Tender Ready in 10 Steps - Aberdeen Tender Ready in 10 Steps Workshop 1 – 21 st March Workshop 2 – 28 th March Workshop 3 – 4 th April Gill Joy, Owen Paterson.

Tender Ready in 10 StepsWorkshop 1 – 21st March

Workshop 2 – 28th March

Workshop 3 – 4th April

Gill Joy, Owen Paterson

Intend Business Development LLP

Tender Ready in 10 StepsObjectives

• 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

√

The 10 Steps

Understanding the Procurement

Landscape

Introduction to Tender Documents

Market Intelligence & Bid Strategies

Buyer’s View – prepare and

evaluate tenders

Creating a Tender Desk

“People” aspects Of Tendering

Presenting Professional

tenders

Policies & Standards

Presenting Company information

Responding to Technical &

Quality questions

321

654

7 8 9

10

Tender Ready!!

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

1

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

Grants, SLAs & Contracts

Source: 'Tendering for Public Sector Contracts: a practical guide for social economy organisations‘, Social Economy Scotland

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)

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

Legal Framework

EU Treaty - Principles for Public Procurement

EU Procurement DirectivesEC Directive 2004/18 – “Public Contracts Directive”EC Directive 2004/17 – “Utilities Directive”EC “Remedies” Directives – amended 2007

UK implementations of EU DirectivesPublic/Utilities Contracts (Scotland) Regs 2006Amendment Regulations 2009

Case lawUK and Europe

Standing Orders for Contracts made under Section 81 of the Local Government (Scotland) Act, 1973

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

Types of tenders

Those covered by EC/UK Regulations:

• Tenders issued by public sector authority (Works, Supply, Services)

• Above nationally/EC agreed value

• May also include contracts for companies that exist to deliver public services

Those NOT fully covered by EC/UK Regulations:

• Tenders issued by a commercial company

• Public contract below agreed value (sub-threshold) – treatment depends on authority internal rules

• Part B services (eg health and social services, education and training where less EU interest)

Thresholds 2010-11 for EU contracts

Contracted by Services &Goods Works

Central Govt £101,323 £3,927,260

Other Public £156,442 £3,927,260

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

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

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

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”

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

Procurement Reform

Scottish Government Procurement Reform Programme 2006 objectives

– Better purchasing – target £740m in first 3yrs

– Best practice/skills

– Improved processes/cross sector working

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

Public Sector Procurement Vision

Category A

Category B

Category C1

National Procurement

Where a single interface with the public sector facilitates efficiency and competitiveness of suppliers.

E.g. IT HW, Telecoms, Office Equipment & Supplies

Sector Specific CGCoPE

APUC; Scotland Excel; NHS National Procurement

Regional Collaboration at local levele.g. Tayside Consortium

Where interface coordinated via a sector CoE. e.g. Wheelie bins,

Medical Equipment

Category C

Where interface coordinated via regional hub or

local organisation

ProcurementScotland

Local185 Major procuring organisations; in excess of 900 in total

Source: Scottish Government

Scotland Excel – commodity

• Contract: Education Furniture Period: 2 Nov 2009 to 7 Feb 2011Commodity Manager: Natalie CliffTel: 0141 842 6654e-mail: [email protected]

British ThorntonCaledonian Furniture Manufacturing LtdEME Furniture LtdGopak LtdHavelock Europa plc T/A ESA McIntoshRemploy LimitedSenator International LtdSICO Europe LtdStage Systems Ltd

Central Govt Centre of Procurement Expertise

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

Public Contracts ScotlandE-Procurement/E-Sourcing

ScotlandBravo 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…

E-tendering systems

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

2

Tender Ready Checklist

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

Basic eligibility checks (Pass/Fail)

Business ProbityTurnover (occasionally)Security ClearanceInsurance : Employers Liability; Public Liability; Product

Liability; Professional Indemnity2 or 3 Years’ Financial Accounts - signedEquality & Diversity PolicyEnvironmental PolicyHealth & Safety PolicyConstructionline or other membership ( occasionally)

ISO 9001 certified Quality Management system

General tips for completing tenders and PQQs

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)

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

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

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

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

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

Techniques for answering “killer” questions ….

To be continued with practice in Step 6 …

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)

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?

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?

Market Intelligence & Bid Strategies

• Researching public sector clients/markets

• Finding tender notices

• Reading a contract notice

• Bid-no Bid decisions

3

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?

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

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 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

• etcSee “Sources of tenders” document

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.nhsprocurement-northeast.nhs.uk

OGC Buying Solutions (public sector) http://online.ogcbuyingsolutions.gov.uk/news

NE Procurement https://www.qtegov.com/procontract

Source East Midlands www.sourcederbyshire.co.uk (> Links)

Client Profiling Checklist

What information should you look for when

researching public sector clients?

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

Buying Authority websites

•Standing Orders for Contracting/ Procurement

•Tender registers – Buyer profiles

•Procurement Guidelines

•FAQs for Suppliers

•“Doing Business with XXX”

• Procurement Strategies

Get on to Supplier ListsPublic Contracts Scotland

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)

e.g.

Bid-No Bid process

Stage 1: Reading Contract Notices

Group Exercise

Contract Notices

• Similar content for all – presented differently in each online system

• Official Journal of the European Union (OJEU) is default format

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?

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?

Reading the Notice

Section III: Legal, Economic, Financial & Technical

• PQQ selection criteria

• Specific contract conditions

• Reserved for particular profession? For a supported business?

Reading the Notice

Section IV: Procedure

• If restricted, min number to be invited to tender

• Award – MEAT or lowest price?

• Electronic auction?

• Deadlines

Bid – No Bid decision

Strategic issuesOperational issues

Financial Contractual issuesResponding to the ITT

Create a checklist!

Strategic elements

• Fit to our business strategy

• Client characteristics

• Professional value of the work

• Competition (Restricted, Open or Framework)

• Business risk

Operational issues

• Our skills and experience for this contract – key staff, projects

• Capacity & timing – implications for workload and management

• Current resources – people, equipment, infrastructure

Operational issues

• Need for new recruits

• Need for partners / subcontractors

• Is work within scope of current quality/security registration?

• Location issues

• Communications issues

Financial - Contractual

• Is the client budget reasonable?

• Will the work be profitable?

• What likely payment schedule?

• What investment needed by us to complete work?

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?

ITT/PQQ requirements

• Cost of tendering? Are resources

available?

• Bid timescales achievable?

• Complexity of tender documents –

need clarification/ legal input?

ITT/PQQ requirements

• Use of specific procurement systems

required?

• Any special requirements related to

submission of PQQ / tender?

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

The 10 Steps

Understanding the Procurement

Landscape

Introduction to Tender Documents

Market Intelligence & Bid Strategies

Buyer’s View – prepare and

evaluate tenders

Creating a Tender Desk

“People” aspects Of Tendering

Presenting Professional

tenders

Policies & Standards

Presenting Company information

Responding to Technical &

Quality questions

321

654

7 8 9

10

Tender Ready!!

√ √ √

Any Questions from Workshop 1?

• Happy to take emails/calls between sessions

• One-to-one time after each workshop• Homework for next week

Q

“Homework”

• 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

H