Public sector boosts SMEs

Government's procurement department overhauls consultancy framework

Over £300m worth of public sector business could be up for grabs after a decision by the government's procurement department to overhaul its consultancy framework.

The SCat framework, which provides public sector buyers with a list of business, professional and IT services suppliers, has been expanded to make it easier for smaller firms to win public sector contracts.

It mirrors the GCat scheme, which allows the public sector to bypass European Union procurement rules and buy equipment such as PCs off the page. SCat allows government departments to do the same for services.

The Office of Government Commerce (OGC), which oversees SCat, has simplified its categorisation and raised the number of approved suppliers from 78 to 170. IT consultancy is now one of the five main categories.

An OGC representative said: "Departments were telling us that they got great value from SCat but wanted it to be easier to find suppliers. We've made it simpler and expect that to drive up use."

SCat was established in 1997 to simplify the process of finding consultants. According to John Griffith, consulting director at public sector reseller Compusys, it has provided a "short-cut to credibility", allowing smaller companies to win public sector business.

However, he added: "That said, it comes with a tier of bureaucracy. Some of the forms can take a fortnight to complete. But the changes should shorten sales cycles, which will benefit everyone."

New suppliers were identified through competitive tendering. The results have seen many smaller consultancies added to the SCat list, said the OGC representative.

"The government recognises the value that SMEs can bring, both in delivering specialist skills and innovation. We want suppliers that can deliver at the right price, and to the right quality," he said.

The GCat system was also overhauled last year.