Policy paper

Department for Transport’s small and medium-sized enterprise (SME) action plan

Published 24 March 2026

How we are backing your business

Through ’Backing your business: our plan for small and medium-sized businesses’, we are delivering the most comprehensive package of support for small and medium-sized enterprises (SMEs) in a generation. 

Growth is this government’s number one mission and SMEs are the engine room. Our plan is to make the UK the best place to start and grow a business, with a culture that supports entrepreneurship in every community and high street. 

We’re delivering: 

• the most significant legislation to tackle late payments in over 25 years, giving the UK the strongest legal framework on late payments in the G7 
• a new Business Growth Service to simplify finding advice and support, including a new streamlined digital offer Business.gov.uk, ending the chop and change of previous government business support programmes 
• a package of support tailored to high streets to make it easier for SMEs to set up shop, ranging from a new licensing framework to targeted funding for places 
• a massive £4 billion finance boost to increase access to finance for entrepreneurs – to inspire the next generation of small business owners, make the UK the best place to start and grow a business, and build a culture that celebrates and champions entrepreneurs 

We also committed to making SMEs a national priority, ensuring they have a fair opportunity to win public contracts and setting ambitious  SME  targets for each department. Each departmental SME action plan sets the steps government departments are taking to maximise SME and start-up spend across their department and wider agencies. These plans also include departmental targets for direct spend with SMEs and the actions being taken to remove and reduce barriers to SMEs bidding for government contracts. 

The Procurement Act 2023 creates a more simple and transparent procurement regime, making it easier for SMEs to do business with the government. This action plan sets out why SMEs should work with us, where to find opportunities, and the actions we are taking to reduce barriers for SMEs in bidding for work. 

The plan is monitored through an annual publication (as a minimum) of our direct spend with SMEs as a percentage of our total procurement spend. 

SMEs are suppliers that have fewer than 250 staff and have a turnover of an amount less than or equal to £44 million or a balance sheet total of an amount less than or equal to £38 million. For more information, see Clause 123 of the Procurement Act 2023.

Foreword from Simon Lightwood MP, DfT SME Minister

I am delighted to be the DfT SME Minister. I know the value of SMEs; they are the beating heart of the economy, the source of so much of the innovation we need to deploy on our programmes in transport and where most people are employed in the economy. As the SME Minister, I will focus on;

• reducing barriers in public procurement
• late payments for SMEs
• encouraging SMEs to bid for government contracts

DfT has the second highest spend of all Whitehall Departments, £20 billion for the 2022 to 2023 financial year. This plan sets out how the department will enhance its spend with SMEs and promote innovative ways of engagement to increase the transparency of opportunities. In addition, I will support the government’s Small Business Plan by introducing new legislation and regulatory reforms designed to significantly benefit SMEs.

I will be regularly reviewing progress against this plan and our targets with the DfT Group Commercial Director and the DfT SME Champion.

Foreword from Paul Rodgers, DfT Group Commercial Director

As the SME lead for the government’s commercial function, I am committed to enhancing our engagement with SMEs and ensuring that our larger suppliers treat SMEs fairly, including the prompt payment of undisputed invoices.

DfT, its executive agencies (EAs) and arm’s length bodies (ALBs) have been cited as best practice amongst their Whitehall peers in promoting and embedding SME participation in their supply chains. SMEs play:

• the leading role in bringing innovative solutions to our vast capital programmes in HS2 Limited, National Highways and Network Rail
• a major role in creating skills, employment and education opportunities right across the UK, often in locations outside our major urban centres

For these reasons, we will continue to seek ways to ensure that opportunities to participate in our programmes are actively promoted to the SME community within the UK.

Department overview

DfT works with our EAs, ALBs and partners to provide the transport network that gets people and goods to where they need to be. We do this by working with partners to plan and invest in transport infrastructure to keep the UK on the move.

