Myth: Innovative SMEs don’t win Public Sector contracts
You’ve won the grant, built the product, engaged with potential customers but now how are you going to secure a commercial contract with a public sector client?
The Good News
In recent years there’s been a drive for public sector organisations to award contracts to SMEs, with the UK government targeting that at least £1 in every £3 should be spent with SMEs. SMEs bring diversity and innovation to the government’s supply base.
With the UK leaving the EU, the government has restated its aim of simplifying public sector procurement, and making it easier for innovative businesses to trade with the public sector.
Thinking Like A Public Sector Buyer
It is important to realise that public sector buyers are very focused on managing risk, especially when purchasing either highly visible goods and services, or items that are critical to their organisation performing its role. We can all think of public sector contracts that have gone wrong and found themselves being discussed in the press. Your buyer is going to be determined that that doesn’t happen to them.
Whilst working with SMEs and encouraging innovation are stated agendas, they have to be balanced against the reality of the environment that your buyers are working within.
As a new supplier to the public sector you are an unknown quantity and you need to think carefully about how you can help the buying organisation overcome their concerns about the risk you might pose.
How best to start
Here are some ideas as to how to get started.
Search for Prior Information Notices (PINS)
PINS are often published because a buyer wants to talk to suppliers before going out to tender to validate their planned approach or gather market intelligence.
As an innovative SME these are fantastic opportunities to educate a buyer and shape the tender so that it is aligned to your approach.
Look for opportunities to partner with another organisation
Risk management is a big part of public sector procurement. Without relevant case studies and prior experience with public sector clients to point to, you may struggle to win contracts. Partnering with larger organisations that have that track record, and are seen as a safe pair of hands, can give you an excellent way in to start building up your credibility and quotable client experience.
Search for suitable lots within a tender
Tenders are often split into smaller lots, this is often done to promote engagement from smaller suppliers. As a new supplier to the public sector, organisations may feel happier with you taking on a smaller part of the overall requirement.
The breakdown of lots within a contract can be found in the contract notice.
Join frameworks focused on innovation
Certain frameworks focus on innovative suppliers who are delivering new solutions. For example, the Crown Commercial Service https://www.crowncommercial.gov.uk/ let two such frameworks.
‘G-Cloud’ which is open to cloud service suppliers of all sizes.
‘Spark’ for buying emerging technology products and services, including Internet of Things (IoT), AI and automation, simulated environments, wearables and new improvements in security.
Consider Small Business Research Initiatives
Small Business Research Initiatives (SBRI) bring together government challenges and ideas from business to create innovative solutions. Through SBRI, you can apply for funded contracts with government organisations to develop your innovative ideas and help solve a problem identified by a public organisation. A challenge statement is published e.g. “Seeking ideas to address loneliness in Monmouthshire” and suppliers are invited to submit a project to develop solutions that will address this.
Typically, it is a two stage application process whereby a shortlist of suppliers will complete a fully funded 12 week feasibility study. From those suppliers a smaller number will be selected to enter into a commercial contract with the public sector organisation to develop and deliver a proof of concept for their solution.
Public sector organisations that have successfully run SBRIs include local authorities, NHS, Ministry of Defence and the former Department of Energy & Climate Change.
How do I help clients secure public sector contracts?
In a few different ways:
Bid writing
Drafting their bid response and ensuring it scores highly against the stated evaluation criteria
Planning, editing and reviewing bids
Help them plan their bid response
Suggest content for each question
Advise how to structure your answers to maximise your score against the evaluation criteria
Review and edit your application to strengthen it before you submit it.
Smart search
A weekly search for clients showing them the best bids that are available for them to respond to.
Skills transfer
I-2-1 and group training covering all aspects of finding, applying for and winning public sector contracts.
If you are interested in finding out more about how I can support you with public sector bids for your organisation contact me on hannah@whiteraft.co.uk.
