Low value tenders are those which aren’t published in the Official Journal of the European Union (OJEU) as they are below the EU threshold set at £106,047.
More information can be found about thresholds in our blog post, but what are the key benefits of low value tenders?
For SMEs and companies who have no experience of working in the public sector, low value tenders are a good starting point. Securing a few low value contracts allows smaller suppliers to build up a body of work that can help them go after high value OJEU notices in the future.
Here are the five key benefits of low value tenders:
- They give SMEs a chance to win work – Due to the size and scope of low value tenders, larger Multi-National Companies (MNCs) are unlikely to bid for them, opening the door for more SMEs to bid.
- Less competition – As the tenders are not sent to the OJEU and published European wide, this cuts down the number of potential companies who are aware of the opportunity.
- Fewer restrictions – No Pre-Qualification Questionnaire’s (PQQs) are required for low value tenders meaning less ‘red tape’ compared to high value notices. Pre-Qualification questionnaires are now prohibited on low value tenders due to the Public Contract Regulations 2015. This topic was covered in this blog: The ban on PQQs and restrictions for use of supplier questionnaires
- Transparency – For all tenders, all procurement documents (specifications, tender scope and deliverables etc.) are now available on publication of the tender, meaning that suppliers have a chance to view all the information before weighing up their decision to bid.
- More frequent opportunities – Low value tenders are below £106,047. It’s likely that the timespan of the contract will be shorter than an OJEU notice – for an OJEU tender it could be a long as 4 years before it needs to be retendered, but for a low value it could be a short as 1 year. This means that if a supplier misses out the first time it won’t be long until they can re-bid.
Where are the low value opportunities?
Public sector buyers can publicise low value tender opportunities on several of the 500 sites that exist for UK public procurement. To save suppliers time when looking for these opportunities Tenders Direct searches all these sites for suppliers and delivers suitable tenders right into their mailbox.
Research carried out by SmallBusiness.co.uk concluded that nearly 60% of SMEs surveyed expected significant revenue growth in the next 12 months. Here’s to a prosperous year ahead by making the most of low value tenders.