Preparing To Tender For Public Sector Works Andrea Campbell.
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Transcript of Preparing To Tender For Public Sector Works Andrea Campbell.
Agenda• 10.00 Session 1 – Introduction to Procurement
• Procurement in the public sector work• Explaining contract types• Procurement process cycle• Finding opportunities
• 10.45 Neil Hopkins - Head of Procurement at Birmingham City Council
• 11.15 Break• 11.30 Session 2 – Succeeding at PQQ stage
• Purpose of Pre-Qualification Questionnaires (PQQ)• Answering the standard elements of a PQQ• Dealing with Qualitative Questions• Common mistakes made
Agenda• 12.30 Lunch
• 1.15 Session 3• 10 Tips for procurement presentation and interviews
• 2.15 Break
• 2.30 Questions and Answers
• 3.00 Finish
Housekeeping• We are not expecting a fire drill today
• Toilets are out by reception
• Lunch and refreshments will be served out by reception and will be clearly marked
• This is an interactive event – we welcome questions and comments
Purpose of the evento To discover what public sector procurement is
o Why public sector bodies use these procurement methods
o How to find opportunities
o What is a good quality document
o What are the common mistakes and how to avoid them
o You want to be involved!
What is procurement?Definition:
“The process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset.”
SESSION 1
What is procurement?In other words…• Procurement is the process that the public sector follows
when purchasing goods, works or services from:o Deciding what to buy
o Deciding how to buy it
o Choosing who to buy it from
o Agreeing a contract with a supplier, to
o Managing that contract until the end or the end of the useful lifetime of the item / service.
SESSION 1
What is the public sector?• The public sector nationally includes:
o central civil government departments
o the Northern Ireland assembly, National Assembly for Wales and Scottish Executive
o the NHS
o the Ministry of Defence
o local authorities
o schools and colleges
SESSION 1
What is the public sector?• In Birmingham the public sector
includes:• Birmingham City Council• Birmingham East and North PCT• Heart of Birmingham Teaching PCT• NHS South Birmingham• Birmingham University• Birmingham City University• Aston University• West Midlands Fire Service• West Midlands Police
SESSION 1
Key objectives1. Value for Money (VFM)
The right combination of A high quality service or product
&
Optimum cost
to achieve the desired outcome for the intended service recipient
SESSION 1
Key objectives2. Transparency and Accountability
All public sector bodies are responsible for getting value for money in their purchasing as they are spending tax payers
money.
They must be able to demonstrate that it has been spent efficiently, effectively and not wastefully.
SESSION 1
Procurement rules• All public sector contracts, no matter what their value, are covered by
an EC treaty. This sets down principles to prevent discrimination against companies from any member state and ensure open competition. These principles are backed up in law by the EC procurement directives.
• Most public sector contracts are tendered because by tendering contracts public bodies can make sure that they:
• get value for money• are open and fair in their purchasing activities• comply with procurement law
SESSION 1
What is competitive tendering• Competitive tendering means seeking competitive bids
(tenders) for contracts.
• Contracts are advertised and any interested companies can tender for them.
• The values for tendering can differ between public sector bodies.
SESSION 1
What is competitive tenderingSESSION 1
LOW VALUE CONTRACTSServices & Suppliers
Below £100,000Works
Under £3.8 million
HIGH VALUE CONTRACTSServices & Suppliers
Above £100,000Works
Over £3.8 million
Types of Services / Good tendered for
• Catering• Cleaning• Construction• Food• IT Services• Leisure• Office Furniture• Property Management Works• Stationery• Vehicle Acquisition• Venue Hire
Plus much more
Contract TypesCorporate Contracts• For provision of supplies / services across entire organisations. Usually long term.
One off contracts• For provision of one off services or supplies for a specific part of an organisation or
department.
Framework contracts• A contracts set up with a number of companies who are then called on to provide ad hoc
goods / services during the life of the contract. Usually used for legal, consultancy or care services
PFI contracts• Long term high value contracts negotiated with large contractors, who may then sub-
contract elements of the work out to smaller or more specialist companies.
SESSION 1
Common procurement methodsOpen Contracts – single stage process• A notice is placed giving all interested suppliers the
opportunity to tender. • 52 days must be allowed from despatch of the notice to
receipt of tenders. • Contract documentation must be sent to suppliers within 4
days of receiving a request. • Any additional information must be provided at least 6
days before the final date of receipt of tenders.
SESSION 1
Example Open ProcessSESSION 1
Tender information is
received
Request for the documentation is
sent
Contract Notice is issued
Document collated and
submitted
All submissions are evaluated
Contract award notice is issued
Alcatel period Contract started
Common procurement methodsRestricted Contracts – multiple stage process• A notice is placed allowing 37 days for interested suppliers
to respond. • Invitations to Tender are sent only to selected tenderers,
allowing 40 days for their response. • Contract documentation must be sent to suppliers within 4
days of receiving a request. • Any additional information must be provided at least 6
days before the final date of receipt of tenders.
