Four out of five firms say public procurement is too complex

Eighty per cent of firms say the process of bidding for work from public sector bodies is too complicated, according to a new survey.

Businesses see pitching for public sector contracts as “complex and inconsistent,” according to the survey by the North-East Chamber of Commerce (NECC). Nearly three-quarters of those surveyed said that a simpler process would make them more likely to bid.

The report, which surveyed 190 businesses in the North-East, also highlighted the lack of consistency among public sector bodies, including the way they advertise opportunities and the requirements expected of tendering companies. In addition, there are often completely different pitching processes in place depending on the authority.

NECC campaigns to make it easier for firms to win contracts with the public sector in the region. According to previous data calculated by the NECC, the regional economy would grow by £1.35 billion and an extra 6,000 direct jobs if the public sector spent an additional 1 per cent each year to 2016 contracting services from the North-East rather than outside the region.

Ross Smith, head of policy and research at NECC, said: The survey confirms many of our fears – that the process of public sector tendering is putting businesses off.

“The public sector makes up a large part of our regional economy and it is critical that it uses the £3.5 billion it spends on goods and services each year for the maximum economic benefit of the North-East.

“However, in order to capitalise on this opportunity, it is essential that more is done to make the process of tendering more straightforward and user-friendly.”

Another problem highlighted by the survey is a lack of awareness among businesses of the opportunities available in the public sector, with more than 60 per cent saying that better advertising of contracts up for tender would make them more likely to bid.

Smith said: “Local authorities in particular are making important efforts to change but businesses have yet to feel the full benefits so the public sector needs to do all it can to pick up the pace of its reforms to the procurement system.”

Article ReGen.net