How to tender. The basics.

Sean Hamill 2005Successful Tendering

Sean Hamill

Successful Tendering –The Basics

Sean Hamill


• Housekeeping• Objectives • Introduction • Identifying a need and Picking Targets• Pick our targets • EU Rules and Regulations• Tender Process and Evaluation• E-Procurement and Tendering• Debriefing • Review of Today

Agenda

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Objectives

• Identify suitable bidding opportunities• Understanding Local & Central Government Financial Constraints• Understanding EU & Government Rules• The Tender Process. How does it work?• How does the evaluation process work?• Improving your win rate in the Public Sector

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Identify the Need

Define the Requirement

Identify Potential Suppliers

Invite Supplier Offers

Assess Supplier Offers

Agree Prices & Terms

Contract

Manage Performance

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Understanding Local & Central Government

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What do they buy!!!!!!!!!!!!!!!!!Waste management, residential care, transport taxis,banking, removals, Salt, groceries, piano tuning, books, Insurance, agency staff, professional services, temporary accommodation, security services, vehicles, printing and design, laundry, building materials, property, horticultural materials, plant hire, IT, special needs, clothing, engineering services, equipment, Sub contractors, Energy Communications, Sports Equipment, Window Cleaning, catering, cleaning, office supplies,ETC, ETC, ETC, ETC

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The Rules and Regulations

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Financial

Internal to Lean Skills Councils ( typically )

• Up to £1,000 GPC Card at least one quotation• £1,000 - £20,000 at least 3 quotes• £20,000 - £156,449 at least 5 PIN Process submitted Tender• Over £156,449 EU Procurement ( OJEU )

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Internal to District Councils ( typically )

• Up to £10,000 at least one quotation• £10,001 - £60,000 at least 3 quotes• Over £60,000 but less than £156,449 PIN Process submitted Tenders• Over £156,449 EU Procurement ( OJEU )

Financial

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Understanding EU and Government Rules

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Public Sector Tender Procedures

PIN Definitions: • Pre indicative notice • Prior information notice

Details of contracts added up over twelve months All contract details where aggregated spend exceeds the Standing Order value

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Public Sector Tender Procedures

Open

• Unlimited number of bidders • Usually used for the purchase of goods . EOI (Expression of Interest)

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Public Sector Tender Procedures Restricted

• Short-listing of bidders • Non standard or large service requirement • EOI (Expression of Interest) • Two stage process: • Pre-qualification questionnaire assessment • An invitation to tender

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Pre-Qualification

•Financial strength issue - can the candidate cope financially with this size of contract or the asset requirement?

•Dependency issue - will the candidate become over- dependent on this contract or contracting authority?

•Capacity issue - does the candidate have sufficient resources to meet the contract demands?

•Capability issue - does the candidate have the necessary skills & experience to carry out the work?

•Technical status / Professional status

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3rd Party Vendor Qualification

> How

• Constructionline - construction industry

• Utilities Vendor Database - power, water, transport

• First Point Assessment - Oil industry

• NHS - National Health Service Purchasing & Supply > Why

• Bench-marked against industry standard / national accreditation

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Framework Agreements

•Where a number of suppliers are awarded

•A way of overcoming aggregation rules

•Awarded along the same lines as any other contract

•Always bear in mind that to be awarded onto a Framework Agreement doesn’t mean you have been awarded a guarantee or any work

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Sean Hamill 2005

The Tender Process – How does it work?

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Reason for Tender Practice

•Vetting Potential Suppliers Developing Markets

•Bona fide & are capable suppliers

•Formal pre-qualification

•Pre-determined criteria for appraisal

•Standardisation

•Consistent approach

•Consistent measurementSean Hamill


Benefits of the Tendering Process

• Provides clear public accountability

• Protects employees from bias

• Level playing field to judge the market

• Ensures value for money

• Potential suppliers have the same clear understanding of the requirement

• Sound basis for a properly constructed contract

• It prevents complacency Sean Hamill


Every Tender Must Contain

•Formal invitation

•Instructions to tenderers

•The closing date

•Contract award criteria

•Definition of size & scope

•Comprehensive specification

•Conditions of contract and change

•Contract period & extension options ( If any )

•Change controls

•How to deal with variations

•A termination clause

•Instructions for return of tender

•Pricing document

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Sean Hamill

Expression of interest• Formal written communication, legal requirement.

Pre-qualification questionnaire• Structured document, linked to their selection criteria• Will contain more detailed information on company financial

position and referees


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Contract Conditions • Local Authorities trade on their terms and conditions.

• Contracts are offered on that basis • SME’s cannot impose their T’s & C’s

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Your Objectives

• Avoid elimination• Create favourable impression• Provide information promptly• Answer all questions as fully as possible• Tell the truth• Match responses to customer• Pick up on clues

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Compliance check • Read ALL the instructions to tenderer's

• Required information/certificates

• Check, check oh and CHECK AGAIN !!

