Welsh Procurement Policy Note (WPPN) 013: Small and medium-sized enterprises (SMEs) friendly procurement
This WPPN provides updated information and additional resources to support SMEs.
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In this page
The Well-being of Future Generations Act’s well-being goals supported by this WPPN

- A prosperous Wales
- A resilient Wales
- A more equal Wales
- A Wales of cohesive communities
- A globally responsible Wales
Points to note
- This Welsh Procurement Policy Note (WPPN) is effective from the date of commencement of the Procurement Act 2023 and the Procurement (Wales) Regulations 2024. For procurements started prior to this date (24 February 2025), please refer to WPPN 07/21.
- It has been updated to reflect changes introduced by the Procurement Act 2023 and the Procurement Regulations 2024, such as new terminology. It does not constitute a change in policy.
- Any policy should be read in conjunction with the Wales Procurement Policy Statement, the Procurement Act 2023, the Procurement (Wales) Regulations 2024 and the Social Partnership & Public Procurement (Wales) Act 2023.
- It should not be treated as legal advice and is not intended to be exhaustive – contracting parties should seek their own independent advice as appropriate. Please also note that the law is subject to constant change and advice should be sought in individual cases.
- The note assumes a certain level of knowledge of public procurement. It is available via the Welsh Government website GOV.WALES and any queries should be directed to CommercialPolicy@gov.wales or via the Welsh Governments’ customer services.
- References to the ‘Procurement Act 2023 and the Procurement (Wales) Regulations 2024’ will be expressed herein as “the Procurement Regime”.
1. Purpose
1.1 WPPN 013 highlights and builds on the principles within the Opening Doors Charter for SME Friendly Procurement. Whilst these principles are not directly specified within the recent Wales Procurement Policy Statement they still apply to devolved Welsh authorities (DWAs) and Small and Medium sized Enterprises (SMEs).
1.2 The Opening Doors Charter for SME Friendly Procurement was created as part of a programme of actions to deliver a consistent approach to procurement across DWAs while at the same time, addressing issues of particular concern to SMEs.
1.3 This WPPN provides updated information and additional resources to support SMEs. This WPPN also reiterates the commitments and principles agreed between DWAs and SMEs, to set a minimum level of good practice and encourage SME friendly procurement.
2. Dissemination and scope
2.1 This WPPN has been published to assist all DWAs in Wales, including Welsh Government departments, NHS Wales bodies, Welsh Government Sponsored Bodies, local authorities and the wider public sector. This WPPN covers goods, services and works contracts being delivered in Wales.
2.2 Please circulate this WPPN across your organisation and to other relevant organisations that you are responsible for, drawing it to the specific attention of those in procurement, commercial and finance roles.
3. Background
Small and Medium sized Enterprise (SME):
Any business with fewer than 250 staff and have either an annual turnover less than or equal to £44 million or a total balance sheet amount less than or equal to £38 million.
3.1 The Welsh public sector spends circa £11 billion each year on procurement.) There are an estimated 248,000 enterprises active in Wales, employing an estimated 1.2 million people. SMEs in Wales which account for 62.3% of employment and 43.4% of turnover, with large enterprises accounting for the remainder. The Welsh Government recognises and appreciates the very important contribution they make not only to the development of a healthy economy in Wales but to our society, our environment and our culture upon which we all depend.
3.2 Business support agencies in Wales such as Business Wales and Sell2Wales are there to help SMEs adapt to meet the special requirements of the public sector, changes in procurement methods and ultimately win more contracts. Procurement is changing and it is important that SMEs and DWAs understand each other’s processes and expectations.
3.3 The adoption of this WPPN sends out a clear signal that we all have an important role in creating a sustainable future for Wales.
4. Actions required by devolved Welsh authorities (DWAs)
4.1 Many SMEs were apprehensive about engaging with the public sector, due to both real and perceived barriers. The Opening Doors Charter for SME Friendly Procurement was published in July 2012 and since its publication, the principles and commitments contained within the charter have been embraced by devolved Welsh authorities, improving SME inclusion in all procurement activities. Subsequently, there are now resources and support available for new and already established SMEs to support them through each step.
4.2 This WPPN reinforces the main principles and commitments made by DWAs to SMEs and vice versa. By adopting this WPPN, it will continue to help the way business in Wales is done, and maintain a fair, transparent and open environment for all procurement activities.
4.3 Devolved Welsh authority principles and commitments:
The following are the main principles on which DWA commitment to SME friendly procurement has, and will continue to be based on:
We continue to welcome the opportunity to do business with SMEs, and will:
- Continue engagement with the SMEs in our region to become more aware of the goods, services and works that can be provided.
