MoD encourages more firms to tender
The Ministry of Defence (MoD) has reduced the threshold value for advertising contracts, with the aim of allowing more small businesses to tender for work.
Over the course of this year, the lower value of contracts will fall in stages from £500,000 to £40,000, with the possibility of a further reduction of £20,000 to come.
The Government said it was committed to making the MoD 'SME-friendly'. In 2005, just over 50% of MoD contracts went to smaller firms.
Lord Drayson, Minister for Defence Equipment and Support, said:
"This is one of a range of initiatives aimed at making it easier for small and medium companies to do business with us."
