Do small firms actually win government IT contracts?

Public buying is slower than private sales, but it's less stacked against small firms than it looks. Large IT companies rarely chase small contracts, and most IT tenders are scored on quality as well as price, which favours firms with directly relevant experience.

Policies that help small firms

• US: federal agencies have small business contracting goals and set aside many contracts for small businesses.
• UK: buyers must have regard to barriers SMEs face, and frameworks such as G-Cloud have many small suppliers.
• EU: the directives encourage buyers to split contracts into lots.
• Canada: ProServices covers lower-value requirements and is a realistic first list for small firms.
• Australia: federal policy sets a target share of contracts for small and medium enterprises.

Where small firms win

• Cities, counties, councils, universities and health bodies.
• Low-value purchases made by quote, below the tender threshold.
• Call-offs and mini-competitions on frameworks and supply arrangements.
• Subcontracts to larger primes, and joint bids with other small firms.

What it takes

Most small firms take six to eighteen months to win a first contract, often after several bids. Firms that bid selectively on close-fit tenders win far more often than those who bid on everything. Start with how to win government IT contracts.