Winning your first government contract can feel like a big leap — especially if you’ve just launched your business. You might wonder where to start, how to bid, or whether public procurement is even accessible to startups.
Here’s the truth: government buyers actively want to work with small businesses. Under the Procurement Act 2023, more contracts than ever are being opened up to startups and SMEs, with simpler processes, fairer criteria, and better visibility of opportunities. These opportunities range from small projects to multi million pound contracts, offering startups the chance to compete for high-value, transformative work.
This guide breaks down everything you need to know — from understanding the procurement process to writing a winning bid — so you can confidently secure your first public sector contract.
Why Government Contracts Are a Growth Engine for Startups
Government contracts aren’t just for large corporations. In fact, over 78% of public contracts under £100k already go to SMEs — and new legislation has made it even easier for smaller suppliers to compete.
For startups, public sector work can be transformational, offering a clear advantage such as increased market credibility and a competitive edge over rivals. It offers:
- Predictable, long-term income – Public sector contracts often span months or years.
- Credibility and stability – Having government clients gives your business a significant advantage, boosting your reputation with investors and future customers.
- Repeat opportunities – Once you’re in the system, you’ll be invited to more tenders.
- Prompt payments – Public buyers must pay invoices within 30 days, supporting small business cash flow.
Yet despite these benefits, many startups hesitate to enter the market. They assume it’s “too bureaucratic” or “only for established firms.” The Procurement Act 2023 has flipped that perception — streamlining tender processes, reducing paperwork, and creating a level playing field for new entrants.
Ready to start exploring opportunities? Register free with Supply2Gov and discover tenders in your region that match your startup’s capabilities.
Step 1 – Understand the Public Procurement Process
Before bidding, it helps to understand how public contracts are advertised, evaluated, and awarded. Understanding the tender process is crucial for navigating government procurements, as it involves a series of formal steps that determine how contracts are awarded. While terminology can vary, the process across the UK and Ireland follows five simple stages.
1. Contract Notice (Opportunity Published)
Every public contract begins with a notice — a public announcement on platforms like Find a Tender (UK), Contracts Finder (where contracts worth over £12,000 including VAT are typically listed, making it a key resource for startups seeking government contracts), or eTenders (Ireland).
This notice includes essential details: scope of work, timelines, budget, and eligibility criteria. Monitoring these listings ensures you never miss a relevant opportunity. Conducting regular searches on platforms like Contracts Finder is essential to identify relevant opportunities.
Supply2Gov simplifies this by collecting all notices in one place, so you can filter by sector, region, or contract size.
2. Selection Questionnaire (SQ) / Pre-Qualification (PQQ)
For larger contracts, buyers may first check supplier suitability. This short questionnaire covers your business details, finances, insurance, and experience.
Good news: for low-value tenders (under £100k), this stage is often skipped — part of ongoing efforts to make public procurement more SME-friendly. The requirement for a selection questionnaire is often limited to higher-value contracts, making the process more accessible for startups.
3. Invitation to Tender (ITT)
This is where you submit your full proposal. You’ll receive the main tender document and any supporting materials detailing what the buyer wants, how bids will be evaluated, and submission rules.
Your job: ensure your response addresses all requirements outlined in the tender document, answer all questions clearly, provide supporting evidence (such as case studies, certifications, references, and demonstrations of your team’s expertise), and submit by the deadline. Submitting a complete and well-organized response increases your chances of success.
4. Evaluation
All tenders are scored based on published criteria, usually a balance of quality, price, and social value — known as the “Most Advantageous Tender” principle. Buyers take account of social value and other benefits when scoring bids.
The evaluation process is designed to identify the best value for the contracting authority, not just the lowest price. Demonstrating good value for money is essential to a successful bid.
5. Award and Feedback
Winners are notified and all participants receive feedback — including scoring and comments. Use this feedback to improve future bids. Feedback may also address any concerns the buyer had about your submission, providing valuable insight for future bids.
Completing all required stages on time is crucial, as delays can impact payment schedules.
Even if you don’t win first time, this insight is invaluable for your next tender.
Step 2 – Prepare Your Startup to Bid on Government Contracts
Before you bid, make sure your business, company, or organisation is tender-ready — that means compliant, credible, and well-documented. Both companies and other organisations can participate in public sector procurement.
Here’s a simple checklist to prepare your startup or organisation of any size:
Legal and Financial Details
- Company registration number and VAT status
- Up-to-date director and shareholder information
- Public, employer’s, and professional indemnity insurance
- Recent financial accounts or management statements
- HMRC (UK) or Revenue (Ireland) tax compliance
These details prove legitimacy and financial stability — two essentials for any buyer.
Policies and Certifications
Public buyers expect to see basic policies, even from small suppliers:
- Health & Safety Policy – Required if you have five or more employees.