- Devolved Welsh authorities (DWAs) under the Procurement Act 2023 (the Act), must have regard to the fact that SMEs may face particular barriers to participating in a procurement, and therefore must consider whether such barriers can be removed or reduced. This is relevant for above threshold procurements i.e. “covered procurement”, and regulated below-threshold procurements. For further information on thresholds under the Act, please refer to the Wales guidance on thresholds.
- Not assume that larger suppliers always offer better value for money.
- Further develop guidance, including on-line documents, and brief SMEs on our requirements, the opportunities we have available, who to contact, and how to tender for our business.
The Act encourages preliminary market engagement for public contracts (above threshold), which can (among other benefits) assist DWAs in:
- developing their requirements and approach
- designing a procedure, conditions of participation or award criteria
- building capacity among suppliers.
Such preliminary market engagement can help inform SMEs that there is a potential procurement they may be interested in, while also having their feedback considered prior to the tender specification being fully developed. DWAs must however ensure that suppliers (including SMEs) involved in preliminary market engagement are not put at unfair advantage. DWAs should refer to section 16 of the Act for further information and to relevant guidance that will be made available on the Procurement Act GOV.WALES webpage.
- Make it easier for SMEs to talk to us.
- Ensure all our processes create a level playing field for SMEs.
- Look for the best overall outcomes from our procurement activities using broad value for money and social value criteria to make decisions.
- Ensure fair, open and transparent competition that does not discriminate against SMEs.
- More widely advertise our contracts over £25,000 in value, making best use of the Sell2Wales portal
- Welcome applications from new businesses.
- Actively encourage our main suppliers to provide opportunities for SMEs to deliver elements of appropriate contracts.
- Welcome bids from small businesses that are collaborative or are on a consortia basis.
- Comply with all applicable procurement legislation, including the Procurement Act 2023, the Procurement (Wales) Regulations 2024 and the Social Partnership & Public Procurement (Wales) Act 2023, in particular having regard to potential barriers that SMEs may face and the consideration whether these can be removed or reduced, and apply the rules to all tenderers in a fair, open and transparent manner.
- Respond promptly and positively to queries raised through the Welsh Government’s Supplier Feedback Service.
We remain committed to sustainable development and will continue to:
- Follow the 10 principles of the Wales Procurement Policy Statement 2021 which are based on the 7 well-being goals and 5 ways of working of the Well-being of Future Generations (Wales) Act 2015, and key Welsh Government policies.
- Make the most of the tools and guidance provided by the Welsh Government to help deliver economic, social, environmental and cultural well-being for Wales.
- Encourage SMEs to embrace sustainable development.

We have modernised our procurement processes to ensure that they are fair, open and transparent for all SMEs and, whilst the majority of these commitments have been adopted, we will continue to:
- Ensure skilled and professionally qualified personnel manage the processes.
- Keep our tendering process as simple as possible to minimise cost.
- Look at the whole life cost, and not just the initial cost of the product / service when considering value for money.
- Explain our procurement processes to SMEs and how they are influenced by the need to comply with the Procurement Act 2023, the Procurement (Wales) Regulations 2024 and the Social Partnership & Public Procurement (Wales) Act 2023.
- Give SMEs sufficient notice about changes in our processes to allow time to adapt.
- Cut down on administration needed to tender, simplify our documents, provide clear briefs that identify all of our requirements, and use plain language.
- Move towards a consistent all-Wales approach to pre-qualification and standardised contract documentation.
- Adopt eProcurement tools, including but not limited to eSourcing, Dynamic Purchasing Systems, e-auctions, e-invoicing, electronic catalogues and purchase cards.
- Consider the most appropriate approach to achieve value for money and manage risk, for each procurement.
- Package large contracts into separate lots to ensure that SMEs are not excluded from tendering. DWAs under the Procurement Act 2023, before publishing a tender notice, must also consider for public contracts whether the requirements could reasonably be supplied under more than one contract, and whether awarding by lots would be appropriate (section 18 of the Act). A “public contract” is as defined in section 3 of the Procurement Act 2023.
- Decide what our financial qualification requirements are on a tender-by-tender basis, having assessed the risks involved. When undertaking a competitive tendering procedure under the Act, DWAs must refer to section 22 of the Act concerning “conditions of participation” which covers that legal and financial capacity requirements must be proportionate. DWAs should also refer to the available guidance on “conditions of participation” prior to setting any financial qualification elements.
- DWAs cannot require as a condition of participation, the provision of audited annual accounts from suppliers not otherwise required by the Companies Act 2006 (or overseas equivalent). DWAs must refer to guidance on “conditions of participation” for further information concerning how financial capacity can be assessed. Use outcome specifications and consider alternative products or services SMEs may wish to offer.
- Offer feedback to successful and unsuccessful tenderers, to help SMEs improve.
- Treat all SMEs fairly and pay within 30 days from receipt of a correct invoice. Further, under the Procurement Act 2023 there are implied payments terms in public contracts, which also applies to sub-contracts and regulated below-threshold contracts, where any sum to be paid under a public or regulated below-threshold contract by a DWA must be paid within 30 days. DWAs should also be aware that there are some exceptions to this implied term (see sections 68, 73 and 88 of the Act).
