Procurement Workshop
Juan Liu
Procurement Strategy Manager
Leicester City Council
Suppliers Spend
Leicester City Council
•Our spend with suppliers is £360m per
annum (approximately)
•70% of this is with SMEs
Leicestershire County Council
•Our spend with suppliers is £350m per
annum (approximately)
•52% of this is with SMEs
What we buy
Categories
Books, Journals &
Multimedia
Building & Civil
Engineering
Consultancy &
Professional Services
Design, Printing &
Marketing Services
Educational Services
Food & Catering
Equipment/Services
Furniture & Furnishings
Healthcare (Public Health) Housing Services
Services
(City Only)
Human Resources
ICT & Telecommunications Social Care
(Adults & Children)
Stationery and Office
Supplies
Transport
Utilities
Utilities
Vehicles & Plant
Waste Collection
(City Only)
Waste Disposal
Miscellaneous
Accessibility
Source Leicestershire
http://www.sourceleicestershire.co.uk/
Contracts Finder
https://www.gov.uk/contracts-finder
Regional eTendering Procurement Portal
https://www.eastmidstenders.org/
Regulatory Framework
EU Procurement Directives
European
Public Contracts
Regulations 2015
National
Local
Financial Regulations
Contract Procedure Rules
Procurement Process Overview
Procure
Contract
Notice
EOI
Tender
Commissioning
Review
PQQ
Manage
Award
Evaluate
To bid or not to bid?
• Is the tender a good fit in relation to your company’s
activities?
• Can you meet the eligibility criteria (technical qualifications,
policy compliance e.g. Quality Assurance, Insurance) ?
• Do you have a good track record in relation to the
opportunity?
• Do you have the trading history (e.g. 2 years Accounts)?
• Do you have the capability and capacity to deliver the contract
if successful?
• Can you make sense of the budget and can you deliver the
contract on time?
Preparing the Tender
• Managing the preparation of your bid
• Get your team together, appoint a bid manager and conduct
detailed review and interpretation of tender requirements.
• Determine whether you require clarification of any aspect of
the tender and ask the question(s) allowing enough time for a
response.
• Check regularly to see if any questions/answers have been
submitted by competitors. Be aware that any question you ask
will be notified to other suppliers)
• Prepare work plan & allocation of roles/tasks/milestones with
reference to tender & submission deadline.
• NB: Build in time to review, refine and style bid
Understand the rules and timelines…
• Understand the process for each tender
• Word limit
• Presentation
– Font size
– Use of colour
– Hard copy, soft copy or both
• Adhere to the timelines given
Social value
• Social value at Knightstone Housing: Ryan's
story
https://www.youtube.com/watch?v=pt0XnlR5gis
• Example QuestionWhat social value aspects would you provide
during service delivery e.g use of local labour?
Procurement plan/pipeline
• GoogleLeicester City Council Procurement Plan 2015
• EastMidsTenders – Contract Register –
Leicestershire County Council Procurement Plan
2015
Sample Upcoming Opportunities
Public Health
Specialist Learning and
Development
Adults and Communities
Please Note:
• Integrated Substance Misuse Treatment Services (November 2015)
• Autism training for LCC, Leicester City and Rutland CC staff - potential RfQ
(between November 2015 and March 2016)
• Dementia Training to LCC, Leicester City and Rutland CC staff - potential
RfQ process. (between November 2015 and March 2016)
• Help to Live at Home full tender (January 2016)
• Extra Care full tender (April 2016)
• Supported Living full tender (April 2016)
• Community Life Choices full tender (April 2016)
• These are potential opportunities. See EastMids Tenders for current
opportunities.
What else we do for you….
For further information and help for businesses including funding options, visit:
http://www.leics.gov.uk/index/business/supportingbusinesses/supportingbusinesse
sinvesting.htm
http://www.leics.gov.uk/index/community/community_grants.htm
Loans to small business and starts ups available from the Leicestershire Local
Enterprise Fund
•The County Council has set up a £1 million programme with Funding Circle, the UK's
leading online marketplace for business loans, to support firms looking to expand and
grow and help create employment opportunities in Leicestershire.
•To be eligible, firms must have a minimum turnover of £100,000 and have been
trading for at least two years. Businesses can borrow between £5,000 and £1 million
and investors receive an average net return of 5.8 per cent.
