Tender Ready in 10 Steps
Workshop 1 – 21st March
Workshop 2 – 28th March
Workshop 3 – 4th April
Gill Joy, Owen Paterson
Intend Business Development LLP
Tender Ready in 10 Steps - Aberdeen
√
Tender Ready in 10 Steps
Objectives
• Understand what buyers are looking for
• Learn how to find and assess relevant
opportunities in your sector
• Obtain practical guidance and templates to
assist the bidding process/commercial quotes
• Create structured tender responses that attract
high scores
• Develop a blueprint for your own professional
tenderdesk and an action plan for successful
tendering/commercial bids
Tender Ready in 10 Steps - Aberdeen
Tender
Ready!!
The 10 Steps
10
Creating a
Tender Desk
7
8
“People” aspects
Of Tendering
1
2
9
Policies
& Standards
4
5
Buyer’s View
– prepare and
evaluate tenders
Presenting
Company
information
3
Understanding the
Introduction to
Market Intelligence
Procurement
Tender Documents & Bid Strategies
Landscape
Tender Ready in 10 Steps - Aberdeen
Presenting
Professional
tenders
6
Responding to
Technical &
Quality questions
1
Understanding the Procurement
Environment
• What is Procurement?
• Buying Authorities & Government
Organisations
• Procurement Regulations – the basics
• Procurement Reform – more power to the
supplier’s elbow
• Tendering systems
Tender Ready in 10 Steps - Aberdeen
What is Procurement?
Procurement is the whole process of
acquisition from third parties and covers
goods, services and works projects.
This process spans the whole life cycle
from initial concept and definition of
business needs through to the end of
useful life of an asset or end of services
contract
Tender Ready in 10 Steps - Aberdeen
Grants, SLAs & Contracts
Source: 'Tendering for Public Sector Contracts: a practical guide for social economy organisations‘, Social
Economy Scotland
Tender Ready in 10 Steps - Aberdeen
Public Sector Buying Authorities
• The Scottish Government and other Scottish government
•
•
•
•
•
•
agencies (Historic Scotland);
The National Health Service (NHS Tayside);
Local Authorities (Aberdeen City/Aberdeenshire
Councils);
UK government departments based in Scotland (Inland
Revenue, Jobcentre Plus);
Key public services such as the police, fire service,
judiciary (Lothian and Borders Fire & Rescue);
Further and Higher Education establishments (Dundee
College, Robert Gordons University);
A series of non-departmental government bodies
(Scottish Natural Heritage)
Tender Ready in 10 Steps - Aberdeen
Buyers: Who spends what?
Per annum Spend
£
billion
Proportion of
total
(per cent)
Local Government
4.7
52
NHS Scotland
1.9
21
Scottish Government
'family'
1.4
16
Higher/Further Education
0.8
9
Police and Fire
0.2
2
Total
9.1
100
Data provided by Scottish Government from 179 public bodies:
169 public bodies covering data from 2008-09 and 10 public bodies from 2007-08
Source: Independent Budget Review July 2010
Tender Ready in 10 Steps - Aberdeen
Legal Framework
EU Treaty - Principles for Public Procurement
EU Procurement Directives
EC Directive 2004/18 – “Public Contracts Directive”
EC Directive 2004/17 – “Utilities Directive”
EC “Remedies” Directives – amended 2007
UK implementations of EU Directives
Public/Utilities Contracts (Scotland) Regs 2006
Amendment Regulations 2009
Standing Orders for Contracts made under Section 81 of
the Local Government (Scotland) Act, 1973
Tender Ready in 10 Steps - Aberdeen
Case law
UK and
Europe
Freedom of
Information
(Scotland)
Act 2002
Legal Principles
Achieve Value for Money through open and fair
competition.
