3.2 Commissioners cannot award a contract to an SME instead of a larger provider simply because they would like to use an SME. They must be able to demonstrate decisions represent value for money and comply with procurement regulations. However, commissioners can choose what to procure and how to structure their procurements and contracts. This can affect whether SMEs are suitable for a contract, likely to win that contract and able to provide the intended benefits of using an SME.
3.3 However, in making these decisions, commissioners have other factors to consider, which could potentially make it harder for them to develop SME-friendly approaches. We observed three significant developments in government's commercial agenda that may indirectly constrain the use of SMEs:
• reductions in commissioner capacity;
• greater use of the government's collective buying power; and
• pressure on departments to cut costs and make savings.
We describe these further overleaf.