UK public sector procurement represents one of the largest commercial opportunities available to businesses of any size. With approximately 385 billion pounds spent annually through public procurement, the government is one of the biggest buyers of goods and services in the country. Yet many businesses — particularly SMEs — never bid for public sector work because they believe myths that simply do not stand up to scrutiny.

These misconceptions cost businesses real revenue. Every year, qualified, capable suppliers miss out on stable, long-term contracts because they assumed the process was too complex, the competition too fierce, or the opportunities reserved for large corporations. The reality, supported by data and reinforced by recent legislation, tells a very different story.

In this article, we examine the most persistent myths about public sector tendering, dismantle each one with evidence, and provide practical guidance for organisations considering their first — or their next — public sector bid.

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Myth 1: Only Large Businesses Can Win Public Sector Contracts

This is perhaps the most damaging myth in public sector procurement, and the evidence contradicts it comprehensively.

Ninety percent of suppliers on the G-Cloud 14 framework are small and medium-sized enterprises. In the 2023/24 financial year, SMEs captured 44% of G-Cloud spend, totalling 1.32 billion pounds. An unprecedented 35% of UK government technology contracts went to SMEs in 2024 — a record high. And in total, SMEs received 45.4 billion pounds in government procurement spending in 2024.

The policy direction is unmistakably toward increasing SME participation, not restricting it. The Cabinet Office has set an overall target of 30% of procurement expenditure with SMEs by the end of the 2027/28 financial year. From 1 April 2025, all central government departments must set and publish three-year targets for direct spend with SMEs.

The Procurement Act 2023, which came into force on 24 February 2025, goes further still. It introduces a legal duty on contracting authorities to consider whether barriers to SME participation can be removed or reduced, and to consider dividing contracts into smaller lots specifically to increase SME access.

Large organisations do win a significant share of public sector spending. But the idea that only large businesses can compete is simply wrong. The frameworks, policies, and legislation are all designed to ensure that capable SMEs have a genuine route to market.

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Myth 2: The Lowest Price Always Wins

This myth deters many businesses that cannot — and should not try to — compete on price alone. It reflects a misunderstanding of how public sector evaluation actually works.

The Procurement Act 2023 shifts evaluation from Most Economically Advantageous Tender (MEAT) to Most Advantageous Tender (MAT). Under MAT, factors such as social value, sustainability, environmental performance, and innovation play a prominent role alongside price. This legislative shift formalises what has been common practice for years: price is one factor among several, not the sole or even primary determinant.

Weighted scoring methodologies are standard in public sector procurement. Technical capability typically carries 40 to 50 percent of the total weighting, with price accounting for only 20 to 30 percent. Many public sector evaluations use quality-price ratios of 60:40 or 70:30 in favour of quality. Social value is now a mandatory consideration in central government procurement, typically weighted at 10% or more.

What this means in practice is that a supplier offering a strong technical solution, compelling social value, relevant experience, and a credible implementation plan can win even if they are not the cheapest bidder. The evaluation framework is specifically designed to prevent a race to the bottom on price.

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Myth 3: The Process Is Too Complicated and Bureaucratic

Public sector procurement has formal requirements — that is undeniable. But significant simplification has occurred in recent years, and the barriers are far lower than many businesses assume.

The Procurement Act 2023 replaced the previous fragmented regulatory landscape of four separate sets of regulations with a single, unified framework. This simplification alone has made the rules more accessible and easier to navigate.

The Find a Tender service provides a centralised digital platform for discovering procurement opportunities. Contracts Finder lists opportunities above 12,000 pounds for central government. These free, searchable platforms make it straightforward to identify relevant opportunities without specialist knowledge or expensive subscription services.

Crown Commercial Service frameworks like G-Cloud, Digital Outcomes and Specialists, and Technology Products and Services simplify procurement further by pre-qualifying suppliers. Once accepted onto a framework, suppliers can be directly awarded contracts by public sector buyers without full procurement processes — dramatically reducing timescales for both buyer and supplier.

The Digital Marketplace provides a straightforward, searchable catalogue of cloud services. Through frameworks, public sector organisations can engage suppliers in weeks rather than months.

Does public sector tendering require attention to detail, compliance with specified requirements, and well-structured responses? Absolutely. But the process is more accessible than ever, and a structured approach with maintained bid libraries and reusable content can make it manageable for any organised business.

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Myth 4: You Need Previous Public Sector Experience to Win

Many businesses believe they cannot win their first public sector contract without an existing government track record. This creates a circular problem — how do you build experience if you cannot win work without experience?

The reality is more encouraging. The Procurement Act 2023 requires contracting authorities to have regard to the fact that SMEs may face particular barriers to participation, which explicitly includes the barrier of requiring prior public sector experience. Frameworks like G-Cloud allow suppliers to join based on capability rather than track record.

Many evaluations accept private sector case studies and references — they are looking for evidence of relevant capability, not necessarily a public sector badge. The Department for Science, Innovation and Technology's SME Action Plan for 2025 to 2028 specifically targets bringing new types of organisations into public sector supply chains.