This plan will support production of the government’s manifesto pledge and the Secretary of State’s 5 strategic priorities. The strategic priorities are:

• improving performance on the railways and driving forward rail reform
• improving bus services and growing usage across the country
• transforming infrastructure to work for the whole country, promoting social mobility and tackling regional inequality
• delivering greener transport
• better integrating transport networks

Executive summary

Our action plan will build on our progress to:

• enhance engagement and spend with SMEs by increasing transparency of pipelines
• reduce barriers to participation in our supply chain opportunities
• demystify how our procurement processes work

To date, we have outperformed against each of our incremental annual targets over the course of the first DfT SME Action Plan with a:

• production figure of 33.5% overall against a 33% target for financial year (FY) 2022 and 2023
• £6.7 billion spend with SMEs

This outstanding performance is a testament to the DfT group’s proactive approach and the SME friendly initiatives that have been implemented. The priority for this action plan is to maintain this level of spend against a backdrop of challenging DfT budget conditions across all transport modes, which in turn has led to the cancellation or re-scheduling of some major infrastructure projects. Therefore, the target for the 2027 to 2028 SME action plan will remain at 33% of the department’s total procurement spend for each of the next 3 financial years.

DfT has a SME Champion who monitors the effectiveness of the action plan and compliance with policy across the entire DfT Group. DfT has established an effective cross group governance and assurance structure in order to:

• facilitate the identification and resolution of actual or perceived barriers for SMEs
• share exemplar initiatives across the group
• promote early market engagement to provide greater visibility of opportunities for SMEs

Background

In 2017, the DfT set a target for 33% of all procurement spend to be with SMEs by 2022 and prepared an action plan to achieve and maintain this target.

Small and medium sized enterprise policy

The main policies supporting the SME agenda are:

• the National Procurement Policy Statement mandates that all central government departments must set and publish 3-year targets for direct spend with SMEs, from 1 April 2025,  and publish progress annually. Consequently, DfT Group will, as a minimum, need to set a collective direct SME spend group target for each of the next 3 financial years, with the option for departments to voluntarily set targets for indirect spend
• prompt payment – from 1 April 2024 bidders for new DfT contracts are required to provide evidence. Bidders must show they have paid 95% or more of their invoices within 60 days (or 90% to 94% where there is a clear commitment to an action plan to achieve the 95% target), and also have paid all their invoices within an average of 55 days
• SME spend at tier 2 – DfT Group is accountable for multibillion pound infrastructure projects where the main opportunities for SMEs are through sub-contracting opportunities from prime contractors, referred to as indirect spend. As a result, DfT contacts its prime contractors with whom 80% of spending is with, direct spend, to ascertain spend with SMEs. DfT Group analyse main supplier spend performance with SMEs and identifies areas to enhance spend and collaboration between this group , main suppliers and SMEs
• reserved contracts – departments have 2 options to reserve contracts below threshold, these are to reserve the procurement:
  • by supplier location
  • for SMEs or Voluntary, Community and Social Enterprises (VCSEs)

Direct spend with SMEs

For the period of this action plan there was an initial DfT Group wide target at 5.25% of direct spend with SMEs for the FY 2025 to 2026 with this increasing in increments of 0.25% over the next 2 years.

Table 1

The DfT Group’s collective historical direct spend with SMEs from FY 2022 and 2023 to 2024 and 2025, with target direct spend figures for the group to FY 2027 to 2028^{[footnote 1]}

Financial year	Direct SME spend (%)	Change (%)
FY 2022 to 2023	7.80%	-0.80%
FY 2023 to 2024	6.50%	-1.30%
FY 2024 to 2025	5.00%	-1.50%
FY 2025 to 2026	5.25%	0.25%
FY 2026 to 2027	5.50%	0.25%
FY 2027 to 2028	5.75%	0.25%

SME target for the FY 2027 to 2028

DfT Group spend with SMEs is either:

• direct, from the DfT Group to the SME
• indirect, from the DfT Group to a tier 1 prime contractor who contracts with the SME or another larger company that contracts with the SME

For FY 2022 to 2023, the department exceeded its in-year target, percentage spend with SMEs for was 33.5%, against an in-year target of 33%, as shown in table 2.

