The MOD recognises the contribution of small and medium-sized enterprises (SMEs), as direct suppliers to MOD and as participants in the defence supply chain.

The white paper on ‘National security through technology: technology, equipment, and support for UK defence and security (Cm 8278)’ describes how SMEs are a vital source of innovation and flexibility in meeting defence and security requirements. SMEs can also often offer highly cost effective value for money solutions for defence requirements.

The white paper takes into account responses received from the consultation green paper on ‘Equipment, support, and technology for UK defence and security’ that was published in December 2010. The consultation process identified the potential for improvements in three main areas: changes to government processes, particularly within MOD; the way MOD manages its direct relationships with SMEs; and SMEs’ relationships with prime contractors. Our plans for improvements in each of these three areas may be found in chapter 5 of the white paper.

The departmental action plan (2013/14) describes the work we are doing to support and encourage SMEs and sets a target for increasing MOD’s direct and indirect spend with SMEs by end 2014/15.

The departmental action plan is attached together with a number of examples of successful SME engagements with the MOD.