ISME: Public sector tendering is bias

ISME, the Independent Business Organisation, has hit out at the public sector tendering process, indicating that small and medium enterprises (SMEs) are losing millions in potential sales due to bureaucratic procedures and the State procurement officers preference to deal with bigger suppliers.

ISME, the Independent Business Organisation, has hit out at the public sector tendering process, indicating that SMEs are losing millions in potential sales due to bureaucratic procedures and the State procurement officers preference to deal with bigger suppliers.

The Association outlined that this policy is radically reducing the States purchasing options and consequently providing bad value for money.

ISME Chief Executive Mark Fielding said: “There seems to be a concerted effort across the board to make it as difficult as possible for SMEs to tender for public contracts. The administrative process is bureaucratic and cumbersome, using language that is alien to many owner managers of smaller businesses.

“The level of bureaucratic requirements is, in our view, restrictive and prevents many SMEs from participating in public contracts”.

Fielding outlined that the tendering documents, in most instances, are put together badly and take no cognisance of the practical realities of the company completing the tender document. Unnecessary information is requested and in many instances the technical specifications are too broadly drafted, with the tender documents designed by individuals with little experience in that particular field.

However, the area of main concern to SMEs in the public tendering process is the fact that a number of the agencies are showing a preference for bundling of contracts and using only a very limited number of suppliers, which are generally multi-nationals and bigger companies.

“This is squeezing out SME suppliers from the tendering process. Consequently, there is a domino effect, as many SMEs do not even attempt to get involved in the process”, said Fielding.

A recent ISME survey confirmed that 30% of SMEs had considered tendering for public contracts but decided against this, mainly because the process was too complex with too much information required and too much time involved. There was a general consensus that the contract would be awarded to a single large supplier in advance of the process beginning.

Fielding called for a radical overhaul of the tendering process and suggested that recommendations should be introduced to address an ongoing problem that puts SMEs at a significant disadvantage.