- Published date:
- 22 April 2026
By Disha Shanbhag, Associate at PUBLIC
Selling to government can feel complex, especially if you are new to public procurement. The process is structured, highly regulated, and often unfamiliar compared to private sector sales. At the same time, it represents a significant opportunity.
PUBLIC is a UK-based digital transformation advisory firm that works with governments at the intersection of procurement and innovation. This includes experience working with central and local government bodies such as CCS, MHCLG, DSIT, the Cabinet Office and the LGA, as well as supporting early-stage startups through large-scale open innovation programmes.
This guide provides a practical introduction to:
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How the UK public procurement landscape works
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How to get started selling to government
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Key policy changes that may affect your approach
What is Public Procurement?
Public procurement is how public authorities buy goods and services. It is a core function of government that ensures public money is spent effectively, efficiently and sustainably.
The scale of procurement highlights why it matters. The UK Government spent £434 billion on goods, services and supplies in 2024/25. Procurement accounts for 3% of total public expenditure, and around 14% of the UK’s GDP.
The government is therefore a very large buyer. For founders, this represents a significant opportunity, but one that requires navigating a structured and often complex system.
The UK Public Procurement Landscape
The procurement ecosystem is made up of three main layers.
At the top are procurement authorities such as the Cabinet Office, HM Treasury and the Government Commercial Function. These organisations set the rules, regulations and guidance that govern procurement.
Below this are central and regional purchasing bodies. These act as platforms that suppliers must access in order to sell into the public sector.
At the delivery level are buyers across the public sector. This includes central government departments, local authorities and organisations such as NHS Trusts.
Understanding how these layers interact is important, as your route to market will often depend on where decision-making sits and how procurement is structured within each organisation.
The Procurement Lifecycle
The procurement lifecycle can be broken down into four main stages.
The first stage is planning. At this point, the public authority defines its requirements and explores what it wants to procure. This is one of the most important stages for suppliers to engage. You can participate through market engagement events or by responding to Expressions of Interest. Early engagement helps you influence how the opportunity is shaped.
The second stage is tendering. The authority publishes a procurement opportunity, and suppliers submit bids in response. Your focus here is on preparing a compliant and competitive proposal aligned with the stated criteria.
The third stage is evaluation. Bids are assessed against clearly defined eligibility and evaluation criteria. One useful aspect of UK procurement is that feedback is typically provided, allowing you to understand how to improve future bids.
The final stage is contract award and delivery. Successful suppliers are awarded the contract and begin delivering the service or product.
End-to-end, this process typically takes between six and twelve months.
Procurement Routes
Public authorities can structure procurement in different ways. The most common routes include:
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Open Tender
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Direct Award
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Framework
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Dynamic Market or DPS
An open tender is a publicly advertised opportunity that any supplier can apply for.
A direct award is where a contract is awarded to a supplier without a full competitive process.
Frameworks and dynamic markets are pre-approved supplier agreements. Buyers can procure through these without running a full tender.
The key distinction is that frameworks are fixed for a set period, whereas dynamic markets allow suppliers to join at any time. This makes dynamic markets more flexible, particularly for newer entrants.
Key Frameworks
Several frameworks are commonly used for technology and PropTech procurement:
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G-Cloud and Digital Outcomes and Specialists are widely used frameworks hosted by CCS for digital and technology services.
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Vertical Application Solutions focuses primarily on SaaS-based offerings.
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The Space-Enabled and Geospatial Services DPS is a specialised dynamic purchasing system for geospatial services.
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Spark DPS is focused on technology innovation and community engagement tools.
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The Greater London Authority’s Architecture and Urbanism Framework is designed for built environment and consultancy services.
Understanding which frameworks are most relevant to your solution helps you prioritise where to apply and how to position your offer.
Procurement Regulation
Public procurement in the UK is regulated by the Procurement Act 2023.
Procurement rules become stricter above certain thresholds. Currently, these are:
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£135,018 for central government authorities
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£207,720 for other public authorities
Below these thresholds, there is more flexibility. Authorities can directly award contracts or run limited competitions, although they still need to follow procurement principles.
For SMEs, under-threshold opportunities are often a practical starting point. They provide a way to build experience and credibility before moving into larger procurements.
How to Sell to Government
Selling to government is fundamentally different from selling to the private sector.
You are operating within defined procurement processes, longer sales cycles and a more risk-averse environment. There are also structural challenges, such as limited engagement opportunities, strict requirements and a disconnect between policy, technology and commercial functions.
To succeed, you need to shape the opportunity rather than simply respond to it.
There are three key actions to focus on:
-Understand the context
-Build a public sector narrative
-Identify routes to market
Understanding the Problem and Stakeholders
A strong understanding of the problem area is essential.
You need to be familiar with the operational, policy and political context in which your solution sits. This includes understanding how problems are currently being addressed and whether there is appetite for change.
Key questions to consider include:
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What policy goals can your solution help achieve?
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How is the problem currently being solved?
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Is there an appetite to do something different?
Policy makers may not directly buy your solution, but they shape the market and influence buyers. Your positioning should therefore speak to both policy priorities and operational needs.
Equally important is understanding stakeholders.
There are four main stakeholder groups:
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Service teams, including policy officials or technology leads responsible for delivery
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Commercial teams, including procurement professionals managing tenders and contracts
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Senior officials, such as ministers, CEOs, mayors and directors who influence decisions
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Politicians, particularly at local or national level
In most cases, your primary engagement should be with service teams and commercial teams. Identifying individuals who are open to innovation can help you navigate decision-making and overcome barriers.
How to Pitch to Government
When pitching to the public sector, the focus needs to shift away from your product and towards the problem you are solving.
A useful way to think about this is through three different narratives.
An investor pitch focuses on your business model.
A sales pitch focuses on the operational value for the buyer.
A policy narrative focuses on the broader national challenge and the societal impact of your solution.
For example, a digital recruitment tool for hospitals can be positioned as:
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A marketplace platform matching supply and demand
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A tool that helps HR teams fill shifts faster and more cost-effectively
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A solution addressing national challenges such as staff shortages and reliance on agencies
For government audiences, the policy narrative is often the most compelling.
In practice, this means:
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Start with the problem rather than the product
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Demonstrate a nuanced understanding of the customer’s remit, priorities and constraints
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Avoid overly sales-driven messaging
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Be realistic and evidence-based rather than overpromising
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Show tangible impact through case studies and previous work
A strong pitch should also be supported by a clear business case, covering strategic, economic, commercial, financial and management considerations.
Key Policy Changes
The Procurement Act 2023 introduces several changes that affect how procurement is structured:
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One of the most significant is the introduction of the Competitive Flexible Procedure, which gives authorities more flexibility in how they design procurement processes.
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There is also a shift from MEAT (Most Economically Advantageous Tender) to MAT (Most Advantageous Tender). This places greater emphasis on overall value rather than just price.
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Open frameworks and dynamic markets have been introduced, creating more flexible routes for suppliers to engage.
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There is a strong push towards transparency and data. Authorities are required to publish procurement pipelines, providing greater visibility of future opportunities.
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There is also increased focus on reducing barriers for SMEs, with a requirement for authorities to consider how smaller suppliers can participate.
In parallel, local government reorganisation is expected to affect 21 two-tier county areas. This is likely to create new opportunities to work with local authorities, particularly in areas such as planning and PropTech, although developments are still at an early stage.
Selling to government requires patience, preparation and a clear understanding of how the system works. By engaging early, positioning your solution around real problems and choosing the right routes to market, you can navigate the complexity and unlock long-term opportunities.
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