Standard Tender Evaluation Format for Selection of Consultan
Streamlined Tender Evaluation Presentation
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Transcript of Streamlined Tender Evaluation Presentation
Streamlined Tender Evaluation Process (STEP)
Low cost, fast tender evaluation procedure to deliver products and services which are better
than specified & vfm requirements
Facilitating reduced workloads, better contract outcomes and working with small/medium enterprises (SMEs)
Facilitating reduced workloads, better contract outcomes and working with SMEs
Why STEP?
• Reduced work and time involved• Improved contract outcomes• Reduced risk • Easier to engage directly with SMEs (small/medium enterprises)
– Facilitates improvements, innovations and service• Helps with (some) problematic procurement • More competitive, innovative SMEs and jobs
Facilitating reduced workloads, better contract outcomes and working with SMEs
Problematic Procurement
• STEP can help where:– Socio-economic evaluation criteria used
• Local social needs/benefits and employment
– Working with innovative products or companies– Risks (to successful outcome) are high– SME has no/little existing track record– Short timescales/high workload pressures– Test the market/high quality needed– Frameworks deliver poor value/results/quality
Facilitating reduced workloads, better contract outcomes and working with SMEs
Origins of STEP
• Participation in UK Gov CO SME Test Group– Problems of SMEs working with Public Sector
• Complex Prequalification Questionnaires (PQQs)• Framework agreements (large and/or wide scope)
– Time/workload pressures on buyers• Need to assess for successful outcome• Need for more streamlined process
– Reduce efforts on unsuccessful tenderers
Facilitating reduced workloads, better contract outcomes and working with SMEs
Overview of STEP
• Step 1 Select the best choice• Step 2 Check technical/commercial
compliance• Step 3 Check contract fulfilment assurance
Note: Detailed prequalification of potential tenderers, at start of procurement, is not needed
Facilitating reduced workloads, better contract outcomes and working with SMEs
STEP 1 Selecting the Best Choice
• Grade Tenderers’ Unique Selling Propostions– What is uniquely beneficial/value to end-user– Work from best to least important– Listed at front of tender (in order of importance)
• Select winner with highest rating USPs
Facilitating reduced workloads, better contract outcomes and working with SMEs
STEP2 Check compliance
• Check technical/commercial compliance– Against specification, workscope, standard conditions etc
• Resolve any issues• If important issue unresolved select next
highest rated tenderer
Facilitating reduced workloads, better contract outcomes and working with SMEs
STEP 3 Assurance
• Check what is proposed to deliver contract– Assess risks and mitigation measures– Review Management plan/arrangements,
resourcing, methodology etc• Unacceptable residual risks – select next
highest rated tenderer
Facilitating reduced workloads, better contract outcomes and working with SMEs
Advantages of STEP
(Unique Selling Propositions)
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Better products and services– Exceed requirements of specification– Continuous improvement and innovation
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Reduced time, effort and resources– Reduced time on unsuccessful tenderers– Only examining their USP list not full tenders
• Concentrate efforts on best choice– Increased likelihood of find/correcting problems
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Educate buyer/end-users about products– Access to wider range of products and services– Learn about value adding features– Additional useful information available
• Role for less experienced persons
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Easier/less costly for SMEs to form consortia– Develop consortia plans/details when:
• Full workscope is known• Chances of winning work are good (USPs)
– More level playing field for SMEs• Identify possible collaborations during STEP
– Complementary USPs
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Less work required from SMEs (or others)– No need to complete complex PQQ when:
• Chances of winning work are unknown• May eliminate need for complex PQQs
• SME can decide whether to tender or not• Potentially reduce further work needed
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Risks to successful outcome reduced– Assessing risks directly– Assessing pro-active measures – forward looking
• Applicable to new businesses• Applicable to innovations• Fits in with later Plan, Do, Check, Action cycle
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Easy to identify impropriety– Will stand out in each Step (of process)
• Good deterrent effect (on impropriety)– Tenders and tenderers– Evaluation– Spurious/weak (discrimination) claims
• Can anonymise data for Step 1
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Easy to implement– Suppliers know their USPs (and competitors)– Can superimpose on existing process– Can combine with other evaluation criteria– Flexible, can be adapted to situation
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP
• Subtle beneficial effects present– For buyers to facilitate process– For buyers/suppliers to be proactive for assurance– Scalable to complexity, innovativeness of offer– Changes mind-sets and expectations– Better understand social/public service aspects
Facilitating reduced workloads, better contract outcomes and working with SMEs
USPs of STEP• Innovative Pricing, Risk Management/Sharing
– Additional information available (from STEP) on:• Risks to a successful contract outcome• Proactive management for a successful outcome• Risk mitigation measures (existing and proposed)
– Potential to:• Reduce risk premium (fixed price)• Accurately monitor rate prices against progress• Risk share between buyer and supplier• Apportion contract to fixed and rate prices segments• Incentivise supplier against goals
Facilitating reduced workloads, better contract outcomes and working with SMEs
Flow Chart of STEP
USP = Unique Selling Proposition (features of product or service offer/proposal which are uniquely advantageous or beneficial to customer and not offered by other tenderers or suppliers. Listed by tenderer in order of importance in their tenders)
Streamlined Tender Evaluation Process using USPs (and demonstrating value for money) and contract fulfilment assurance
Ste
p 2
Tec
hnic
al &
C
omm
erci
al
Com
plia
nce
Ste
p 3
Con
trac
t fu
lfilm
ent
assu
ranc
e
Ste
p 1
Sel
ect b
est
offe
r
Ten
dere
rs
prep
are
tend
ers Prepare tender
documentation including list of
USPs and submit
Tender Documents
Review USPs in all tenders and grade/rate in order of importance –
Consider price/VfM
List/comparison of major USPs from
all tenders
Can USPs be graded?
