Member Article

The importance of public sector procurement

Garry Stone, principal consultant for Business Generator discusses the importance of public sector procurement to the North East economy and why, in uncertain economic times, knowing where to access and how to successfully bid for public sector contracts may be vital to helping businesses survive and grow.

“The public sector is vital to regional economies and a major source of business to companies of all types and size. Public sector spend in the North East amounts to £3.5billion annually, and almost half of that amount awarded in contracts to businesses based in the region. The potential is clearly there.

We have seen the market change significantly in the last two years – especially the opening out of access to smaller businesses. The information available on websites and tender portals, the publishing of contracts registers and forward procurement plans, and the support available to businesses, all mean that more and more businesses are putting public sector work into their plans.

Even with larger contracts best suited to national or major regional companies, the building of ‘supply chains’ of local subcontractors is increasingly important – and is being hard-wired into the process. Central government is also taking a lead, with recent national contracts awarded on the basis that they must be delivered using smaller, local subcontractors.

So how do businesses get involved? There’s no short cut – we all have to work hard for our share just as we do in every other area of our business. So research the market and understand where and how spend comes into your sector. And remember, even if contracts appear to be out of your reach, you can still look at collaborating with other businesses, going for ‘lower value’ work that’s not put out to tender, or look to subcontract into a larger primary contractor.

Don’t let the siren voices lead you astray. We hear all the time that “it’s only for larger companies”, or “the paperwork and policies they ask for keep us out” or that “we can’t compete”. Yes it’s competitive, but those companies with a great product and service, and who are determined to win, can break through and completely transform their fortunes.

How do we know this? From real experience. From hands-on working with businesses across the region and helping them win tens of millions of pounds in contracts. It doesn’t matter whether it’s a few thousand pounds for training, or a £10m facilities management contract, it’s about a keeping money and jobs and growth in our local economy – and we have seen how businesses of all types can achieve that.

So what’s the first step? Go to the NEPO portal (www.nepoportal.org ) and register, get onto your local authority websites and register there too – and find out how they do business and who to contact. And remember, there’s much more spend out there, whether it’s from the ’blue-light ’ services, colleges and universities, housing associations, the MOD…..

Getting the right support too can make all the difference. That is why we have just launched ‘Business Generator’. This region-wide support programme is part financed by the European Regional Development Fund (ERDF) and brings together all of our understanding, experience and bid-winning expertise into a focused package of one-to-one advice, resources, workshops and master-classes. Business Generator also brings together buyers and procurement teams directly with local suppliers – using our market connections to help local business gain a vital edge.

The market opportunity is there, and we know how businesses can compete and win. What is key is that we tailor the right support in the right way to make a real difference.“

Our next ‘Preparing to Win-Getting Bid Ready’ workshops are running on the 21st June in Middlesbrough and 26th June in Gateshead. To book your place or to find out more about Business Generator please visit www.BizGenerator.co.uk or contact 0191 426 6333.

Business Generator is part financed by the European Regional Development Fund (ERDF) and delivered by the Business & Enterprise Group. To be eligible your business must be an SME or social enterprise based in the North East with fewer than 250 employees.

This was posted in Bdaily's Members' News section by Garry Stone .