Published on: 4 November 2024
With the Procurement Act 2023 set to come into force in January 2025, the need for transparency and sustainability in public procurement will only increase. The TISCreport Transparency Report offers SMEs a crucial advantage in this new landscape, providing the data they need to compete on a level playing field and demonstrate their ESG (Environmental, Social, and Governance) commitments. Importantly, UK public bodies are already using transparency data to assess suppliers for tenders, making it even more vital for SMEs to utilise these tools.
1. Building Trust and Credibility Through Transparency
One of the key challenges for SMEs in public procurement is proving their credibility and trustworthiness. Larger suppliers often have the resources and experience to navigate procurement processes with ease, leaving smaller businesses at a disadvantage. The TISCreport Transparency Report helps SMEs by offering verifiable, real-time data on their ESG performance, enabling them to showcase their commitment to sustainability, ethical business practices, and governance standards.
This transparency data is already being used by UK public bodies to evaluate suppliers during tender assessments. By utilising the Transparency Report, SMEs can demonstrate that they meet the stringent transparency and sustainability requirements that public authorities are increasingly prioritising under the new Procurement Act.
2. Enhancing Access to Public Contracts
The Procurement Act 2023 is designed to simplify and speed up the procurement process, making it easier for SMEs to access public contracts. A centralised digital platform will list all public sector tenders in one place, making it easier for businesses to identify relevant opportunities. However, increased visibility also means heightened competition.
The TISCreport Transparency Report gives SMEs a competitive edge by allowing them to present clear, data-driven insights into their ESG performance alongside their tender applications. With public bodies using this transparency data to assess suppliers, SMEs that can showcase strong ESG practices will stand out, especially as sustainability and social value become key decision-making factors.
3. Leveling the Playing Field for SMEs
A central aim of the Procurement Act is to level the playing field for SMEs by removing unnecessary barriers in the procurement process. Contracting authorities are required to ensure that smaller businesses have fair access to opportunities and are not disadvantaged by disproportionate requirements or contract clauses.
The TISCreport Transparency Report supports this goal by classifying businesses by size using open data, making it easy for public authorities to identify SMEs. This ensures that smaller businesses are clearly recognised as such during the tendering process, allowing them to compete more effectively. Public bodies can use this data to evaluate SMEs fairly, increasing their chances of securing public contracts.
4. Helping SMEs Meet Sustainability and ESG Standards
The National Procurement Policy Statement accompanying the Act emphasises the need for sustainability, value for money, and social value in public procurement decisions. Contracting authorities are increasingly assessing tenders based on ESG performance, and businesses that can demonstrate strong sustainability credentials are more likely to win contracts.
The TISCreport Transparency Report provides SMEs with the tools to track and showcase their ESG performance, making it easier for them to align with public procurement priorities. With public bodies already using transparency data to assess supplier ESG credentials, SMEs that integrate this reporting can ensure they are meeting the standards that contracting authorities expect.
5. Providing Feedback and Improving Performance
One of the benefits of the Procurement Act is the requirement for public bodies to provide feedback to unsuccessful bidders. This feedback can be invaluable for SMEs that may lack the resources to fine-tune their bids and improve their chances in future tenders.
By using the TISCreport Transparency Report, SMEs can continuously monitor and improve their ESG performance, ensuring they are always in line with public procurement expectations. This proactive approach to transparency will not only help SMEs secure contracts but also enable them to build stronger relationships with public authorities. TISCreport also does much of the heavy lifting. Whilst many systems still rely on self-reporting, TISCreport aggregates as much of the data required from public authority sites. This also aids buyers in ensuring that the data is as correct as it can be (or at the very least, conflicts between data sources can be highlighted).
Conclusion: Transparency as a Key to Unlocking SME Success
As the UK government seeks to increase procurement spending with SMEs, the TISCreport Transparency Report offers an essential tool to help smaller businesses compete effectively in public procurement. By providing clear, real-time data on ESG performance and supporting SME classification, the Transparency Report allows businesses to meet the rising standards of transparency and sustainability under the Procurement Act 2023.
Importantly, UK public bodies are already using transparency data to assess suppliers for tenders, making it crucial for SMEs to embrace transparency reporting as part of their procurement strategy. With the TISCreport Transparency Report, SMEs can gain a competitive edge, unlock new opportunities, and secure their place in the future of public procurement.
