Question to the Department for Transport:

To ask the Secretary of State for Transport, what steps his Department is taking to ensure that Network Rail’s procurement framework for Control Period 6 will encourage UK SMEs to tender for work.

As an arm’s length body, Network Rail (NR) operates with independence on day-to-day operational matters from the Department. Good procurement practices however demand that public sector organisations buy the goods, works and services they need using fair and open procurement processes, meeting the standards in Managing Public Money.

I do note, however, NR is taking a number of actions to increase their direct and indirect spending with SME businesses, including:

• Reviewing procurement processes to ensure barriers are removed, for example clearer instructions for and the introduction of simpler financial assessments for bidders into NR’s standard Pre-Qualification Questionnaire;
• Reviewing poor main contractor practices in the management of sub-contractors;
• Actively encouraging Tier 1 suppliers to embrace the SME agenda by implementing regional conferences with SME/Tier 2 suppliers;
• Continuing to increase engagement with SMEs through roadshows and attendance at meet the buyer/trade events as well as improving pipeline visibility and promoting greater consistency in performance measures;
• Developing capability within NR to enable better understanding of indirect expenditure with SMEs;
• Contributing to various cross-industry working groups and leading the dialogue within the Rail Supply Group on improving SME engagement.