How small businesses can win government work - and what you need to have in place first

The SME Guide to Government Tenders

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Let me tell you about page fourteen.

Four years ago, Mr S found a government tender. Naval contract. Supply of specialist lubricants. Exactly our thing. Worth enough to transform the business.

He was excited for about ten minutes. Then he got to page fourteen.

"Suppliers must hold current Cyber Essentials certification."

He'd never heard of Cyber Essentials. He didn't know what it meant. He assumed it was something only big companies could get. He nearly closed the document and walked away.

He didn't. We got certified in six weeks. We won the contract. It changed everything.

That's why I'm writing this guide. Because there are small businesses right now, looking at government tenders, hitting requirements they don't understand, and walking away from opportunities that could transform them.

Don't walk away. Let me show you how this works.

The Opportunity You're Ignoring

The UK government spends over £300 billion annually on procurement. That's not a typo. Three hundred billion.

And there's a specific push to get more of that money to small businesses. The government has targets for SME spending. They want to work with smaller suppliers. They're actively trying to make it easier.

But most small businesses don't even look. They assume government work is for big contractors with dedicated bid teams. They assume the paperwork is impossible. They assume they won't qualify.

Some of that's true - some contracts are genuinely only suitable for large organisations. But plenty aren't. Plenty are perfectly sized for an SME with the right capabilities and the right certifications.

Simpson & Sons is a lubricant supplier in an industrial estate. If we can win government contracts, so can you.

Where to Find Opportunities

First, you need to know where to look.

Contracts Finder (www.gov.uk/contracts-finder)

This is the main portal for UK government contracts. All public sector opportunities above £12,000 (or £30,000 for central government) must be advertised here. Free to use, searchable by keyword, location, and sector.

Find a Tender (www.find-tender.service.gov.uk)

For higher-value contracts, especially those that would previously have been on the EU's system. Worth checking alongside Contracts Finder.

Dynamic Purchasing Systems (DPS)

Many government buyers use pre-approved supplier lists. Getting onto a relevant DPS means you're already qualified when opportunities come up. Look for DPS opportunities in your sector.

Framework agreements

Similar to DPS - pre-approved suppliers for certain categories. If you're on the framework, you can bid for call-offs without going through full tender processes each time.

Supply chain opportunities

Sometimes the easier route is supplying to prime contractors who've won government work. They need subcontractors and suppliers. The requirements flow down, but you're not dealing with the full tender process yourself.

Set up alerts. Check regularly. Make it part of your routine.

The Requirements You'll Hit

Here's where people get stuck. Government tenders have requirements that commercial contracts often don't. You need to know what's coming.

Cyber Essentials

This is the big one. Since 2014, government contracts involving handling sensitive data or providing certain IT services require Cyber Essentials certification. In practice, it's now expected for a much wider range of contracts.

If you're serious about government work, get certified first. Don't wait until you find a tender - by then you might not have time.

Insurance minimums

Most government contracts specify minimum insurance levels. Public liability, professional indemnity, employers' liability - often at higher limits than you might currently hold. Check what's required and make sure your cover matches.

Financial standing

They'll want to know you're financially stable. This might mean providing accounts, credit checks, or evidence you can sustain the contract value. Small businesses sometimes worry about this, but there are usually proportionality rules - they can't demand you've got turnover of £10 million for a £50,000 contract.

Modern Slavery statement

If your turnover is above £36 million, you need a Modern Slavery statement. Below that, you might still be asked about your policies.

Environmental and social policies

Increasingly, government contracts ask about your environmental credentials, social value commitments, and sustainability practices. Having basic policies in place helps.

Security clearances

For certain contracts - especially defence, some central government - you or your staff might need security clearance. This takes time, so factor it in if it's relevant to your sector.

Data protection

If you're handling personal data, you need to demonstrate GDPR compliance. Having your data protection registration and policies in order is essential.

The Cyber Essentials Non-Negotiable

I'm going to hammer this one because it's the most common blocker.

Cyber Essentials isn't optional for most government work. It's not a "nice to have." It's a requirement, written into contract terms, checked during evaluation.

If you don't have it, you're excluded. Simple as that. Page fourteen, door closed.

The good news: it's achievable. We did it in six weeks with three laptops and no IT department. It costs a few hundred pounds. And once you've got it, it opens doors across the whole government marketplace.

Get certified before you need it. Then when you find the right opportunity, you're ready.

How Tenders Work

If you've never bid for government work, the process can feel alien. Here's how it typically works.

The tender is published.

You find it on Contracts Finder or similar. There's a deadline, a specification, and instructions for how to respond.

You download the documents.