- GDPR / Data Protection Policy – Shows compliance with UK/EU data laws.
- Equality, Diversity & Inclusion Policy – Reflects social value commitment.
- Environmental Policy – Demonstrates sustainable practices.
- Cyber Essentials Certification – Now mandatory for UK government contracts.
Don’t have ISO accreditations yet? That’s fine — equivalent internal policies and a roadmap for certification still demonstrate compliance.
Experience Evidence
Even if you’ve never worked with government before, you can use private sector projects or pilot work as case studies. For each project, clearly outline the project scope, objectives, and outcomes to demonstrate your capability. Show:
- Problem → Solution → Measurable Outcome for each project.
- Testimonials or contact details for referees.
Tip: Create a central “bid library” with all your policies, certificates, and references. When a tender appears, you’ll be ready to respond immediately.
Step 3 – Find the Right Opportunities
Finding tenders is often where new suppliers struggle. There are dozens of portals, daily updates, and technical language.
That’s why Supply2Gov exists — to make discovery simple.
How Supply2Gov Helps Startups
- Comprehensive coverage: Access the UK and Ireland’s largest database of public sector tenders.
- Free Local Alerts: Receive tailored email notifications about relevant tenders in your area.
- Smart Filtering: Search by region, sector, keyword, or CPV code (industry classification).
For example, an IT startup could search for contracts under “software support,” filtered by the North West region and under £50k value — pinpointing achievable, low-barrier contracts.
This level of focus helps you start small, build confidence, and scale gradually.
Step 4 – Write a Standout Government Contract Bid
Once you’ve found the right opportunity, your next task is crafting a bid that stands out.
Seeking professional advice can help you craft a more competitive and compliant bid.
A great tender isn’t about fancy language — it’s about clarity, evidence, and alignment with the buyer’s goals.
How to Structure a Winning Bid
- Follow the instructions exactly. Missed sections or late submissions = automatic rejection.
- Answer every question directly. Avoid generic statements; respond to each criterion with specific proof.
- Provide measurable evidence. Replace “we deliver great service” with “we achieved 98% on-time delivery across 50+ projects.”
- Focus on value, not just price. Under the new rules, buyers now assess “most advantageous” bids — meaning social value, innovation, and community benefit count too.
- Clearly state what goods or services you will supply and explain how your supply meets the buyer’s requirements.
- Proofread carefully. Typos or inconsistent formatting can undermine credibility.
Tip: Read the buyer’s mission statement and social value policy — tailor your answers to their objectives.
Note: If your bid is successful, you may be required to sign a formal contract before any work or supply begins.
Step 5 – Submit, Follow Up, and Build Buyer Relationships
Submitting a bid isn’t the end — it’s the start of your relationship with the public sector.
After submission:
- Check your confirmation receipt — ensure the portal shows your bid as “received.”
- Wait for feedback — every buyer must now provide post-award feedback under the Procurement Act.
- Request clarification — if you’re unsuccessful, ask where you lost points.
- Stay in touch. Keep the buyer informed about your services or new projects — this helps you stand out for future tenders.
Consistency is key: every bid builds your profile, experience, and credibility.
Overcoming Common Barriers to Winning Government Contracts
Even confident startups face doubts. Let’s address the most common ones:
| Concern | Reality |
| “We don’t have public sector experience.” | You can use private contracts as examples — buyers now accept comparable experience under the Procurement Act. |
| “We’re too small.” | Many tenders are now divided into smaller “lots,” designed for SMEs and local suppliers. |
| “The process is too complex.” | Platforms like Supply2Gov simplify discovery and provide plain-English resources. |
| “We can’t compete on price.” | Public buyers are required to consider quality and social value, not just cost. |
Small, local contracts are the perfect entry point. They often require simpler documents and give you a chance to build public sector references quickly.
The Public Procurement Gateway: Opening Doors for Startups
Think of public procurement as a gateway to scalable, sustainable growth.
Every tender opportunity is a chance to:
- Expand your network and credibility.
- Strengthen your business systems.
- Learn how large-scale buyers operate.
And with Supply2Gov, you don’t have to navigate it alone.
From free alerts to SME toolkits, the platform helps you move from first bid to first win — faster and with less stress.
Your First Government Contract Is Closer Than You Think
Winning your first government contract is achievable — and often easier than you think once you understand the process.
Here’s your roadmap to success:
- Understand the procurement process.
- Prepare your documentation and compliance.
- Find opportunities that fit your capacity.
- Write clear, evidence-based bids.
- Follow up and build long-term relationships.
Every successful supplier started with that first tender. The key is to start early, stay consistent, and use the right tools to find and win the opportunities that fit your business.
Don’t miss your first opportunity – register with Supply2Gov and unlock your startup’s next chapter in public sector growth.