Introduction:
With the UK Procurement Bill set to become law in October 2024, a major shift is coming to public sector procurement. The new legislation is specifically designed to remove barriers and make it easier for small and medium-sized enterprises (SMEs) to win public contracts. At BidVault, we’re excited about how these changes will align with our mission of helping businesses like yours succeed in the public sector bidding process.
Here’s how the Procurement Bill will benefit SMEs, and how BidVault can help you make the most of it.
Historically, visibility into upcoming public sector contracts has been a challenge, with most procurements becoming visible to external parties once a Prior Information Notice is published on ContractsFinder or Find A Tender. The new Procurement Bill addresses this by requiring large contracting authorities to publish a forward-looking pipeline of contracts over £2 million, providing at least 18 months of visibility, starting in May 2025.
This is a crucial benefit for SMEs, as it allows businesses to plan ahead and target specific opportunities that align with their capabilities. At BidVault, we offer TenderVault, a tender search and alert platform that ensures you never miss these opportunities. Whether you’re in construction, technology, or services, TenderVault can help you access relevant upcoming tenders in your region and sector.
A key goal of the Procurement Bill is to improve how contracting authorities engage with the market, particularly in the early stages of procurement. Previously, many public bodies stuck to the same networks of suppliers, making it difficult for new entrants to break through. Now, with clearer rules around pre-market engagement, authorities are encouraged to run more open events and engage with a wider range of businesses.
This presents a fantastic opportunity for SMEs to showcase their innovation. Whether you’re offering new solutions in energy, defence, or tech, the Bill encourages contracting authorities to invite fresh ideas and new suppliers. For companies aiming to improve their engagement strategy, our BidVault Basic platform, with access to Training Vault, can provide you with the tools and knowledge to stand out in these pre-tender stages.
One of the biggest frustrations for SMEs has been the complex and time-consuming process of registering across multiple procurement platforms. The new “tell us once” system means suppliers will only need to register their information once, and it will be stored in a central database, accessible to all relevant authorities.
This will save businesses valuable time and resources, allowing you to focus on bidding instead of bureaucracy. Once you’ve registered, BidVault Knowledge Vault equips you with a deep bank of model bid response content to ensure that your bid submissions put you in a great position to win.
The Procurement Bill brings greater transparency to the tendering process by requiring contracting authorities to publish tenders on a centralised Governmennt platform. This means SMEs will have easy access to all necessary tender information, including thresholds and deadlines, through one portal.
However, there are still no timescales on when this portal will be ready or – more to the point – how simple it will be for smaller organisations to access to and use. BidVault’s TenderVault ensures you stay informed, with email notifications set up for any new opportunities relevant to your business. Having all tenders in one place means you can act quickly and efficiently when the right opportunity arises.
The Bill includes specific provisions to prevent contracting authorities from requiring unnecessary information from suppliers, like audited accounts, which can often exclude SMEs. This ensures that smaller businesses, including startups, can still demonstrate their financial capacity through alternative means.
Additionally, contracting authorities can no longer require suppliers to have insurance in place before a contract is awarded. This change will reduce upfront costs for SMEs, allowing you to bid without the burden of purchasing insurance prematurely.
The new legislation introduces a “Competitive Flexible Procedure,” allowing contracting authorities to design their own procurement processes based on the complexity of the contract. This flexibility benefits SMEs by allowing them to demonstrate their unique value, particularly in more complex or innovative projects.
Whether it’s through site visits, presentations, or innovative bids, SMEs will now have more opportunities to showcase their strengths. For companies using BidVault Pro, our AI-driven solutions can help tailor these bids to highlight innovation, ensuring your business stands out in a competitive field.
Another barrier for SMEs has been the rigid nature of framework agreements, where once a framework is set, new suppliers are often locked out for years. The Procurement Bill introduces a new tool called a “Dynamic Market,” which allows suppliers to join at any time. This flexibility means SMEs have a much better chance of winning contracts without waiting years for another opportunity.
Moreover, even in long-term frameworks, there will now be designated re-opening points where suppliers can reapply. With BidVault Enterprise, we can help you stay on top of these opportunities, plan for them and ensure your bids are competitive, whenever frameworks re-open.
No business wins every bid, but valuable feedback is crucial for future success. Under the new Procurement Bill, contracting authorities will be required to provide detailed feedback, showing where your bid compared to the winning submission. This insight will help SMEs identify areas of improvement, making each subsequent bid stronger.
With BidVault Enterprise, we take this feedback seriously when working with you, and we factor it into the way that we manage your BidVault content library, helping you analyse and refine your bidding strategy, ensuring that even a lost bid becomes a learning opportunity.
Finally, the Bill mandates 30-day payment terms throughout public sector supply chains. This is a crucial benefit for SMEs, particularly those working as subcontractors, as it ensures smoother cash flow and avoids payment delays. Whether you’re bidding on direct contracts or working as part of a supply chain, fair payment terms mean you can operate with confidence and stability.
Conclusion:
The Procurement Bill is set to revolutionise public sector procurement, creating more opportunities and removing barriers for SMEs. At BidVault, we are ready to help your business capitalize on these changes. Whether through TenderVault, BidVault Basic, Pro, or Enterprise, we offer tailored solutions to ensure your bidding success in the new procurement landscape.
Speak to our team here to find out more.
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