Win public sector contracts

Public sector procurement is worth around £300 billion per year in the UK. The Procurement Act 2023, which came into force on 24 February 2025, makes it easier for SMEs to compete for government contracts.

This guide covers how to find opportunities, prepare competitive bids, and use the procurement protections available to small businesses.

SME definition under Procurement Act 2023

Definition of Small and Medium-sized Enterprises for public procurement purposes.

Under the Procurement Act 2023, an SME is a supplier that meets all of the following criteria:

Maximum employees: Fewer than 250 staff
Maximum turnover: £44 million or less
Maximum balance sheet total: £38 million or less

Contracting authorities have a duty to consider how they can remove or reduce barriers to SME participation in procurement.

Understanding procurement thresholds

Different rules apply depending on the contract value. Above-threshold contracts must be advertised on Find a Tender and follow full Procurement Act procedures.

Public procurement thresholds (from 1 January 2026)

Contract value thresholds determining which procurement rules apply. Values include VAT.

Works contracts (construction, civil engineering): £5,193,000
Goods/services - central government: £135,018
Goods/services - local authorities, NHS, universities: £207,720
Utilities sector contracts: £415,440
Light touch regime (social, health, education services): £663,540
Concession contracts: £5,193,000

Contracts at or above these thresholds must follow full Procurement Act 2023 procedures and be advertised on Find a Tender. Thresholds are reviewed every two years.

Find a Tender service

Below-threshold contract requirements

Requirements for contracts below the main procurement thresholds.

Contracts Finder threshold - central government: £12,000 (including VAT)
Contracts Finder threshold - other public bodies: £30,000 (including VAT)

Below-threshold contracts must still be advertised on Contracts Finder if they meet the minimum thresholds. They follow simplified procedures but must still be fair and transparent.

Contracts Finder

Finding contract opportunities

All public sector contract opportunities are published on official portals. You should monitor these regularly and set up alerts for relevant sectors.

Public procurement portals by UK nation

Where to find public sector contract opportunities in each UK nation.

UK-wide (above threshold): Find a Tender
England (below threshold): Contracts Finder
Scotland: Public Contracts Scotland
Wales: Sell2Wales
Northern Ireland: eSourcing NI / eTendersNI

Find a Tender

Find public sector contract opportunities

Step-by-step process for finding and monitoring public sector tender opportunities.

Register on Find a Tender – Create a GOV.UK One Login account at find-tender.service.gov.uk. Registration is free and required to access full tender details.
Set up search alerts – Configure email alerts based on your industry sectors (CPV codes), keywords, contract values, and locations. This ensures you never miss relevant opportunities.
Search Contracts Finder – For lower-value contracts (£12,000+ for central government, £30,000+ for other bodies), search Contracts Finder. You can search without an account but registration enables saved searches.
Check devolved nation portals – For contracts in Scotland, Wales or Northern Ireland, also monitor Public Contracts Scotland, Sell2Wales, or eSourcing NI respectively.
Monitor planned procurements – Review pipeline notices to identify upcoming opportunities before they go to tender. This gives you time to prepare and potentially influence requirements.

Find a Tender

Preparing a competitive bid

Public sector tenders are evaluated against published criteria. Understanding how bids are scored helps you prepare a competitive response.

Tender response and standstill periods

Minimum timelines for responding to public sector tenders and standstill after award.

Standard tender response period: Minimum 25 calendar days
Reduced period (with prior notice): Minimum 10 calendar days
Standstill period after award: Minimum 8 working days

The tender response period can be reduced to 10 days if a planned procurement notice was published 40 days to 1 year before the tender notice.

The standstill period gives unsuccessful bidders time to challenge the award decision before the contract is signed. Contracts below the light touch threshold (£663,540) do not require a standstill period.

Submit a tender for a public contract

Process for preparing and submitting a competitive tender response.

Review tender documentation thoroughly – Read the specification, terms, conditions and evaluation criteria carefully. Note any mandatory requirements and how tenders will be scored.
Complete the selection questionnaire – Provide company information, financial details, relevant experience, and declarations about criminal convictions or professional misconduct.
Prepare your quality submission – Answer method statement questions demonstrating your capability, approach, and added value. Reference relevant experience and qualifications.
Complete the pricing submission – Follow the exact pricing format required. Ensure your prices are realistic and sustainable - abnormally low tenders may be rejected.
Check compliance before submission – Verify you meet all mandatory requirements. Missing a requirement often leads to automatic rejection.
Submit before the deadline – Electronic submission via the procurement portal. Late submissions are rejected regardless of circumstances. Allow time for technical issues.
Await evaluation and feedback – The authority evaluates against published criteria. Whether successful or not, you are entitled to feedback on your tender.

Procurement Act supplier guide

Social value in tenders

Central government contracts must include social value in their evaluation. This can be an advantage for SMEs who can demonstrate local employment, training opportunities, or environmental benefits.

Social value requirements in public procurement

Mandatory social value weighting for central government contracts.

Minimum social value weighting (central government): 10% of tender evaluation
Mandatory from: October 2025
Applies to: Above-threshold central government contracts

Social value considers how the contract can deliver wider benefits such as:

Creating jobs and training opportunities
Supporting SMEs in the supply chain
Reducing environmental impact
Tackling economic inequality

Bidders should demonstrate how they will deliver social value outcomes relevant to the contract.

PPN 002: Social Value Model

Getting paid on time

Late payment is a major concern for SMEs working with the public sector. The Procurement Act 2023 includes strong protections for prompt payment.

Prompt payment requirements for public contracts

Mandatory payment terms for public sector contracts under the Procurement Act 2023.

Maximum payment period: 30 calendar days from valid invoice
Government target for SME invoices: 90% paid within 5 days
Supply chain payment terms: 30 days must flow through to subcontractors

The Procurement Act 2023 implies 30-day payment terms into every public contract and sub-contract, even if not explicitly stated. Suppliers can claim statutory interest if not paid within this period.

Supplier bidding requirements (contracts over £5 million/year)

From October 2025, suppliers must demonstrate they pay their own invoices within an average of 45 days to bid for major government contracts.

Prompt Payment Policy

Your rights as an SME

The Procurement Act includes specific provisions to reduce barriers for small businesses.

SME rights and protections in public procurement

Protections for small businesses under the Procurement Act 2023.

The Procurement Act 2023 includes specific provisions to help SMEs compete for public contracts:

SME participation duty: Authorities must consider and reduce barriers facing SMEs
Insurance flexibility: Evidence of insurance required at contract award, not at bid stage
Payment protection: 30-day payment terms throughout the supply chain
Open frameworks: New suppliers can join frameworks at intervals, not just at launch
5-day payment target: Government aims to pay 90% of SME invoices within 5 days

If you experience issues with procurement processes or late payment, contact the Public Procurement Review Service (PPRS).

Procurement Act supplier guide

Official procurement services

Find a Tender
Search for high-value public sector contracts
gov.uk
Contracts Finder
Search for contracts worth £12,000+
gov.uk
Supplier Registration Service
Register your company details for procurement
gov.uk
Procurement Act supplier guide
Official guidance for businesses
gov.uk

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Win public sector contracts

Understanding procurement thresholds

Finding contract opportunities

Preparing a competitive bid

Social value in tenders

Getting paid on time

Your rights as an SME

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Understanding procurement thresholds

Finding contract opportunities

Preparing a competitive bid

Social value in tenders

Getting paid on time

Your rights as an SME

Related guides in Growth & Strategy

Business Context Testing

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