#CommercialMatters: Working with SMEs on our new SEEMS (Hard FM) framework
Small and medium-sized enterprises (SMEs) are essential for driving innovation, creating jobs, and fostering local economic growth. However, many SMEs are reluctant to join public sector frameworks, due to the perceived barriers such as complex compliance requirements and rigorous bidding processes. To address these concerns and unlock SMEs’ potential, a holistic approach is essential.
Encouraging SMEs to join public sector frameworks aligns with broader economic and social objectives. SMEs often have deep local roots, so they understand their communities’ unique challenges. Their inclusion in public sector contracts stimulates local economies, creates jobs, and enhances community well-being. For example, when an SME secures a contract and hires local apprentices, this contributes to an economic ripple through the community that can help to contribute to a healthier local economy. A diverse supplier base also enhances supply chain resilience, ensuring continuity and mitigating risks associated with disruptions.
Our recently launched Specialist Estates Engineering & Maintenance Service (Hard FM) framework boasts a range of SMEs, with 72% of appointed suppliers being SMEs. We worked hard to ensure the framework was as accessible as possible for SMEs to encourage a diverse pool of suppliers and foster competition. Here are some of the steps we took to achieve this:
Net Zero Supplier Journey
The framework sets out a support mechanism and KPI structure to facilitate the sustainability journeys of awarded SMEs. The approach taken included an assessment of requirements dependent on the nature of the lots, to proportionately address key requirements for Sustainability and Social Value, while not preventing less developed suppliers the opportunity to progress their Net Zero journey under the framework. Through this process, suppliers will be supported to create Carbon Reduction Plans and undertake the Modern Slavery Assessment tool. Suppliers are monitored against their Net Zero Commitments. Suppliers were also assessed against their commitment to sustainability and social value at the call-off stage, with these commitments being available to framework users upon making an award. This can facilitate the application of social value at the call-off stage by reducing the time taken to agree on a process for delivery.
Appropriate Insurance Thresholds
High insurance levels can be prohibitive for SMEs. Reviewing and setting appropriate insurance thresholds proportionate to the scope of work helped to address barriers to entry/admission, allowing more SMEs to compete without incurring excessive costs before being awarded call-off contracts.
Framework Structure
We structured the framework into individual lots alongside the managed service/multi-disciplinary lots. This approach allows smaller suppliers the opportunity to work in their specialist disciplines, leveraging their areas of expertise, fostering competition, and increasing the diversity of the suppliers across the framework.
Engagement and Communication
Engagement and communication were key factors when we were developing the framework. Early engagement with our member trusts helped us identify suppliers, including local organisations and SMEs. It is often the case that despite publishing notices across various platforms and due to various factors, SMEs miss these opportunities. Ensuring engagement with the right stakeholders is crucial for creating a framework that serves contracting authorities’ requirements effectively.
Clear bidding procedures
Bidding complexities can pose challenges for SMEs. Providing clear guidance on quality and commercial requirements with appropriate instructions can help reduce the complexities and challenges of putting a framework bid together. Informative webinars and supplier events are also hosted by NOE CPC which can help suppliers understand the process and address any misconceptions they may have, which enhances SMEs chances of success.
Tips for SMEs
For SMEs wanting to supply services to the public sector, it is important to:
- Sign up for notifications (email alerts) from Contracts Finder and Find a Tender Services, where opportunities are published.
- Invest time in understanding how selling to the NHS and other public sector organisations works.
- Learn the fundamentals of compiling a bid and understand the required tender documentation – consider participating in webinars and other informative events.
- Understand the technical requirements for the work you are applying for, and don’t submit a bid if you do not have the required elements to pass such as certification/accreditations.
- Once you are ready to submit, check your bid addresses the requirements, specifically, and in full – this is an easy mistake to make that can result in a lost opportunity.
Encouraging SME participation aligns with the broader NHS commercial strategy to support SME growth, development, and participation. SME participation across public sector frameworks is not just beneficial for the businesses themselves but also for the communities they serve.
For more information about our work with suppliers, click here to view the Supplier section of our website or get in touch with our Support Desk at enquiries@noecpc.nhs.uk.