The Government Wants to Buy from SMEs
The UK government has a target to spend £1 in every £3 with small and medium-sized enterprises. Policy initiatives like breaking contracts into smaller lots, reducing bureaucratic requirements, and mandating prompt payment make public procurement increasingly accessible to smaller businesses.
Key Fact
Under the Prompt Payment Code, public sector buyers must pay invoices within 30 days. Many government departments now target 5-day payment for SME suppliers.
Practical Tips
1. Start Small
Sub-threshold contracts on Contracts Finder are more accessible and less competitive. Winning a few smaller contracts builds your track record and public sector references, making it easier to compete for larger opportunities later.
2. Use Frameworks
Crown Commercial Service (CCS) and other central purchasing bodies run framework agreements. Once you're on a framework, buyers can call off contracts without a full procurement — making you easier to hire.
3. Demonstrate Social Value
Since PPN 06/20, central government contracts must evaluate social value as a minimum of 10% of the total score. Highlight your contributions to local employment, environmental sustainability, and community engagement.
4. Answer the Question
Evaluators can only score what you write. Structure your responses to mirror the evaluation criteria exactly. Use the buyer's language, provide specific evidence and examples, and keep to word limits.
5. Research the Buyer
Review a buyer's previous contracts, awarded suppliers, and typical values before you bid. Understanding their procurement patterns helps you decide whether an opportunity is worth pursuing and tailor your response.
6. Consider Subcontracting
If a contract is too large to deliver alone, consider partnering with other SMEs or offering to subcontract for a prime contractor. Many large suppliers actively seek SME subcontractors to meet government supply chain targets.
Finding the Right Opportunities
The biggest challenge for SMEs is often finding relevant contracts before deadlines pass. Setting up email alerts for your sector means new opportunities come to you — rather than requiring daily manual searches across multiple portals. You can also search all open tenders from Find a Tender and Contracts Finder in one place.
Frequently Asked Questions
How do I win my first government contract?
Start with sub-threshold opportunities on Contracts Finder, which are smaller and less fiercely contested. A few smaller wins build the track record and public sector references that larger buyers ask for, making it much easier to compete for bigger contracts later.
Does the UK government really buy from small businesses?
Yes. The government has a target to spend £1 in every £3 with SMEs, backed by policies such as breaking contracts into smaller lots, reducing bureaucracy in bidding, and prompt payment requirements for suppliers.
What is social value in a government bid?
Social value covers the wider benefits your delivery brings, such as local employment, environmental sustainability, and community engagement. Since PPN 06/20, central government contracts must give social value a minimum weighting of 10% of the total evaluation score.
How competitive are government tenders?
Less than most firms assume. Where bidder numbers are disclosed on UK notices, the average contract attracts only a handful of bids, so a well-targeted, well-written response often faces far less competition than commercial work.
References
Sources
Keep reading
Related guides
Start Finding Contracts Today
Search thousands of UK public sector contracts with a 14-day free trial.
Start Free Trial