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Making Sense of Tendering

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					Built to Compete 2
    Programme

     Marlena Zacharuk
  Business to Business Ltd.
  The project has now changed

  The aim is to focus on results and new business
  generation!

• Less workshops

• Larger Meet the Buyers events

• 1:1 support with bid writing

• Engage with businesses with aspiration and provide
  them with support and help they need to succeed in
  tendering for new contracts
                      Objectives
• Create demand in the local economy
-   by working in depth with major local buyers
-   engaging them in the concept of local procurement
-   assisting them in making their contracts more small
    business friendly
-   offering them 180 days of 1:1 procurement support


• Create business generation
-   by helping Croydon SMEs to tender for contracts: offering
    them free workshops, seminars, 1:1 support with bid
    writing
-   Creating opportunities at Meet the Buyers: Pre-arranged
    sales meetings  new contracts won
The programme

• Information events
 (How to bid for public sector contracts, How to win new
 business with big organisations, etc.)


• Bid writing workshops
 (4 workshops per year - next one on 24th June)


• 1:1 support with tendering for contracts

• Meet the Buyers
 (2 per year with 15-20 buyers at each)
                       Your route…
External   Supply-side activity      Demand-side activity
          One-to-one support
• Goal: To encourage businesses to start bid writing
  and tendering for larger contracts

• Who is it for?
  100 businesses who are ready to tender will be
  offered 4 days of free tender writing support

• Why do you need it?
  - Because you want to increase your chances of
  winning contracts you are bidding for
  - Improve the structure of your bid
  - Receive constructive feedback that will make the
  difference between winning and loosing a bid!
Thank You
How to bid for and win public
      sector contracts

          Tuesday, 2nd June 2009
          Fairfield Halls, Croydon

      Caroline Plane, Larch Consulting
    This Session Covers:


•   Public sector Overview
•   Approaches to Procurement
•   Finding Opportunities
•   Tender Process Overview
              The Public Sector:
              Exploring Options
• UK Public Procurement spend £175 billion per
  annum.
500 Local Authorities in England & Wales
   –   334 UK Universities
   –   24,000 State & Independent Primary Schools
   –   3,500 Secondary Schools
   –   303 NHS Trusts
   –   4500 Housing associations/RSLs
   –   42 Police Services
   –   39 Ambulance Services
   –   58 Fire Services
   –   25 Government Departments (Agencies attached: MOD
       28)
        •  http://www.tagish.co.uk/
        •  http://www.schoolsdirectory.co.uk/
        •  http://www.housingnet.co.uk/
     About the Public Sector

• Value for Money (VfM)
  – “The optimum combination of whole-life
    cost and quality (or fitness for purpose) to
    meet user’s requirements. This is rarely
    synonymous with price”

  – Embraces the concept of the “price-
    quality” relationship.
            The Changing Climate
Political                            Economic
•Gershon review                      •Changes in funding
•Diversification of supply chains    •Contract bundling & rationalisation
•Equality of participation           •More sophisticated understanding of
•Sustainability                      value
•Olympics                            •Requirement for cost savings
•European legislation                •Commercial organisations have £
                                     vested interest in social outcomes
                                     •Concept of qualitative cost


Social                               Technological
•Corporate social responsibility     •Efficiency of response & mgt
•Global vs. local                    •E-tendering
•Polarisation of enlightenment vs.   •E-auctions
prejudice                            •Electronic market places
•Social cohesion & engagement        •E-payment
•Ageing population                   •Real time information
         Regulatory Frameworks


•EU Procurement Directives
                             European


                                        •Government Strategy
                             National
                                        •Statutory Requirements


•Council Procedures
                              Local
•Local Agreements
        Setting the Scene:
     Procurement Landscape

• Economic Development Strategy for London
  – investing places and infrastructure, people, enterprise,
    marketing and promoting London.

• London 2012
  – Set to provide unprecedented opportunities
  – CompeteFor will maximise business involvement
    throughout the 2012 supply chain

• London Procurement Programme (LPP)
  – Launched out of the NHS Supply Chain Excellence
    Programme (SCEP) to drive collaboration among
    London's 74 NHS Trusts.
  – Trusts across London spend in total £5 billion on goods
    and services every year.
          Purchasing Process

• Formality of the process increases in line
  with value and risk.

• Croydon Example:
   – £1,000 - £20,000 - Obtain 3 written quotes
   – Over £20,000 - Normally a competitive tendering
     exercise, consider a minimum of 3 suppliers and
     evaluate in terms of value for money and quality.
   – Over £140K – EU Directives apply.
                True or False?

• Contracts are only awarded to large companies
• Huge spend on offer.
• Difficult to find opportunities.
• Greater opportunity for longer term contracts
• Processes involved in bidding are complex and costly.
• Procurement teams don’t understand SMEs and social
  enterprises.
• Difficult to win contracts when bidding collaboratively.
• Generally good payers & proper arrangements.
Accessing Opportunities
       Accessing Opportunities

• Low Value
  – Below £100k
  – Local purchasing rules apply
  – Formability of process increases with contract
    value.


• High Value
  –   Above £100k
  –   EU procurement rules may apply
  –   Formal tendering procedures
  –   Framework agreements
    Accessing Opportunities

• Myriad of websites and portals
• High value contracts easy to find
  (harder to win)
• Lower value opportunities harder to
  find (easiest to win).
• Less transparency in the commercial
  sector.
      Accessing Opportunities

• On-line
   – Supplier Portals
       •   Supply 2 Gov / Sell2Wales
       •   CompeteFor
       •   Tenders Electronic Daily
       •   Sector Specific: e.g. PASA, Tenders.ac.uk
   – Selling to Council / Contracting Authority Web Pages
       • Croydon: http://www.croydon.gov.uk/business/tenders/

• Meet the Buyer Events
   – http://www.meetthebuyers.com/

• Also don’t forget:
   – Local press, trade press, press releases
   – Phoning and Asking: Relationship Marketing
 Accessing Local Opportunities
• Croydon Council currently spends
  approximately £308 million annually on
  a wide range of goods and services.

