How to secure
Public Sector Contracts
18th September 2013
The agenda for today
• Introduction to the buyers
• The public procurement context and
opportunity
• Business Perspective – Your Views on
securing public sector business
• Smarter tendering – Tips for securing that
contract – Q & A
• Existing Support – Social Enterprise
Network
• Meet the Buyer – An opportunity for
networking
The Buying Organisations
• Derby City Council – Ray Poxon
• Derby Homes – Tony Billingham
• Erewash Borough Council – Howard Lane
• Derby University – Andy Brown
Procurement at The University of Derby
www.derby.ac.uk
Andy Brown Head of Procurement 01332-592400
a.brown4@derby.ac.uk
Jane Brailsford Senior Procurement Officer
01332- 592401 j.brailsford@derby.ac.uk
PROCUREMENT CONTACTS
www.derby.ac.uk
Key Facts and Contacts
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Annual Non Pay spend of approximately £40M
50% of supply base within the Midlands
Procurement Team set the framework and manage all high value tenders
Departments order own items
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Key Departments:
Information Technology Services - Neil Williams Director of IT Services
Estates Management -Ian Willgoose Director of Estates
Halls of Residence – Mark Travers Operations Director
www.derby.ac.uk
Key Commodities
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IT Hardware – servers, desktops and laptops, audio visual equipment,
networking equipment, storage, consumables, telecommunications.
IT Software – vast range of enterprise level and bespoke software
Estates items – building maintenance, cleaning services and consumables,
building consumables, ironmongery, electrical, plumbing, office and
classroom furniture.
Estates Development – professional services, demolition, refurbishment
works, interior fit out, new build.
Halls of Residence – refurbishment works, building maintenance, mechanical
and electrical, residential furniture.
www.derby.ac.uk
How the University Buys
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Tendering via University of Derby intend site https://intendhost.co.uk/derby/aspx/Home look at recent tenders list.
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Via National Government Framework Government Procurement Service.
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Via University Frameworks North Eastern Universities Purchasing Consortia
NEUPC http://www.neupc.ac.uk/ and other national frameworks
www.derby.ac.uk
Current and Future Tenders
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Current – CCTV, automatic door and barrier maintenance. occupational
health,
Future Tenders - Frameworks for professional services and construction
activities, student travel
promotional products, smartcard technology.
www.derby.ac.uk
Context
Policies and Objectives
 DCC Objectives:
 A thriving sustainable economy
 People achieving their learning potential
 A skilled and motivated workforce
Other authorities have similar objectives
 DCC
 40% contracts Derbyshire 65% East Midlands
 39% suppliers Derbyshire 52% East Midlands
DCC’s aim is to increase these numbers but we must remain
compliant and achieve VFM. Suppliers need to play their part.
Context
Economics
Severe public sector budget cuts and spending pressures
Price & Value for Money (VfM) VfM is the optimum combination of cost,
quality and fitness for purpose to meet the buyer’s requirements
Most Economically Advantageous Tender (MEAT) rather than Lowest Price
Collaborative buying by authorities – purchasing consortia
Rationalisation & Framework Agreements, Contract Bundling
Reduction of public sector in-house management; overheads, potential for
increased outsourcing
Need to balance the above with the benefits of sourcing locally.
Context
Technology
 E-Procurement: Public sector bodies are increasingly
using electronic based procurement systems and
processes:
 E-Portals
 E-tendering
 E-auctions
 Purchasing (VISA) Cards (pCards)
 E-contract management and reporting
Context
Procurement rules
Context
Public Procurement regulations
 Public procurement regulations apply to all public sector contracts with
specific rules for those over set values, or 'thresholds‘
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£173,934 for Goods and Services
£4,348,350 for Works
 The Regulations are designed to ensure free and fair access to, and
competition for, public sector contracts. They set down procedures and
standards for choosing tenderers and awarding contracts.