Table 2 – DfT Group SME spend targets to FY 2027 to 2028^{[footnote 2]}

Financial year	SME Spend Target %	SME Actual Spend %	Direct spend actual/forecast %	Direct Spend Actual/Forecast	Indirect spend actual/forecast %	Indirect spend actual/forecast
2015 to 2016	22%	23.8%	11.0%	£1.3bn	12.8%	£1.5bn
2016 to 2017	24%	29.9%	10.9%	£1.2bn	18.9%	£2.1bn
2017 to 2018	26%	31.3%	10.5%	£1.2bn	20.8%	£2.4bn
2018 to 2019	29%	32.6%	12.6%	£1.7bn	20.0%	£2.7bn
2019 to 2020	31%	34.2%	9.8%	£1.4bn	24.4%	£3.5bn
2020 to 2021	32%	34.1%	12.3%	£1.9bn	21.7%	£3.1bn
2021 to 2022	33%	33.3%	8.6%	£1.5bn	24.6%	£4.3bn
2022 to 2023	33%	33.5%	7.8%	£1.6bn	25.6%	£5.1bn
2023 to 2024	33%	Not recorded	6.5%	£1.4bn	26.5%	£5.8bn
2024 to 2025	33%	Not recorded	5.0%	£1.2bn	28.0%	£6.8bn
2025 to 2026	33%	Not recorded	5.25%	£1.3bn	27.75%	£7.1bn
2026 to 2027	33%	Not recorded	5.5%	£1.5bn	27.5%	£7.3bn
2027 to 2028	33%	Not recorded	5.75%	£1.6bn	27.25%	£7.6bn

Category analysis

In FY 2022 to 2023 DfT Group spent circa £20 billion, of which £8.9 billion (44%) was in the construction sector (Diagram 1). Our spend is focussed on complex capital projects in  roads, rail construction and the maintenance sector. The projects are predominantly of high value where there are fewer opportunities for SMEs to directly contract with DfT Group entities. Our focus across the DfT Group is therefore to identify SME opportunities within the supply chains of the main tier 1 contractors.

As a result, it is essential to create opportunities for SMEs in the supply chain by increasing engagement between DfT Group, main suppliers, especially tier 1 and 2 suppliers, and SMEs. Accordingly, it is proposed that the DfT Group combined target, both direct and indirect spend, with SMEs is 33% for the next 3 financial years.

Diagram 1 – DfT Group procurement expenditure FY 2022 to 2023

Area of expenditure	Expenditure (£)
Construction	8.9 billion
Professional services	8.1 billion
Energy and fuels	956 million
IT	750 million
Facilities	338 million
Industrial services	162 million
Vehicles	118 million

Prompt payment                                                           

Late payments to SMEs are unacceptable, and we are determined to bear down on poor payment practices by companies in the supply chains. Inadequate cash flow is a common factor in the failure of SMEs. This is why we need to hold larger businesses to account with their payment practices and foster an environment that supports growth and jobs.

The department complies with the Chartered Institute of Credit Management’s Prompt Payment Code. While our standard terms and conditions for the supply of goods and services specify payment within 30 days of receipt of a valid invoice, we aim to pay 90% of valid invoices within 5 working days of receipt. In FY 2023 to 2024, DfT paid 93.01% of undisputed supplier invoices within the 5 working day target and 99.15% within the 30 day target.

In November 2023, Cabinet Office introduced Procurement Policy Note (PPN) 10/23. This sets out how, from 1 April 2024, prompt payment performance by suppliers to SMEs were to be considered in the procurement of major government contracts with an anticipated contract value above £5 million per annum. To ensure consistency across DfT Group the following initiatives were introduced. These are:

• training and guidance has been provided by the DfT SME Champion and policy leads to DfT Group on the recommendations set out at our Procurement Knowledge Networks which bring commercial professionals together across the DfT Group
• the DfT SME Champion is monitoring commercial pipeline information and Contracts Finder to identify potential in-scope contracts, to date all procurements have been compliant
• training and guidance is provided by the DfT SME Champion to the supply chain, trade associations and other main stakeholders at the DfT SME Working Group and at the Strategic Supplier Working Group. This is to ensure understanding of the policy measures and compliance when bidding for contracts

Reserved contracts

Public Procurement Notice (PPN) 11/20 sets out 2 options for reserving below threshold procurements. These are to reserve the procurement:

• by supplier location
• for SMEs or Voluntary, Community and Social Enterprises (VCSEs)

The department has formed a Reserved Contract Working Group, consisting of members from EAs, ALBs and other government departments. Together we have created a reserved contract action plan which commits the DfT to measuring the effectiveness of the PPN. This was achieved by running a pilot to:

• identify potential opportunities to award reserved contracts
• mitigate potential challenges to our approach
• test the proposed approach and ensure a consistent process across DfT Group

The Maritime and Coastguard Agency (MCA) ran a successful procurement exercise utilising PPN 11/20 and the Light Touch Regime that resulted in an award to a local SME. MCA have identified potential in-scope opportunities for more pilots.

