In our blog about election manifestos one thing that was clear is that all the main parties feel that involvement of SMEs in procurement is the key to economic growth. The current Government set a target of 25% of all Central Governments spend to be with SMEs when it came to power in 2010 and it met this target in the 2013-2014 financial year. Framework agreements represent around 45% of procurements in the UK and compared to other EU nations the UK uses this type the most. The purpose of this blog is to explain how important framework agreements can be for SMEs.
The public sector is a potentially lucrative source of business, as the UK spends about £222 billion a year on procurement. There are also certain advantages to working with public sector organisations; they are required by EU law to be transparent and fair in the way they choose suppliers, they are very stable and reputable, and usually make prompt payments.