SESSION 1
SESSION 1
Request for the documentation
is sent
Contract Notice is issued
Example Restricted Process PQQ
documentation is received
PQQ completed and
submitted
ITT evaluated
ITT completed and
submitted
Possible interview
and/or site visit
Finalscores
calculated
Evaluationundertaken
Results announced for
ITT stage
ITT issued to successful companies
Feedback Offered
Contract notice is issued
Feedback offered
Alcatel period
Contract started
Other procurement methods• Accelerated Restricted
• Negotiated Procedure
• Accelerated Negotiated
• Competitive Dialogue
SESSION 1
Finding Opportunities
• Find it in Birminghamwww.finditinbirmingham.co.uk
• Tenders Electronic Daily (TED)www.ted.europa.eu
• Supply2Govwww.supply2.gov.uk
SESSION 1
Purpose of PQQ• The main purpose of a PQQ is to ensure that all companies
who are invited to tender can meet the minimum financial and technical requirements to undertake the advertised work.
• When public sector organisations place advertisements for tenders and request expressions of interest, they may receive hundreds of responses. A PQQ is almost always used as a way to shortlist these responses.
Purpose of PQQ• Completing a PQQ is often the first step in the tender
process.
• PQQs issued by the public sector are often more detailed than those issued by the private sector because the public sector has greater responsibilities and is accountable for spending public money. Therefore they need to know that their suppliers follow good practices.
Standard elements of a PQQ• General Company Information• Technical Capability• Financial Information• Insurance• Statutory Information
General Company InformationBasic Information such as
oNameo Address o Contact detailso Company registration numbero Legal statusoNames of directors, partners,
or trustees
Do you know your company registration
number?
Do you have an organisational chart already made up?
Is your website up to date?
Technical CapabilityEvidence of your ability to deliver• Experience • References• Standards and competence of your staff in relation
to this type of work• Registration, licenses or particular technologies
that you may need to deliver the contract
Have you got case studies prepared?
Do you regularly ask clients to be referees?
Do you have all the training certificates for
your staff?
Financial InformationAssessing your financial stability • 3 years accounts, and if 3 years are not available, accounts
for the period that you have been trading• Banker's references• The ratio of the contract you are applying for to your
annual turnover• Your credit rating• Levels of reserves and profit and loss accounts• Parent company accounts (if applicable)
Have you checked your business credit rating?
Who does your bank references?
Does your accounting software give you
management reports?
InsuranceNormally at pre-set minimum limits
• Public Liability – £10m• Employers Liability – £5m• Professional Indemnity (if applicable)
– usually set at £2m
You will normally have to supply certificates as well as the facts and figures
Have your got your certificates?
Can you get this much insurance at a reasonable
price?
Statutory Information• Business and Professional standing
o Including questions about mandatory exclusions
• Health and Safetyo Your Health and Safety policyo Information around what you do to manage Health and Safety in
your organisation. This could be details of responsible staff, risk assessment procedures, or details of any accidents or fatalities that may have occurred in your organisation.
• Equal Opportunitieso An Equal Opportunities / Equality and Diversity policyo Evidence that you have not been found guilty of any offences
relating to discrimination.
Statutory Information• Quality
o A policy or statement of how you manage qualityo A formally recognised accreditation or kitemark (e.g. ISO 9000)o An in-house Quality Management System
• Environmento Details of your environmental policyo Details of any environmental management system you may follow
(e.g. EMAS)o Details of what you do to ensure you carry out your business in an
environmentally friendly manner
Dealing with Qualitative QuestionsWhat are qualitative questions?
o They are used to differentiate you from your competitive
o They are a chance for you to demonstrate why you are the right supplier or contractor
o They are the questions which often carry large marks
Getting it right• Consider the objectives of those procuring the
serviceo Why is the question there?o What do they want to know?o How can you evidence what you are saying?
• Quality of the writingo Is it logical, concise and grammatically correct?o Is it easy to read?o Have your followed the guidelines (word count)?o Have you answered the question?
Common mistakes made• Simple administration failures such as not signing the
tender • Late delivery or delivery to the wrong person or place• Not following instructions• Not answering the questions• No evidence offered• Poor presentation• Not following the number system• They are not competitive
Top 10 tips1. Find out the format in advance2. Find out how from the organisation will be
there3. Arrive early4. Send the right people5. Don’t drift off topic
Top 10 tips6. Don’t use it as a chance to sell your
company – stay focussed7. Don’t run over time – practice makes
perfect8. Try not to waffle9. Be prepared10.Be yourself