4.4 SMEs commitment to devolved Welsh authorities (DWAs)
The following are the main principles on which SMEs commitment to SME-friendly procurement is based.
In order to help us help you do business with us, you will be prepared to:
- Register on the Sell2Wales website
- Provide further information we may need to understand your business.
- Take advantage of the opportunities we offer for you to meet with us.
- Ensure that you know what is required of you to meet our requirements, and if you do not know, seek advice.
- Actively seek tender opportunities, including via Sell2Wales
- Be realistic in assessing your own capability to deliver each contract.
- Take up e-procurement, and as a minimum become Internet capable, to make sure you are not disadvantaged.
- Ensure all activities are conducted in an honest and responsible way.
- Continuously improve your business’ contribution to sustainable development.
- Develop and work with your supply chains to include other SMEs.
- Treat your suppliers fairly and pay within 30 days from receipt of a correct invoice.
- Take into consideration the 10 principles set out in the Wales Procurement Policy Statement 2021 to maximise positive outcomes from all procurement activities.
You will have a reputation for, and will want to provide us with, a high quality competitive service by:
- Continuously updating personnel skills and your business’ capability, seeking assistance from Business Support Agencies such as Business Wales, Business Online Support Service and Sell2Wales, if appropriate.
- Consider collaborating with other suppliers, if this makes your service more competitive or reduces risk.
5. Legislation
Including but not limited to:
- The Procurement Act 2023
- The Procurement (Wales) Regulations 2024
- Social Partnership & Public Procurement (Wales) Act 2023
- The Well-being of Future Generations (Wales) Act 2015
6. Timing
This WPPN applies to procurements commenced under the Procurement Regime and is therefore effective from the commencement of the Procurement Act 2023 and the Procurement (Wales) Regulations 2024 until it is superseded or cancelled.
7. Welsh Government Procurement Policy Statement (WPPS) relevance
This WPPN aligns with the following WPPS Principles:
Principle 1
We will leverage collaborative procurement activity in Wales to maximise long-term sustainable social and economic value outcomes from public spend.
Principle 5
We will support Welsh Government policy objectives relating to progressive procurement, such as the Foundational and Circular Economy, through collaborative, place-based (whether national, regional or local) procurement activity which nurtures resilient local supply chains.
Principle 10
We will promote value-based procurement which delivers optimum long-term outcomes for Wales.
8. Additional information
8.1 To support the delivery of this WPPN, Sell2Wales offers the online “Quick Quote” (QQ) functionality to support DWAs. It allows buyers to obtain competitive quotes electronically for low value requirements by sourcing suppliers registered on Sell2Wales. QQ is used to obtain quotes for low value/low risk procurement exercises or run mini competitions within a framework agreement.
8.2 Details of the QQ are created online through the notice creation wizard and distributed to a select list of suppliers. There are a number of ways in which to filter and select the suppliers that you want to invite to quote through Supplier Finder Profile. QQs are only distributed to the selected suppliers and are not made public on the portal. Therefore, only the individual supplier selected to quote can access the details of the quote and submit a response.
8.3 Once registered on Sell2Wales any supplier can be invited to quote from a buyer. To enhance a supplier’s chance of being invited to quote suppliers should complete a full and accurate Supplier Finder Profile. For a more detailed guide take a look at the Sell2Wales user guide.
8.4 Further information and guide on Quick Quote available on Sell2Wales.
8.5 To pass on procurement feedback, raise concerns about Welsh public sector procurement exercises and/or get clear guidance on procurement rules please visit Supplier feedback service. For further information please read Supplier Feedback Service: guidance for suppliers.
8.6 For further information on procurement processes and requirements, please visit Welsh Government procurement, Business Online Support Service (BOSS) and Help & Resources on Sell2Wales.
8.7 Please also refer to guidance available on the Procurement Act 2023, which can be located here: Procurement Act 2023: guidance documents. Available guidance documents include information on “conditions of participation” as mentioned above in section 4.
9. Contact details
If you have any questions about this WPPN, please contact: Commercial Policy – Polisi Masnachol: CommercialPolicy@gov.wales
If you have any questions on support available for small business, please contact;
- Business Wales helpline: 03000 6 03000
- Sell2Wales helpline: 0800 222 9004
If you have any questions on procurement processes and procurement templates, please contact: CPSProcurementAdvice@gov.wales
10. Acknowledgements
The following publications were utilised in the preparation of this WPPN:
11. References
- Details of the public sector organisations can be found in the resources section on the sell2wales website
- Sell2Wales User Guide
- Buyer User Guide – Quick Quote
- Supplier feedback service
- Supplier Feedback Service: guidance for suppliers