RachelAs the immersive technology sector evolves rapidly with new breakthroughs in virtual reality (VR), augmented reality (AR), and mixed reality (MR), UK-based public sector organisations are under pressure to keep pace. Whether it’s for delivering digital education, remote healthcare simulations, virtual training modules, or cultural engagement experiences, immersive technology offers vast potential.
Yet, buying cutting-edge XR (Extended Reality) solutions through public procurement can feel like navigating uncharted territory. That’s where Preliminary Market Engagement (PME), especially the use of Expression of Interests and Requests for Information (RFIs), becomes invaluable to help you make informed decisions.
This article explains how UK organisations can use the government’s guidance outlined under the Procurement Act 2023 (which went live in February 2025) to support smarter, more effective XR procurement.
Preliminary Market Engagement is the process by which a public buyer seeks to understand the market before officially beginning a tender process. The goal is to collect information on industry capabilities, price ranges, delivery timelines, innovation trends, and risks.
This can include informal meetings, workshops, supplier showcases, surveys and importantly, Requests for Information (RFIs). These activities help shape procurement strategies, tender specifications, and evaluation criteria.
Under Section 16 of the Procurement Act 2023, PME is encouraged, as long as it’s conducted transparently and fairly.
Immersive technology is still an emerging and fast-evolving sector. Suppliers range from large hardware and software companies such as Meta, Microsoft, HTC, Sony and Apple to agile Extended Reality (Spatial Computing) startups. Without a clear understanding of what’s out there, as a buyer you risk:
Example: A council specifies that a VR platform must run seamlessly on all headsets, including obsolete devices with outdated firmware. Most modern XR developers no longer support those models, narrowing the pool of qualified bidders unnecessarily.
Example: A buyer only notifies suppliers listed on a traditional framework and misses out on several startups offering AI-enhanced AR experiences that could have provided more advanced, cost-effective solutions.
Example: A university assumes that developing a VR lab tour will cost under £10,000 and take two weeks. After engaging the market, they learn the average cost is £25,000 and the timeline is closer to 8 – 10 weeks due to modelling and platform compatibility.
Example: Without clear guidance from PME, the tender includes vague objectives. This leads to bids that vary widely in approach, tech stack, and scope, making them hard to compare and many technically non-compliant.
By engaging early, you can ensure your tender reflects actual market capacity.
An RFI (Request for Information) is a structured tool that asks potential suppliers for feedback about a proposed procurement. Here’s how to use it strategically when buying immersive technology solutions:
Explain what kind of immersive solution you’re exploring e.g. VR onboarding simulations, AR retail experiences, or MR learning environment and the problem you’re trying to solve. Be open-ended enough to allow supplier creativity.
Sample RFI questions for an XR procurement might include:
– What technologies (Unity, Unreal Engine, WebXR) do you support?
– What are the key considerations for cross-platform delivery?
– Can you share examples of similar deployments?
– What are typical budget ranges for projects like this?
– What are the main risks and limitations?
Use the RFI to explore alternative delivery models (e.g. subscription-based XR, metaverse integrations) and gather insights on emerging capabilities.
There might not be one supplier who can provide the complete end to end solution, so more than one organization might be needed and they might have to partner e.g. Prime and sub-contractor relationship, form a consortium and or the procurement be tendered using a lotting structure to cover various elements of the products/services.
Promote your RFI widely. SMEs and startups often offer highly innovative immersive solutions but may not monitor procurement portals as actively. Consider sharing through tech networks, innovation hubs, or XR freelancer platforms.
According to the UK Government’s guidance, preliminary market engagement is governed by a few key principles:
– Transparency: If PME takes place, a summary of it should be published.
– Equal Treatment: No supplier should gain an unfair advantage from participating in PME.
– Notice Requirements: A preliminary market engagement notice must be published, or its absence explained in the tender notice.
This ensures compliance while enabling procurement teams to make informed decisions.
XR projects involve complex decisions such as tracking, latency, platform compatibility, content pipeline, and device usability. RFIs help ensure that your tender covers technical nuances correctly.
Pre-engagement allows emerging XR vendors and specialists to share their insights, giving you access to a broader set of suppliers than those in traditional frameworks.
By understanding typical costs for XR development, 3D modelling, QA testing, and platform deployment, buyers avoid both under- and over-estimating their budgets.
Market responses help identify potential delivery risks such as headset shortages, licensing constraints, or emerging platform incompatibilities and unexpected costs.
All insights gathered during PME should be clearly documented:
– Responses to RFIs should be summarised
– Key themes and feedback should be used to adjust requirements.
– All changes to scope or evaluation methods should be defensible.
Remember: PME is not for selecting vendors, but for shaping how you go out to the market.
Let’s say a local authority wants to launch a VR-based health and safety training module for emergency responders. Instead of launching a rigid tender immediately, they run an RFI first. As a result, they learn that:
– Off-the-shelf VR libraries already exist for parts of their use case.
– Suppliers can deliver training cross-platform (headset + browser).
– Budget expectations are 30% too low based on market feedback.
Thanks to PME, the authority re-scopes its project, adds realistic delivery timelines, and attracts more qualified bidders resulting in a better product.
Using Preliminary Market Engagement, including tools like RFIs, is not just about compliance it’s a best practice for innovative and cost-effective procurement. For immersive tech projects in particular, where technical possibilities and pricing can vary dramatically, engaging with the market early is vital.
Whether you’re commissioning a VR training solution, AR educational content, or an MR simulation lab, PME empowers UK buyers to procure smarter.
If you want to promote your opportunity on Xplorient Xpanse, simply register and post your project. If you’re a supplier who needs help with understanding the public procurement process, bid management and bid writing, check out our bid management consultancy services.