Guidance and lessons learned workshops will be hosted to encourage more DfT Group commercial teams to utilise PPN 11/20 and offer on the shoulder support.

The Procurement Act 2023

In October 2023, the Procurement Bill achieved Royal Assent becoming the Procurement Act 2023 (PA23 ). The PA23 will make it simpler for SMEs and new entrants to public sector supply-chains to bid for public contracts by:

• introducing new flexible procedures will mean better procurement outcomes
• strengthening requirement for pre-market engagement by public authorities
• establishing a central digital platform, all opportunities will be visible in one place and a streamlined approach will be adopted to ensure common supplier information can be submitted more efficiently and effectively
• increasing transparency so there is greater visibility of pipelines 
• enabling greater supplier feedback by requiring public bodies to provide bid assessments
• strengthening prompt payment provisions
• placing a new duty on public authorities to have regard to the particular barriers facing SMEs

The DfT SME Champion chairs a DfT SME Working Group (SWG) whose members include EAs, ALBs, trade associations and other government departments. The SWG will monitor compliance to the objectives set out in PA23 and report how the measures effect the SME communities through the DfT SME Working Group.

Why SMEs should work with us

SMEs account for circa 99.9% of employment in the economy. The DfT recognises the vital role SMEs play in:

• levelling up local economies
• stimulating innovation
• increasing gross value added and value for money for the taxpayer

DfT Group has a dedicated full time SME Champion, whose role is to enhance spend and engagement with SMEs.

The SME Champion chairs the DfT SME Working Group whose members consist of representatives from our EAs, ALBs and other major stakeholders.

Part of the groups remit is to share initiatives and to identify and resolve barriers to SME participation in procurements. DfT Group collaborate with major suppliers and SMEs to promote direct and supply chain opportunities.

The DfT SME supplier events offer SMEs the opportunity to network with main stakeholders to ascertain how to bid for and win contracts with DfT and its supply chains.

Departmental commercial opportunities

Direct opportunities

One of the most important things contracting authorities can do is to provide the market with information about current and future public contract opportunities by publishing a forward-looking procurement pipeline. The PA23 achieves this by requiring the publication of pipeline notices in certain circumstances. This is of particular benefit to SMEs, as it provides them with time to plan for future work, ensuring a competitive and diverse market.

Pipeline notices (UK1) for any intended requirement over £2 million are published on Find a Tender.

Our pipeline notices are a forward look for 18 months and are reviewed and updated every 6 months, or as necessary.

The DfT procurement process and pipeline is available on GOV.UK.

Our commercial pipeline is refreshed every 3 months.

It contains a forward look for up to 5 years for projects and anticipated procurements valued at £2,000,000 or more.

You can search and apply for contract opportunities on Contracts Finder and Find a Tender.

Greater information on notices, notifications and the use of data as well as how to search and apply for contract opportunities.

Joining frameworks and dynamic purchasing system (DPS)

Joining a commercial agreement, such as a framework or Dynamic Purchasing System (DPS), can put SMEs in front of buyers actively seeking their services.

Framework agreements establish terms for future contracts, providing a pool of pre-selected suppliers from which public sector buyers can call off orders.

DPSs are an “always open” electronic list of pre-qualified suppliers that public sector buyers use to quickly and flexibly purchase goods, services, or works.

You can search the Crown Commercial Service commercial agreement pipeline for upcoming agreements.

Joining a supply chain

The department’s highest proportion of spend is in construction where sub-contracting opportunities for SMEs are through our tier 1 suppliers. Currently our sub-contracting opportunities are advertised on Contracts Finder^{[footnote 3]}.

The department are hosting UK-wide SME events where our strategic suppliers attend to network with SMEs to demystify how to work with and win contracts.

For information on future events contact GCDSMELead@dft.gov.uk 

Further information on how to do business with our department

Departmental supplier events

DfT Group meet the buyer events

The DfT SME Champion on behalf of the DfT Group is running a series of regional meet the buyer SME roadshows across the UK to highlight opportunities and encourage participation in our supply chains.

