Feeds

MoD encourages SMEs

Easier bidding for defence contracts

Top 5 reasons to deploy VMware with Tegile

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.

Choosing a cloud hosting partner with confidence

More from The Register

next story
Bladerunner sequel might actually be good. Harrison Ford is in it
Go ahead, you're all clear, kid... Sorry, wrong film
Euro Parliament VOTES to BREAK UP GOOGLE. Er, OK then
It CANNA do it, captain.They DON'T have the POWER!
Musicians sue UK.gov over 'zero pay' copyright fix
Everyone else in Europe compensates us - why can't you?
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Megaupload overlord Kim Dotcom: The US HAS RADICALISED ME!
Now my lawyers have bailed 'cos I'm 'OFFICIALLY' BROKE
Forget Hillary, HP's ex CARLY FIORINA 'wants to be next US Prez'
Former CEO has political ambitions again, according to Washington DC sources
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.