Health and Social Care Minister Howard Quayle says he's hopeful local organisations will be able to better compete with off-Island bodies in future.
In Tynwald he faced questions about a home care services contract which fell through after a successful tender from the UK.
Mr Quayle said he likes to use on-Island organisations wherever possible but there were times they faced tough competition from elsewhere.
He added that a new training scheme might allow more Manx success during competitive tenders.
Asked whether the department was embarrassed that local firms had missed out on the care contract, Mr Quayle insisted value for money was his priority:
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