Getting into public sector work

As we emerge from lockdown the stark economic consequences of the Coronavirus are becoming more visible and many companies in the property and construction sector are turning to publicly funded work as a potential lifeline.

Even before the reality of the pandemic struck, the Government was promising to turn on the taps for public sector spending. In his budget of early March, the Chancellor of the Exchequer announced big spending pledges on roads, rail, broadband and housing as well as significant budgets for works in further and higher education, health and environmental improvements.

As recently as June of this year the Government confirmed that between £29 billion and £37 billion of government contracts across economic and social infrastructure will be brought to market over the next year to deliver construction, repair & maintenance and consultancy services.

For firms used to working with private clients the public sector can appear to be slow and bureaucratic, and to win work you need to combine your traditional business development skills of profile raising, networking and relationship building with the ability to navigate complex formal procurement processes.

Public sector opportunities are published via online portals such as Contracts Finder which are free to subscribe to and it’s easy to get stuck into filling in the forms and pricing the projects. However, for new market entrants this is rarely a recipe for success.

The public sector market is large and multifaceted with lots of existing suppliers and any new entrant must be able to answer the question “why should we appoint you to this framework or project?”

To do so, you need to identify potential customers that may offer a close fit and then seek to understand the tasks they undertake and outcomes they need as well their current pains and how you can deliver added value

Contrary to received wisdom, public sector clients generally welcome engagement with potential new suppliers, especially if you are shaping your products or service specifically for them. However, once a tender notice is published its too late.

Expectations need to be managed. The public sector buys on the principle of MEAT. (Most Economically Attractive Tender) and is highly cost conscious. It is public money they are spending, and they need to demonstrate value for money and transparency. This does not mean they always buy cheapest, but you need to give the client good and justifiable reasons, from their perspective, to pay extra, through a quality submission that accompanies any pricing document.

There are alternative channels to public sector work. An area to explore is working in the supply chain of large suppliers. The government has set a target of 33% of its spend to be with SME organisations, measured both directly and through its 1st tier supply chain. To deliver on this promise large firms are having to take their SME supply chains seriously.

Let’s be clear. The public sector is a tough to operate in. Profit levels will unlikely match those in the private sector, and you may well find that project timescales are longer and management time required greater. But the work they do is important, they do pay their bills and they may be the only show in town. At least for a while.

Caslocke Consult is a professional services company that helps companies to achieve success in highly competitive business development and tender situations. It has developed a comprehensive guide to winning work in the public sector which can be downloaded here.