DSIT sets out SME action plan to widen access to government tech contracts

The Department for Science, Innovation and Technology (DSIT) has published a new action plan aimed at increasing opportunities for small and medium-sized enterprises (SMEs) to win government work.

The plan positions public procurement as a key tool to support SME growth, particularly in digital and technology markets, and signals a shift towards reducing longstanding barriers that have limited SME participation in central government supply chains.

Changes intended to make its commercial environment more accessible to smaller suppliers include simplifying procurement processes, reducing administrative burdens, and designing contracts that are more proportionate in size and complexity. The plan also highlights the importance of improving visibility of upcoming opportunities and increasing early engagement with the market.

DSIT has published nine core group measures in the plan:

1. Reduce procurement complexity: streamline documentation; proportional selection and award criteria; and increase the use of challenge led and demo-based procurements.

2. Expand visibility of opportunities: publish and promote its 3-year spending review pipeline; and requiring primes to advertise qualifying subcontract opportunities.

3. Improve market engagement and inclusion: ensure pre‑market engagement for major projects actively targets SMEs, and schedule dedicated SME sessions for AI and other emerging tech procurements.

4. Strengthen transparency and tracking for grants: implement a consistent methodology to track SME grant recipients and publish data via GGIS and Find a Grant.

5. Maintain prompt payment timescales: continue to meet or exceed 90% within 10 days and 95% within 30 days with performance data published quarterly.

6. Collaborate with Innovate UK: To create industry specific SME action plans for AI and Life Sciences.

7. Support diversity through initiatives like the Women in Tech Taskforce and require suppliers to advertise subcontracting opportunities to widen reach.

8. Offer Super-compute capacity to eligible SMEs via AIRR access.

9. Launch a new social value policy which promotes diversity in underrepresented supply chains and delivery against DSIT objectives.

Targeted outcomes for the plan include:

• Spend with SMEs: target of 40% of procurement spend (2025–2028)
• Prompt payment: 95% paid within 10 days (by 2027)
• Publication of pipeline: quarterly pipeline covering 3 years (from July 2026 to 2029)

Ongoing organisational changes mean baseline data and specific targets have not yet been finalised. A more detailed plan, including measurable targets and performance tracking, is expected to follow once the department’s structure stabilises.