SMEs peeved over recent Welsh framework

Smaller suppliers accuse government of going back on its pro-SME agenda after big framework unveiled earlier this week

The government is not doing enough to help smaller resellers win places on big frameworks, according to some SME suppliers that missed out on a recent Welsh mega-framework.

On Monday, the Welsh National Procurement Service (NPS) awarded 13 resellers a place on an £800m IT Products and Services framework. Reseller giants such as Computacenter, Softcat and SCC were among the companies showing up on the highest number of lots. Just one Welsh SME, and two SMEs in total, won a place.

The profile of winning suppliers has sparked concern among some resellers, which claim the outcome is a direct contradiction of the government's pro-SME agenda.

In recent years the UK government has talked up its commitment to levelling the playing field for smaller firms across government procurement in a bid to get better value for money.

"They have positively gone against those statements," said Welsh SME Gaia Technologies' education and public sector director Bob Lewis. "If you look at the tenders awarded in England, they've all gone to relatively large companies. The small companies are being excluded."

Shaune Parsons, managing director of Welsh SME ComputerWorld Wales, agreed.

Although he conceded that he missed out on the framework fair and square, he said the consequences could be significant for his company.

"We now have to wait two years before it is retendered," he said. "That's assuming we're still here in business because, without a doubt, it is going to be much, much more difficult."

He added that the tender process does not necessarily take everything into account when assessing companies.

"[Big resellers'] bid teams are probably 20-strong, but Computerworld employs 12 people," he said. "We've got a lot of Welsh customers who feel we've become such an integrated part of their strategy [through doing business on previous versions of the NPS framework], they feel they've had their arms ripped off now as well. We don't box-shift, we provide solutions and services. The customer is used to that level of service and now they're thinking 'I can't get that company in Leeds to drop a cable in the office on their way past this morning'."

Parsons said smaller, local firms should get extra credit when bidding for business.

"I think there should be some weighting to it," he said. "David Cameron has stood up and said he wants more public sector [customers] to deal with the SMEs. I have a central government customer who gets a great big tick in the box for dealing with a local [SME]. No matter how loyal some of [our] customers are to SMEs in Wales, they can't do that now."

Gaia's Lewis disagreed that local weighting was the way forward, but said there are other ways smaller companies can be better represented.

"The only way I think smaller companies can do it is if the lots are made to include local services as well," he said. "That way, the likes of Insight wouldn't be able to compete because they would have to get teams on the ground to do it. I think that's where it is going wrong."

In a statement sent to CRN, the Welsh Government insisted the recent contract award was fair.

"The NPS is committed to encouraging SMEs to bid for all its contracts and frameworks," it said. "Since 2004, the Welsh Government's innovative, SME-friendly procurement policy has seen spend with Wales-based business increase by some 20 [percentage points], from 35 per cent to 55 per cent.

"The tender process for the IT Products and Services Framework was streamlined to minimise barriers to SME supplier participation through the setting up of appropriate insurance levels and financial checks via the use of the Welsh Government's supplier qualification information database.

"Of the 13 suppliers awarded a place on this framework, two of the suppliers are SMEs and one is a Welsh SME. While the remaining suppliers are larger ICT organisations, two have Welsh facilities and they have all committed to providing additional community benefits for Wales which include, but are not limited to, opening new Welsh offices and providing additional employment and training opportunities.

"The NPS is continuously looking at ways to improve its frameworks, including taking feedback from unsuccessful suppliers into consideration."