The public sector represents approximately 14% of the GDP in the European Union. For many companies, it is the most important client in the national economy. However, there is a psychological barrier: the belief that bidding for SMEs is a "mission impossible," reserved for large corporations.

The reality is different. The Law 9/2017 on Public Sector Contracts (LCSP) establishes in its preamble the need to facilitate access for small and medium-sized enterprises. If you are a freelancer or manage a small business, the administration can be your next big client.

In this guide, we break down how the public procurement ecosystem works for SMEs, the legal requirements, the types of procedures, and how artificial intelligence technology is leveling the playing field.

Why Is It Strategic to Bid for SMEs in Spain?

Beyond turnover volume, working with the public sector offers competitive advantages crucial for the stability of a small business:

Solvency and guarantee of payment: Although the myth of non-payments exists, the administration is a secure long-term payer. While it is true that delays may exist, the law establishes protection mechanisms, such as the accrual of late payment interest if the legal payment period is exceeded. You can consult real data in the reports on the Average Payment Period (PMP) of the Ministry of Finance.
Recurrence and stability: Many service contracts (cleaning, maintenance, consulting) or supply contracts are multi-year. Winning a tender can secure a part of your fixed turnover for 2, 3, or even 4 years.
Reputation and technical solvency: A public award validates your capacity before the private market. Having worked for a Ministry or a City Council is a weighty credential in your business resume.

Requirements for Bidding as an SME: Getting Your House in Order

Before looking for opportunities, you must ensure you meet the legal requirements. European regulations and the LCSP require that any company has full capacity to act and proves its solvency.

1. Mandatory Digital Tools

Today, the process is 100% electronic. You will not be able to submit any offer without:

Qualified digital certificate: For a representative of a legal entity or a natural person (freelancer).
Registration on platforms: You must be registered on the Public Sector Contracting Platform (PLACSP) and, depending on your geographical area, on regional platforms (such as the Generalitat de Cataluña or the Junta de Andalucía).

2. Registration in the ROLECE

The Official Register of Bidders and Classified Companies of the State (ROLECE) is your "passport" to bid. Although in summary simplified open procedures (small contracts) capacity can be proven documentarily in each tender, the LCSP (Art. 159) requires registration in the ROLECE to participate in simplified open procedures.

Advantage: Registering saves you from presenting deeds, powers of attorney, and ID in every tender. It proves your capacity to act before all contracting authorities.
- Link: Registration in the ROLECE.

3. Economic and Technical Solvency

You don't need to be a multinational, but you must demonstrate that you can execute the contract. The specifications usually ask for:

Economic solvency: Generally, an annual turnover referring to the best fiscal year of the last three available. According to the LCSP, this requirement should not exceed one and a half times the estimated value of the contract (unless justified).
Technical solvency: Certificates of good execution of similar works performed in recent years. If you are a newly created company (less than 5 years), the law allows proving solvency by other means (academic degrees, material means), thus facilitating bidding for SMEs that have just been born.

4. Insurance and Classification

For service and supply contracts, business classification is rarely required (except for large amounts). However, for works contracts with an estimated value equal to or greater than €500,000, classification is mandatory. Additionally, keep in mind that you will almost always need Civil Liability (RC) Insurance consistent with the activity.

Types of Procedures: Which Ones Should an SME Target?

Not all public tenders for small businesses are the same. Understanding the procedure is vital to calculating your chances of success.

Minor Contract: Direct award for low amounts (less than €40,000 in works and €15,000 in services/supplies). They are fast, but with less publicity and transparency.
Open Procedure: The standard. Any company can submit a bid. Solvency and the offer are evaluated.
Simplified Open Procedure: Designed specifically to speed up bureaucracy. Deadlines and administrative envelopes are reduced. It is ideal for SMEs, but requires mandatory registration in the ROLECE.
Dynamic Purchasing Systems (DPS): Fully electronic processes for commonly used purchases. They work like a prior homologation where specific tenders are then launched.

You can consult the details of these procedures in the EU Public Procurement Directives.

The Lifecycle of a Tender Step by Step

To win public contracts, you must master the three phases of the lifecycle. This is where most companies make mistakes due to a lack of method.

1. Detection and Filtering (Market Intelligence)

There are thousands of daily tenders. Searching manually in the BOE or regional platforms is inefficient. Tenders are categorized by CPV codes (Common Procurement Vocabulary), but they are often mislabeled by the administration. To not miss opportunities, it is critical to go a step further and apply Market Intelligence. It is not enough to find the file; you need to analyze historical data and competitor prices to filter only those tenders where you are truly competitive.

Tip: Use tools that search by keyword and semantic context, and allow you to visualize market data to discard unprofitable options.

2. Analysis of Specifications (PCAP and PPT)

Once the opportunity is detected, you download two critical documents:

Specific Administrative Clauses (PCAP): The legal rules. Solvency criteria, price valuation formula, penalties.
Technical Specifications (PPT): The technical needs. What you must deliver and how to execute it.

3. Study of Guarantees

To bid, a provisional guarantee is sometimes required (to ensure you maintain the offer). If you are proposed as the successful bidder (adjudicatario), you must constitute the definitive guarantee (generally 5% of the award price) to ensure correct execution.

4. Preparation and Submission of the Offer

You must typically prepare three electronic envelopes:

Envelope A: Administrative documentation (ESPD, responsible declarations).
Envelope B: Technical offer (value judgment). Never include prices here.
Envelope C: Economic offer and automatic criteria.

How to Bid for SMEs Without Dying Trying: Technology and Efficiency

Traditionally, bidding required an exclusive department dedicated to reading papers and writing memorandums. This left SMEs out of the game against large companies. Today, technology has democratized access.

The use of specialized artificial intelligence allows a small company to compete on equal terms:

Noiseless Detection: Intelligent aggregators, like Tendios', centralize all sources (state, regional, and local) and filter out irrelevant opportunities, saving hours of daily search.
Feasibility Analysis: Agentic AI tools can read a 200-page specification in seconds and extract key data: do I have the required solvency? is there personnel subrogation? what are the award criteria?
Competitive Intelligence: Do you know at what price your competition bid on the previous contract? Advanced databases allow you to see award histories so you don't go in blind with your price.

Frequently Asked Questions About Tenders for SMEs

Can an SME bid for a large tender?

Yes, through the figure of the JV (Joint Venture / UTE). You can ally with other companies to combine solvency and resources, presenting yourselves jointly to execute a contract that, separately, would be unaffordable.

What is the ESPD and why is it important?

The European Single Procurement Document (ESPD) is a standardized responsible declaration at the European level. It replaces much of the initial administrative documentation, greatly simplifying the bid submission process.

Am I obliged to subcontract?

In some large contracts, the administration may require a percentage of the contract to be subcontracted to SMEs, although this is more common in large works. On the other hand, you as an SME can subcontract parts of the contract (except for critical tasks indicated in the specifications) respecting the limits of the LCSP (Art. 215).

What happens if I submit my offer after the deadline?

In public procurement, deadlines are fatal. One minute late means automatic exclusion. We recommend submitting offers at least 24 hours in advance to avoid technical problems with certificates or the Java platform.

Conclusion

The public procurement market is more open than ever for the Spanish business fabric. Bidding for SMEs is not only possible, but it is a path to growth and stability.

The key to success lies in professionalization: having documentation up to date (ROLECE), selecting only those opportunities where we are competitive, and relying on technological tools that reduce the administrative burden.

Bidding for SMEs: Public Procurement Guide