Why Is public sector procurement different?

Wouldn’t it be so much easier if you could pick up the phone and speak to someone? They could tell you exactly what they want and you can send a quote.

Sadly in public sector… doesn’t work like that.

You cant even call them once the tender has been released to check your understanding… That’s called Canvassing. And it’s a BIG no-no.

Public sector procurement requires fairness to be both a legal requirement and a fundamental principle. SMEs who want to succeed in government contract bidding need to understand the reasons behind tender closure and the specific behaviors that lead to disqualification. The two most critical warning signs for bidders involve collusion and canvassing activities. Any violation of the rules whether deliberate or accidental will result in losing your bid and harm your standing with public sector procurement officials.

Public sector tenders function as closed competitions in most cases.

The UK public sector tendering process requires bidders to submit their proposals through confidential channels while using predetermined evaluation criteria. The main goals of this system include:

• All bidders receive equal treatment regardless of their size or business connections.
• The process delivers maximum value to public funds.
• The Public Contracts Regulations 2015 require compliance.
• The system upholds transparency and accountability standards particularly for major contracts.

Public funds require an absolute commitment to open and unbiased procedures because of their involvement. The authorities maintain strict rules to preserve equal competition between bidders.

What Is Collusion?

Bidders who work together to shape the results of a tender process engage in collusion. The following actions represent examples of collusion between bidders:

• Bidders agree to maintain their prices at equal levels.
• Companies share contracts between themselves.
• Bidders exchange sensitive information from the tender process.

Any casual communication between competitors which affects pricing or strategic decisions will be considered collusive. The Competition Act 1998 makes it illegal to engage in such activities which also violate ethical standards.

The following penalties will be imposed on bidders who engage in collusion:

• The bidder will be disqualified right away.
• Legal consequences may arise from such actions.
• Your professional reputation will suffer permanent harm.

What Is Canvassing?

The practice of contacting procurement officials or decision-makers through unofficial channels to sway the selection process constitutes canvassing. The following actions represent examples of canvassing behavior:

• Procurement officers receive lobbying attempts from bidders.
• The bidder seeks unique treatment from the procurement process.
• The bidder provides gifts or other forms of inducement.
• The bidder tries to obtain confidential information from the inside.

Any violation of tender canvassing prohibitions will lead to automatic exclusion from the competition. Any form of outreach that occurs outside authorized channels may be classified as canvassing even if the intentions are pure.

Why This Matters for SMEs

Small and medium enterprises (SMEs) face significant challenges when participating in public sector procurement competitions. The desire to use personal connections or unofficial methods for public sector bidding puts your entire business structure at risk. The public sector faces growing pressure to conduct fair contract distribution processes. Any sign of unfair influence during the bidding process will stop your chances of winning.

How to Compete with Confidence

Tender Response provides SMEs with complete guidance for creating compliant bids that follow all rules while avoiding any ambiguous areas. Our method helps you to:

• You will learn about all applicable rules from the beginning.
• Your bid will be completely compliant and will pass all audit requirements.
• Your value proposition should be clear to all stakeholders without requiring unofficial communication.

The key to winning public sector bids depends on your ability to follow established rules rather than your connections. Maintaining integrity represents both ethical conduct and strategic advantage.

Still got a question?

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This article was posted by:

Vicky Poole

Vicky Poole, with 15 years in strategic sales, specialises in Commercial, Government, and Third Sector tenders. Founder of Tender Response, she leads a team aiding SMEs in public sector bids.

View all posts by Vicky Poole