This usually includes the specification (what they want), the terms and conditions (the rules), evaluation criteria (how they'll score bids), and a pricing template.

You write your response.

This is where the work is. You need to demonstrate you can deliver what they need, meet all the requirements, and offer good value. Most tenders have specific questions you must answer.

You submit before the deadline.

Late submissions are almost never accepted. Don't be late.

Evaluation happens.

Your bid is scored against the criteria. This usually includes quality (can you do the job?) and price (what will it cost?). The weighting varies - some are 60/40 quality/price, some are different.

Clarifications might happen.

They might come back with questions. Answer promptly and precisely.

Award decision.

Someone wins. Everyone else gets feedback (usually). If you didn't win, the feedback is gold - use it to improve next time.

Writing a Winning Bid

This is where lots of small businesses struggle. You might be brilliant at what you do, but if you can't communicate that in a tender response, you won't win.

Answer the question they asked.

Not the question you wish they'd asked. Not everything you want to tell them about your business. The specific question, directly answered.

Provide evidence.

Don't just claim you're great - prove it. Case studies. Examples. References. Data. "We have extensive experience" means nothing. "We delivered a similar contract for X organisation, on time, with zero defects" means something.

Be specific about this contract.

Generic responses lose. Show you've read the specification. Reference their specific requirements. Demonstrate you understand what they need.

Make it easy to score you.

Evaluators are often working through dozens of bids. If they can't find your answer to their question, they can't score you for it. Be clear. Use their structure. Make it obvious.

Don't undersell on price just to win.

If you price too low, you either won't be able to deliver properly or you'll lose money. Neither is good. Price fairly, and justify your value.

Check everything.

Typos, missing documents, wrong formatting - these create bad impressions. Get someone else to review before you submit. Fresh eyes catch things you've missed.

Common SME Mistakes

I've seen (and made) plenty of mistakes in the tendering process. Here are the ones to avoid.

Not reading the whole document.

Page fourteen. Requirements are buried throughout tender documents. Read everything, carefully, before deciding whether to bid.

Missing requirements you could have met.

People walk away from tenders because of requirements like Cyber Essentials, not realising they could get certified in time. Check what's actually needed and whether you can get there.

Bidding for everything.

Being selective beats being scattered. Focus on opportunities that genuinely fit your capabilities. A few strong bids beat a dozen weak ones.

Leaving it to the last minute.

Good bids take time. If you're writing the night before deadline, you're probably not doing your best work.

Going it alone when you shouldn't.

Some contracts are too big for one SME. Consider partnerships, subcontracting arrangements, or consortium bids. Government buyers often like to see SMEs collaborating.

Giving up after one loss.

Everyone loses tenders. The feedback helps you improve. The experience helps next time. Persistence matters.

The Simpson & Sons Story

Let me tell you how that first contract changed us.

Before: three laptops, no IT department, barely covering wages, Mr S wondering if the business would survive another year.

After: eighteen-month naval contract, proper revenue, ability to hire, ability to invest. We took on Danny properly (that's me). Then Priya. Then more. Government work gave us stability that commercial work alone never had.

And it wasn't just one contract. Once you've got the certifications, once you've got a track record of government delivery, more opportunities open up. The second bid is easier than the first. The third is easier still.

Four years later, government contracts are a significant part of our revenue. Reliable, professional, steady. The thing Mr S nearly walked away from because of page fourteen.

Your First Steps

If you're serious about government work, here's where to start.

This week:

• Set up alerts on Contracts Finder for your sector
• Check your current certifications - do you have Cyber Essentials?
• Review your insurance levels

This month:

• If you don't have Cyber Essentials, start the process now
• Gather your standard company information - accounts, policies, references
• Read some tender documents in your sector, even if you're not bidding, to understand what's asked

This quarter:

• Identify one realistic opportunity to bid for
• Start your first tender response, leaving plenty of time before deadline
• Win or lose, get the feedback and learn

This year:

• Build your track record
• Get onto relevant frameworks and DPS lists
• Make government tendering a routine part of your business development

The Opportunity

Government contracts aren't just for the big players.

They're for small businesses willing to meet the requirements. Willing to get certified. Willing to learn the process. Willing to write compelling bids.

The UK government wants to spend money with SMEs. There are hundreds of billions of pounds in procurement. There are contracts right now, being advertised, that businesses like yours could win.

Don't let page fourteen stop you.

Get ready. Get certified. Get bidding.

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Danny Preece is Head of Technical Sales at Simpson & Sons and an SME Cyber Resilience Consultant with TransCrypt. He's read more government tender documents than he ever expected to, and has developed strong opinions about font size requirements in bid submissions.