Government opens up contracts to small firms

The government has announced a package of measures that will enable small contractor firms to compete for a range of government projects worth billions.

Speaking at the announcement, Prime Minister David Cameron said the measures would help boost growth and tackle waste.

“We need to make the system more open to new providers, more competitive between suppliers and more transparent for the taxpayer.

“This is vital as we get to grip with our deficit - helping us tackle waste, control public spending and boost enterprise and growth.”

Under the package Pre-Qualification Questionnaires (PQQs) will be eliminated for all central government procurements under £100,000.

Following on from this, prospective contractors will only have to submit pre-qualification data once for all procurements - which it is hoped will save time and money for both the government and suppliers.

A contracts finder website has also been set up, containing details of government contracting opportunities over £10,000.

Firms can submit specific details of contracts they are interested in and receive email alerts free of charge.

Francis Maude, minister for the cabinet office, said the measures would create more transparency and end unnecessary bureaucracy in the area.

“Today marks the end of what I call the procurement oligopoly - where innovative small businesses and organisations are too often shut out of contract processes early on because of ridiculous rules and unnecessary bureaucracy.

“This is not only bad for those affected; it’s also bad for Government as it stifles competition.

“Today’s changes will help create a system which is transparent and allows small businesses and voluntary sector organisations to compete more fairly for government contracts.”