•For further details of how to apply, see www.fundingcircle.com or contact
leicsloans@fundingcircle.com
Frequent Procedures - City
Process
Description
Quotation
Four written quotes with at least two (where
reasonably practicable) shall be from a local supplier.
Open
Single stage process. All bidders submit a priced
tender.
Restricted
Two stage process:
(1) Pre-qualification questionnaire (PQQ) to select
tender shortlist
(2) Invitation to Tender (ITT) to shortlist bidders –
priced tender required.
Use of framework
Further competition from the ‘panel’ of suppliers
Frequent Procedures - County
Estimated Contract Value
Minimum Procurement Process
Minimum Public Notice
£0 to £1,000
Obtain one oral / written quotation
None required (optional: Source Leicestershire)
£1,000 to £20,000
Obtain three written quotations
None required (optional: Source Leicestershire).
Local Suppliers invited where appropriate &
relevant to the contract.
£20,000 to £100,000
Seek three written quotations
(to be based on a Request for Quotation document
where practical)
For exceptions see Rule 6
Source Leicestershire and Contracts Finder
£100,000 to EU Threshold
Formal Tender Process
Source Leicestershire and Contracts Finder
EU Threshold or over
Formal Tender Process
OJEU, Contracts Finder and Source
Leicestershire
Evaluation Criteria can cover...
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Financials
Previous trading and experience
Health & Safety
Quality Assurance
Bidding Model
Environmental considerations
Equality and Diversity
Safeguarding
Marking
• The total score from all officers involved will
be averaged and applied to the weighting
given to each question.
• For the guidance you should note that, each
question is given a relative ‘importance
weighting’, to reflect its significance within the
overall evaluation. This weighting is shown
alongside each question.
Weighting
For the guidance you should note that, each
question is given a relative ‘importance
weighting’, to reflect its significance within the
overall evaluation. This weighting is shown
alongside each question.
Case Studies: Example Structure
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Client Name & Contract Title
Work of same/similar nature, scope and scale
What, When and How you did it
Client Benefit (Outputs & Outcomes)
Innovation & Added Value
Contract Value/Price
Reference confirming work was performed to
client satisfaction and to schedule
Standing Out from the Crowd
• Have you articulated ‘Why choose us?’
• Have you fully defined the key features, quality and benefits
of your approach?
• Have you used and made the most of recent and relevant case
studies to illustrate your track record?
• Have you gone the extra mile in manifesting your
understanding of the brief and the design of your solution?
• Conduct a mock assessment against the evaluation criteria
and relative weighting
• Presentation
• Read - Doing business with government: guide for SMEs
Avoid…
• Making hollow statements
– We offer you the very best service
– We have competitive prices
– We want long term relationships with our clients
– We are the best in the market
• These statements are either obvious or subjective so
leave them out!
Price Evaluation
Vital to understand scoring: is it 100% or mix of
quality and price 60% vs 40%?!
• Where in that value chain will you reduce
costs?
• What price level will ensure you hit your
objectives?
• By what margin do you need to come down?
• What part of their requirements is the most
important to reduce costs on?
Whole Life Costs
• Over the duration of the
contract including:
• Capital, Maintenance,
Management,
Operating and Disposal
costs etc
• Continuing to add value
beyond the life of the
contract
Local suppliers
Being local on its own is not an advantage.
But stress the potential benefits:
• Less distance to travel (carbon impact?)
• Quicker response time (better service offering?)
• More flexible (change your order....)
• Lower overheads
• Understand local issues/communities
• Local supply chains
Request feedback
Even if you won the tender there may still be
room for improvement;
– If you didn’t win, make sure you learn why.
Incorporate any learnings from the feedback into
your tender response process
Local suppliers
Being local on its own is not an advantage.
But stress the potential benefits:
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Less distance to travel (carbon impact?)
Quicker response time (better service offering?)
More flexible (change your order....)
Lower overheads
Understand local issues/communities
Local supply chains
Contact Details
Leicester City Council
Leicestershire County Council
procurement@leocester.gov.uk
commissioning.support@leics.gov.uk
www.leicester.gov.uk
http://www.leics.gov.uk/
Juan Liu
Satish Parekh
Procurement Strategy Manager
Commercial Specialist
juan.liu@leicester.gov.uk
Satish.parekh@leics.gov.uk