UK Procurement System Forces Over 1,000 Small Businesses to Report 'No Business' Monthly
A Freedom of Information request exposes that the RM6237 Low Value Purchase System requires more than 1,000 suppliers to log in each month, generating over two days of collective wasted time despite minimal transaction volume.
The UK Government’s RM6237 Low Value Purchase System, designed to streamline procurement for purchases below a specific financial threshold, is facing scrutiny over its administrative inefficiencies. While the system allows government departments to bypass complex tender processes and contact registered suppliers directly, it imposes a mandatory monthly reporting requirement on all vendors. This obligation persists even when no sales are made, forcing businesses to log in and declare "No Business" to maintain compliance.
Data obtained through a Freedom of Information request filed by a small business owner reveals the scale of this administrative burden. The Government Commercial Agency (GCA) confirmed that over 1,000 businesses are required to complete this monthly reporting process. However, the data indicates that only 59 of these small businesses reported any sales via the RM6237 system during the relevant period.
The author of the report estimates the collective time wasted by this requirement. Assuming a minimal two-minute duration to log in, wait for a Multi-Factor Authentication code, and submit the form, the process consumes more than two days of combined time every month across the registered supplier base. The report highlights the frustration of this requirement, noting that the onus should arguably lie with purchasing departments to report their spending rather than on suppliers to confirm inactivity.
The GCA responded to the Freedom of Information request by providing the data in PDF format, rather than the requested machine-readable version. When queried regarding the usability of the system, the agency stated it does not retain specific feedback data for RM6237. Feedback scores submitted by users are anonymised and aggregated at a service-wide level, meaning the GCA does not capture or hold results specific to this particular procurement channel.
This incident underscores the broader difficulties small businesses face when engaging with large organisations. Despite the RM6237 system’s intent to simplify low-value transactions, the mandatory reporting structure creates a significant bureaucratic hurdle. With the Ministry of Administrative Affairs cited as one of the departments involved, the disparity between the system’s design and its practical application remains a point of contention for the small business community.