 All procurement activity must demonstrate transparency, equal
treatment and be non discriminatory
 Mandatory minimum timescales for procurement process. Potential
penalties for the Council for non compliance Public Service (Social
Value) Act
We cannot discriminate in favour of local suppliers
Context
Internal Rules
 Each organisation has its own rules
 The formality of procedures increases in line with the contract
value and risk (DCC):
Value
Process
Under £5,000
Budget holder decision
£5,000 to £30,000
Minimum 3 Quotes (at least one local)
£30,000 - EU threshold
Tenders to be sought via open
advertisement - Source Derbyshire
Over EU Thresholds
EU tender process
Source Derbyshire & OJEU
(http://ted.europa.eu/TED/main/HomePage.do)
 DCC may also procure via frameworks, inc those awarded by other
public sector bodies e.g. Government Procurement Service, ESPO,
and other Local authorities:
 http://gps.cabinetoffice.gov.uk/
 http://www.espo.org/
Procurement Process Overview
Procure
Contract
Notice
EOI
Tender
Commissioning
Review
PQQ
Manage
Award
Evaluate
Procedures
Process
Quotation
Description
A less formal process for below £30,000
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
shortlisted bidders
required.
Tender (ITT) to
– priced tender
Use of framework
Further competition from the ‘panel’ of
suppliers
Competitive Dialogue
Rarely used
Completing the paperwork
1. Pre-qualification stage - Evaluation of your organisation
 Finances, Insurance, Previous Experience / past
performance, References, Quality, Equality and
Sustainability
These are selection criteria
2. Invitation to Tender Stage - Evaluation of the bids
 State how your proposal meets our current and future
requirements
These are award criteria. Buyer will state the criteria
and weightings
Public Sector opportunities
Derbyshire
Local Authorities
 Derbyshire County Council
 Derby City Council
 8 District Councils
Housing Associations
Education
 University and FE Colleges
 Schools
Emergency Services
 NHS
Business Perspective
Your views on barriers to securing public sector business (1)
• Finding the opportunities
• Don’t know where they are advertised
• Don’t have contact details for buyers
• Limited bid writing capability and time to complete
• Don’t understand the documents / clauses /
requirements
• Don’t know how to complete the tender
• Unclear tender questions and instructions
• Lowest Price chosen every time
Business Perspective
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Your views on barriers to securing public sector business (2)
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No local weighting or acknowledgement for current local
delivery and known track record
Contracts are seemingly being awarded to organisations
out of the City
Nothing prior to opportunities being announced for local
organisations to be clear about what the opportunity is
and what the Local Authority are looking for
Certain parts of the City Council do not work within an
integrated commissioning ethos
Given that local providers are consistently being
unsuccessful in gaining public sector contracts, nothing is
being done with local providers about putting good
tenders together.
Business Perspective
Your views on barriers to securing public sector business (3)
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Inability to deliver all the activities and outcomes
required
Not able to meet ‘unnecessary’ PQQ criteria
Having to fill in PQQ for every tender
Lots are often too large for SMEs
Long term frameworks used
Too many large companies bidding for smaller jobs
Lack of previous public sector experience
Lack of ISO accreditation
Unrealistic cost expectations
Addressing the Barriers
Top Tips for Securing
the Contract
Howard Lane
Be Prepared
Identify potential public sector customers
 Many publish Contracts registers or forward
procurement plans on their website
 Attend ‘meet the Buyer’ events
 Review contract award notices to identify subcontract opportunities
 e.g. DCC has outsourced its IT function so
doesn’t buy PCs directly but via the
contractor.
Be Prepared
Find and register with Sources of
opportunities in advance:
Be Prepared
 Create a “Go / No go” matrix as emotions often run high, so
determine beforehand if the opportunity really is suitable
 Download / print off ALL PQQ / tender documents and read
them carefully:
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Is the specification relevant to your business activities?
Do you have a track record in the area?
What % of turnover does the contract represent – 30% rule?
What are the risks, who are your competitors and what is the % chance of
success?
Is there an incumbent?
Can you answer each question with the information required?
Do you have the supporting documentation in place for compliance?
Can you make commercial sense of the advertised contract value?
Do you have the in-house resources to deliver – do you need partners /
subcontractors?
Do you have the time / resources to prepare the bid by the deadline?
Be Prepared
Be ready to tender – Prepare:
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Financial information – Accounts, Insurance, Check
credit rating
Policies – Quality Management, Equality and
Diversity, Health and Safety, Environmental
Management
Business activity statement / Unique Selling points
(USP)
Referee Contact details for recent contracts
Subcontractors
Case studies / examples of work
Preparing a response
The scores on the doors……………
Before you even consider responding to a tender
have a look at the evaluation criteria:
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Can you meet the Pass/Fail criteria?
Prioritise the sections with the highest weighting
Ensure you answer all the questions – Don’t assume
the buyer has prior knowledge of your organisation
Preparing a response
Get the right people involved
 If you need to collaborate with
organisations, prepare in advance
other
Consider having a regular review of tenders
pending, tenders in progress and tenders
submitted
Consider accreditation
CHAS, ISO, IiP etc.)