The initial SME event was held in Swansea on the 20 October 2022, followed by Northern Ireland, Scotland and regions across England. In total the department has hosted 23 events with over 4000 SMEs attending the events so far. The programme is continuing in the FY 2025 to 2026 following very positive feedback from the SME community. DfT Group are collating this feedback on barriers to working with government and the SWG identifying opportunities to remove barriers to SME participation in our competitions.

Our actions and milestones

At the DfT SME supplier events suppliers are asked for their perceived barriers to working with government, the top 3 were:

• increase pipeline visibility
• to reduce the number of procurement portals
• to reduce complex and lengthy procurement process

We have set milestones for actions in these areas.

Improvement action	Benefit to SMEs	Milestones
Increase pipeline visibility.	Collaboration between the department, main suppliers and SMEs to advise on where to access opportunities and training.	Updates at the DfT SME Working Group – quarterly. Enhance visibility at the SME events – monthly.
Reduce the number of procurement portals	The resource of SMEs is limited and reducing the number of portals and bidding time is vital	Procurement act webinars – quarterly.
Reduce complex and lengthy procurement process	Removal of unnecessary processes	Procurement act webinars – quarterly. Updates at the DfT SME Working Group – quarterly.

Our spend with SMEs

Our:

• total procurement spend is approximately £20 billion
• direct spend with SMEs is approximately £1.6 billion
• direct spend with SMEs is 7.8%
• indirect spend with SMEs is approximately £5.1 billion
• indirect spend with SMEs is 25.6%
• total spend with SMEs is 33.5%

Historical central government spend with SMEs is available.

Our payment performance

DfT complies with the Chartered Institute of Credit Management’s prompt payment code and PPN 10/23. While standard terms and conditions for the supply of goods and services specify payment within 30 days of receipt of a valid invoice, DfT aims to pay 90% of all valid invoices within 5 working days of receipt. In 2023 to 2024, DfT paid 93.01% of undisputed supplier invoices within the 5 working day target and 99.15% within the 30 day target.

Government is leading by example and paying our suppliers promptly. Late payment is an issue for businesses, especially smaller businesses, as it can adversely affect their cash flow and jeopardise their ability to trade. The government recognises that the public sector should set a strong example by paying promptly. The public sector is required to pay their suppliers in 30 days and report on their performance on an annual basis. Thirty day terms also apply in public sector supply chains.

Figures for the department from  the FY 2023 to 2024 year are:

• 93.01 % of invoices were paid within 5 days
• 99.15 % of invoices were paid within 30 days

Our payment statistics plus information on government’s payment policy and legislation is available.

SME hub

The small and medium business hub is a dedicated space for SMEs looking to work with the government. Here you will find links to other departmental action plans and centralised guidance on bidding for government work.

Contact us

Robert Vaughan – DfT SME Champion can be contacted at GCDSMELead@dft.gov.uk.

Case studies

National Highways: scheme delivery framework

A National Operations Community (NOC) created as part of the scheme delivery framework to promote collaboration and sharing of ideas and good practise.  SMEs represent 43% of this supplier community, helping to ensure their views are taken into consideration when making any changes to the way work is produced. The SMEs at NOC have led on several national initiatives such as developing a RACI of suppliers’ and client roles plus developing annual training programme for SDF suppliers.

HS2 Ltd

HS2 Ltd produces case studies of SMEs who have been successful in winning work and growing and developing their business.

HS2 announces First of a Kind rail systems competition winners

HS2 announced: 

• 4 winning SMEs go forward to development phase of the First of a Kind rail system, the winners were:
  • Mirage Ltd
  • Mobibiz Ltd
  • I3D Robotics
  • Geokod Rail
• how competition marks preparation for HS2 programme transition to rail systems installation phase

Innovations to accelerate track laying, rail welding, and automate cable installation are among technologies aiming to be deployed during delivery of Britain’s new high-speed railway after four companies behind them were selected as part of a government rail innovation competition.

The Department for Transport’s First of a Kind initiative aims to improve cost efficiency and increase value for money in the railway sector.

The HS2 component of the competition focused on driving economies in delivery of the railway’s rail systems, which includes rails, track, signalling and electrics.

