4 Things to Know About Public Sector Contracts

things you don't know about public sector contracts

Just getting started with public procurement? We have listed four things you may not know about public sector contracts below.



The Freedom of Information Act together with the government’s Transparency Principles mean that that transparency in public sector procurement is required.

Local and central government departments in England must publish details of all public sector contracts valued over £500 and £25,000 respectively. The published information should include buyer and supplier details, a brief description of what the contract is for and its value. This can give your business information about how much the organisations you want to work with are spending and the suppliers that they are working with.


Authorities must follow procurement thresholds

Did you know that any public sector organisation that plans on publishing a contract opportunity over a certain value must advertise it in the OJEU? These values are called thresholds and vary according to whether the contact is for supplies and services or works.


Public sector payment

Working with the public sector can be extremely lucrative. Even during times of economic downturn, schools, hospitals, and other public services must continue as usual. To comply with the government’s Prompt Payment Code, public sector bodies must pay accounts within 30 days of receiving a valid bill or invoice. In addition, 32 ‘strategic suppliers’ have committed to extending this policy to their supply chains.


The government wants SMEs to win public sector contracts

The government is doing everything it can to encourage SMEs to bid for public sector contracts and has taken measures to simplify public sector tendering. The government understands that entering the market can be difficult due to a lack of resources and has streamlined the procurement process for businesses that supply to the public sector through Crown Commercial Service (CCS) procurement frameworks.

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