SME Report

Key message: Before completing the Small or Medium Enterprises Report for the first time, suppliers should familiarise themselves with regulation 45.

Definition: Regulation 2(1) explains that “SME” has the meaning given in Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises.

Broadly, an SME is an enterprise that has fewer than 250 employees and has an annual turnover not exceeding EUR 50 million, and/or a balance sheet total not exceeding EUR 43 million. But there are a number of caveats and excemptions set out in the full definition.

8.1

The supplier should enter Report Submission Admin information including the relevant fnancial year to which the Small or Medium Enterprises (SME) Report relates. Information on the ultimate parent undertaking is also required.

8.2

The supplier should describe the main policies and procedures their organisation operates for engaging with SMEs, specifcally including but not limited to:

1. any default payment and contracting terms the organisation would use when dealing with SMEs; and
2. any special assistance the organisation provides to the SME sector such as banking or credit arrangements.

8.3

Individual rows can be added by clicking on the blue cross. The supplier can attach any policy documents to support their explanation. The supplier should state the name of the policy and attach the relevant description in a named attached fle, confrming whether the fle is attached (Yes, No or Non-Applicable).

8.4

The supplier should describe any initiatives their organisation is currently operating to develop SME involvement and/or create more opportunities for them to support the organisation to deliver MOD contracts. In particular, include description of anything the organisation is doing to encourage / support SME technical innovation relating to MOD work.

8.5

The supplier must:

1. Input the total revenue which the designated person or any person associated with it received from defence contracts, in £ million to three decimal places.
2. Enter the amount of that total revenue (in £ million to three decimal places) which related to purchasing goods and services for the purpose of delivering those defence contracts from persons which are not associated with the designated person, including those in the frst bullet.
3. Enter the amount of that total revenue (in £ million to three decimal places) which related to purchasing goods and services from SMEs for the purpose of delivering those defence contracts in the frst bullet.

8.6

The supplier must provide a description of the extent to which the goods, works or services provided by SMEs have contributed to the delivery of the contract. Include details on SMEs’ contribution to the delivery through their participation further down the supply chain.