Small business feels shut out of government procurement

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Big Opportunities, Bigger Challenges

Examining SME access to federal procurement

Of further interest:

• News Release: Small business feels shut out of government procurement

According to a new CFIB report, barriers to federal procurement are resulting in small business suppliers feeling shut out of many opportunities. The report, titled Big Opportunities, Bigger Challenges, points to a number of challenges faced by SMEs, including a confusing application processes, excessive paperwork and a complex system of rules. These barriers to sell to the government routinely discourage SMEs from bringing potentially innovative solutions to departmental problems: "Dealing with federal tenders is too painful to bother. If I spent all my time responding to the silly amounts of paperwork they require just to be "qualified" to bid, I would have gone bankrupt a long time ago," says one CFIB manufacturing member.

To ensure that small businesses can fully and fairly participate in the procurement process, CFIB recommends the following measures:

• Rethink the procurement bidding process from a small business perspective, and enhance bidding flexibility.
• Review the practice of "mega-contracts" to ensure maximum competition and savings.
• Make the procurement process an integral part of any red tape reduction initiative.
• Enhance communication between the bidder and the end user.