Can best offer be
selected?
Can risks be
accepted?
Review best offer tender for risk of
non contract fulfilment
Recommendation and documentation for
contract
Review Best offer tender/proposal for technical and
commercial compliance
Can non- conformances be
resolved?
Review 2nd Best offer for technical and commercial
compliance
Can non- conformances be
resolved?
Mitigate unacceptable risks to acceptable level. Resolve with tenderer as
necessary
Conventional technical and commercial evaluation of all
tenderers against ITT, workscope and specification
Yes
No
Yes (one or two clear best offers)
No
Yes orno non conformances
Yes
No (and price cannot be used to provide a USP)
No
Yes orno non conformancesNo
Traditional error prone and resource intensive
comprehensive comparison of all offers etc
Facilitating reduced workloads, better contract outcomes and working with SMEs
STEP Change
• Use below EU Procurement thresholds– More flexibility in rules– Less bureaucracy
• For products and services• Add to requirements in Invitation to tender• Retain PQQ stage (if required)
– Need less PQQ information• Use a pilot/trial, adapt to required use
Facilitating reduced workloads, better contract outcomes and working with SMEs
About Green Leader Limited
Technical Consultancy Railway Electrification
Advising Clients on complex commercial, technical, operational and safety issues
Experience related to complex procurement (within rail industry UK and international)Reducing workloads, improving outcomes
Facilitating reduced workloads, better contract outcomes and working with SMEs
Further Information
Nigel Moore, Green Leader Limited21 Foxmoor CloseOakley, BasingstokeHants, RG23 7BQ Tel +44 (0) 1256 781739Mobile +44 07944855611www.electricrail.com www.greenleader.co.uk
Facilitating reduced workloads, better contract outcomes and working with SMEs
Questions?
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Tender evaluation criteria (Public Sector)?MEAT using USPs and compliance verification(MEAT – most economically attractive tender)
Too many tenderers?Grading using USPs much faster than PQQs
No significant USPs or a Commodity purchase?Significant USPs can be offered with commoditiesUse price, ask for tiebreaker or do full evaluation
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Too many USPs?Good news, also some may not be real ‘U’SPs
USPs cost more?Sometimes – calculate Vfm (as part of MEAT)(Vfm – value for money)
Socio economic evaluation criteria (SEC)?Grading USPs can include SEC and G’ment policy
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
EU Procurement Legislation?Open process, forward looking award criteria, use mainly below thresholds, transparent, fair
Prohibition on negotiation (EU rules)?Discussions/clarifications during Steps 2 and 3 are part of due diligence – not negotiations
What are the risks (EU rules)?Spurious complaints – hard to prove their case
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Draft EU Directive(s) published 20-12-2011?Complies above and below thresholdsFacilitates directive’s SME-friendly aims:
– similar bureaucracy-light order of activities (first ‘tell us what you can do’)
– use of more smaller contracts/lots
Assists use of socio-economic evaluationFacilitates innovation with reduced risks
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Contracts above EU thresholds?Appears to comply with EU open procedure rules? (early exclusion by backward looking criteria leads to restricted procedure, just before contract award by forward/backward criteria may be permitted)Needs confirmation with EU and UK rules
Crooks and the like?Exclude from start of procurement process, as rules
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Quality/Qualifications Based Selection or QCBS?Consistent with, USPs improve deliverables
Adversarial relationship (buyer-supplier)?Should improve situation (common goal)
Weakens buyer’s/end-user’s position(s)?Strengths it throughout commissioning, procurement and contract delivery processes
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Framework agreements or contracts (and STEP)?Improves specialist frameworks (QBS+USPs+A’e)Reduced workload on wide-scope frameworks
Facilitates ‘open’ frameworks (specialist and wide) (open procedure for framework and following MCs)
– Wider choice for mini-competitions (MCs)– Reduced workload for framework and MCs– More transparency and fairer evaluation criteria
• MEAT using USPs and compliance for framework and MCs
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
Too good to be true?Not in comparison with traditional evaluations Not for every procurement
Too complex/novel to work?Needs a plan and ‘success factors’ in place – SFs = motivation, supportive framework, competency, management deployment
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
How easy/quick is implementation (of STEP)?Everyone is different, techniques exist to help easy/quick implementation (pilot or rollout)
Will suppliers co-operate?For them – more business, less work (eg on PQQs) and can showcase delivering better value
Costs to implement (across organisation)?Varies - suggest a discussion to estimate
Facilitating reduced workloads, better contract outcomes and working with SMEs
FAQs on STEP
More background available?Much, including underlying theory, assumptions
Is there something better?Yes, in pipeline if STEP gets used by Public Sector
How could STEP get better still?Tell us your priorities, needs and problems