| The Trade and Industry Select Committee have given their support to small companies trying to win government contracts, and say that new procedures are squeezing them out of the competition.
The government’s new initiatives to increase efficiency in purchasing also included measures to make contracts available to more small to medium sized businesses. However, the committee found that these measures slowed the entire process, and even increased costs due to bureaucracy.
The report released by the Trade and Industry Select Committee criticised officials in local and central government of being “too timid” and simply accepting the bid with the lowest costs, instead of the bid with the greatest value.
The report also calls for the Treasury to be more “vigorous” and to set a better example with its payment record.
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