How to win public sector contracts
It’s long been a complaint from SMEs that they are excluded from bidding for public sector work: the time and costs of becoming an approved supplier meant it was seen, by many, as impractical.
Now, though, the tide is turning. Following a review based on the Gershon Report 10 years ago, which found the existing system of numerous suppliers unwieldy and not cost effective, a centralised system allowing businesses of any size to bid has become a proven success.
The centralised service - Buying Solutions - is the national procurement partner for all UK public services. As part of the Efficiency Reform Group within the Cabinet Office, it sources more than 500,000 products and services through more than 1,500 suppliers for customers from the biggest central government departments, NHS Trusts and local councils, through to the smallest schools.
The way it works is simple: businesses bid to get onto the ‘framework’, a list of approved suppliers. Buyers then select from that list. It means SMEs can compete directly and fairly with multinational suppliers.
As Daryl Pinnington says, once you have passed through the process and are approved for use, customers come to you. “It naturally channels people to talk to you because you are one of, say, half a dozen to be considered okay.”
Pinnington is managing director of MYS Corporate, an events and travel company that sees £35m pass through its books each year, generating £2m of income for the York-based business. Winning public sector contracts via Buying Solutions has been crucial to underpinning the 33 year old year old business’ growth, he said. But it’s hard work, he adds.
“Five years ago – after many years of doing tenders and building up that experience – we got onto the framework. It’s a lot of work and not something you can approach lightly. It took three weeks of two people’s time – full time - to write the tender.
But the rewards are worth the effort,” he adds. “The contract values may not be as high as from private clients, but the volume compensates.”
It’s a similar story from Neil Hopwood of Redfern Travel in Bradford. “It took three of us six weeks to work on the tender to get on the framework,” he said.
But again, the public sector contracts that flowed as a result have seen his business turnover grow from £10m to £42m this year. “We do need the volume as we have to work on razor thin margins,” says Hopwood.