Adhere to EU treaty principles:
Equal treatment – get information at same time
Non-discrimination – no contracts restricted to local suppliers
Mutal recognition – recognise certificates from other countries
Proportionality – requirements must fit the services procured
Transparency – all requirements clear in contract document
Tender Ready in 10 Steps - Aberdeen
Types of tenders
Those covered by EC/UK
Regulations:
Those NOT fully covered by
EC/UK Regulations:
• Tenders issued by public
sector authority (Works,
Supply, Services)
• Tenders issued by a
commercial company
• Above nationally/EC agreed
value
• May also include contracts
for companies that exist to
deliver public services
• Public contract below
agreed value (subthreshold) – treatment
depends on authority
internal rules
• Part B services (eg health
and social services,
education and training
where less EU interest)
Tender Ready in 10 Steps - Aberdeen
Thresholds 2010-11 for EU contracts
Contracted by
Services &Goods
Central Govt
£101,323
£3,927,260
Other Public
£156,442
£3,927,260
Tender Ready in 10 Steps - Aberdeen
Works
Part B Services
Hotel & Restaurant services
Supporting transport services
Personnel placement and supply
Security services
(Vocational) Education services
Health and social services
Recreational, cultural and sporting services
Tender Ready in 10 Steps - Aberdeen
Impact of Regulations
• Adequate opportunity to learn what contracts are
available
• Assessed on objective/fair basis as to capability
– Most Economically Advantageous Tender (MEAT) = Price
and Quality
– Lowest Price
• Predictable procedures should be followed allowing
equal treatment
– Open, Restricted, Framework, Auction, etc
• Minimum timescales should be respected to allow
bidders time to prepare
– Not the case for low value contracts or Part B services
Tender Ready in 10 Steps - Aberdeen
Impact of Regulations
• Criteria should be set in advance and publicised
– Eg. Price 40% Quality 60%
– Quality criteria include methodology, performance,
sustainability, experience, innovation etc
• Tech spec must not be drafted as to distort
competition
• Max length for framework agreements 4yrs
• Regulated award and feedback mechanisms
Tender Ready in 10 Steps - Aberdeen
Sub-threshold contracts
Authority must:
“ensure a degree of advertising which is
sufficient to enable open competition and meet
the requirements of the principles of equal
treatment, non-discrimination and
transparency”
Tender Ready in 10 Steps - Aberdeen
Standing Orders
•Standing Orders define how public authorities
(Councils, Police Boards etc) conduct their
procurement processes including sub-threshold
•Not all the same!
•May include mandatory requirements (eg
Constructionline membership)
•Can be changed? Clackmannan Council
changed SOs to advertise all contracts > £10K
Tender Ready in 10 Steps - Aberdeen
Procurement Reform
Scottish Government Procurement Reform
Programme 2006 objectives
– Better purchasing – target £740m in first 3yrs
– Best practice/skills
– Improved processes/cross sector working
Tender Ready in 10 Steps - Aberdeen
Procurement Reform
• E-Procurement
• Standardised Pre-Qualification
Questionnaire (PQQ) & other documents
• Public Contracts Scotland & Quick Quote
• Scottish Procurement Handbook
• Single Point of Enquiry
• Suppliers Charter
•Collaborative buying organisations
Tender Ready in 10 Steps - Aberdeen
Public Sector Procurement Vision
Source: Scottish Government
Category A
National
Procurement
Where a single interface with the
public sector facilitates efficiency
and competitiveness of suppliers.
