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Procurement barriers still stand in the way of private sector

Governments across Europe may be attempting to get their economies moving with the introduction of tax-cuts and a fresh round of borrowing to fund ambitious public spending plans, but here in the UK – as in the rest of Europe – a fundamental barrier remains firmly in place.

Earlier this week Procurement Leaders spoke to the Federation of Small Businesses (FSB) in London and found that many SMEs were still struggling to bid for public sector procurement contracts due to the maze of bureaucracy that still exists in the bidding process.

Ulrike Diallo, a policy advisor at the FSB, said that recent research had shown that almost three quarters of SMEs rarely or never bid for government work, with half of those companies claiming that the process of tendering for government work was still far too complex and time-consuming.

Although these findings are UK-centric it’s hard to believe that the European Union’s procurement processes are any more SME friendly – which suggests that politicians across the continent have a lot of work to do.

After all, ploughing money into public spending will only reap dividends if companies across the board can benefit from it.

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Reader Comments (3)

I think there is still progress to be made in simplifying the tendering process for suppliers. The new arena of eTendering solutions does help, as do sites such as supply2.gov.uk, but the underlying process remains the same.
November 25, 2008 | Unregistered CommenterSteven King
Here's a relevant article about public procurement for a Jewish charity: http://www.impactexecutives.com/for-clients/client-successes/public-procurement.html
February 11, 2009 | Unregistered CommenterClive
There is definitely scope for improvement. I've come across businesses with £20m+ turnover who, before staff training, struggle with poorly defined requests for method statements for example.

Although I make my living from bid management consultancy I would rather concentrate on well written, creatively priced proposals than trying to fathom out ambiguous questions.

It would also be nice to see more output based specifications as smaller firms find it difficult to be shoe-horned into what appear to be very tight input specifications, possibly based on a buyers knowledge of a single example of a service or product.
March 23, 2009 | Unregistered CommenterMarinko Dorontic

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