Government to scrap PQQs for contracts under £100,000
The Cabinet Office Minister Francis Maude has outlined plans to remove the requirement for bidders to complete pre-qualification questionnaires for government contracts worth less than £100,000, in an effort to increase the proportion of government contracts that are won by smaller firms.
For larger contracts, firms are to be allowed to submit their pre-qualification data once for all procurements in “common commodities”. The government will also launch a new Contracts Finder website (www.contractsfinder.businesslink.gov.uk), which will list public sector contracting opportunities over £10,000.
The moves are among a number of measures announced by the government as part of its efforts to ensure that at least 25% of government contracts are awarded to small-and-medium sized enterprises (SMEs) and will take effect from January 2012.
Maude said: Today marks the end of what I call the procurement oligopoly – where innovative small businesses and organisations are too often shut out of contract processes early on because of ridiculous rules and unnecessary bureaucracy. This is not only bad for those affected, it’s also bad for government as it stifles competition.
“Today’s changes will help create a system which is transparent and allows small businesses and voluntary sector organisations to compete more fairly for Government contracts – helping to drive economic growth at national and regional level, while delivering better deals for the taxpayer.”
Although the measures will not be binding on local authorities, Baroness Eaton, Chair of the Local Government Group, said that she supported the new measures and would recommend that local government should also make its opportunities available on Contracts Finder and use a simplified pre-qualification questionnaire.
Other measures in the same package include:
For larger contracts, firms are to be allowed to submit their pre-qualification data once for all procurements in “common commodities”. The government will also launch a new Contracts Finder website (www.contractsfinder.businesslink.gov.uk), which will list public sector contracting opportunities over £10,000.
The moves are among a number of measures announced by the government as part of its efforts to ensure that at least 25% of government contracts are awarded to small-and-medium sized enterprises (SMEs) and will take effect from January 2012.
Maude said: Today marks the end of what I call the procurement oligopoly – where innovative small businesses and organisations are too often shut out of contract processes early on because of ridiculous rules and unnecessary bureaucracy. This is not only bad for those affected, it’s also bad for government as it stifles competition.
“Today’s changes will help create a system which is transparent and allows small businesses and voluntary sector organisations to compete more fairly for Government contracts – helping to drive economic growth at national and regional level, while delivering better deals for the taxpayer.”
Although the measures will not be binding on local authorities, Baroness Eaton, Chair of the Local Government Group, said that she supported the new measures and would recommend that local government should also make its opportunities available on Contracts Finder and use a simplified pre-qualification questionnaire.
Other measures in the same package include:
- The appointment of new Crown Commercial Representative (CCR) - named as Stephen Allott - for SMEs to build a more strategic dialogue between HM Government and smaller suppliers
- The launch of SME (Small Medium Enterprise) product surgeries, a series of events will be led by the new CCR and will give SMEs the opportunity to pitch innovative products and services direct to a panel of senior procurement and operational professionals from central government and the wider public sector.
- The publication of the findings of the Cabinet Office’s LEAN Review into procurement processes.
- The launch of an interchange programme to enable the government to get secondees from the business world into its procurement teams and allow civil servants to get real commercial experience.
- An extended Supplier Feedback Service so businesses can continue to tell government where there are still issues.
