IoD Scotland Autumn 2021

Technical briefing: Supplier Development Programme and Ogilvie Ross LLP
Public sector contracts are open to all
as economy looks to bounce back
Looking for stability during the economic recovery? Don’t overlook
the contracts available from the public sector, says Jennifer Payne,
Development Officer, Supplier Development Programme
For micro, small
and medium-sized
businesses in
Scotland, deciding
which routes to take
to market can be
difficult – perhaps
never more so than
in these uncertain
times, as we begin economic recovery
from a global pandemic.
In Scotland, there is an annual public
sector spend of £12.6 billion, all of which
is advertised through Public Contracts
Scotland (PCS), the national public
sector tender portal for Scotland.
There are several myths that exist
about public sector contracts, and
understanding these can help businesses
decide if tendering should be a route to
market.
Contrary to popular belief, contracts
do not always go to the same suppliers.
Transparency is required for the
procurement of goods, services and
works, so public sector buyers are
required to be open, fair and honest.
While there can be ambiguity around
public sector contracts, it’s important to
separate myth from reality.
With Net Zero targets for Scotland
looming, it is in the interest of councils
and other public sector organisations
to procure locally and inject innovation
into contract and framework
opportunities.
The benefits to winning public sector
contracts are many, including:
n No debt risk as public bodies have a
legal duty to pay SME supplier invoices
within 30 days (10 days if there is a cash
flow issue).
n Stability for your business through
potential uncertainty. Public services
still need to be delivered, so a business
will benefit from a relatively stable and
durable customer base.
n Marketing mileage from having a
large customer like a public body.
But with thousands of contracts and
framework places up for grabs each year
in every sector, many businesses may
not know where to begin.
The Supplier Development Programme
(SDP) was set up in 2008 by Scottish
local authorities as a free tender training
service for SME businesses. It has now
‘‘
Many SMEs struggle overcoming the stringent
requirements of the PCS website, but if
approached logically, the tender process can
be taken forward via manageable steps....
More information on the Supplier Development Programme can be
found by visiting www.sdpscotland.co.uk.
The SDP myth-busting graphic: Public sector contracts are open to every business
grown to become a partnership of all 32
Scottish councils, Scottish Government
and other public bodies that work
together to bring free support in all
aspects of tendering to Scottish-based
SMEs.
SDP helps businesses that are often
too small to have dedicated resources to
contemplate bidding for a public sector
contract. Through a programme of free
training and events, it aims to help them
become “tender ready” and improve
their bidding prospects.
Many SMEs struggle with overcoming
the stringent requirements of the
PCS website. However, if approached
logically, the tender process can be
taken forward via manageable steps
– one of SDP’s top tips is to ensure a
business has a published Supplier Finder
profile on PCS in the first place.
At a time when business survival is
a must, considering different routes
to market is important. Public sector
contracts can provide stability over
the coming months and years. Since
knowing what it takes to make a
successful tender can be overwhelming,
it is beneficial to understand who can be
called on to boost the skills a business
might not have.
18 iod.com
Autumn 2021