With the focus on driving efficiencies through automation and using new digitally based methods to reduce the time taken to install the line’s infrastructure, HS2 Ltd is investing over £650,000 in the 4 winning entrants to progress to competition’s six-month development stage.

HS2 Ltd estimates that the technology could deliver economies of over £4million to the project.

Mirage Ltd, the Stoke on Trent-based company put forward advanced induction heating technology, which is safer, stronger, and faster than traditional rail welding. In addition, the new process offers greater fatigue resistance.

HS2 will be a highly reliable railway underpinned by its ERTMS* signalling system. Sensors developed by London firm, Mobibiz Ltd will be attached to the ERTMS cabling to provide future maintenance teams with a web-based GIS mapping tool to illustrate its exact location, which will deliver maintenance cost savings.

Kent’s I3D Robotics secured a place on First of a Kind’s 6-month tech proving programme with its tunnel cable installing robot, which combines efficient automation with software that automatically assures its installation work. The competition’s judges noted that the “…  benefits to HS2 are clearly identified, with further efficiencies highly likely.”

To help underpin HS2’s reliability it will be built with highly durable slab track, instead of traditional ballast. Made off site and installed at multiple locations along the line’s route, the process of fixing into place each unit requires very high precision levels.

The judging panel also awarded a place on the innovation programme’s development stage to Geokodd Rail ‘Panel Rectification System’. Through its involvement in slab track laying programmes in mainland Europe, the Czech firm has developed technology to heighten procession – and potentially cut by up to five minutes – of installing each of the railway’s 70,000 plus slab track panels between London and the West Midlands.

Speaking as the winning 4 were announced, HS2 Ltd senior innovation manger Jon Kelly said:

HS2’s involvement in this year’s First of a Kind competition marks to start of the programme’s preparations to pivot towards its rail systems phase. This will be a major stage in development of the new high-speed railway. 

This why I am extremely pleased to welcome four innovative firms whose solutions we hope will make significant contributions to driving productivity growth and efficiency in the rail systems sector to the benefit of both HS2 and the wider rail industry.

HS2 trialling fibre optic tech to head off subsidence and ground movement

HS2 announced:  

• technology up to 10 times more cost-effective than reactive repairs 
• HS2 site is test bed for new tech that could be used across UK’s rail and road networks

An HS2 construction site is the test bed for a potentially far-reaching fibre optic technology that can sense minute ground movements in embankments and cuttings and could help prevent land slips and detect the formation of sink holes.

Developing a capability for early detection of movement, and taking precautionary action, can provide huge savings in maintaining HS2 embankments and railway cuttings, as well as the wider railway and road networks. The importance of developing this technology is underlined by the increasing frequency of extreme weather and its effect on ground conditions.

Under a collaborative programme at HS2’s Chilterns tunnel south portal site, the University of Cambridge’s Centre for Smart Infrastructure & Construction (CSIC) and geosynthetics manufacturer HUESKER have combined technological expertise to create “Sensorgrid”, a standard ground-stabilizing mesh woven with fibre optic cables.

The team, which also included project contractor Align, its designer, Jacobs, and infrastructure monitoring company, Epsimon Ltd; created a test pit at the site to trial the smart grid technology by simulating ground movement.

Heavy-duty water-filled bags were laid in the base of the pit, sections of Sensorgrid were laid over it and then buried. Monitoring equipment then generated pulses of light that travelled through the fibre optic cable. To simulate ground movement, water was released from the bags causing the weight of the ground above to move and strain the mesh which in turn causes a change in characteristics of the light pulsing through it. The successful trial showed that Sensorgrid can detect small ground movements earlier and more effectively than established ground monitoring techniques.

The team estimates that on construction costs alone, proactive preventive action enabled by Sensorgrid would be up to 10 times less than the cost of repairing ground that has failed. The benefits of disruption reduced or avoided would be in addition to this saving.

The technology is now undergoing a full-scale live trial elsewhere at HS2’s South Portal site near the M25 motorway. Two kilometres of Sensorgrid has been incorporated into a cutting for the railway. It will provide continuous data to the monitoring team over the next 2 years.

As a new railway built to modern design standards, HS2’s vulnerability to extreme weather is much reduced when compared to older lines. Sections of the existing Victorian railway from Cornwall and Kent to Scotland have this year suffered land slips resulting from heavy rain, which has caused disruption to passengers.

