Unlocking More Value in Public Procurement: Just Ask the Right Questions

Public sector procurement is evolving. The Procurement Act is designed to help SMEs compete for public contracts, but procurement practitioners can take this even further—simply by asking the right questions.

Large suppliers often bundle services or have flexibility in their offerings. Instead of just negotiating for the lowest price, procurement teams can push for added value—free access to AI tools, cloud services, or digital platforms that SMEs need to operate more effectively and compete on a level playing field.

Procurement Beyond Cost Savings

Many assume procurement is just about securing the cheapest deal, but true best value comes from looking at the bigger picture. Price is important, but so is ensuring that SMEs have the tools and resources to deliver high-quality services. When negotiating contracts for IT services, hosting, or infrastructure, procurement teams should ask:

• Can SME suppliers get free or discounted access to essential business tools like Google Workspace, Microsoft 365, or AI-powered automation software?
• Could social media advertising credits be included to help SMEs market their services more effectively?
• Can a supplier provide cybersecurity support or compliance training for smaller businesses working on public contracts?
• Are there opportunities for suppliers to offer free training or mentorship to SMEs as part of their contractual obligations?

These aren’t unreasonable requests—many large corporations already offer discounts and free access to certain platforms for startups and SMEs. Procurement teams just need to make it part of the negotiation process to ensure the public sector gets the most value from its contracts.

The Benefits of Asking for More

1. Levelling the Playing Field for SMEs

Providing access to digital tools allows SMEs to compete on equal footing with larger suppliers. This increases competition, encourages diversity in public procurement, and drives innovation by enabling smaller businesses to contribute cutting-edge solutions.

2. Maximising Public Sector Value

It’s not just about cost savings—it’s about getting more for the same investment. Negotiating perks like free access to collaboration tools, cybersecurity services, or AI-driven analytics ensures that SMEs can perform at a high standard without additional financial burden.

3. Driving Innovation and Efficiency

With access to the right digital tools, SMEs can deliver services faster, more efficiently, and with greater accuracy. This not only benefits the public sector but also improves the overall supply chain, ensuring projects run smoother, smarter, and with fewer delays.

4. Encouraging Supplier Responsibility

Large suppliers working with the public sector have the resources to support smaller businesses. By embedding social value considerations into procurement discussions, public sector buyers can influence suppliers to offer added benefits that directly support SMEs—such as training programmes, access to technology, or additional support services.

A Simple Shift in Procurement Thinking

The best part? This doesn’t require policy changes or complex reforms—it simply requires procurement teams to ask the right questions during contract negotiations. Many of these benefits already exist, but they are often overlooked.

By embedding these considerations into supplier discussions, procurement practitioners can transform public procurement into a tool for SME empowerment, all while securing the best value for taxpayers. Instead of focusing solely on price reductions, they can negotiate additional benefits that enhance the long-term sustainability and competitiveness of smaller businesses.

A More Strategic Approach to Public Procurement

Public sector buyers should view procurement as a way to create value beyond simple cost-cutting. The Procurement Act already pushes for greater transparency and fairness in public procurement—why not take it a step further?

By strategically leveraging supplier relationships, procurement teams can ensure that government contracts deliver more than just services—they can create opportunities for SMEs, foster innovation, and generate long-term benefits for both the public sector and the wider economy.

What Do You Think?

Should public procurement teams be more proactive in negotiating digital perks for SMEs? What other ways can procurement help level the playing field?

Let’s start the conversation.

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