E.g. IT HW, Telecoms, Office
Equipment & Supplies
Procurement
Scotland
Category B
Category C1
Category C
Sector Specific
CGCoPE
APUC; Scotland Excel;
NHS National Procurement
Where interface
coordinated via a sector
CoE. e.g. Wheelie bins,
Medical Equipment
Regional
Collaboration at local level
e.g. Tayside Consortium
Local
185 Major procuring organisations; in excess of 900 in total
Tender Ready in 10 Steps - Aberdeen
Where interface
coordinated via
regional hub or
local organisation
Scotland Excel – commodity
• Contract:
Period:
Commodity Manager:
Tel:
e-mail:
Education Furniture
2 Nov 2009 to 7 Feb 2011
Natalie Cliff
0141 842 6654
natalie.cliff@scotland-excel.org.uk
British Thornton
Caledonian Furniture Manufacturing Ltd
EME Furniture Ltd
Gopak Ltd
Havelock Europa plc T/A ESA McIntosh
Remploy Limited
Senator International Ltd
SICO Europe Ltd
Stage Systems Ltd
Tender Ready in 10 Steps - Aberdeen
Central Govt Centre of Procurement Expertise
Tender Ready in 10 Steps - Aberdeen
Issues for suppliers
• Large national “A” contracts are difficult for
SMEs to win – look for Lots/ subcontracts
• Framework contracts can be for 4yrs
• Need to research where your products/
services fit in the Vision pyramid & check
timings
• Make contact with central buying teams –
share market knowledge
Tender Ready in 10 Steps - Aberdeen
E-tendering systems
Public Contracts Scotland
E-Procurement/E-Sourcing Scotland
Bravo Solutions (eg Glasgow City)
In-tend (universities, councils)
BiP Delta ETS (eg South Lanarkshire)
ProContract – Due North (Bluelight
Police,Regional collaboratives)
Valueworks (social housing)
Etc…
Tender Ready in 10 Steps - Aberdeen
2
Introduction to Tender Documents
•
•
•
•
Tender Ready Checklist
Examples of PQQ and Tender
Basic eligibility checks
General tips for completing tenders and
PQQs
• Techniques for answering the “killer”
questions
Tender Ready in 10 Steps - Aberdeen
Tender Ready Checklist
Tender Ready in 10 Steps - Aberdeen
PQQs andTenders
PQQ – PreQualification Questionnaire
• Used in Restricted Tenders (2 stages)
• Standard formats for some parts
• sPQQ project aims to eliminate duplication of
effort for basic company capability
information
Open Tenders
• ITT Invitation to Tender, no prequal
• Variety of formats
Tender Ready in 10 Steps - Aberdeen
Basic eligibility checks (Pass/Fail)
Business Probity
Turnover (occasionally)
Security Clearance
Insurance : Employers Liability; Public Liability;
Product Liability; Professional Indemnity
2 or 3 Years’ Financial Accounts - signed
Equality & Diversity Policy
Environmental Policy
Health & Safety Policy
Constructionline or other membership ( occasionally)
ISO 9001 certified Quality Management system
Tender Ready in 10 Steps - Aberdeen
General tips for completing
tenders and PQQs
Tender Ready in 10 Steps - Aberdeen
Getting started
• Review tender documents in full as early as
possible (create or update checklist)
• Check for bidder briefing sessions
• Look out for missing pages and text errors
• Send any questions asap (check if copied to all
bidders and any deadlines)
Tender Ready in 10 Steps - Aberdeen
Getting started
• Check award criteria (MEAT or lowest price?)
• Selection criteria for PQQ stage – check
weighting
• Scoring method published?
• Any minimum standards required? (eg turnover)
• Identify any difficult/ambiguous questions
• Review available market info (Awards, current
contract performance, competitors, news, etc)
• Brief your team/
partners / sub-contractors
Tender Ready in 10 Steps - Aberdeen
Good practice
• Offer something that others do not
• Show understanding of client priorities
• Show ability to work collaboratively/share risk
• Validate all claims
• Structure longer text answers – reflect the question
text
• Tackle any pre-conceptions
Tender Ready in 10 Steps - Aberdeen
Good Practice...
• Watch out for Q&A feedback
• Don’t deviate from PQQ format
• Answer all the questions !!
• Delegate the standard stuff then CHECK
• Use all the space provided
• Avoid Cut & Paste
Tender Ready in 10 Steps - Aberdeen
Good practice..
• Don’t put all information in Appendices
• Cross-reference between Appendices and
questions
• Check process for attachments if
electronic submission (max size)
• Don’t leave submission until last moment
Tender Ready in 10 Steps - Aberdeen
Key scoring elements
- Technical & Management capability
-
Methodology/ Project management
Quality management approach
Technical & People resources
Your experience
- Added value (sustainability, community
benefits, innovation in past projects)
- Financial capacity
Tender Ready in 10 Steps - Aberdeen
Techniques for answering
“killer” questions ….
To be continued with practice in Step 6 …
Tender Ready in 10 Steps - Aberdeen
Killer Question Topics
- Technical & Management capability
-
Methodology/ Project management
Quality management approach
Technical & People resources
Your experience
- Added value (sustainability, community
benefits, innovation in past projects)
Tender Ready in 10 Steps - Aberdeen
Killer Question Examples
- Describe your technical and
management approach to this project
- How will you ensure high quality
results are delivered to meet the
specification?
