Commitment to small / medium enterprises (SME)
Last updated | 27/02/2008
Perth & Kinross Council’s aim is to ensure that, wherever possible and, consistent with the need to secure value for money, suitably qualified Small/ Medium Enterprises (SME) have the opportunity to compete for Perth & Kinross Council business.
The barriers to business that SMEs face and how SMEs can be assisted in bidding for work will be addressed by Perth & Kinross Council to ensure that SMEs are not unduly discriminated against in the procurement process.
The definition of an SME is described as a business with less than 250 employees.
The issue of quotas for SMEs, i.e. ensuring that SMEs are awarded an agreed percentage of all public sector contracts, is often raised in the UK, but while inclusion of SMEs in competitive tendering exercises should have the benefit of increased competition, quotas would act against the principle of Value For Money (VFM) and also act against Procurement legislation.
For the avoidance of doubt - Scottish Government Procurement Policy states – ‘’It is Government policy to take steps to remove barriers to participation by SMEs. There are many ways in which this can be done, such as improving access to procurement opportunities and information, which do not discriminate against larger firms and which help to improve VFM by increasing competition.’’
Given the nature and often comparatively large size of public sector contracts there will inevitably be circumstances when SMEs will have the best opportunities to tender for contracts as part of a consortium, as opposed to as a main contractor.
The procurement function will work in partnership with Economic Development to deliver on the initiatives detailed in Economic Developments ‘growing the local economy action plan, which contains objectives such as :
- Contract Process - To make the tender process more efficient and cost effective
- Communication - To raise awareness of the procurement initiative
- SME Concordat - To develop a concordat that will focus in on key areas and provide an agreement between small businesses and the Council
We will actively engage with the Chamber of Commerce and the Federation of Small Business to progress our support of the local business community in Perth and Kinross.
