Find out how our Public Sector Contract supports small and medium-sized enterprises in public procurement.

Published 25 February 2026

Last updated 9 September 2026

This article provides guidance on the Public Sector Contract (PSC). It is specifically tailored to help smaller businesses confidently bid for opportunities.

What is the Public Sector Contract (PSC)?

The PSC is a standard template for framework contracts. Public sector bodies use it to buy common goods and services. 

It was originally developed under the Public Contracts Regulations 2015. However, it has since been updated to align with the Procurement Act 2023. 

The PSC establishes terms and conditions governing the relationship between GCA and each supplier. It also establishes the relationship between buyers and suppliers at the call-off level.

What is the PSC made up of?

The PSC is a modular contract. This means it is broken down into smaller, manageable, and standardised units (modules). 

To meet their individual procurement requirements, buyers can tailor the contract as needed. They can do this by applying, removing, or adding supplementary terms. This approach means they do not always have to draft brand new terms and conditions for each procurement.

All framework contracts that use the Public Sector Contract will include:

  • the general terms (used in every procurement)
  • relevant schedules (a mixture of mandatory and optional schedules), including:
    • framework award form: outlines the agreement between GCA and a supplier awarded a place on a framework
    • framework schedules: used when suppliers sign a framework contract with GCA
    • joint schedules: supplementary documents that govern the relationship between GCA, buyers and suppliers
    • call-off schedules: used when suppliers sell their goods or services to buyers
    • call-off award form: an order form used when a buyer decides to buy from a supplier

The exact schedules used will vary from agreement to agreement. However, a PSC-developed agreement typically covers these main areas:

  • liabilities and insurances 
  • data processing relationships 
  • intellectual property rights
  • prompt payment terms  

You can find a more detailed explanation of the different components of the PSC, and how they are used, on our How to supply page. 

What can I supply through a Public Sector Contract?

The PSC can be used to support agreements ranging from basic office supplies to complex technology projects. GCA agreements developed with the PSC are used across the entire UK public sector, including:

  • central government departments
  • local authorities
  • NHS trusts
  • emergency services (blue light organisations)

Benefits for small and medium sized enterprises

We’ve designed the PSC with small and medium sized enterprises (SMEs) in mind. The PSC offers significant advantages to help provide a fairer playing field for smaller, more agile businesses. 

Some of the advantages of the PSC include:

Reduced administrative burden

The PSC provides a consistent approach to doing business with government across all GCA agreements. In turn, this makes bidding for government work simpler.

Clearer expectations

The standardised nature of the PSC provides clarity on the responsibilities and liabilities of all parties.

Faster contracting

With predefined agreed terms and conditions, the time it takes to place a contract can be significantly reduced. There should not be any need for prolonged negotiations.

Alignment

The PSC is designed to create a more consistent and familiar contracting environment for SMEs across government. It does this by aligning, wherever possible, with the Cabinet Office Standard Contracts.

GCA’s SME Action Plan

Government Commercial Agency (GCA) published its latest SME action plan in October 2025. The plan reaffirms our commitment to help smaller businesses bid for government contracts. It outlines 7 improvements to be achieved within 12 to 18 months.

The actions address the need for early consultation with SMEs. This should take place even before market engagement for a commercial agreement. This helps SMEs to understand:

  • the opportunities available to them
  • how they can get onto GCA commercial agreements
  • what guidance and support is available

The actions are as follows:

  1. Encourage early networking opportunities.
  2. Publish Supplier Specifics articles and guidance.
  3. Increase transparency of upcoming GCA agreements.
  4. Provide Public Sector Contract (PSC) guidance.
  5. Increase signposting to Central Digital Platform.
  6. Provide buyers with up to date spend data.
  7. Continuously improve internal processes to consistently consider SMEs throughout the procurement lifecycle.

Finding support and further information

Want to learn more about using the Public Sector Contract and becoming a GCA supplier?

Supplier Specifics