The Welsh Government has opted not to sign two contracts worth nearly £100 million for external media buying and marketing and PR services, leaving bidding firms in a state of uncertainty. An executive from one of the affected companies described the procurement process as a 'shambles'.
Contracts Worth £100m Left Unapproved
Last month, bidders were informed that Cardiff-based communications agency Golley Slater had been retained as the Welsh Government's sole media buying supplier for another four years. The contract, intended to run from the beginning of July 2026 to the end of June 2030, had a value of £38.4 million including VAT. However, the company would only receive a percentage of the value of placed ads and campaigns with media organisations.
The second contract not signed off is for integrated marketing campaigns and PR services, valued at £60 million including VAT. The firms notified as being on that framework were Cowshed Communications, Energy Saving Trust Enterprises, Equinox Public Relations, Freshwater, Golley Slater Group, Jam Jam PR, reTHINK PR and Marketing, SBW Advertising, Four Agency Worldwide, and the Folk Group.
Government Cites Public Interest
On the reason for not signing the contracts, the Welsh Government told the companies: 'This decision has been taken having regard to the overall procurement position and in the public interest.' It is understood the decision was taken on legal advice following challenges from a number of unsuccessful bidders.
An executive from one of the ten firms for the integrated marketing campaigns and PR services contract, who did not want to be named, described the Welsh Government's handling of the process and the abrupt decision not to sign the contract as a 'shambles.'
They added: 'As a business we spent a huge amount of time and energy submitting our bid, with all the opportunity cost that incurred. Now, with no detailed explanation as to why and what the Welsh Government plans to do going forward, we have been informed that the contract has been pulled. The new Plaid Welsh Government administration, which has championed ensuring more public sector procurement in Wales goes to Welsh SMEs like ourselves, really needs to review the entire procurement process overseen by officials.'
Impact on Businesses
An executive from another firm said: 'This could have a damaging impact in terms of having to rethink recruitment and investment plans having budgeted for increased revenue streams over the next four years. Of course there would be a competitive process amongst the firms on the framework as projects were released by the Welsh Government for bidding, but all would have been confident on securing significant workloads.'
'It could also negatively impact the valuation of some businesses and their ability to raise growth capital, particularly for those more dependent on Welsh Government contracts for overall revenues.'
Timeline and Process
Following an invitation to tender for the marketing and PR contract, firms had around four weeks to submit bids towards the end of December 2025. They were told a decision would be made in March 2026, before being pushed back to June. The Senedd Election in May 2026 and the establishment of a new Plaid Cymru Welsh Government should not have delayed the decision-making process, according to the firms.
A Welsh Government spokesperson said: 'We have reviewed the position in relation to this procurement process during the standstill period and have decided to withdraw the award decision previously notified. This decision has been taken having regard to the overall procurement position and in the public interest.'
'We recognise the investment made by suppliers in participating in the competition and will continue to engage with bidders. We are now considering future options for these services and any future procurement activity will be undertaken in accordance with the Procurement Act 2023.'
Scoring and Future Options
The Welsh Government would not comment when asked if the decision had been made following challenges on scoring, which was weighted 80% on technical competency and 20% on commercial. They were also asked to clarify whether they intend to retender the two contracts under the framework model, or put projects out to tender via the Sell2Wales procurement platform so any companies could bid.
For services under £25,000, the legislation allows for the Welsh Government to award contracts without the need for a competitor tender. However, many of the workloads under the two contracts would have had values of more than £25,000.
Challenges Not Uncommon
Challenges to Welsh Government procurement decisions are not uncommon. For the previous four-year marketing and PR contract, the Welsh Government had initially named ten suppliers. However, following challenges, two firms that failed to make the list were subsequently added. While not commenting, the Welsh Government could again opt to add those who are challenging to the list of suppliers confirmed last month.
This would mean the ten having to potentially slightly revise downwards projected incomes. If other suppliers were added to the media buying contract, this could see Golley Slater having to significantly revise downwards projected revenues.
