SME-Friendly Procurement: Lowering Barriers for Small and Medium Enterprises

Why SME-friendly procurement?

Over 99% of Dutch businesses are SMEs, yet they face significant barriers when bidding for government contracts. The Procurement Act 2012 explicitly aims to strengthen the SME position in procurement.

Barriers for SMEs

• Disproportionate requirements (turnover, references, certifications)
• Administrative burden (complex documents, many required evidence)
• Clustering of contracts into large packages
• Financial barriers (bid costs, bank guarantees, payment terms)

Legal safeguards

Procurement Act 2012

• Article 1.5: Contracts may not be unnecessarily combined
• Article 1.5a: Lot division must be considered for above-threshold contracts
• Article 2.51: Requirements must be proportionate

Guide to Proportionality

• Turnover maximum 300% of annual contract value
• References maximum 60% of contract value
• Combinations and reliance on third parties must be permitted

Concrete measures

1. Divide into lots: Make lots of manageable size for SMEs
2. Proportionate requirements: Per lot, not based on total contract
3. Administrative simplification: UEA as self-declaration, standard forms, limited pages
4. Sufficient timeframes: Respect minimum periods, allow extra time
5. Facilitate combinations: No combination bans without justification
6. Fast payment: Maximum 30 days, preferably 14 days

SME test checklist

Verify proportional requirements, lot division, reasonable timeframes, limited admin burden, combination possibilities, and appropriate payment terms.