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More than £670m of public sector contracts due for renewal

22 June 2018

Contracts with a minimum value of £109m within the government's Estates & Infrastructure portfolio are due to expire this year, along with £565m-worth of deals within the Digital & Technology sector.

Analysis has also revealed that the government has succeeded in its aim of attracting more SMEs to work in the public sector, with an increase of 11% between 2016 and 2017 for the numbers of smaller companies becoming involved.

SME businesses now account for 62% of the 23,100 public sector contracts awarded last year, with this figure rising to 67% within the Estates & Infrastructures department.

The research, conducted by public tenders and government contracts online database Tussell, showed that every government division had increased its SME contract award numbers last year.

These figures were publicised by the Public Sector Show, which stated that "pre-engagement will be vital to securing high-quality bids and a smooth tender process" for SMEs wishing to bid for the next round of public sector contracts.

However, caution has been advised for SMEs aiming to bid for government deals by Incentive FM chief executive officer Martin Reed.

His article Why the government prices smaller FM companies out of the market explains some of the pitfalls that can await SMEs.

Although the government has simplified terms and conditions, Mr Reed says that public sector contracts still favour larger organisations.

One of the issues highlighted is that of "blind bidding", with no details available for the condition of the site concerned.

While larger organisations can bid for a number of contracts and expect to make good returns on some to make up for others, smaller companies may not have the capacity to do this and run the risk of taking on contracts that will not provide the returns required for the business to operate on a sustainable basis.

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