The Public Sector Procurement Process: A Comprehensive Guide
The UK government procures goods and services through various channels, depending on contract value. Understanding these procurement processes is essential for businesses looking to secure public sector contracts. Below, we break down the procurement process and highlight how suppliers can access these opportunities.
Understanding the Public Sector Procurement Process
Government procurement is classified into three main categories based on contract value:
Less than £10,000
Between £10,000 and £118,000
More than £118,000
Low-Value Procurement (£10,000 or Less)
For contracts worth less than £10,000, the government uses a low-value purchase system agreement. This allows suppliers to join at any time, and contracts can be awarded directly or through mini-competitions. Public sector buyers, including central government agencies and departments, request quotes and purchase items via electronic catalogues, eliminating the need for a formal tendering process.
Mid-Range Procurement (£10,000 to £118,000)
Contracts within this value range require suppliers to submit bids through the Contracts Finder Portal. This platform centralises contract opportunities from various public sector organisations, making it easier for suppliers to find and apply for suitable projects.
High-Value Procurement (£118,000 and Above)
For contracts exceeding £118,000, the procurement process is managed via the Find a Tender service. This platform operates similarly to Contracts Finder but focuses on larger-scale contracts that often involve more complex bidding and compliance requirements.
Upcoming Changes in Public Sector Procurement
With the introduction of a new procurement regime, a central digital platform will be implemented, allowing suppliers to:
Register and store their details for multiple bids.
Access all procurement opportunities in one place.
Benefit from a more streamlined and simplified bidding process.
This update aims to facilitate better collaboration between suppliers and public sector organisations. However, any procurement initiated before the new regulations take effect (February 2025) will continue to follow the existing procurement rules.
Finding Public Sector Contracts
Businesses looking to secure public sector contracts should explore the following platforms:
Contracts Finder: Ideal for contracts between £10,000 and £118,000, with opportunities from various public sector bodies, including the NHS, police forces, fire services, housing associations, and local councils.
Find a Tender: Focused on high-value contracts (£118,000+), operating similarly to Contracts Finder but for larger-scale projects.
Digital Marketplace: Specialises in digital service procurements, requiring suppliers to bid through framework agreements.
Small Business Research Initiative (SBRI): Encourages innovative technology solutions from small businesses through targeted funding opportunities.
Conclusion
Navigating the public sector procurement process can be challenging, but understanding the available channels and upcoming changes can help suppliers maximise their opportunities. Whether you’re a small business, charity, or large corporation, leveraging these procurement platforms can open doors to lucrative government contracts.
Stay informed and prepared for the upcoming changes in 2025 to ensure a seamless transition into the new procurement landscape.
Unlock Opportunities in the £350bn Public Sector Market
Don’t miss out on the UK’s £350bn public sector procurement opportunities. With major changes coming in 2025, now is the time to refine your strategy.
Download our free whitepaper, Marketing and Selling to the Public Sector in 2025, and gain expert insights on:
Navigating the new procurement rules
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