There are various benefits of tendering, making it appealing to many businesses. If you haven’t tendered before, then the tendering process can be overwhelming. This is especially true for small businesses because it can sometimes feel like the government agencies just want big business suppliers.
But you should remember that small businesses can have more advantages than larger businesses. No wonder, many small business owners are now taking advantage of the public sector tenders, such as OJEU Tenders. This discusses why businesses should choose public sector tenders.
Understanding the public sector
The public sector is usually made up of not-for-profit organizations that are owned by the government for the benefit of its citizens. These organizations or agencies tend to cover areas, such as education, defence, healthcare, fire services, police, and many more.
The public sector depends on public funding for its operations, so it’s required to make sure that their financial decisions are transparent, encourage free and open competition, and benefit the public.
No doubt, the public sector provides a reliable source of income for businesses. Government agencies need many services and products from suppliers, such as stationary, infrastructure, and many more. They make all notices public, and you can even access them online for all suppliers to view and bid for.
The benefits of public sector tenders
All public contracts are open and accessible. This means regardless of the size of your business, you stand a good chance of winning the tender if you meet the criteria. This is unlike the private procurement where buyers can select who to tell about their recruitment needs or who to do business with.
Even better, the public sector usually desires to give work to small businesses. There are many small businesses that are working with the government. There are also some policies that allow government agencies to prioritize small businesses.
All invoices for contracted work need to be processed by government agencies within 30 days after receiving the services or goods. This makes sure that small businesses are paid quickly. On the other hand, the private sector usually takes longer to pay the invoices, especially when it comes to larger businesses that tend to dictate when they can make payment.
With the public sector, there is a transparent tendering process. There is nothing that is concealed in public procurement. This means decisions are transparent, and suppliers can receive feedback even if they failed to win a contract. The private sector doesn’t need to make its processes public, and don’t have to offer feedback to suppliers.
Today, the most economically advantageous tenders is the method of proposal assessment. Therefore, contract awards can be based on price and other wider aspects of tender submissions. One of the major considerations is social value.
There is also continuously improving processes with the public sector. The public sector continues to improve their processes to make bidding for government work less time-consuming and easier. For example, government agencies use a single procurement document. This means only the winning bidder can give the required documents, so this can save you a lot of time and effort.