The Government has approved a plan to give small businesses 20% of all of Government contracts from January next year.
The announcement was made Friday by Minister of State Joseph Harmon at a post-Cabinet press briefing.
“This programme will ensure that small businesses have their fair access to government procurement opportunities through a transparent and efficient process and will also enhance the economic impact of public spending,” Harmon stated.
The Small Business Act of 2004 provides for at least 20% of procurement of goods and services required annually by the government to be obtained from small business, and that the Small Business Council which oversees the Small Business Bureau shall facilitate this by preparing a small business procurement programme.
Cabinet has approved the implementation of the small business procurement programme for implementation by Ministry of Business by January 2019.
It was agreed there will be a basic “set aside” measure for all government procurement – that is goods, services and works – of up to $30 million
In addition, there will be a “set aside” for sub-contracting measurements for all government procurement between $30 million and $200 million.
All Ministries, agencies and regional authorities will participate in the implementation of the programme.
Specifically, the Ministries, agencies and regional authorities will be required to provide, annually, the projections of the value of small business procurement by sectors based on their annual procurement plans to the Small Business Bureau.
In addition, they will be required to provide quarterly reports of procurement payments to the Small Business Bureau.
Small business will have to register with the Bureau in order to qualify for the programme.
