Feeds

MoD encourages SMEs

Easier bidding for defence contracts

Build a business case: developing custom apps

Small IT suppliers could have a better chance of winning defence business under new advertising rules.

The Ministry of Defence (MoD) has announced an initiative aimed at encouraging more small and medium sized companies to bid for defence contracts.

On 30 April 2007 the threshold for combat related equipment - above which it has to be advertised - has been cut from £500,000 to £93,000. On 30 June it will be reduced again to £40,000. The threshold for non-combat requirements will also be reduced on 30 June from £93,000 to £40,000.

Defence ministry project teams will be encouraged to advertise for requirements with values as low as £20,000. The MoD said the move has the potential to generate up to 7,000 additional adverts a year.

"This affects defence contracts at all levels," an MoD spokesperson told KableDirect. "Major corporations are our main suppliers, but this is trying to open up the market to more competition."

The change is in line with one of the key themes of the Defence Industrial Strategy, which commits the MoD to working with small suppliers.

Lord Drayson, minister for defence equipment and support, said: "In 2005, just over half of all MoD contracts let were placed with SMEs, to the value of over half a billion pounds. Today's announcement is a significant development and one which I am convinced will further promote a dynamic and competitive supplier base."

This article was originally published at Kablenet.

Kablenet's GC weekly is a free email newsletter covering the latest news and analysis of public sector technology. To register click here.

Build a business case: developing custom apps

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?