MPs have given their backing to calls to make it easier for small businesses to tender for government contracts. In a report on public procurement, the Trade and Industry Select Committee said that SMEs risked losing out on government work because purchasing was becoming increasingly centralised. The report argued that both central and local government were overly reticent about making purchasing decisions. The system allowed officials to shy away from innovative choices of supplier by hiding behind bureaucratic procedures or by going for the cheapest bids rather than best value tenders. Smaller businesses were suffering as a result because they lacked the resources to see through long and involved tendering procedures. Another issue of concern to the Committee was the length of time it sometimes took work to be paid for. The Select Committee welcomed a suggestion from the Forum of Private Business (FPB) that ongoing work could be paid for incrementally as this would provide smaller firms with a better chance of managing the complexities of long-term contracts. Matt Hardman, the FPB’s campaigns manager, said: “Bureaucracy and a culture of risk aversion within the public sector form barriers for smaller businesses wishing to trade with the public sector. The principles of the Government's procurement policy are clear, however, in practice, its implementation is a huge problem and smaller firms, which could often provide authorities with the best value for money, are excluded from the tendering process.” Mr Hardman called on the government to reduce bureaucracy in order to level the playing field of the procurement process: “Public authorities tend to bundle tenders together for convenience, when they could get better value for money by breaking them up and putting them out to tender individually. Breaking down contracts and reducing the bureaucracy involved would enable smaller firms to secure more public sector contracts and could save taxpayers’ money.”
Content by: Made Simple Group
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