Provider PreTender Workshop
Kindle Centre, Hereford
28 Aug 13
Agenda
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Introduction
Programme Scope & Services
Tender programme timescales
eMarketplace - options?
How to Tender guidance
AOB
Wayne Welsby
Head of Commercial Services
Important Information
• Important Dates:
– Further PreTender Event – 12th Sept @ Kindle Centre
• Important Info
– https://www.herefordshire.gov.uk/businessopps
– Proactis Portal https://tenders.herefordshire.gov.uk
Commissioning Principles
• Broadly looking at framework approaches
• User and Carer experience and involvement
• Proportionate tendering exercises and qualification criteria dependent on
complexity
• Safeguarding and Quality
• Outcome based with a strong focus on enablement
• Supplier Diversity and Support Local Economy where we can
• Promote Choice and Control – range of access for Personal Budgets
• Encourage partnerships and joint ventures to maximise benefits of volume
linked price reductions and capability of market
• Flexible contracting
Services
1.
2.
3.
4.
5.
6.
7.
Integrated Community Equipment Store (ICES) – aids and equipment to help
people remain at home
Reablement – short term 6 week support service to enable
Sensory Impairment resources – dedicated support service to people with a
sensory impairment
Home & Community Services – Dom Care + Rapid Response
Norfolk House – care and support service for the tenants within the scheme
Shared Lives Scheme and Homeshare – Formerly known as Adults Placement
Scheme, the function is to support the ‘carers’ who deliver the service and
enabling homeowners to have a ‘homesharer’ living with them with no support
Day Opportunities – wide mix of services to support vulnerable people
Service User eligibility will be subject to ‘substantial and critical need’
Projected Start & Award Dates
Likely
Process
START DATE
AWARD DATE
ICES
Restricted
13th Sept 2013
31st Jan 2014
Reablement
Restricted
13th September 2013
31st Jan 2014
Norfolk House
Open
20th September 2013
20th Dec 2013
Adult Placement Scheme
Open
20th Sept 2013
17th Dec 2013
Home & Community Services
Open
11th Oct 2013
9th Jan 2014
Day Opps
Open
11th Oct 2013
24th Dec 2013
Sensory Impairment
Open
22nd Nov 2013
7th Feb 2014
PROCUREMENT
Social Care eMarketplace
Paul Griffiths
Social Care eMarketplace
Current examples include options to:
• Inform service users and carers of available providers
• Provide location, available services and contact details of
providers
• Rate providers and see how others rate them
• Order and pay online for services and/or equipment
Subject to timing and demand, potential regional approach??
Social Care eMarketplace
eMarketplace – scalable functionality for Provider
and service users
Tier 0:
Tier 1:
Tier 2:
Tier 3:
Tier 4:
Provider web presence
Provider Directory with provider profile management
Provider Directory with Catalogue Functionality
Provider Directory with Catalogue Functionality (Payment
options within solution and advanced reporting)
Provider Directory with Catalogue Functionality (Payment
options, Advanced Reporting, Additional functionality)
Social Care eMarketplace
Discussion points
• Business & Client benefits
• Engagement and participation of Providers and Clients
• Required functionality
Paul Griffiths
pgriffiths@herefordshire.gov.uk
How to Tender
Wayne Welsby
Proposed Procurement Processes
• Procurements to be conducted by either a single stage (Open)
or a two stage (Restricted) process.
• Currently the ICES and Reablement procurements have been
identified as using the Restricted Process; other procurements
are envisaged as using the Open Process, but this is subject to
final confirmation.
Proposed Procurement Processes
• Restricted process involves the completion of a PreQualification Questionnaire (PQQ) which will be scored by the
council. Only the highest scoring candidates being shortlisted
and invited to submit a tender for the services (likely shortlist
length of 5 – 8).
• Open Process involves submission of a selection questionnaire
at the same time as a tender for the services, however only
the tenders from candidates who meet all of the selection
criteria will be evaluated.
What is a PQQ?
• PQQ stands for “Pre-Qualification Questionnaire”.
• PQQ’s typically are the start of any public procurement process.
• The purpose of the PQQ is to enable the buyer to move from a long-list of
suppliers down to a short-list.
• In public sector this is done using an evaluation criteria which covers:
• Capability (experience).
• Capacity (volume/quantity).
• Economic and financial standing (solvency/integrity).
Where does the PQQ sit in the Tender process?
Specification
Advertise
PQQ
Tender
Auction
Award
• PQQ is the first evaluation point in the tender lifecycle.
• Questions asked at PQQ give the Council confidence that
organisations are suitably qualified for the opportunity and
subsequent round.
• PQQ’s are focus on organisational capability and historical
evidence.
Contract
What is asked for (1 of 2):
•
•
•
•
“BASIC DETAILS OF YOUR COMPANY”
– We want to know who we are dealing with e.g. company name, parent company
details, VAT registration.
“REFERENCES”
– Purchasers need to validate claims. References are a test of capability and capacity.
– Proof often sought from more than one client.
“INSURANCE”
– We seek (proportional) insurances for our protection should something go wrong.
“FINANCIAL INFORMATION”
– We need evidence of solvency and to evaluate financial risk including over reliance.
What is asked for (2 of 2)?
“EQUAL OPPORTUNITIES”, “ENVIRONMENTAL MANAGEMENT” AND
“QUALITY ASSURANCE”
• The Council operates these policies and it seeks to work with organisations sharing
same values and controls.
“HEALTH & SAFETY”, “EQUALITY & DIVERSITY”
• The Council complies with H&S and E&D legislation.
• Through its policies and procedures, it seeks to contract with organisations
matching its aspirations.
“BUSINESS AND COMPANY STANDING”
• These are statutory questions which all public bodies must ask.
