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More SMEs 'could get MoD contracts'

Published On 1 May 2007 at 17:01:52

A new initiative could help more small and medium-sized enterprises (SMEs) win lucrative contracts with the Ministry of Defence (MoD).

From the end of April, the threshold value for advertising MoD contracts was lowered from £500,000 to £93,000. At the end of June it will fall again to £40,000.

For SMEs looking to supply 'non-warlike' requirements, thresholds will also drop to £40,000 in June.

"We are committed to making the Ministry of Defence SME-friendly," explained Lord Drayson, the minister for defence equipment and support.

"SMEs play a crucial role in UK defence business and represent a significant core of direct suppliers to MoD. In 2005, just over half of all MoD contracts let were placed with SMEs, to the value of over half a billion pounds."

Lord Drayson added that the announcement would promote "a dynamic and competitive supplier base".

The decision to encourage SME bids is in line with the key themes outlined in the recent Defence Industrial Strategy.

 

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