Find out how our Public Sector Contract supports small and medium-sized enterprises.

Published 25 February 2026

Last updated 25 February 2026

This article provides guidance on the Public Sector Contract (PSC), specifically tailored to help smaller businesses confidently bid for opportunities.

Crown Commercial Service (CCS) published its latest Small and Medium-sized Enterprise (SME) action plan in October 2025, reaffirming our commitment to helping smaller businesses bid for government contracts. The plan outlines 7 improvements to be achieved within 12 to 18 months:

The actions address the need for early consultation with SMEs, even before market engagement for a commercial agreement. This helps SMEs to understand the opportunities available to them; how they can get onto CCS commercial agreements, and what guidance and support is available.

The actions are as follows:

  1. Encourage early networking opportunities.
  2. Publish Supplier Specifics articles and guidance.
  3. Increase transparency of upcoming CCS agreements.
  4. Provide Public Sector Contract (PSC) guidance.
  5. Increase signposting to Central Digital Platform.
  6. Provide buyers with up to date spend data.
  7. Continuously improve internal processes to consistently consider SMEs throughout the procurement lifecycle.

What is the Public Sector Contract?

The PSC is our standardised template for framework contracts used by public sector bodies to buy common goods and services. 

Originally developed under the Procurement Contract Regulations 2015, it has since been updated to align with the Procurement Act 2023. 

The PSC establishes terms and conditions governing both the relationship between CCS and each supplier, and the relationship between buyers and suppliers at the call-off level.

It is a modular contract – which means it is broken down into smaller, manageable, and standardised units (modules). To meet individual procurement needs, buyers have the flexibility to tailor the content to their specific requirements by applying, removing, or adding supplementary terms. This approach is intended to minimise the necessity of drafting entirely new terms and conditions for each procurement.

The PSC-developed agreement typically includes these main areas:

  • liabilities and insurances 
  • data processing relationships 
  • intellectual property rights
  • prompt payment terms  

The PSC has been used to support agreements ranging from basic office supplies to complex technology projects. CCS agreements that are developed with the PSC are used across the entire UK public sector, including:

  • central government departments
  • local authorities
  • NHS trusts
  • emergency services (blue light organisations)

Benefits for Small and Medium Sized Enterprises

We’ve designed the PSC with SMEs in mind. It offers significant advantages to help provide a fairer playing field for smaller, more agile businesses. For example:

  • reduced administrative burden: the PSC provides a consistent approach to doing business with government across CCS agreements, in turn making bidding for government work simpler 
  • clearer expectations: the standardised nature of the PSC provides clarity on the responsibilities and liabilities of all parties 
  • faster contracting: with predefined agreed terms and conditions, the time it takes to place a contract can be significantly reduced with no prolonged negotiations
  • alignment: the PSC is designed to create a more consistent and familiar contracting environment for SMEs across government by aligning, wherever possible, with the Cabinet Office Standard Contracts.

Finding support and further information

Feedback

We always welcome feedback, suggestions or queries. Submit your feedback to smefeedback@crowncommercial.gov.uk.

Supplier Specifics