• Public Services Contracts Regulations 1993 (www.legislation.gov.uk).
Future approach
• Aims to minimise resourcing requirements for providers and
evaluators
• Use existing accreditation standards where applicable – but not
mandatory!
• Identify min standards and best practice policy requirements
Financial Standing
New Approach, as used in used authorities including Birmingham,
Cambridge, etc.
• Replaces the historical requirement of assessing 3 years accounts
• Apply a more risk approach for assessing bids
• Enable providers to self populate spreadsheet
• User friendly approach with guidance attached
• Recognise voluntary, social enterprise orgs
Financial Standing – new model
Date of Financial Statements
Business Type
31/12/2011
Current
Year
Limited company (Ltd, Plc)
Contract Value:
£
120000
Current
Year
£
Prior
Year
£
Profit & Loss Account
(or Statement of Financial Activities)
Revenue
301000
299009
Gross Profit (if available)
60005
100001
Operating Profit (or Net Incoming Resources)
61662
50500
Interest Payable
12000
11000
Fixed Assets
750000
199000
Current Assets
105000
98000
Stock
12500
11000
Current Liabilities
98000
82000
505000
101000
Dividends (Owner Managed Businesses only)
0
0
Drawings (Partnerships & Sole Traders Only)
0
0
Balance Sheet
Long Term Liabilities
Other
Financial Standing – new model
Date of information
31/12/2011
Prior year
Latest year
Score
Ratio
Part 1
Revenue Multiple
2.508333333
Ratio
2
2.491742
Score
2
OK to proceed to Part 2
Proceed to Part 2 but be aware of potential capacity constraints on the supplier
Don't proceed to Part 2
Part 2
Operating Margin
Return on Capital Employed
Interest Cover
Gearing
Quick Ratio
Overall Score
20.49%
3
16.89%
3
8.15%
3
23.49%
3
5.14
3
4.59
3
66.71%
2
46.98%
3
0.94
1
1.06
2
12
14
Good score of over 12 out of 14. Basic financial position acceptable.
Score of between 11 & 7 out of 14. Financial position questionable.
Score of 6 or less out of 14. Poor financial position.
Other requirements
• Insurance – commitment to provide required cover subject to contract
• Quality Management – accreditation (ISO9001) or evidence of policy
• Business Continuity - accreditation (ISO22301) or evidence of policy
• Equal Opps – compliance with min standards identified & additional
marks for ‘best practice’ criteria.
• H&S – accreditation with appropriate standards or evidence of policy
• Environmental - accreditation with appropriate standards or evidence
of policy
What is a Tender?
Specification
Advertise
PQQ
Tender
Auction
Award
Contract
• The tender is a formal document issued by the buying organisation which
sets out the detailed requirements of work to be done.
• Tenders are forward looking asking questions around how requirements
will be fulfilled.
• The objective of the tender is to identify a bidder with whom to contract.
Responding to Tenders
PLAN YOUR RESPONSE
• Early on thoroughly read tender documents (including T&C’s).
• If the tender is unclear, seek clarification.
• Know the tender timetable and deadlines.
• Plan for sub-contractor input to your tender response.
• Determine the evaluation methodology as early as possible.
• Know how to respond (labelling, formats, attachments and templates).
Responding to Tenders
PREPARE AND SUBMIT YOUR RESPONSE
• Tenders are evaluated based on content not ‘gloss’.
• Keep responses concise and to word limits where specified.
• Use affirmative language not conditional phrases (“subject to”, “however”,
“might” etc.).
• If you guaranteeing an aspect of delivery – clearly say so.
• Prepare your own checklist and tick-off what you have completed.
• Keep up-to-speed with buyer’s messages (e.g. tender amendments).
How Buyers Will Evaluate Bids
• Whilst a standard approach is followed to evaluate tenders, this will be adapted to meet the
needs of each procurement process. For this set of tenders:
• Tenders will be first checked to make sure that they are compliant.
• Compliant tenders will then be evaluated individually by specialists who will then meet to
agree a consensus score.
• There will be a scoring regime against which evaluators will mark tenders - this will be
shared with bidders.
• Tenders will be evaluated on a MEAT (Most Economically Advantageous Tender) basis
combining quality and price.
• Evaluator comments are captured throughout the process and bidders will be fully
debriefed on the reasons for the scores.
What the Council Will Do
•Whilst the timescales for tendering are tight, (when relevant) the
council will seek to time the procurements in a programme which
maximises the preparation and tendering time available for bidders, to
allow for such factors as the formation of consortia.
•Design services so that the largest range of potential providers are
able to compete.
•Tenders will be provided in a Microsoft format and no hard copies of
responses will be requested.
•Information requirements will seek to be minimised e.g. copy of
insurance certificates required prior to contract award only.
•Moving towards outcome focused specifications wherever possible
and to allow for innovation.
What the Council Will Do
• Sufficient flexibility will be built into contracts, in order to more easily
cope with any changing requirements.
• As far as is possible, visibility will be given of the council’s long term
strategic commissioning approach to assist bidders in tailoring their
approach.
• Transparency will be improved to support bidders in the completion
of a compliant tender which showcases their capabilities.
• Specific marking guidance will be provided for each question, with
the key points to be addressed highlighted.
What the Council Will Do
• Maximum word counts of between 500 and 1500 words will be
adopted for answers; length being dependent upon the question
complexity. PQQ question length will be restricted to a maximum of
500 words.
• There will be a deadline by which clarification questions must be
received from bidders. The council will also publish all answers to
clarification questions by a set date, no later than 6 calendar days
before the closing date.
• The council will also be flexible in accepting non-material enquiries
by telephone.
Thank You
Questions?