Lewis Silkin Northern Ireland sees tech SMEs benefiting from procurement changes

A landmark shift in UK public sector procurement law has opened new doors for small and medium-sized enterprises (SMEs) in Northern Ireland’s tech sector. With a more transparent and SME-friendly procurement framework now in place, tech suppliers are better positioned to navigate the public sector landscape and secure valuable government contracts. According to Rory Campbell (pictured), partner at tech and employment law firm Lewis Silkin Northern Ireland, the introduction of the Find a Tender service has been key in simplifying access to public sector contract details. “This platform publishes procurement tenders, both above and below financial thresholds, and provides a broad range of notices at different stages of the tender process,” says Mr Campbell.

The Find a Tender service also includes information on dynamic markets, replacing the previous dynamic purchasing frameworks. “This enhancement allows government buyers to procure a wider array of products and services beyond traditionally defined ‘commonly used purchases,’” Mr Campbell adds. This shift offers more flexibility to suppliers, particularly those offering specialised or niche solutions, which had previously faced challenges under the old procurement models.

A crucial change in the process is the move from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). This shift allows procurement teams to consider factors such as innovation, quality, and service, giving SMEs a chance to compete beyond just price. SMEs, particularly in the tech sector, can now demonstrate their value through innovation and quality, rather than being outpriced by larger, less flexible competitors. This approach aligns with the government's focus on encouraging more dynamic, diverse suppliers to enter the public sector procurement space.

Another benefit for SMEs is the newly enforced 30-day payment rule, ensuring suppliers receive payment for undisputed invoices within a month. “This ensures that all suppliers, including subcontractors, receive payment for undisputed invoices within a month,” says Mr Campbell. The quicker payment terms are expected to ease cash flow challenges, enabling SMEs to grow more sustainably and focus on delivering high-quality services rather than chasing overdue payments.

Additionally, a new “name and shame” policy introduces a list of suppliers barred from bidding on public sector contracts. This list includes businesses with a history of insolvency, failure to deliver on previous contracts, or those deemed a potential national security threat. The policy aims to ensure that public funds are only used to support reliable, capable suppliers. Government buyers now also have the power to unilaterally terminate contracts if they were awarded unlawfully or if a supplier is non-compliant with procurement regulations. This increases accountability and ensures that only those who meet strict criteria remain eligible for future contracts.

One of the most impactful changes is the legal duty for buyers to consider “lotting,” breaking large contracts into smaller segments to facilitate SME participation. This approach follows the National Procurement Policy Statement (NPPS), which prioritises economic growth by ensuring SMEs have a fair shot at public sector contracts. By dividing large contracts into smaller parts, SMEs can more easily meet the requirements and bid for specific portions of the work that align with their capabilities.

The policy states, “Small businesses and social enterprises are more likely to generate diverse and thriving local economies, creating jobs and economic growth. Increasing procurement spend with these suppliers is a national priority.” This emphasis on supporting SMEs is expected to strengthen local economies and create new opportunities for growth in both urban and rural areas across the UK.

For tech SMEs, this means increased opportunities to secure public sector deals, especially in emerging fields like AI and digital transformation. “For tech SMEs, this means greater opportunities to secure public sector deals, particularly in emerging technologies, AI, and digital transformation projects,” says Mr Campbell. These sectors are among the most rapidly growing in the global economy, and public sector demand for innovative solutions is at an all-time high.

The procurement changes create a stronger foundation for long-term government partnerships, with SMEs better positioned to offer innovative solutions and products. By focusing on quality, service, and innovation rather than simply cost, these reforms provide a level playing field for smaller firms, fostering competition and driving improvements in public sector services. As SMEs continue to engage with public sector opportunities, these changes could lead to more diverse, efficient, and forward-thinking government projects.