MSMEs urged to cash in on Government contracts
MICRO, small, and medium-sized enterprises (MSMEs) are being encouraged to take advantage of government procurement opportunities and secure their share of the multi-billion-dollar market.
Chief public procurement policy officer at the Ministry of Finance Andre Bennett emphasised the need for wider participation, noting that a significant portion of government spending is concentrated among a small group of businesses.
“We’re spending this big chunk of money, 30-40 per cent of gross domestic product, amounting to somewhere close to US$5 billion every year, and we’re spending it with just a few people in the country,” Bennett announced during a recent Jamaica Business Development Corporation (JBDC) Virtual Biz Zone Webinar.
Public procurement refers to the process by which governments and public sector entities acquire goods, services, and works using public funds. In highlighting key steps MSMEs should take to successfully bid for government contracts, Bennett first turned to where businesses can find these opportunities citing major newspapers and the Government of Jamaica’s Electronic Procurement (GOJEP) platform. He encouraged businesses to register on the GOJEP website, where they can identify available contracts and the range of products and services the Government is seeking. To illustrate the diversity of procurement needs, he cited examples such as nuclear power research equipment and toner cartridges for printers. However, Bennett cautioned businesses to carefully review solicitation documents before submitting bids, ensuring compliance with eligibility and qualification criteria such as tax compliance and Public Procurement Commission (PPC) registration. These requirements, he explained, help the Government assess potential reputational risks when awarding contracts.
“Government says, ‘Okay, we do not award contracts to anyone that does not pay taxes’. And I think that’s sensible,” Bennett stated.
MSMEs that fail to register with the PPC are automatically ineligible to receive contracts. Additionally, submitting competitive offers is critical, as procurement entities must evaluate multiple bids to determine the best option based on cost and value for money.
“You’re not going to make them an offer that they can’t refuse,” he said. “First of all, you need to offer the best possible price. We are not in the business of robbing you. The Government understands that the economy works when you calculate the risk in supplying the particular thing. You make a profit, and we love when you get rich.”
While stressing the importance of pricing goods and services at fair market value, he warned against lowballing offers, as underpricing could result in implementation risks and failure to meet contractual obligations. Bennett also urged businesses to submit only the required documents, noting that some procurement entities strictly enforce guidelines. Submitting unnecessary documents can delay evaluations and extend the time required to award contracts. Bennett advised businesses to ensure all required forms are properly signed and that bids are submitted on time.
“GOJEP will lock you out,” he warned. “Once you reach the cut-off time, that’s it — you won’t be able to access the submission page.”
He also noted that during high-traffic periods, the system may experience technical glitches, making early submission a safer option.