The Welsh Government has opted not to finalise two contracts worth nearly £100 million for external media buying, marketing, and PR services, leaving firms that had been informed they were selected for the frameworks facing significant trading uncertainties.
Contracts and Bidders Affected
Last month, bidders were told 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 & Marketing, SBW Advertising, Four Agency Worldwide, and the Folk Group.
Reasons for Decision
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 that the decision was made on legal advice following challenges from several unsuccessful bidders.
An executive from one of the ten firms for the integrated marketing campaigns and PR services contract, who wished to remain unnamed, described the process as a "shambles." They said: "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."
Another executive added: "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."
Procurement Timeline and Challenges
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 initially told a decision would be made in March 2026, but this slipped back to June. The Senedd Election in May and the establishment of a new Plaid Cymru Welsh Government should not have delayed the decision-making process, according to industry sources.
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."
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 company could bid. For services under £25,000, legislation allows the Welsh Government to award contracts without a competitive tender. However, many of the workloads under the two contracts would have values exceeding £25,000.
Impact on Businesses
Challenges to Welsh Government procurement decisions are not uncommon. For the previous four-year marketing and PR contract, the Welsh Government initially named ten suppliers, but 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 firms might have to slightly revise downwards their projected incomes. If other suppliers were added to the media buying contract, Golley Slater could face significantly reduced projected revenues.