• More than one pair of eyes is very important

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Briefing Tenderers• Single session for all

• Named person answers tenderers questions

• Possibly find out who the competition are

• Make contact – People to People

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Receipt of Tender Documents

Tenders normally opened by end of first day after closing date

• Documents are secure

• Never opened before closing dates

• All submissions opened at same time

• Authorised officers ( at least two present) open tender submissions

• All late tenders are excluded

• Each bid is dated & signed as opened

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Evaluation

•Invariably carried out by a working group

•Finance, users and the buyer

•Multiple copies of ITT requested

•Only one copy priced up (maybe)

•Service, Quality and Deliverables will then be married up with pricing

•Invariably scoring matrixes have been produced for ITT, Presentations and Site Visits.

•If you put in pictures make sure the people are still around at the evaluation stage

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Evaluation Criteria Lowest price • cheapest qualified offer Most Economically Advantageous Tender • Procurement regulations • Quality • Technical merit • Aesthetic & functional characteristics • Delivery/completion dates • Running costs • Price

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Sean Hamill

Typical Evaluation Weighting

Capacity Weighting 20% Price. Weighting 20% Technical Capability Weighting 20% Financial Strength Weighting 20% Corporate Social Responsibility Weighting 15% Contract Management. Weighting 5%


De-Brief

• Ask for a debriefing (win or loose)• If you won does that mean your bid was perfect?• How did we do, how close was it• What next, how can you help• Start planning for the relationship• Review the process• Plan for the next tendering exercise

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E / Reverse Auctions

• A new concept being used

• Potential suppliers are selected by using exactly the same criteria as any other procedure

• Suppliers bid on line on the same day

• A given period of time is given

• Normally carried out for "off the shelf” style goods

• Subject to Post Tender Negotiation

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Tips for Success

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Tips for Success

• Read the documents!

• Understand the requirements before beginning

• Submit ALL the information requested

• Treat the tendering exercise as a project

• Plan the process of information gathering and completing the documents – The 6 P’s applies !!

• Work as a team not a group of individuals

• Think what the buyer wants Sean Hamill


Tips for Success (Contd. )

•Do you have the present contract, do you know anything about it?

•Are you competitive?

•Can you deliver the quality required / Will you over specify?

•Is the contract for you????

If no,- do not go for it! Sean Hamill


Company Policies & Insurance

Raise yourself above the competition - presentation of supporting material

• Health & Safety. • Quality Assurance

• Environmental

• Racial, Religious, Sexual equality

• Investors in People

• Insurance

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Company Profile and Style• Its your opportunity to stand out from the crowd especially in highly technical or subjective disciplines.• It should be as individual as your handwriting.• You should develop a presentation style for your tender documents that everytime a buyer or specifier picks one up he should instantly knows its yours.• The objective is to stand out from the crowd.• Never be tempted to copy from competition or from any other sources such as the Internet – They will know !!

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Sean Hamill

A Company ProfileWhy?

Often required before being invited to tenderTypically companies may be asked for one of the

following before inviting them to tender:• Expression of interest• Pre-qualification questionnaire• Company profile

Marketing tool

Training and induction document


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What makes up a company profile• Name of the company• Contact name• Address• Tel/Fax/Email/Website details• Company background, current organisational structure and

present services• Details of turnover• Current management profiles• Broad skills and qualifications of the staff and organisation• Experience and relevant projects• References, client list


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Building a case studyCase studies are ideal ways to demonstrate how you have delivered quality work which is relevant to the tender requirements

Case studies could include:

• Case study company details• Picture or company logo• Brief description of the aims and objectives of the project• Brief description of the achievements of the project• Brief description of the problems encountered and how they were

overcome• A reference from the MD or other senior manager


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Choosing referee’s

List names of possible referees

Decide who is suitable and reliable

Are you on good terms with them?

Contact them and ask their permission

“Who could you suggest as potential referees, and why?”


SUMMARY OF TODAY

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Identify the Need

Define the Requirement

Identify Potential Suppliers

Invite Supplier Offers

Assess Supplier Offers

Agree Prices & Terms

Contract

Manage Performance

Sean Hamill


Sean Hamill


Identify & assess opportunities• Identify targets as early as possible in cycle• Pick best prospects for success• Understand how local authorities work• Have knowledge of rules & regulations• Understand the tendering process• Know what to do to win business• Can you manage the relationship• Don’t be afraid to walk away from unsuitable business

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Your Objectives

• Avoid elimination• Create favourable impression• Provide information promptly• Answer all questions as fully as possible• Tell the truth• Match responses to customer• Pick up on clues

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Debrief

• Ask for a debrief even if you win.• Was your bid really that perfect? • Structure the questions• If unsuccessful. Use lessons to improve your next response, only Rocky wins every one !!!

Sean Hamill


Useful Websiteswww.SupplyingGovernment.qov.ukwww.OGC.gov.ukwww.OGCBuyinqSolutions.qov.ukwww.Simap.eu.intwww.hse.qov.uk/pubns/indq259.pdfwww.envirowise.qov.ukwww.ogc.gov.uk/sdtoolkit/reference/ogc_library/procurement/codeofcusprac.pdf

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THANK YOU FOR YOUR TIME

ARE THERE ANY

QUESTIONS?

Sean Hamill

How to tender. The basics.

Education

Transcript of How to tender. The basics.