Conventional wisdom has it that companies with limited trading history can have a difficult time winning public sector contracts. But because of Covid, a limited trading history is not always an obstacle. 

Public procurement regulations dictate a stringent framework where buyers usually must publish contract notices in advance so any prospective supplier can submit a bid. This is not only to ensure a level playing field for suppliers, but also to help deliver value for money for the buying organisations and their stakeholders.

The procurement regulations do allow for buying organisations, in exceptional circumstances, to not publish contract notices of intended procurements, but instead award the contract directly to a supplier.

When a buyer awards a contract, they usually must publish a contract award notice. 

In cases where no prior announcement took place (but the contract was just awarded directly) the award notice must include a specific section, titled “Award of a contract without prior publication of a call for competition.”

This section must also include a justification for why no prior contract notice was published.

In recent months, public sector buyers have awarded hundreds of contracts without prior announcements or call for competition. 

In almost every single case they cite the urgency driven by the Covid pandemic as the justification.

Looking at these award notices we can see that the urgency of Covid means that the usual difficulties young companies can face in winning business from public sector buyers, can be superseded by the urgency to secure supplies.

The three following examples shows this:

1/
On the 10th of July 2020, University of Exeter announced that they had, on the 29th of June, awarded a contract (without prior publication or call for competition) for..

"Consultancy service — IT discovery work to design and deliver online seamless and student focussed digital experience using existing technologies available to the University. This contract is awarded to the supplier to perform works essential to mitigate and manage risks to the University arising from Covid-19 measures imposed by UK Government that directly impact the recruitment of students to courses and the student experience and quality of provision of teaching, accommodation and other services."

The university’s initial estimation of the total contract value was £45 000 but for reasons not published, the contract was awarded at £225 000.

The contract was awarded to Loomery Ltd, who, according to Companies House, was incorporated on the 21st of May 2020 – so just over one month before the contract was awarded.

2/
On the 23rd of July 2020, Frimley Health NHS Foundation Trust announced that they had, on the 25th of April 2020 awarded a contract (without prior publication or call for competition) to Medicshield of Surrey for “..surgical gowns to the trust as required to support the trusts resources in response to the current Coronavirus pandemic.”

The contract was for £250 000.

According to Companies House, Medicshield was incorporated on the 21st of April 2020, four days before they won the contract.

3/
On the 24th of June 2020, NDA Shared Services Alliance (the nuclear decommissioning estate) announced that they had, on the 29th of May 2020 awarded a contract (without prior publication or call for competition) “..to supply and operate a Covid-19 test lab for Sellafield Ltd employees, with the capacity of up to 150 tests per day.”

The contact for £250 000 was awarded to Circular 1 Health Ltd of Carlisle.

According to Companies House, Circular 1 Health Ltd was incorporated on the 26th of June 2020, almost a month after the award of the contract and two days after the publication of the contract award.

The examples above should be an encouragement to young companies who have something to offer the public sector. Being recently established is not always a barrier to winning public contracts.