Procurement pilot scheme launched to help smaller firms bid for local government contracts

A new AI-powered procurement platform is to be piloted in Stockport and five other local authorities to make it easier for smaller firms and the VCSE sector to bid for lower value contracts with local councils.

STAR Procurement, a shared procurement service used by Stockport, Trafford, Tameside and Rochdale councils in Greater Manchester, as well as Knowsley and St Helens council’s elsewhere in the North-west, is to pilot the Nomia platform to connect firms with lower value contracts through an AI matchmaking service.

Delivered in partnership with the Federation of Small Businesses (FSB), the pilot will also help participating councils direct more of their spending towards local SMEs by allowing them to bypass more lengthy e-tendering processes that can be offputting to smaller businesses.

Initially, the scheme will focus on tenders up to £50,000, but could be expanded to contracts worth up to £213,000.

Director at STAR Procurement, Lorraine Cox, has led on establishing the pilot scheme, and hopes will it brings benefits in supporting the local economy and in fostering stronger relationships between councils and their local business communities. She added:

“This pilot will test a proof of concept, and contracts will therefore release in small phases to allow STAR to assess processes and impact. We anticipate success and therefore intend to widen the scope in the future.”

Robert Downes, Development Manager for the FSB in Greater Manchester, said:

“This is an exciting opportunity for businesses and councils in GM alike – and it’s something FSB has been campaigning for here in GM for a number of years. It’s great news for businesses based here as we begin the new year.

“For smaller businesses and VCSOs who have traditionally seen public sector procurement as beyond their reach and aimed at large organisations, this will help open-up contracts that at the moment aren’t even officially advertised anywhere. This means many new contracts will be up for grabs for the first time with the clear aim to award to local businesses. These will be new opportunities for the smallest firms to deliver public sector contracts, minus the quite onerous processes that more expensive town hall contracts incur during the established procurement process.

“For councils, it means they could and should be getting better value for taxpayers’ money by opening up contracts to many more business, and spending locally which we know helps create wealth in our communities. It’s a real win-win for the public and private sectors particularly at a time when budgets in all sectors are under pressure.”

Greater Manchester Mayor, Andy Burnham, has also giving his backing to the pilot programme. He said:

“Helping more small businesses compete for, and win public contracts is key to building a more inclusive economy in Greater Manchester. By keeping spending local, we can ensure the benefits are felt by our people and communities.”

Greater Manchester and Liverpool City Region businesses can register to potentially be included in the pilot and any future opportunities that that take place on the Nomia platform via the STAR Procurement website.