It is a fact that Local Authorities are now in the process of auditing their supplier databases which could mean new openings for small suppliers. Long gone are the days when supplier contracts were won over a game of golf, and a transparent system means the Public Sector marketplace is not just for the ‘fat cats’- now everyone can have a slice of the cake.

The Public Sector Authority marketplace is worth £140bn per year in supplier contracts, making this one of the largest buying sectors in the UK.

So, if you want to continue working within Public Sector or want to get a piece of the action it is important to be aware of the opportunities now available with Local Authorities because of the recent Central Government recommendations:

¥ Local Authorities must thoroughly audit their supplier database.

¥ Suppliers now have to undergo an extensive vetting procedure.

¥ A mixed economy of service provision, with ready access to a diverse, competitive range of suppliers providing quality services, including small firms, social enterprises and minority businesses and voluntary and community sector groups.

This means smaller local suppliers now have the chance to compete alongside the larger national supplier who, because of the economy of scale, can provide the same services cheaper.

However it doesn’t matter whether you’re the local florist or a gardener, you have to make sure your company complies with the necessary guidelines to work in Public Sector and this is where the accreditation process comes in.

The burning question everyone asks is, ‘Do I need to be accredited?’ The answer is up to the discretion of the Local Authority who is advertising the tender as to whether they will carry out the auditing process internally or use a recognised independent external accreditation specialist.

Unfortunately, if the Local Authority requires you to be accredited through an independent body, it means a fee will be involved. This may seem unfair as some SMEs will have no choice but to pay to become accredited to work with that particular Local Authority, but there are a number of huge advantages.

Firstly, you only have to go through the audit once, whereas if you are not accredited, you have to go through the same checking and form filling every time a tender is issued. This means you can target a greater number of tenders more effectively without all the paperwork for each submission. Secondly, accreditation means visibility as you will appear on preferred suppliers list which will increase your chances of being invited to tender.

However regardless of who carries out the audit - either an independent accreditation body or the Local Authority internal auditing department - you will be asked to supply evidence of the financial strength of the company, relevant insurances, health and safety, equal opportunities policies and a number of references.

The estimated value of the contract will determine the tender procedure, including how it is advertised, how many suppliers will be asked to quote for the contract and what level of vetting is needed.

For example, low risk supplier contracts (up to £5k approx.) which could include day-to-day supply services, may not be advertised and will be awarded on a ‘best value’ basis. Therefore it is important that these suppliers have presence online to fall in line with the Government e-procurement initiative 2005 that requires electronic trading to reduce expenditure.

These types of suppliers may still be audited either internally or at first level entry by an accreditation body, which will be cost effective to the supplier and gain them visibility on a preferred suppliers list.

Suppliers who provide products or services at a more strategic level or have an ongoing commitment or project at a slightly higher risk level (up to £25K approx.) may be required to submit more details for the audit and a written quotation.

Suppliers will need to be accredited at second level entry which requires a more robust equal opportunities and financial check. Again, these types of contracts may not be advertised, therefore accreditation is advantageous in giving the supplier more visibility.

Contract values over £25K are most likely to be advertised with a formal tender. Suppliers, contractors or consultants will be required to be accredited to the highest level entry if the auditing process is not done internally. As a high risk category a stringent evaluation will be carried out involving a significant number of checks.

Assess the type of tender you want to apply for by visiting your Local AuthorityÕs website where there will be a business procurement guide. Also, the approved accreditation bodies will be able to advise you on what standard of accreditation is required as they will be working the Local Authorities.

There are also a number of journals and local publications that will advertise tenders and indicate the qualifying details. You can also gain more information by attending Local Authorities Supplier Briefing Sessions.

Finally, if you become accredited it can increase your business with the Public Sector marketplace but remember it is not an automatic key; you will still need to market yourself and be proactive in seeking tenders.

For more information about free first level accreditation though UK Trades Confederation membership visit www.uktc.org.

The UK Trades Confederation

The UK Trades Confederation exists to help members increase their business, protect their company and reduce overheads. This is achieved through an extensive range of benefits and services that are continually reviewed and updated.

Membership of the UK Trades Confederation provides businesses with a recognised accreditation and customers with the peace of mind of knowing that you are dealing with a company that cares about its image and standards.

In addition, the Confederation provides up to the minute and invaluable information to its members on issues ranging from latest legislation to advice on running your business.

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