PM promises SMEs access to government contracts worth bns

A raft of measures aimed at making sure small firms are in "the best possible position to compete for billions of pounds' of [public sector] contracts" has been announced by the Cabinet Office.

The move, which follows a consultation with hundreds of small business owners, is intended to slash "excessive bureaucracy and petty regulation" that has effectively shut SMEs out of the procurement processes.

Printers welcomed the announcement, which it is hoped will lead to a greater share of public sector print spend going to small print businesses. Nick Finegold, business development director of London-based Altaimage, said: "The existing processes often take so long they can be a barrier in themselves, any simplification for smaller contracts is a welcome progression for small businesses, as this will enable us to consider engaging in the pitching processes."

Speaking at the launch last Friday, prime minister David Cameron said the changes would provide "billions of pounds’ worth of new business opportunities for small and medium-sized enterprises".

"We need to make the system more open to new providers, more competitive between suppliers and more transparent for the taxpayer," he said.

A key proposal is to eliminate PQQs for all central government procurement under £100,000 and allowing suppliers to submit their prequalification data once for all procurements in common commodities.

Gary Smith, procurement and operations manager at Redactive Media Group, said: "If you’re a five-employee business, filling out a PQQ can take a couple of days, which is time not spent earning money. If you can take that out of the equation, it will be a huge benefit to small firms."

James Portsmouth, group operations director at INC Direct, added: "This will save costs on both sides and encourage more firms to compete, while forcing buyers into thinking about what it is they want rather than hiding behind red tape."

The government has also launched a free Contracts Finder website, which will feature all public sector contracts over £10,000, and an extended supplier feedback service.

A Downing Street spokesman said that while the measures were aimed at central government there was "absolutely" scope for them to be rolled out to local government procurement.

"I think there is a push to get it into local government as well – it’s not just going to be something for central government," he said. "I don’t think that will be done by legislation but we will be enouraging local authorities to take that up and I think the appetite is actually there to do that."

BAPC chairman Sidney Bobb said: "The simplification of the procurement process is obviously most welcome, provided of course the system is easy to understand, easy to apply and is seen to be open and fair.

"The majority of print businesses are actually classed as micro businesses that is, companies that employ less than 10 staff or have a turnover which does not exceed €2m. The nature of the size of companies in our sector means that everything they do has to be streamlined and uncomplicated – that is how they compete."

BPIF corporate affairs director Andy Brown added: "On the face of it this has to be good news. Removing the requirement for businesses to complete pre-qualification questionnaires before bidding for smaller contracts would be helpful."