OGC TO IMPROVE COMPETITION IN THE GOVERNMENT MARKETPLACE

The Office of Government Commerce (OGC) is to increase efforts to widen access to the government marketplace for new entrants, Paul Boateng, Chief Secretary to the Treasury announced today.

The Government wants to see competitive markets operating throughout the economy, and especially in areas where government itself is a major purchaser.

Paul Boateng said:

“We need to have new suppliers of all sizes entering the government marketplace because strong competition is one of the most important ways to achieve value for money, both now and in the longer term.”

The new initiative will build on recent work carried out by OGC in partnership with the Small Business Service (SBS) to open up the government marketplace to suppliers – with an emphasis on SMEs. This includes:

The publication of “Smaller Supplier… Better Value?” urging public sector buyers to consider the benefits of dealing with SMEs, the barriers they face and ideas for how to reduce them. An accompanying video has just been launched.
Government guidance on financial assessment of suppliers, which encourages greater flexibility, and allows small and new companies a chance at competing for relevant contracts.
A Code of Practice for government buyers and suppliers emphasising the importance of fairness, honesty, efficiency and professionalism throughout the supply chain.
Guidance for SMEs on selling to government, which is currently being updated, transferred to a new website, and made relevant to suppliers of all sizes.

This announcement also follows a report, published recently by the Competition Commission, which makes recommendations aimed at improving competition for major government contracts. This new initiative will expand the scope of the work already undertaken to respond to these recommendations, and to address barriers to competition in the wider marketplace. In particular the OGC will:

Work with the SBS and government departments to improve the information available to suppliers on selling to government, including information about forthcoming opportunities.
investigate ways of reducing the costs associated with bidding for government business.

An update will be presented to Ministers in the summer.

NOTES TO EDITORS

Established in April 2000, the OGC was set up to act as a catalyst in procurement issues and to work with civil departments to achieve best value for money in their commercial activities.

Responsible for civil central government procurement policy and best practice including Construction, Property Management, IT, the Private Finance Initiative (PFI), supplier relations including opening government contracts to SMEs, e-commerce including the Government Procurement Card, the Gateway Review Process, OGCbuying.solutions, including the Government buying catalogues, G-Cat and S-Cat and developing strategic procurement partnerships with the private sector.

Hard copies of the publications described above are available from the OGC Service desk on 0845 000 4 999, and can also be viewed on-line at the OGC website. These include:

Smaller Supplier… Better Value? booklet and video
Supplier Financial Assessment Guidance
Tendering for Government Contracts
Government Procurement Code of Good Practice

The report of the Competition Commission’s Investigation can be viewed on-line, ref Cm 5624 (2002)

The Small Business Service (SBS) is an Executive Agency of the Department of Trade and Industry (DTI). Press enquiries to: SBS, Kingsgate House, 66-74 Victoria Street, London SW1E 6SW. Tel: 020 7215 8481

Media enquires should be directed to OGC Press Office, tel. 020 7271 1318

Press Notices index 2002 July to December