THE Public Procurement Commission (PPC) is seeking to bring more than 500 new micro, small, and medium-sized enterprises (MSMEs) into the government procurement system this year, but says businesses will first have to demonstrate they are able to meet the requirements for bidding on public sector contracts.

About 200 suppliers have so far been verified as the commission works towards its target, according to PPC Executive Director Nadia Morris.

The initiative forms part of a wider effort to expand the pool of smaller businesses able to compete for government contracts, with the PPC also working alongside the Ministry of Industry, Investment and Commerce, Jamaica Business Development Corporation, and Development Bank of Jamaica to improve the procurement readiness of MSMEs.

According to Morris, businesses seeking MSME designation will have to first establish where they fall within the classification system. The general rule is that micro enterprises have annual turnover below $15 million, while small businesses record turnover of at least $15 million, but below $75 million. Medium-sized businesses fall between $75 million and $425 million.

“The applicant is supposed to be registered with the PPC for us to give you that designation,” Morris told the Business Week.

Registration, however, requires businesses to demonstrate they meet a number of tax; legal; and, depending on the category in which they are seeking to supply Government, financial and technical requirements.

Businesses must provide proof of tax compliance, including a Tax Compliance Certificate (TCC), along with documents confirming their registration status. Sole traders, for example, are required to provide a certificate of registration, while other suppliers may be asked to submit documents such as a status letter or General Consumption Tax (GCT) certificate. Micro enterprises are not required to provide a GCT certificate.

The requirements become more specific depending on the type of work a business is seeking to undertake.

A supplier applying under the works category may be required to provide evidence of the academic or technical qualifications of its employees. Businesses operating in regulated industries must also show they have the relevant approvals to carry out the work.

A company supplying pesticides, for example, would have to provide documentation from the relevant Government regulatory body showing that it is qualified to operate in that area.

Financial information is also part of the process, although the documentation required differs according to the size of the business and the category under which it is registering.

“For the registry, entrepreneurs would have to provide verified financials,” Morris said.

Financial statements are generally required from suppliers in the works category. Micro and small enterprises, however, can submit tax returns filed with Tax Administration Jamaica or an income statement instead.

The differing requirements are among the areas the PPC and its partner agencies are seeking to help small businesses navigate as they prepare to compete for public-sector work.

The support includes helping businesses understand the procurement process, prepare bids and use the Government Electronic Procurement Portal.

“We’ve pointed out in particular that perhaps a training needs to happen regarding how you train yourself financially to compete for bids,” Morris told the BusinessWeek.

Getting businesses registered is, therefore, only one part of widening MSME participation in government procurement, according to the PPC. Businesses must also be able to put together compliant bids and demonstrate they have the financial and technical capacity to deliver on contracts.

The commission currently processes more than 1,000 supplier registrations annually, with registrations increasing by about five per cent each year over the past two years.

It has also taken steps to reduce how often suppliers have to go through the registration process.

In 2025, the validity period of the PPC registration certificate was extended from 18 months to 36 months, allowing registered suppliers to remain on the system for three years before having to renew.

While registrations are increasing, another issue facing some businesses considering government work is the length of time it can take to receive payment after supplying goods or services.

Morris acknowledged there have been cases of delayed payments, but cautioned businesses against treating those experiences as representative of the entire public sector.

“You can’t use one entity to summarise and generalise the government does not pay. Yes, there are some, but that should not deter them from still accessing contracts that are still available,” she said.

The PPC is hoping that its current outreach and training efforts will bring more smaller businesses into the procurement system and put them in a better position to compete once government contracts become available.