Confusing application processes, excessive paperwork and a complex system of rules are causing small and medium-sized enterprises (SMEs) to feel shut out of many federal procurement opportunities.
That’s the message in a new report from the Canadian Federation of Independent Business (CFIB).
The CFIB says 60% of SMEs in sectors most likely to sell to the federal government either chose not to sell to the federal government or felt it was too difficult and not worth the effort.
“One of the biggest challenges facing small businesses over the past few years is the bundling of contracts into one massive contract and awarding it to a single firm," Louis-Martin Parent, CFIB policy analyst for Ottawa and the report’s author, said in a press release. "Government seems to believe that this will save money, yet there is very little proof of that.
“These contracts can reduce competition for government work by smaller businesses, potentially leading to higher costs to taxpayers in the long run.”
To ensure that small businesses can “fully and fairly” participate in the procurement process, the CFIB recommends that government:
- 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 inititiave; and
- enhance communication between the bidder and end user.
Jenny Wagler
Twitter: JennyWagler_BIV