Faster than expected growth in tenders since Brexit

In 2016 there were over 17,000* officially published tenders worth a total of £301Bn. Since Brexit the total value of tenders has actually risen. (*Excludes tenders without a published value)

Number of Tenders over time
 
Tender value grows 35% year on year…

 

Tender value growth
 
…Driven by a sharp increase in the value of tenders for Construction and Health / Social Services

 

Increase in the value of tenders for Construction and Health and Social Services
 
Tenders for Consulting and Legal Services more than treble year over year
Tenders for Consulting and Legal service have more than trebled
 
Value of contracts awarded rises more slowly than tenders

In H2 2016 the value of contract awards rose 5% year on year. For the whole of 2016 there were more than 38,000* supplier-level awards worth a total of £150Bn. (*Excludes awards without a published value and awards worth more than £50Bn).

Contracts awarded rises more slowly than tenders
 
Local Gov’t purchasing under pressure

In H2 2016 the total value of awards by Local Gov’t declined by 17% year on year while Central Gov’t increased by 10% and the NHS increased by 103% (although most of the rise in NHS purchasing was driven by a single £5Bn framework contract).

Total value of awards by local government declined by 17%, while central government rose by 10%
 
Construction sector leads the ranking

In 2016 Construction was the largest sector by volume and value with nearly 9000 supplier-level awards worth a total of £38Bn.

Construction was the largest sector by value and volume in 2016
 
The Northern Powerhouse disappoints

In H2 2016 award value in the North West declined by 17% year on year while London grew by 5%.

Award value in the North West declined by 17% year on year while London grew by 5%
 
Scotland best at sourcing locally

In 2016 buyers based in Scotland awarded 65% of awards by value to firms based in Scotland – the highest proportion of “local spend” of any region in the UK.

 
Spend with SMEs varies widely by region

In 2016 Wales awarded 63% of awards by value to SMEs – the highest proportion of “spending small” of any region in the UK.

 

 
Overall SMEs win 28% of public sector awards by value

In 2016 SMEs won 28% of directly awarded public sector contracts by value. In H2 2016 the total award value to SMEs was £18Bn – an increase of 29% year on year.

 

 
MoD is biggest Central Gov’t buyer by a margin

The MoD was the largest sector by volume and value with over 700 supplier-level awards worth a total of £13Bn.

 
In 2016 the top six suppliers to the UK public sector by award value were foreign-owned

In 2016 the top six suppliers to the UK public sector by award value were all foreign-owned. The top 20 suppliers accounted for 31% of total public sector award value.

In 2016 the top six suppliers to the UK public sector by award value were foreign-owned
 
By volume of awards, Capita leads the ranking

Looking at the top 20 suppliers by award volume (instead of value) shows a normalised view of activity. Capita led the ranking followed by four construction/engineering firms.

 

By volume of awards, Capita leads the ranking
 
Over 4,000 contracts worth £5Bn expire in 2017

Looking ahead, Tussell has identified over £5Bn of awards that expire in 2017 – creating change and opportunity for buyers and suppliers alike.

Tussell has identified over £5Bn of awards that expire in 2017

 

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For enquiries about a subscription to Tussell’s database of government tenders and contracts, get in touch at contact@tussell.com.

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