(eg.
Constructionline,
Preparing a response
 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
 Use tender envelope / label if provided
 Adhere to the timelines given – Avoid last minute
submissions
 Late tenders won’t be accepted
Preparing a response
Understand the requirement, if in doubt ASK
 Buyers will circulate clarifications to all bidders so
check correspondence regularly
Don’t assume the buyer wants the ‘same as last
time’
Don’t price for a ‘Rolls Royce’ service when a
‘Mondeo’ has been specified
 Budgets are tighter than ever before
 Bid for the specified requirement and if there are
opportunities for efficiency or alternative solutions
which offer a benefit offer these as an option.
Preparing a response
 Ensure that all information explicitly requested is provided
 Refer to the actual question e.g. Q3.1.2
 Where appropriate, add well referenced appendices
 Read and interpret the tender carefully and address the
implied issues
 Avoid ‘cut and paste’
 Double check that all attachments are included and
documents signed where necessary
Preparing a response: Buyer Preferences
Opportunities for learning
•
Free On-line ‘Learn Direct’ Course
Winning the Contract
Free!
Would you like to win public sector business contracts? This
course provides an introduction to the public sector, explains
the procurement process and offers practical advice to help
you identify new business opportunities
http://www1.learndirectbusiness.com/business-courses/winningthe-contract/
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
After the award notification
Request feedback
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even if you won the tender there may still
be room for improvement;
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If you didn’t win, make sure you learn why.
Keep on selling
Use your usual sales techniques
 Phone and ask
Build networks
 Phone and ask
Send carefully targeted, concise information
 Phone and ask
Be brief, be focused, be reasonable
 Phone and ask
Remember you are one of many!
A Successful supplier
will be……..
 Compliant
 Tender Format & Requirements
 Policies, Insurances, etc.
 Persuasive
 USP – Unique Selling Point
 Added Value and/or Innovation
 Competitive
 Quality
 Price
Business Perspective –
Have we provided the answers?
 Finding the opportunities
 Don’t know where they are advertised - YES
 Don’t have contact details for buyers - Meet them later
 Limited bid writing capability & time to complete – Plan ahead
 Don’t understand the documents / clauses / requirements - ASK
 Don’t know how to complete the tender – ASK DNCC / FSB / CA
 Unclear tender questions and instructions – ASK the buyer
 Lowest Price chosen every time – NO – MEAT chosen
Business Perspective – Your Views on
barriers to securing public sector
business Continued 2
 No local weighting or acknowledgement for current local delivery and
known track record – Local bias not legal – track record is scored
 Contracts are seemingly being awarded to organisations out of the City –
40% awarded to Derbyshire organisations
 Nothing prior to opportunities being announced for local organisations to
be clear about what the opportunity is and what the Local Authority are
looking for – Buyers to note
 Certain parts of the City Council do not work within an integrated
commissioning ethos – More information needed to respond
 Given that local providers are consistently being unsuccessful in gaining
public sector contracts, nothing is being done with local providers about
putting good tenders together. Todays event?
Business Perceptions – Your Views on
barriers to securing public sector
business (continued)
 Inability to deliver all the activities and outcomes required –
Form
consortium to bid?
 Not able to meet ‘unnecessary’ PQQ criteria –
Query before submission
date but remember buyer must protect against risks
 Having to fill in PQQ for every tender – East Midlands standardised PQQ
 Lots are often too large for SMEs – Buyers to note – Suppliers to form
consortium? Highways example
 Long term frameworks used
–
buyers to note – suppliers to consider bidding for
frameworks
 Too many large companies bidding for smaller jobs –
tenders are open to
all
 Lack of previous public sector experience – stress relevant experience
 Lack of ISO accreditation – not always essential
 Unrealistic cost expectations – review cost model and bid accordingly
Existing Support
Helen Carter – DNCC
Tenders Alert service
Business Advice Website D2N2 LEP
Source Derbyshire
Existing Support
Matt Allbones - Community Action
Social Enterprise Network project
This ERDF funded project supports individuals, groups and
organisations to be:
 Less grant-reliant
 Tender ready
 Sustainable
Through:
 Effective support, guidance and mentoring
 Network events
 Sharing Services
 Bulk purchasing opportunities
 Consortia development
Close of formal session
George Cowcher - DNCC
Please now take the opportunity to
‘Meet the buyers’