Lewis Silkin Northern Ireland says revolutionary changes in UK public sector procurement will make selling tech easier for SMEs
4th Mar 2025
A landmark transformation in UK public sector procurement law has created an unprecedented opportunity for small and medium-sized enterprises (SMEs) across Northern Ireland’s tech sector wanting to bid for government contracts. With a more transparent, streamlined, and SME-friendly procurement framework now in place, tech suppliers can more easily navigate public sector sales and secure lucrative contracts.
Rory Campbell, partner in tech and employment law specialist Lewis Silkin Northern Ireland says the introduction of the Find a Tender service simplifies access to public sector contract details across the UK.
“This platform publishes procurement tenders, both above and below financial thresholds, and provides a broad range of notices at different stages of the tender process,” says Mr Campbell.
“Additionally, the service will include information on dynamic markets, replacing the previous system of dynamic purchasing frameworks. This enhancement allows government buyers to procure a wider array of products and services beyond traditionally defined “commonly used purchases.”
One of the most significant shifts is the move from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). This change allows procurement teams to consider factors beyond price, enabling SMEs to compete on innovation, quality, and service rather than just cost.
Another major win for SMEs is the newly enforced 30-day payment rule, says Mr Campbell. “This ensures that all suppliers, including subcontractors, receive payment for undisputed invoices within a month.”
A new “name and shame” policy introduces a government-maintained list of suppliers barred from bidding on public sector contracts. Grounds for exclusion include insolvency, failure to deliver on previous contracts, and potential national security threats. Additionally, government buyers now have the authority to terminate contracts unilaterally if they were awarded unlawfully or if the supplier becomes non-compliant with procurement regulations.
A groundbreaking policy shift now places a legal duty on buyers to consider “lotting” – breaking large contracts into smaller segments to facilitate SME participation. This follows the National Procurement Policy Statement (NPPS), which prioritizes driving economic growth by ensuring SMEs have a fair chance at securing public sector contracts.
The policy states:
“Small businesses and social enterprises are more likely to generate diverse and thriving local economies, creating jobs and economic growth. Increasing procurement spend with these suppliers is a national priority.”
“For tech SMEs, this means greater opportunities to secure public sector deals, particularly in emerging technologies, AI, and digital transformation projects,” says Mr Campbell.
What This Means for Tech SMEs
The changes provide clear advantages for SMEs, including:
•Easier entry into public sector contracts due to increased transparency and streamlined tendering processes.
•Better payment terms, reducing financial strain and improving cash flow stability.
•More opportunities to provide specialized solutions through the mandatory lotting of contracts.
• Greater ability to market commercial off-the-shelf (COTS) products, rather than conforming to bespoke development contracts.
•A stronger foundation for long-term government partnerships, with a procurement system that prioritizes value beyond just cost.
