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)
Tender value grows 35% year on year…
…Driven by a sharp increase in the value of tenders for Construction and Health / Social Services
Tenders for Consulting and Legal Services more than treble year over year
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).
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).
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.
The Northern Powerhouse disappoints
In H2 2016 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.
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.
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.