More government contracts to go to small businesses?

Good news for small businesses looking to win public sector contracts.

According to Cabinet Office minister Francis Maude they could benefit from the government’s move to publish details of expenditure on public sector contracts.

New contractors looking online will [now]be able to see deals and say ‘we can do that for half the price of what is being charged.'” The system will open up more government contracts to small businesses, he says.

Although issues around red tape and EU regulations, remain a concern for many SMEs – despite government promises to simplify the process – this could create a great opportunity for enterprising businesses prepared to sift through government data.

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Price is not the only issue. Quality of work done should be the major factor in choosing the contractors. I know that winning these contracts often happens when one has the right connections. At first this was bothering me and seemed unfair. In time I realized that the people who are well connected are the same ones who are well known for doing a great job each and every time. I doubt this system will change anything. The same companies will keep getting the contracts simply because giving some new guy a shot is not worth the risk.