SMEs could win more public sector contracts under new AI-powered procurement pilot in Greater Manchester

SMEs could win more contracts with local councils under an AI-powered procurement scheme being launched this morning.

STAR Procurement – an organisation that looks after the procurement needs of four councils in Greater Manchester and another two from Merseyside – has begun a pilot scheme to help smaller firms and voluntary and community sector organisations (VCSOs) to win public sector contracts.

It follows a campaign from the Federation of Small Businesses (FSB) to launch a procurement scheme in Greater Manchester to “ensure businesses are at the front of the queue to deliver goods and services needed by their own local authority”.

The pilot will include Stockport, Tameside, Trafford and Rochdale councils – who together make up STAR – but the FSB hopes that if successful it will be extended across the city region.

The FSB says smaller firms tend to see council procurement as “overly complicated, time consuming, and out of reach”. The pilot aims to make the process easier by using “an AI powered digital platform” to connect SMEs with lower value council contracts. It will focus at first on contracts of over £50,000 but will be reviewed as the pilot goes on and could go up to contracts worth as much as £213,000.

Robert Downes, development manager for the FSB in Greater Manchester, said: “This is an exciting opportunity for businesses and councils in GM alike – and it’s something FS