Crown Commercial Service reveals SME action plan to boost government procurement

The Crown Commercial Service (CCS) has announced an SME action plan to foster a level playing field for small and medium-sized enterprises (SMEs) in government procurement

The plan outlines key objectives, measures, and strategies to support government departments and agencies in meeting the government’s commitment to promoting SMEs through procurement.

Objectives and measures

The CCS’s SME Action Plan revolves around key objectives, including timely supplier payment, increased visibility of tenders and contracts, and removing barriers hindering SME participation.

The government has set a target to pay 95% of undisputed invoices within five days and all within 30 days. Tenders and contracts over £12,000 are published on Contracts Finder, while high-value contracts above £138,760 (including VAT) can be accessed through the Find A Tender Service.

The plan emphasises the role of the Cabinet Office SME advisory panel, comprising entrepreneurs and business leaders, in removing barriers and fostering a conducive environment for SMEs. The CCS SME working group actively collects feedback from SMEs to identify and address common issues.

Measuring success

To measure the success of the initiative, the plan focuses on two key metrics: SME spending data and case studies.

The government aims for SMEs to benefit directly or indirectly from central government spending. The plan encourages departments to share case studies highlighting successful collaborations with SMEs, providing insights and inspiration for others.

SME benefits and spending analysis

The plan highlights the benefits of engaging SMEs, such as improved customer engagement, competitive pricing, specialist expertise, diversity, and social value. SMEs are seen as more responsive, relatable, and capable of driving innovation, contributing to local economies and creating jobs.

The plan provides an in-depth analysis of SME spending through CCS agreements, revealing a positive trend. In 2021/22, direct spending to SMEs reached £3.65 billion, constituting 14.3% of the total spending. The plan outlines strategies to increase this proportion further, emphasising the importance of ongoing evaluation and improvement.

Planned actions

The CCS outlines eight key action areas to achieve the objectives of the SME Action Plan. These actions include maintaining board-level visibility, enhancing collaboration through the SME Working Group, simplifying procurement processes, improving market engagement, structuring agreements for SME participation, digitisation for a user-friendly experience, and promoting greater collaboration.

Conclusion: SME action plan

The CCS SME Action Plan represents a significant step towards fostering a more inclusive and supportive environment for SMEs in government procurement.

By addressing barriers, enhancing transparency, and collaborating with stakeholders, the plan aims to create a sustainable and diverse supply chain, aligning with the government’s commitment to supporting economic growth and innovation through SME engagement.

As CCS continues to evolve its procurement policies, the plan sets the stage for continuous improvement and increased opportunities for SMEs in the public sector.