise and Regulatory Reform's (BERR) Enterprise Strategy, which outlined new measures to increase the amount of government business that is won by small to medium-sized enterprises (SMEs), a three-month free national trial of lower-value tender opportunities on the Supply2.gov.uk website has been announced for new registrants, and commenced at the beginning of May 2008.

Supply2.gov.uk is the official UK lower-value contract opportunity portal, created by the government to reduce the barriers facing SMEs competing for public sector contracts, enabling small businesses to grow and prosper.

Three-month free national trial
The free trial allows SMEs to gain visibility of opportunities valued at less than £100,000 nationwide, with the aim of getting them more involved in government projects. To benefit from the free trial, SMEs must register before 31 July 2008.

Launched in June 2006, Supply2.gov.uk has already advertised in excess of 85,000 contract opportunities nationwide and has secured high profile interoperability partnerships with organisations such as the Ministry of Defence (MoD) and the Office of Government Commerce (OGC), in addition to a number of local authorities and other public bodies.

Supply2.gov.uk is the official UK lower-value contract opportunity portal, created by the government to reduce the barriers facing SMEs competing for public sector contracts, enabling small businesses to grow and prosper

Furthermore, recent partnerships include CompeteFor.com, the brokerage service of London 2012 for the publication of Games-related contract opportunities. This partnership ensures Supply2.gov.uk can provide all registrants with online access to London 2012 subcontracting opportunities, which are available to view online free of charge, as well as a wide variety of opportunities throughout the public sector.

Opportunities for growth
Introducing Britain's SMEs to government contracts will provide them with opportunities for growth that they may not otherwise have found. It also benefits public sector buyers, since SMEs are often at the cutting edge of developments in their sector, and may be able to provide a faster, more innovative or more flexible service than a larger organisation.

The UK public sector spends £125bn each year on virtually every item or service imaginable. Requirements with a value of over £90,300 for central government or £139,900 for local government are required by law to be advertised in the Official Journal of the European Union (OJEU). Contracts for works, for example construction or road building, have a threshold of around £3.5m. However, contracts below these values do not need to be advertised in the OJEU, although sufficient advertising to generate competition is required. This can make finding such opportunities difficult for SMEs.

Various public sector organisations have their own ‘selling to' websites where they post lower-value contract opportunities inviting Expressions of Interest. However, keeping track of current opportunities offered by multiple organisations on an ongoing basis can prove difficult and time consuming for small companies due to the limited response period required by buyers.

  • Supply2.gov.uk provides a daily email contract alert service, notifying registrants of public sector contract opportunities relevant to their business. The portal also provides SMEs with the ability to search for opportunities online and promote their company to the public sector, allowing public sector buyers to identify companies by the products and services they require.
  • Supply2.gov.uk is the first major initiative to unite buyers and suppliers in a single location, making it easier for businesses and government to work together.
  • Supply2.gov.uk's aim is to be the first portal of call for accessing lower-value contract opportunities.
  • Supply2.gov.uk provides the public sector with a free advertising platform to publish lower-value opportunities, allowing government procurers to support SMEs by demonstrating best practice procurement and complying with EU legislation aimed at ensuring a degree of advertising sufficient to guarantee competition.

The aim of the three-month free national trial is to encourage more small businesses to register for opportunities, which will mean buyers benefit from increased competition and access to a wider range of suppliers.

Local government covers every area of the UK and alone spends £40bn* a year on a vast range of products and services and is estimated to have over 800,000 suppliers, the majority of whom are SMEs. The MoD has over 20 establishments across the country, there are hundreds of NHS Trusts and government departments such as HM Revenue & Customs with offices nationwide, colleges and universities are to be found in every major town and city, as are social services and countless numbers of non-departmental public bodies. The national trial will assist SMEs with to keep track of opportunities from a variety of government sources, free for three months, to encourage them to compete for opportunities which will allow them to grow their business.
*Source: Business Link

John Wright, Federation of Small Businesses' national chairman, said: "The announcement of a free trial for small businesses to get access to public sector contracts is very welcome news. We supported the Supply2.gov.uk initiative from the outset and we hope that this free trial period will encourage more small businesses to try their hand at delivering goods and services to the public sector.

"But local authorities and government departments must play their part too by making sure that more small business opportunities are advertised on Supply2.gov.uk. Opening up public sector procurement to the UK's 4.5 million small businesses can and should eradicate the false assumption that biggest is always best."

The Enterprise Strategy featured a range of measures to boost small firms competing for public procurement opportunities. An independent inquiry, led by Anne Glover, chief executive of Amadeus Capital Partners, will consider ways to increase opportunities for SMEs and the practicality of a goal of such companies winning 30 per cent of all public sector business within five years.

A Call for Evidence has been launched, and businesses and public sector procurers are now being invited to input into this work to ensure that the committee is fully informed of the real issues faced at grass roots level. It will also ensure that businesses and those working in this area are given the opportunity to shape future policy.

Small companies and industry groups have now been invited to share their experiences of doing business across both central government and local authorities. To have your say, please complete the short questionnaire via the following link: www.ogc.gov.uk/SME_Consultation.asp

With the global economy continuing to slow down, identifying and winning new business has never been more vital. Latest figures show that public sector spending within the UK alone is expected to exceed £125bn* this year, which demonstrates that selling to this market could provide a rewarding opportunity for SMEs to grow their business.
*Source: CIPS (Chartered Institute of Purchasing and Supply)

Fiona Campbell is marketing brand manager for Supply2.gov.uk. To benefit from the three-month free national trial register at www.supply2.gov.uk before 31 July 2008