Win public sector contracts

How to find and bid for government and public sector contracts as an SME.

UK-wide
Guide summary

You can bid for public sector contracts worth £300 billion each year. Check if you qualify as an SME (fewer than 250 staff, turnover under £44 million). Use official portals like Find a Tender and Contracts Finder to search for opportunities. Follow the rules for your contract value and show how your bid helps local jobs or the environment.

  • Check if you qualify as an SME (under 250 staff, £44m turnover)
  • Search for contracts on Find a Tender (UK-wide) or Contracts Finder (England)
  • Follow different rules based on contract value (over £135k for central government)
  • Central government contracts must include 10% social value from October 2025
  • Public sector must pay you within 30 days (90% target within 5 days for SMEs)
  • Contracts over £5m/year require suppliers to pay their invoices within 45 days
  • You can challenge award decisions during the 8-day standstill period
  • Keep records of all bids and payments for reference
  • Contact Public Procurement Review Service for late payment issues
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UK-wide

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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.

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.

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.

Preparing a competitive bid

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

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.

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.

Your rights as an SME

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

Official procurement services