- How will you add value to the delivery
of this contract?
Tender Ready in 10 Steps - Aberdeen
Structured answers
- What is the Buyer concerned about?
Read the tender docs
- What elements of the questions need
addressed? Use subheadings
- Evidence?
- Your strengths versus the competition?
Tender Ready in 10 Steps - Aberdeen
3
•
•
•
•
Market Intelligence & Bid Strategies
Researching public sector clients/markets
Finding tender notices
Reading a contract notice
Bid-no Bid decisions
Tender Ready in 10 Steps - Aberdeen
Key intelligence elements
– Who are the buyers?
– What tenders have they advertised?
– What about the ones you don’t see on
the Tenders Databases?
– What are my target buyers concerned
about?
– How can I raise my profile?
Tender Ready in 10 Steps - Aberdeen
Scottish Public Sector
•The Scottish Parliament, Scottish Government and
other Scottish government agencies
•The National Health Service Scotland
•Local Authorities
•UK government departments based in Scotland (eg.
Inland Revenue, Jobcentre Plus)
•Key public services such as the police, fire service,
judiciary
•Further and Higher Education establishments
•Non-departmental government bodies
Tender Ready in 10 Steps - Aberdeen
European Buyers
Opportunities in Netherlands, Ireland, Scandinavia?
European Commission Directorates General
European Investment Bank
European Bank of Reconstruction & Development
Agencies:
EMEA – London (Medicines)
EUROFOUND – Dublin (Living & Working)
CEDEFOP – Brussels (Vocational training)
EEA – Copenhagen (Environment)
Tender Ready in 10 Steps - Aberdeen
Tender search/alerts
• Public Contracts Scotland – Quick Quote
• Tenders Electronic Daily – UK and EU
• Contracts Finder – UK contracts £10K+
• CompeteFor (London 2012 + more)
• Glasgow 2014 Business Portal
• Google Alerts
• etc
See “Sources of tenders” document
Tender Ready in 10 Steps - Aberdeen
Collaborative Buying Organisations
GM Procure (social
housing)
www.gmprocure.com
Yorkshire Purchasing
Organisation (general
supplies) www.ypo.co.uk
PRO-NE (NHS health)
http://www.nhsprocureme
nt-northeast.nhs.uk
OGC Buying Solutions
(public sector)
http://online.ogcbuyingsol
utions.gov.uk/news
NE Procurement
https://www.qtegov.com/p
rocontract
Source East Midlands
www.sourcederbyshire.co
.uk (> Links)
Tender Ready in 10 Steps - Aberdeen
Client Profiling Checklist
What information should
you look for when
researching public sector
clients?
Tender Ready in 10 Steps - Aberdeen
Getting “below the radar”
•Understand Buyer’s view of procurement – check
website for issues/strategic initiatives / response to
current economic challenges
•Check key buyer sites for tender/request for
quotes adverts, tender registers
•Prior Info Notices (PINs), Buyer Profiles on PCS
•Award notices to track competitor/ partner activity
and spot subcontract opportunities
•Contact potential clients directly (after the
research above!) and ask about supplier registers
Tender Ready in 10 Steps - Aberdeen
Buying Authority websites
•Standing Orders for Contracting/
Procurement
•Tender registers – Buyer profiles
•Procurement Guidelines
•FAQs for Suppliers
•“Doing Business with XXX”
• Procurement Strategies
Tender Ready in 10 Steps - Aberdeen
Get on to Supplier Lists
Public Contracts Scotland
e.g.
Contracts Finder (was Supply2Gov)
BiP Select Certify & BiP Select Accredit
Constructionline
Society of Procurement Officers (SOPO)
OGC Buyingsolutions Catalist
Etc… ask your clients if they use these lists and
how! Ask about Council supplier registers (not
approved contractors lists)
Tender Ready in 10 Steps - Aberdeen
Bid-No Bid process
Stage 1: Reading Contract Notices
Group Exercise
Tender Ready in 10 Steps - Aberdeen
Contract Notices
• Similar content for all – presented differently in
each online system
• Official Journal of the European Union (OJEU) is
default format
Tender Ready in 10 Steps - Aberdeen
Reading the Notice
Section I: Contracting Authority
• Is an agent involved?
