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The Ministry of Defence releases new SME action plan

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The Ministry of Defence (MOD) has released a new action plan to improve its engagement with small and medium-sized enterprises (SMEs).

The MOD has set a target of 25% of its procurement spend will go directly and indirectly to SMEs in 2022. However, have acknowledged that smaller businesses face unique barriers and challenges preventing them from potentially delivering on defence contracts.

To help achieve its target, the MOD has released a new SME action plan, that sets out its commitments to SMEs and explains how the MOD plans to meet these commitments. The plan also highlights practical ways in which smaller and non-traditional defence suppliers can find and compete for UK defence opportunities and provides an overview of what a new supplier needs to know to work with the MOD. The overall aim is to make sure that SMEs have a fair opportunity to contribute to UK defence and security, and the ability to compete successfully in international markets.

The action plan includes 13 commitments in three categories:

  • Industry as a Strategic Capability
  • Acquisition and Procurement Policy
  • Technology and 'pull-through'

The MOD’s procurement activity covers a very wide range of requirements, including, but not limited to:

  • Technology – cloud and digital, network services, software, and technology products and services.
  • Equipment and Support – ships, submarines, aircraft, vehicles, weapons, missiles, commodities, and their support (maintenance, repair, and upgrade).
  • Infrastructure – construction, hard and soft facilities management, and property consultancy.
  • Research and Development – with significant funding uplift over the next 4 years.
  • Project Support Services – including Professional, Management, and Consultancy services.

The MOD will invest more than £85bn on equipment and support in the next four years. This pipeline of opportunities will allow the MOD to make real improvements in its engagement with SMEs. A minimum of £6.6bn will be invested in defence research and development over the next four years.

The MOD manages some of the most complex and technologically advanced requirements in the world. Some of its customers include the Armed Forces and national security agencies, and it buys everything from military fighting vehicles to education services, nuclear submarines to facilities management, and everything in between.

Read the full Ministry of Defence SME action plan to find out how your business could benefit.

Support from the Supplier Development Programme

Micro, small, and medium-sized businesses based in Scotland can access free training with SDP Scotland to get ‘tender ready’ for any opportunity. Please keep an eye on the SDP Events Calendar for upcoming events that could help you bid for one of the MOD’s next contracts!

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