So the govenment plans to make its contracts easier for SMEs to win?What a ridiculous idea.
In this 'we're all in this together' period of cuts do we really expect a piddly caterer not to be priced out of the market by a goliath-like rivals? The USP of SMEs is (they say) they can be nimble and bespoke but they don't have the buying power needed to price services competitively.
If the government is committed to reducing the deficit quickly, then it can't go around awarding contracts to small businesses just because it thinks it ought to. That's not how business works. Just look at the privare sector for evidence.
Anything which simplifies what can sometimes be an overly complicated procurement process has got to be a welcome development for all public sector suppliers, small or large.
Jim Lovett:My concern with a target like this is that it may lead the public sector to take more risks on very small suppliers which may be taking a risk on what they can manage.
You make an interesting point. If there is a quota to be fulfilled the pblic sector runs the risk of compromising on quality/service/security.
I spoke with Tim Jones, chairman of CH&Co and he said fundamental change to the entire tender process is required. In his view, a standardised pre-qualification questionnaire is not enough because many smaller enterprises will simply not possess the resource to be able to respond yes to enough of the questions. And even if they do, many of the government contracts are too big to handle.
There is an argument to suggest that breaking down contracts into easier to manage chunks might make them more accessible, but conversely they become more costly to tender...