Response to FMB report – procurement must change
Business Fix gives full marks to the FMB for their report
and findings re the lack of success by SME’s in winning public sector
contracts. Since 2008 Business Fix has been lobbying for better procurement
practices by Local Authorities, Government and other public sector bodies.
In particular we have emphasised the importance of the
public sector to maintain sufficient work in the sub £5m category to allow SME’s
to bid effectively. As always the process of government grinds slowly forward
and the imminent procurement revue will be welcomed.
There is however a BIG factor that must not be ignored and
it is often. That is for the SME businesses to up their game to compete
effectively for public contracts. Many are very good and suffer only from lack
of opportunity. Many however are not prepared to make that extra effort to win
at every stage of procurement.
In a recent discussion with the MD of an Irish contractor who
was looking to win work in Scotland, yes another one. When asked why they
thought they could come here and win work. The answer was simple and difficult
to take. “We can win work because the local contractors are complacent and we
work harder. Our productivity is 20% better than Scottish contractors”
Is this true? I don’t know but there are plenty of Irish
contractors now based in Scotland who have won work. Many are still here.
Many of the businesses that we have worked with on Prequal
and tender submissions have seen significant improvements in their success
rates. It is an undeniable truth that if you don’t improve you will fall
behind.
As the FMB say, we need real changes in procurement
practice, but businesses need to up the game to then win the opportunities.
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