Small & Medium Size Businesses / SMEs

2015 Procurement Regulations – How They Effect Tenders & PQQs

The new 2015 Procurement Regulations came into force on the 26th February 2015. They contain many changes that affect public sector tenders.

2015 Procurement Regulations - How They Effect Tenders & PQQs?

 Government’s Aims

“For contracting authorities, this means being able to run procurement exercises faster, with less red tape, and more focus on getting the right supplier and the best tender.

“And for suppliers, the process of bidding for public contracts should be quicker, less costly, and less bureaucratic, enabling suppliers to compete more effectively.”

Guide to Main Changes in the 2015 Procurement Regulations

Here are the main changes relating to new 2015 Procurement Regulations.

Helping SMEs

Vince Cable set a target of 25% of public contracts to go to SMEs. The initiatives below are very helpful in that respect:

  • Contracting authorities urged to break contracts into smaller lots to help SMEs take part.
  • A cap on required turnover ratio to help smaller businesses take part in bidding. Authorities cannot set company turnover requirements at more than two-times contract value (except when justified).

The previous ‘turnover yardstick’ was that a contract should not represent more than around 30% of a bidder’s turnover. (But I’ve seen 10-20% at times!) So raising it to 50% is a big change. In light of this, our Fit to Tender Check-list has been updated.

New EU Procurement Rules 2014

The new EU procurement rules 2014 are designed to ensure better value for money and improved quality. The reduction of red tape should also make it easier for small and medium-sized businesses (SMEs) to tender.

New EU Procurement Rules 2014

EU-rules on public procurement apply to public authorities buying works, goods or services.

Note: See latest public sector contracts thresholds.

New EU Procurement Rules 2014 – Summary

They will include tougher rules on subcontracting and have a new award criteria that will put more emphasis on:

  • Quality
  • Environmental considerations
  • Social aspects
  • Innovation

Procurement will use the MEAT criteria (most economically advantageous tender). This balances the above elements with price.

One of the aims is to encourage more innovation. This will be achieved through openness – making it possible for tenderers to negotiate innovative solutions during the tendering procedure (as opposed to bidding on a pre-determined specification).

New EU Procurement Rules 2014 – Helping SMEs

Red tape will be reduced to make it easier for SMEs to tender:

Supplier Registration Service for UK Government – Simplifying Tendering

A Supplier Registration platform was launched by The Cabinet Office in March 2013. The aim was to simplify the tendering process for public sector contracts

The Supplier Registration Service for Government

Previously, to bid for public sector and government contracts, suppliers had to register on many different systems to view, access and tender for business opportunities. This makes tendering more difficult – increasing time and costs.

The new centralised system aims make bidding for government and public sector opportunities easier and cheaper. The Single Supplier Registration enables suppliers to register just once to gain access to a range of contracts.

Full details at the Cabinet Office.

The new Single Supplier Registration platform was available from April 2013 for the health sector (replacing the existing SID4health system) and was extended across other sectors in the following months.

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