The number of public sector contracts being awarded to small businesses continues to rise. Having beaten its previous 25% target, the Government has now said that it wants 33% of all Government spending to go to small firms by 2020.
To help small businesses apply for public sector contracts, a new process has been introduced to make it easier for small and medium sized enterprises (SMEs) to participate in public tenders.
Several key reforms have made it easier for small firms to bid for and win public sector contracts:
- Difficult pre-qualification questionnaires (PQQs) are no longer required for low-value contracts;
- Bidding processes have been simplified with the European Public Procurement Document (ESPD) and only the successful bidder is required to submit all documentation;
- All public sector contracts are published in one place (UK Contracts Finder); EU Contracts Finder
- Everyone in the supply chain has to comply with 30-day payment terms;
- Large contracts are increasingly being split into smaller jobs to allow SMEs to bid.
The European Public Procurement Document (ESPD) was adopted on 5thJanuary 2016 as part of the implementation of EU Directive 2014 on public procurement. It is a standard electronic document that a company that wishes to participate in a public tender will be asked to fill in and which replaces the documents and self-declarations that businesses previously had to submit in order to prove their suitability and reliability to bid for public contracts.
Established at European level as a universal template, it will be accepted by public buyers in all EU member states. This means that cross-border tendering should become easier.
From 26 January, bidders have started to use the ESPD to declare that none of the non-exclusion grounds apply to their company, and that their company meets the relevant selection criteria for a contract. Once the evaluation stages have taken place, only the successful bidder will be required to submit all documentation to evidence that it qualifies for the contract.
However the new EU legislation does not require the exclusive use of electronic communication in public procurement processes until 18thOctober 2018. This means that until that date it is likely that bidders will be asked to print off and complete the form manually before submitting it electronically.
The ESPD form and the EU Regulation are available here.
Enterprise Europe Network is holding a Workshop on 15th March at St John’s Innovation Centre, Cambridge about how to Find, Bid and Win Public Sector Contracts. The workshop covers all the new legislation above, and how to make the most of the easier routes to winning public sector contracts. We also provide a Tenders Alerting Service for clients looking to monitor public procurement contracts. Our specialist advisers can also advise on getting ready for winning public contracts internationally. For more information on our workshop or to find out more about the new legislation contact us on 0845 641 9955 or email [email protected].