Sub-contracting and partnership arrangements also provide a pragmatic route for building public sector experience. Working alongside an established contractor allows less experienced suppliers to develop a track record and build relationships within government while managing the risks of entering a new market.

Starting with smaller-value contracts and building from there is a proven approach. Many successful public sector suppliers began with modest framework agreements and grew their government client base over time.

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Myth 5: Public Sector Contracts Are Not Profitable

Some businesses assume public sector contracts offer poor margins and are not commercially attractive. This myth often stems from the mistaken belief that the lowest price always wins, combined with anecdotal stories about bureaucratic payment processes.

Consider the facts. UK government procurement spending totals 385 billion pounds annually. This is not charity — it represents genuine commercial opportunities across every sector and category. Many public sector contracts are multi-year agreements that provide long-term revenue stability. G-Cloud 15 will allow contracts of up to eight years for hosting services, providing a significant planning horizon.

Framework agreements reduce the cost of winning business because suppliers do not need to run individual tender processes for each contract opportunity. The shift to MAT evaluation means suppliers can compete on value rather than just price, supporting healthier margins. And public sector clients typically have strong payment practices, with government departments subject to 30-day payment terms — often more reliable than private sector payment practices.

The profitability of public sector contracts depends, as in any market, on how well you scope, price, and deliver the work. But the notion that public sector work is inherently unprofitable is not supported by the evidence.

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Myth 6: Innovative and Specialist Companies Cannot Compete

This myth assumes public sector procurement favours generic, large-scale solutions over specialist and innovative offerings. In fact, the opposite is increasingly true.

Specific frameworks exist for innovative suppliers. The Crown Commercial Service's Spark framework specifically targets emerging technology products and services. The Digital Outcomes and Specialists framework targets specialist digital, data, and technology capabilities. GovTech initiatives actively seek startup and innovative solutions for public sector challenges.

The government's Small Business Research Initiative provides funded opportunities for innovative solutions to public sector problems, allowing businesses to develop and demonstrate new approaches with government backing. The Department for Science, Innovation and Technology has published a specific SME Action Plan targeting innovative small businesses.

The public sector is actively seeking innovation and specialisation, not discouraging it. If your organisation offers something distinctive and valuable, there are procurement routes specifically designed to bring your capability into government supply chains.

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The Procurement Act 2023: A Game-Changer for New Bidders

The Procurement Act 2023 represents the most significant reform of UK public procurement in decades, and its provisions directly address many of the barriers that have historically deterred businesses from bidding.

Key provisions include a unified regulatory framework replacing four separate sets of regulations, a legal duty to consider SME barriers and whether they can be removed, a duty to consider dividing contracts into smaller lots with a requirement to justify if lots are not used, the shift from MEAT to MAT enabling broader evaluation criteria, enhanced transparency through the Find a Tender platform, and SME procurement spend targets for all central government departments.

The National Procurement Policy Statement, issued alongside the Act, sets out the government's strategic priorities for procurement, emphasising value for money, social value, and opening opportunities to a diverse range of suppliers. These are not aspirational statements — they carry legal weight and shape how procurement decisions are made across the public sector.

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Practical Steps for Getting Started

If the myths have been holding you back, here is a practical roadmap for entering the public sector market.

Research the market. Use Contracts Finder and Find a Tender to understand the types and volumes of opportunities available in your sector. Spend time studying the requirements, evaluation criteria, and contract values to calibrate your expectations.

Consider framework entry. Joining a relevant framework such as G-Cloud or Digital Outcomes and Specialists provides a pre-qualified route to market. Framework membership signals credibility to buyers and simplifies the procurement process for both parties.

Build your social value credentials. With social value now a mandatory evaluation factor in central government procurement, developing and documenting your social value proposition is essential. This includes community engagement, environmental commitments, diversity and inclusion practices, and local employment impact.

Invest in bid capability. The quality of the written response directly determines success. Whether through internal capability development or external bid support from specialists like Athena Commercial, professional bid writing and review can significantly improve win rates.

Start small and build. Begin with smaller-value contracts to gain experience and develop case studies, then progress to larger opportunities as your track record grows.

Develop partnerships. For larger contracts, consider sub-contracting or consortium arrangements with established public sector suppliers to build experience while managing risk.

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How Athena Commercial Can Help

At Athena Commercial, we help businesses navigate every aspect of public sector tendering. From framework applications and bid strategy development to tender response writing and evaluation preparation, our team brings deep expertise in how public sector procurement works in practice — not just in theory.

We have secured our own place on the G-Cloud 14 framework, demonstrating our commitment to the public sector market and our understanding of what it takes to succeed in this environment. Whether you are exploring public sector tendering for the first time or looking to improve your win rates on existing bids, we can help you develop the strategy, capability, and materials you need to compete effectively.

Visit www.athena-commercial.co.uk (add link - https://www.athena-commercial.co.uk) to discuss how we can support your public sector bidding ambitions.

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