HS2 Ltd innovation manager Rob Cairns said: 

Sensorgrid is a great example of how we’re leveraging HS2’s size and scale to draw on British expertise to develop a technology and demonstrate its innovative capability in the early stages of construction. This will act as a test bed for proving out significant benefit to the operational railway, with long term benefits in bolstering the resilience of the UK’s transport network.

Align’s innovation manager, Nick Podevyn said: 

A lot of hard work has gone into this innovation, which has been in incubation for more than a year. It has been an exemplar of open collaboration and working as one team to deliver the solution. It’s fantastic to see the prototype being physically tested on our site and then the technology being implemented on the live project.

CSIC Operations Manager, Cedric Kechavarzi said: 

Sensorgrid opens a wealth of new opportunities to use fibre optic sensing in geotechnical applications, as it vastly improves strain transfer from the soil to the sensor.

Maritime and Coastguard Agency (MCA)

MCA has a responsibility to provide nautical training to its maritime operational staff utilising 2 marine training vessels, namely the Hawk and the Hunter.

Boat management maintenance services are an essential organisational requirement based on a strategic decision for our boats to provide a full training and operational response as required. The maintenance of this small fleet needs to be managed by a specialised and efficient service provider, and in the instance of where the majority of our strategic locations are located, namely our Joint Rescue Coordination Centre situated in Fareham which manages our 999 calls and wider responses, our training facility at Daedelus and our HQ in Southampton meaning it was imperative to consider securing the services of a local supplier to comprehensively manage our fleet and maintenance package to ensure reliability of coastguard’s vessels.

PPN 11/20 provides guidelines for public sector organisations to reserve below-threshold contracts for suppliers located in specific geographical areas or for SMEs. This policy aims to stimulate local economic growth, support regional businesses, and promote social value.

The procurement-commercial strategy is:

1. Application of PPN 11/20 and Light Touch Regime (LTR).
2. Legal advice sought to support the application of the commercial strategy.
3. Provided the opportunity to write clearer requirements within the specification and bring about effective aggregation opportunities.  
4. Opportunity to support the group operating model by obtaining on the shoulder support from DfT assurance and TfL to assist in the mobilisation of the commercial strategy. 
5. Opportunity to support positive economic development within the region.
6. Mitigate risk of challenge from suppliers situated elsewhere in the UK – adoption of Section 51(3)(f) (Standstill periods on the award of contracts). 
7. Opportunity to explore innovation, social value and carbon-net zero. 
8. Contribute to the ongoing development of the UK’s shipping sector.

The contract was signed and the awarded of the contract was to a SME. During the implementation of the contract activity was assured to see the direct impact this award had. It was pleasing to meet the apprentices who will be working to create the scope of the work and how the supplier is actively involved in supporting local charities, it was a true success story of how a family business has grown within in the UK shipping sector.

SMEs and social value alike play a vital role in the MCAs and wider DfT groups supply chain ecosystem, contributing to its resilience, innovation, and sustainability while providing diverse and specialized solutions to meet the evolving needs of our business.

DfT small business supplier event Derby: working with Amey by Nigel Stafford, manager Diamond Responsive Engineering said:

Having met with both Mike Lindsay and James Charlesworth at the event in Derby earlier this year, it was good to not only have an opportunity to engage but also the feedback given. 

Diamond Responsive Engineering received enquiries and supplier registration within a week of the event. 

This led to 2 orders and the opportunity to be involved in a major project later in 2024. 

As an SME we attend events such as this as a large part of our business sevelopment, but it can be difficult to gain traction after initial meetings. 

Amey have been very proactive in responding and encouraging Diamond Responsive as an SME and supplier and we would like to thank them for their help and support in becoming part of the supply chain”.

Footnotes

1. Using data for the last year for which the DfT has fully validated data (2022 to 2023 period) it is assumed for the purposes of the action plan that 5% of spending in 2024 to 2025 period will be directly with SMEs. ↩

2. The indirect SME survey was completed mid December 2024. FY 2024 to 2025 spend with SMEs data will be available in the future. ↩

3. Procurement Policy Note 01/18: Supply Chain Visibility - GOV.UK (www.gov.uk). ↩