National and regional business leaders, along with politicians, have expressed their support for a new pilot programme aimed at helping small and medium-sized enterprises (SMEs) in Greater Manchester (GM) and Liverpool City Region (LCR) secure public sector contracts from their local councils within the STAR family.
This innovative pilot leverages a digital platform called Nomia to streamline the process of obtaining quotes for lower-value council contracts. By prioritizing local SMEs, the initiative aims to ensure that these businesses are first in line to fulfil contracts for goods and services. This could lead to a significant increase in council spending within the local economy, fostering growth and job creation.
The STAR family of councils participating in this pilot includes Stockport, Tameside, Trafford, Rochdale, Knowsley, and St Helens. This initiative is the first of its kind in the UK and has been championed by the Federation of Small Businesses (FSB) over the past two years. Led by STAR Procurement, the strategic procurement function for these councils, the FSB hopes that, if successful, this approach will be adopted by other councils in the region.
Research by the FSB in GM indicates that many small businesses have traditionally viewed council contracts as inaccessible, overly complex, and costly to secure. This pilot aims to address these challenges by simplifying the procurement process and reducing bureaucratic hurdles, such as the use of complex e-tendering portals. Initially focusing on low-value contracts, the pilot will be reviewed and expanded in phases.
Leader of Trafford Council, Cllr Tom Ross said:
“As the new Procurement Act 2023 goes live this month it is brilliant to see STAR Procurement leading the way in piloting a new way to target our local and SME businesses in our Greater Manchester region to increase their success in winning public sector contracts”
Leader of Knowsley Council, Cllr Graham Morgan, said:
“This is an exciting pilot that will drive more local spend to support our small and medium businesses and simplify how we approach lower value public procurement in Knowsley and in our Liverpool city region”
Director at STAR Procurement, Lorraine Cox, who has been the driving force behind this pilot, said:
“I’m confident the pilot will deliver benefits in spending the public purse locally and will strengthen relationships between the public sector and small and medium businesses”
“This pilot will test a proof of concept and therefore contracts will release in small phases to allow STAR to assess processes and impact. We anticipate success and therefore intend to widen the scope in the future”.
GM Metro Mayor, Andy Burnham also welcomed the pilot, commenting:
“Helping more small businesses compete for and win public contracts is key to building a more inclusive economy in Greater Manchester. By keeping spending local, we can ensure the benefits are felt by our people and communities”
Robert Downes, Development Manager for the FSB in Greater Manchester, said:
“This is an exciting opportunity for businesses and councils alike – and it’s something we’ve been campaigning for since 2022”.
“For smaller businesses who have traditionally seen public sector procurement as beyond their reach and aimed more at bigger businesses, this will help open-up contract opportunities to small and medium businesses. These could see a new and rich stream of contract opportunities, without the complex procedures of higher value/risk contracts”.
“It’s a real win-win for the public and private sectors particularly at a time when budgets in all sectors are under pressure.”
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