The Young Entrepreneurs Association of Jamaica (YEA) is calling for urgent reforms to Jamaica’s public procurement framework, arguing that the system continues to lock out smaller businesses despite long-standing promises of inclusion.

In an interview with Jamaica Observer last week, the YEA criticised the Government’s execution of the 20 per cent set aside for micro, small and medium-sized enterprises (MSMEs), stating that it has failed to translate into meaningful opportunities for smaller players. The group says the system remains deeply bureaucratic, overly technical, and structurally biased against start-ups and emerging service providers.

“The reality is, despite ongoing capacity-building initiatives, many MSMEs still feel locked out of the procurement process,” YEA President Cordell Williams-Graham said. “While Jamaica spends approximately US$5 billion annually on public procurement, much of that figure continues to circulate among a relatively small group of suppliers.”

She noted that the set-aside mechanism under the Public Procurement (Set Asides) Order, 2019 remains largely underutilised, as many MSMEs are either unaware of the opportunities available or are unable to identify which contracts fall under the programme. The YEA is calling for greater transparency, with set-aside contracts clearly flagged, more widely advertised, and tiered to ensure that micro firms — those earning under $15 million annually — can compete on a more level playing field.

“We recommend that the 20 per cent be more deliberately tiered, with specific set-asides for micro enterprises [under $15 million] and small/medium enterprises. This would promote greater inclusion and allow true micro-businesses to compete among their peers,” the Williams-Graham said, while carefully avoiding a direct claim that smaller operators are being crowded out by larger firms benefiting from the same broad MSME classification.

The YEA has also raised concern over how the procurement process evaluates experience, placing heavy emphasis on the company’s past government contracts, rather than the qualifications and track record of its principals.

“Right now in the YEA we have 21 service providers who have decades of experience working with top brands and who are certified at the highest levels in project management, marketing, finance, accounting, change management, etc, and yet they have challenges bidding as a company because their brand may not have an extensive portfolio of clients,” Williams-Graham told BusinessWeek. “The current system too often places weight solely on a business’s contract history rather than on the proven expertise of its principals and team.”

But it’s not just MSMEs that are frustrated.

Across government departments and ministries, public sector procurement has long been identified as a bottleneck. In fiscal year 2022/23, nearly $6.5 billion in budgeted capital expenditure went unspent, largely due to procurement delays. Ministries, including health, and security cited challenges navigating the complex approval process, which continues to delay implementation of critical infrastructure, equipment and services.

“The procurement process is document-heavy, inconsistent, and often intimidating for first-time users,” Williams-Graham argued, adding that late payments, lack of mentorship, and the high cost of compliance further disincentivise MSME participation.

Others, including the Jamaica Technology and Digital Alliance, have raised concerns that the current system places too much emphasis on lowest-price bidding, often at the expense of quality and long-term value. Delayed payments to vendors — particularly smaller firms — have also been cited as a major disincentive to participate.

Against this backdrop, Finance Minister Fayval Williams has acknowledged that the procurement process is in urgent need of reform. Speaking at a CAPRI forum last week, she said the Government is actively reviewing the system with a view to reducing delays while maintaining transparency and accountability.

“We’ve heard the complaints,” the finance minister said. “I’ve been charged with looking at it to see how we can re-engineer that process — without losing the kind of guardrails that we have — so that procurement moves faster and we get the kind of output that we want.”

Williams linked the procurement delays to significant under-execution of capital projects, including investments in hospitals, roads, national security, and agriculture. She noted that while the budget allocated more than $80 billion to capital spending last year, many projects stalled due to slow procurement cycles. These are now being carried over into the current fiscal year.

In response, the Public Procurement Commission has also introduced the Procurement Endorsement Database Management System, a new platform aimed at slashing application processing times from eight weeks to two. The move is part of a wider effort to enhance transparency and expedite project implementation.

Despite the structural challenges, the YEA is moving ahead with its own interventions. Last year, the group partnered with the Ministry of Industry, Investment, and Commerce and the Development Bank of Jamaica to deliver procurement readiness training. The group is also working with the Public Procurement Office to provide MSMEs with hands-on support and digital tools to help them bid more effectively via the Government of Jamaica Electronic Procurement system.

“Public procurement reform is more than economic housekeeping,” the YEA said. “It is a path to inclusive prosperity, innovation, and national development.”

The association said it stands ready to work with government agencies and private sector partners to build a more transparent, inclusive, and efficient system.