As governments push toward sustainability and the transition to electric vehicles (EVs), procurement processes play a key role in deploying critical infrastructure. However, the  processes required by contracts such as Provision of Electric Vehicle Charging Infrastructure and Associated Services (LEVI)  may unintentionally disadvantage small and medium-sized enterprises (SMEs). In this blog we look at the potential issues and share some recommendations to ensure the process is fair and inclusive for all. Are SMEs Being Left Out? The current procurement model for EV charging infrastructure often favours larger organisations with significant financial resources, leaving SMEs struggling to compete. Here are the key issues: Barriers to Entry: There are two notable barriers to entry for SMEs:   High investment requirements : SMEs typically lack the private capital needed to match or exceed public funding allocations, this can run into millions of pounds with little guarantee of payback via usage Risk absorption : Deploying EV chargers in rural or less populated areas is financially risky, especially for SMEs operating on tighter margins. Uncertain projections: The contract relies on projections such as   CENEX forecasts indicating the need for chargers by a certain date in the future. While these figures provide a strategic vision, larger providers may have the financial resilience to absorb delays in reaching profitability, but SMEs are less able to take speculative risk. Market Consolidation Risks: The contract requirements are favourable to larger providers which risks creating a marketplace dominated by a few corporations, stifling competition, limiting innovation, and increasing costs for users. Contradictions with SME Support Policies: The UK Government has emphasised support for SMEs through initiatives like the SME Action Plan and Public Contracts Regulations. Yet, frameworks that favour large providers undermine these policies. Recommendations for Fair Procurement The UK Government has made clear commitments to ensure procurement processes are open, fair, and SME-friendly. Opportunities to ensure a fair process include: Tiered Concession Model: Divide large contracts into smaller, regional lots, allowing SMEs to bid for specific areas, reducing financial barriers. Lower Investment Requirements for SMEs: Lower the Project Investment Ratio (PIR) for smaller providers, particularly for deployments in areas with lower expected usage . Alternatively, offer minimum revenue guarantees to mitigate financial risks. Demand Guarantees or Usage Incentives: Include mechanisms to support providers in areas with uncertain EV uptake, such as minimum revenue payments for underutilised chargers in the early years. Facilitate SME Collaboration: Encourage partnerships between SMEs and larger providers, enabling joint ventures to pool resources and share risks. Phased Investment Plans: Permit phased investments to reduce upfront financial burdens, aligning expenditures with EV adoption rates. Prioritise Innovation: Adjust evaluation criteria to value innovation, sustainability, and local knowledge over financial capacity, giving SMEs a fair chance to compete. Conclusion Expanding EV infrastructure is essential, but procurement processes must be fair and inclusive. SMEs offer innovation, agility, and local expertise that can drive the EV revolution. Structuring tenders to include SMEs ensures a diverse marketplace and long-term success for all.