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Help for SMEs to win public sector work

OUT-LAW News, 17/02/2005 

New e-procurement tools will be available shortly that will make it easier for small businesses to compete for UK public sector tenders, the Office of Government Commerce announced yesterday.

The plan is that the new technology will reduce the amount of time and paperwork needed to put forward and assess tenders for public sector work.

E-sourcing technology company BravoSolution SpA will supply the web-based service to participating public sector organisations in a four-year agreement signed yesterday with OGCbuying.solutions, the trading arm of the Office of Government Commerce.

This will allow public sector procurement professionals and their suppliers access to innovative e-sourcing technology and related services via the internet. Comprising four main service areas – e-tendering, e-evaluation, e-contract management and e-collaboration – the e-sourcing service will encompass the 'full-life cycle' of the tender and request for quotation process.

"It is a fantastic sourcing tool, very simple to use and it will deliver value for money by saving time and money in the day to day procurement activities of government employees and help companies, including SMEs, to do business with government," said Hugh Barrett, Chief Executive of OGCbuying.solutions.

The move comes shortly after the Federation of Small Businesses published figures showing that the ability of a business to win contracts from the public sector is directly related to its size.

Of the 18,000 FSB members surveyed, just 38% of firms with a turnover under £25,000 sell goods and services to local authorities, compared to 65% of firms with a turnover of more than £1 million.

Only one business in five with a turnover below £25,000 sells anything to central government compared to two in five businesses with turnovers above £5m.

The FSB has asked the Office of Fair Trading to launch a market study, arguing that current practices distort the public sector market and are in conflict with the Competition Act.

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