Small and medium-sized enterprises (SMEs) play a crucial role in the UK defence sector, contributing to national security and economic growth. These organisations help drive innovation and agility and contribute to enhancing the UK’s national security interests.
How can small and medium-sized organisations effectively compete for Ministry of Defence (MOD) contracts and navigate the complexities of the defence supply chain?
Whether you’re an SME aiming to enter the defence procurement market, an existing MOD supplier seeking growth, or a consultant supporting defence contracting, we outline the key steps to winning more MOD contract opportunities.
SME involvement in the MOD
SMEs are becoming an increasing priority in the MOD. Recently, the MOD has placed more emphasis on maximising the integration of these organisations, increasing defence procurement opportunities.
What challenges do SMEs face in defence procurement?
Despite the huge potential SMEs have in the defence sector, they do face significant barriers to fully contributing to the UK’s national defence procurement. These include inefficiencies, delays, overspending, and rigid processes.
How DCI Helps SMEs Win Government Defence Contracts
Defence Contracts International is a valuable partner for companies and SMEs seeking to engage with the nation’s defence procurement system. Through our understanding of the procurement process, we assist you in identifying opportunities, developing bids, and managing contracts with the MOD.
How to win more MOD contracts as an SME
There are several essential steps for SMEs to follow when looking to win MOD contracts. We break down each step into actionable components.
Understand MOD Procurement Routes and Defence Contracting Strategies
SMEs must develop a well-defined procurement strategy to effectively bid for and secure defence contracts.
Business leaders should research all available tender opportunities and procurement routes that align with their business objectives and expertise.
Direct MOD contracts vs. subcontracting with primes
SMEs looking to work with the MOD can choose between direct MOD contracts or subcontracting with prime contractors. Direct contracts offer more visibility, control, and potentially larger projects but require meeting specific criteria and facing greater competition.
Subcontracting with prime contractors provides a valuable entry point, especially for SMEs with less experience.
Competitive procurement procedures to target
SMEs should target competitive defence procurement procedures to maximise their chances of securing MOD contracts. Dynamic Purchasing Systems (DPS) are vital, as they remain open for new suppliers and streamline bidding for pre-qualified businesses. Framework Agreements are another route, allowing organisations to become approved suppliers for specific goods or services over a set period.
Get Listed on MOD Frameworks & DPS
Benefits of joining a defence framework
Joining a defence framework can have several benefits for your SME. It can help you compete for lucrative defence contracts and procurement opportunities.
Access to Government Contracts & Funding
Governments provide grants, subsidies, or financial incentives to SMEs within defence frameworks.
How SMEs can qualify for DPS opportunities
Dynamic Purchasing Systems (DPS) are electronic procurement tools used by government and defence organisations to pre-qualify suppliers for contract opportunities.
Staying compliant with DPS updates can enhance an SME’s chances of securing long-term defence contracts.
Strengthen Your Compliance & Certifications
SMEs should strengthen compliance and certifications by aligning with industry standards, obtaining key accreditations, and maintaining ongoing regulatory adherence.
Cyber Security: Cyber Essentials and Cyber Essentials Plus
Cyber Essentials is a government-backed, industry-supported scheme to help organisations protect themselves against common cyber attacks and cyber security risks. Poor cyber security can damage your reputation and cost you business; however, strong cyber security can boost your reputation and win you more business at home and overseas.
Cyber Essentials certification has been mandatory for suppliers to the MOD since 1 January 2016.
The complete Cyber Essentials scheme is made up of two stages: Cyber Essentials and Cyber Essentials Plus.
Cyber Essentials is a foundation-level certification that provides a clear statement of the basic controls your organisation should have in place to mitigate the risk from common cyber threats.
Cyber Essentials Plus is a more rigorous test of your organisation’s cyber security systems, where cyber security experts carry out on-site vulnerability tests to ensure that your organisation is protected against basic hacking and phishing attacks.
Learn more about getting your Cyber Essentials and Cyber Essentials Plus certifications through DCI.
Security clearances and facility security requirements
SMEs working with the MOD must meet specific security clearance and facility security requirements to handle sensitive information. SMEs may need to be listed on the MOD’s List X to prove they meet the necessary security protocols.
Leverage Innovation & Offset Agreements
The role of innovation in securing MOD contracts
Innovation plays a crucial role in securing MOD contracts, as the defence sector prioritises cutting-edge technologies, efficiency improvements, and enhanced operational capabilities. SMEs that offer novel solutions in areas such as artificial intelligence (AI), cybersecurity, autonomous systems, advanced manufacturing, and sustainable defence technologies are well-positioned to attract MOD funding and procurement opportunities.
How SMEs can benefit from MOD offset obligations
SMEs can benefit from MOD offset obligations by leveraging opportunities created when international defence suppliers are required to reinvest a portion of contract value into the local economy. These offset programmes often require foreign defence contractors to collaborate with domestic businesses.
Access exclusive MOD tenders with DCI services
Navigating MOD tenders for SMEs often presents challenges that require expertise to overcome. Take action through effective strategic planning and gain access to MOD tenders and funding opportunities using services offered by DCI. We provide hands-on support to help navigate the technical requirements needed to win contract opportunities.
Contact DCI for a free demo to get started.