• Link to an e-tendering system you need to
register for?
• Buying on behalf of other authorities?
Tender Ready in 10 Steps - Aberdeen
Reading the Notice
Section II: Object of the Contract
• Common Procurement Vocabulary codes
• Division into Lots?
• Variants?
• Quantity or Scope - £££ or number of items
• Duration – extensions?
Tender Ready in 10 Steps - Aberdeen
Reading the Notice
Section III: Legal, Economic, Financial & Technical
• PQQ selection criteria
• Specific contract conditions
• Reserved for particular profession? For a
supported business?
Tender Ready in 10 Steps - Aberdeen
Reading the Notice
Section IV: Procedure
• If restricted, min number to be invited to tender
• Award – MEAT or lowest price?
• Electronic auction?
• Deadlines
Tender Ready in 10 Steps - Aberdeen
Bid – No Bid decision
Tender Ready in 10 Steps - Aberdeen
Strategic issues
Operational issues
Financial Contractual issues
Responding to the ITT
Create a checklist!
Tender Ready in 10 Steps - Aberdeen
Strategic elements
• Fit to our business strategy
• Client characteristics
• Professional value of the work
• Competition (Restricted, Open or
Framework)
• Business risk
Tender Ready in 10 Steps - Aberdeen
Operational issues
• Our skills and experience for this
contract – key staff, projects
• Capacity & timing – implications for
workload and management
• Current resources – people,
equipment, infrastructure
Tender Ready in 10 Steps - Aberdeen
Operational issues
• Need for new recruits
• Need for partners / subcontractors
• Is work within scope of current
quality/security registration?
• Location issues
• Communications issues
Tender Ready in 10 Steps - Aberdeen
Financial - Contractual
• Is the client budget reasonable?
• Will the work be profitable?
• What likely payment schedule?
• What investment needed by us to
complete work?
Tender Ready in 10 Steps - Aberdeen
Financial - Contractual
• Are the contract terms acceptable?
• What performance issues in contract incl
bonds?
• Which legislation/regulations/codes of
practice linked to contracts?
• Minimum turnover clauses?
Tender Ready in 10 Steps - Aberdeen
ITT/PQQ requirements
• Cost of tendering? Are resources
available?
• Bid timescales achievable?
• Complexity of tender documents –
need clarification/ legal input?
Tender Ready in 10 Steps - Aberdeen
ITT/PQQ requirements
• Use of specific procurement systems
required?
• Any special requirements related to
submission of PQQ / tender?
Tender Ready in 10 Steps - Aberdeen
Bid – No Bid decision
• A well-researched Bid-No Bid process
provides an excellent basis for submitting
a high-scoring tender! Use a checklist…
• Ask questions as early as possible
• Don’t spend time on “no hope” bids but be
prepared to take a chance against larger
companies
Tender Ready in 10 Steps - Aberdeen
Tender
Ready!!
The 10 Steps
10
Creating a
Tender Desk
7
8
“People” aspects
Of Tendering
1
Policies
& Standards
4
5
Buyer’s View
– prepare and
evaluate tenders
Presenting
Company
information
2
3
Understanding the
Introduction to
Market Intelligence
Procurement
Tender Documents & Bid Strategies
Landscape
√
√
9
√
Tender Ready in 10 Steps - Aberdeen
Presenting
Professional
tenders
6
Responding to
Technical &
Quality questions
Q
Any Questions from Workshop 1?
• Happy to take emails/calls between
sessions
• One-to-one time after each workshop
• Homework for next week
Tender Ready in 10 Steps - Aberdeen
“Homework”
H
• Sign up for Supplier Registers/portal
sites
• Review Tender Ready Checklist
• Use the Client Profiling Checklist for a
new prospect
• Read evaluation exercise
• Find examples of “killer questions
Tender Ready in 10 Steps - Aberdeen