Public contracts more accessible

 

The Forum of Private Business has welcomed moves to make public contracts worth £236 billion more accessible to small firms and link procurement to prompt payment.
 
The government announced the procurement proposals at a small business summit at the Department for Business, Innovation and Skills (BIS) in Victoria Street, London, as part of a strategy designed to achieve a private sector-led economic recovery.
 
In addition to plans to improve access to finance and allow social tenants to start businesses from home, the strategy aims ensure the public sector meets its target of awarding 25% of all contracts to small and medium-sized enterprises (SMEs).
 
There will be a single, standardised Pre-Qualification Questionnaire (PQQ) across all departments, which will be required to publish not only their procurement contracts but also how many of them are awarded to SMEs.
 
The government is investigating using more ‘open frameworks’ or ‘dynamic purchasing systems’ to tackle what is often still a closed procurement system awarding contracts to ‘preferred bidders’ – typically large companies – effectively excluding many small firms for long periods of time.
 
Further, it is committing to pay the majority of primary public sector contractors in five days and will ensure firms further along the supply chain are paid within 30 days.
 
Speaking after the meeting, which was also attended by ministers including the Business Secretary Vince Cable and Small Business Minister Mark Prisk, the Forum’s Chief Executive, Phil Orford, welcomed the strategy.
 
“Following the spending cuts, it is important the government addresses the key areas of public procurement and payment in order to achieve a real private sector-led recovery with small businesses at its heart – which means business growth and job creation,” said Mr Orford. “Providing sound policies on procurement, finance and enterprise follow – and more importantly are followed through – this will prove to be a welcome plan that, along with more work on tax and red tape, should help firms to flourish.”
 
www.fpb.org