Business monitor:Layout 1 14/04/2009 12:24 Page 19
BUSINESS MONITOR
Selling to Government: time
to make it YOUR business
Targeting government contracts is not a gimme. But there is a huge amount of money looking for
suppliers and they are the sort of clients who can help you navigate the recession securely.
Paul Clapham gives you some pointers.
H
ow would you fancy a share of £16 billion Set procedures have been laid down and must be The best start point must be
www.supply2.gov.uk.
worth of expenditure on goods and adhered to. As a taxpayer you should be pleased This website offers an access point for SMEs to
services? Yes, I thought so and, by the way, with that. You want your tax spent wisely. But lots become involved in selling to government.
that was billion, the one with nine zeros. £16 of the business does go to SMEs: last year 59% of Congratulations to whoever put it together
billion is the expenditure budget of the MoD, just local government and 22% of national because it is clear, professional, helpful and
one government department – albeit a big one. government contracts went to SMEs. I have kept businesslike – a combination that large
Total government expenditure for the coming year coming across the statement that public sector organisations and government in particular rarely
is estimated at the eye-popping figure of £175 buyers are more interested in getting the best seem able to achieve.
billion. Since you’re paying for that, shouldn’t you combination of value and quality than they are in The core benefit is a free registration which gives
be aiming to see some of it in your business bank the size of the supplying company. you e-mail alerts of new contracts which are out
account? for tender in your chosen area and relevant to your
The benefits of selling to government bodies are Procurement products and services from public service buyers.
clear: it’s financially secure and they pay on time, Nor should you assume that this is all huge value The vast majority of these fall into the “under
typically within 30 days; there is usually repeat purchasing. For sure, the headline grabbers are the £100,000” category. On a national basis there are
purchasing; they’re big value sales; government mega-bucks computer systems and aircraft some 3,000 new contracts each month.
doesn’t just buy on price. Indeed, the official carriers, but the reality is that of the 26,000 The Supplier Information Database (SID) is the
guidance is to seek “the optimum combination of contracts placed by the MoD – as a case – in route to publishing your corporate profile to public
whole life costs and quality or fitness for purpose 2007-8, 90% were for less than £100,000. sector buyers who are searching for your product.
to meet users requirements”. Moreover, there is also a facility called the It is recommended that you store the Pre-
Wouldn’t you like all your clients to work to those government procurement card, which is quite Qualification Questionnaire (PQQ) with it. This is a
criteria? Plus there is a certain kudos in being able literally a Visa charge card. It can be used on standardised, simplified form that aids the
to boast “supplier to the Home Office”, for purchases up to £5,000 by the LVP Officers (Low tendering process. You will note that this process is
example. But this nut is unbelievably difficult to Value Purchasing). bedevilled with acronyms and, believe me, I’ve left
crack, no? Certainly, compared to selling to OK, you’d like to cut yourself a slice of this action. many out.
private business it is harder, but that is partly Where do you start, what do you do and how do
because it is just plain different. you find out who needs what?
continued over
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