• Guidance available on how to access
  business opportunities
    – Explains how to bid for council work.

• All contracts are advertised in at least one
  local newspaper and if appropriate a trade
  journal.

• All adverts are also placed on Croydon
  Council’s Website (www.croydon.gov.uk)
  and placed on the supply2gov website.
Current / Recent Opportunities

•   Croydon Council:
     – Mentoring scheme for young people with learning disabilities
     – South London Waste Partnership - long term residual waste contract.
•   Croydon Churches Housing Association: Landscape gardening
•   LB Newham: Printed matter and related products
•   Arts Council: Financial consultancy services
•   Royal Parks – Tree Maintenance
•   Imperial College NHS Trust - Translation Services
•   UCL Hospitals NHS Foundation Trust - Architectural Services
•   The Learning Trust: Repair and maintenance services of boilers
          Tiered Supply Chains

• Where do you fit into the supply chain?


                       Local Authority



         Maintenance                       Catering
           Contract                        Contract



                 Painting &                    Filter hood
  Door handles                     Fruit
                 Decorating                      cleaning
         Collaborative Bidding

• Options:
  –   Subcontractor
  –   Joint Bidding
  –   Delivery Partner
  –   Consortium

• Pros and Cons to each approach:
  –   Brand Identity
  –   Cost
  –   Reliability
  –   Sharing sensitive information
  –   Risk
Tender Process Overview
     Tender Procedures

• Most Common:
 – Open - Everyone who responds submits a
   full priced tender

 – Restricted - The contracting authority
   use a “pre-selection” process and invites a
   limited number of respondents to tender
Two Stage Tender
   Contract
    Notice
       Expression
       of Interest
              Pre-Qualifying
                  Stage
                     PQQ Evaluation


                                Invitations to
                               Tender issued
                                      Prepare Tender
                                         & Submit
                                                 Tender
                                                Evaluation
                                                     Contract
                                                   27 Award
Understanding Pre-qualification

• The contracting authority use a “pre-
  selection” process and invites a limited
  number of respondents to tender.

• Are you a safe and appropriate choice?
• Evaluation - 3 key areas:
   – Business Probity
   – Financial Standing
   – Technical Ability


• Mix of pass / fail and qualitative criteria.
Understanding Pre-qualification

• Key Policies
  –   Equality & Diversity
  –   Health & Safety
  –   Environment & Sustainability
  –   Quality


• Sustainability and Social Responsibility
  Issues high on the corporate and
  public sector agendas.
      The Invitation to Tender

• A Pack of Documents:
  –   A letter of invitation to tender
  –   Instructions to Tenderers
  –   Standard Conditions of Contract
  –   Specification
  –   Pricing Schedule
  –   Form of Tender
  –   Any other relevant document
       • Tender envelope, label
           Writing the Bid

• The Basics:
  – What / How / Who/ When / How Much?
• Add Value:
  – Demonstrate a clear understanding of the
    specification
  – Adds value and brings innovation to the
    specification
  – Explains “why choose us?”
  How Tenders Are Evaluated

• Published evaluation criteria:
     • Best Price
     • Most Economically Advantageous Tender
       (MEAT)
  – Usually evaluated by a panel
  – Scoring matrix used to objectify
    subjective opinions
  – Scores are weighted
  – Tendering rigorously controlled and
    audited
           Tender Presentations

•   Often follows a prescribed format
•   Little opportunity to engage
•   No positive feedback
•   Some simple tips:
    –   Arrive in good time
    –   Practice using media and equipment
    –   Do not use jargon or technical terms
    –   Be pleasant, professional, friendly
    –   Prepare very thoroughly
    –   Summarise in the last slide
       Asking for Feedback

• Explain why you need the feedback
• Ask at the right time
• Give them a chance to prepare a
  helpful answer
• Be specific in what you want to learn
• Don’t forget to ask in successful bids
  too!
         Action Planning

Action                                            Completed

Develop a list of target organisations               
Find out about Approved Supplier Lists for my        
product or service with my target organisations
Register on CompeteFor / Supply2Gov / TED            
Find out about Meet the Buyer Events                 
Develop / Revise Key Policies                        
Attend further Training?                             
          Help is available…..

• Croydon Enterprise - a complete package of support
  for local people who want to start or grow their own
  business, develop their skills or find a new career.
• Business Link London - main portal for businesses
  seeking support
• Supply London provides support to London's SMEs
  with a specific focus on public sector procurement.
• South London Business provides information, advice
  and guidance to companies in the twelve London
  Boroughs south of the River Thames
• Greater London Enterprise provides a wide range of
  business support to those looking to grow their
  business.
• Don’t forget next event:
‘How to write amazing tenders’ - workshop
   – Date: 24th June 2009, 9:30 –13:30
   – Venue: Jury’s Inn Hotel, Croydon
   – Covers:
      • Becoming Fit to Supply
      • Completing a PQQ
      • Bid Writing Skills
      • Presenting Your Bid
      • Practical tips and techniques


• To sign up or for a copy of this presentation
  email angela@btob.co.uk




                                         37
ACT NOW!


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