Durrant Pate/Contributor

The Ministry of Finance and the Public Service is giving the local Micro, Small and Medium-Sized Enterprises (MSMEs) a push start to benefit more meaningfully from public procurement opportunities.

Through collaboration between the Ministry and the Public Procurement Commission (PPC), the Government of Jamaica (GOJ) is strengthening support for small businesses seeking to participate in government procurement. To this end, in the upcoming financial year, the GOJ will be advancing the implementation of the Public procurement (Set Asides) framework, which allows portions of government procurement to be reserved for Jamaican suppliers, including micro and small enterprises. 

In partnership with the PPC, the GOJ will establish and maintain a verified list of qualifying MSME suppliers, to enable procuring entities to easily identify eligible businesses when applying the Set Asides provisions. Once this system is operational, the Ministry will issue a renewed directive to public bodies mandating the utilisation of ‘Set Asides Orders’ with special emphasis on MSMEs with annual turnover below $15 million and Small Enterprises with turnover between $15 million and $75 million.

Revised supplier registration system

In making the announcement in her Budget Debate presentation on Tuesday, Portfolio Minister Fayval Williams outlined that this new framework system will be complemented by the PPC, simplifying and streamlining the supplier registration system so that businesses can more easily enter the public procurement marketplace.

“These initiatives will ensure that government procurement not only delivers value for money but also serves as a powerful tool for inclusive economic growth by opening more opportunities for Jamaican entrepreneurs to supply goods and services to the Government,” she told the parliament.

She contended, “It was never repealed but the systems mentioned in the Government’s Circular are not operational. Now that the PPC maintains a registry, I have already discussed with them taking over the role of verifying qualifying suppliers and maintaining the list of qualified MSMEs.”

Minister Williams pointed to the need for some website/software changes, and the PPC will likely need some additional budgetary support to execute the changes. According to her, “It is possible to get it done in this new fiscal year. I know the PPC will need some support, and I am committed. Once the system is modified, a new circular will need to be issued, focused on only micro and small enterprises.”

The Public Procurement (Set Asides) Order 2019 defines a Medium Enterprise as having a turnover of between $75M and $425M, a Micro Enterprise as having a turnover of less than $15M and Small Enterprises between $15M – $75M.

“I wholeheartedly believe we need to give plenty of hand-holding assistance to entities with turnover below $75M to help them to navigate the complexities of the Government’s procurement system. The good news is, no amendments are needed to the Act. It is the operationalisation of the Act and Regulations to which we must attend with haste. The SME’s can wait no longer,” Williams lamented.

She acknowledged that the PPC will need to make adjustments to its software, and then her ministry can issue the new circular, and that the PPC has been working on getting the costings to do the changes required.