I was recently asked to tender for a top team strategy day for a Central Government agency.   Having submitted my proposal in double quick time, I was pleased to learn that I had a 25% chance of getting the work, as only four companies had applied. 

Imagine my surprise today to learn that my time in submitting the proposal was effectively wasted, and that I never had a chance of getting the work.  Here is an extract of the e-mail from the HR manager who requested the proposal:

"There were 4 potential providers for this piece of work.  We felt all would have delivered the objectives.  So it came down to price.  One of the providers it undertakes a lot of work for the MOD and others in the Public Sector.  Therefore they have tendered on the basis that they will do this free of charge"

Whilst this is perfectly legal, it would appear that my only choice if I wanted to have a chance of gaining the contract would have been to pay the agency money for the privilege of doing the work ! 🙁  I’m not sure this is going to help small businesses to recover from the recession.  The Department for Business, Innovation and Skills has provided some guidance over help for small businesses seeking to work with Government at BACKING SMALL BUSINESSES.  I am writing to Vince Cable to request some clarification. If any readers here would like to add their name to this letter I’d be interested to hear from you.

What do others think about the morals of offering such inducements to secure Government contracts?   Should the Government and public sector be indulging in this ‘ebay procurement technique’, driving small businesses to effectively ‘pay to work’?