Win More Business - Public Sector Procurement
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Win More Business - Public Sector Procurement
- 2. Procurement Landscape The VFM Agenda Gary Amos Head of Procurement Salford City Council
- 3. The Northwest 3 COUNTY 4 UNITARY 15 METROPOLITAN 24 DISTRICT 1 NATIONAL PARK
- 5. Local Authorities aren’t . . .
- 12. HOW TO BID AND TENDER Linda Mickleburgh Managing Business Opportunities Ltd 07771 734107
Notas do Editor
- The Public Sector is bigger than you may think, with the public sector employing more than 25% of the UK workforce, and accounts for 40% of the UKs Gross Domestic Product (GDP) (covering almost anything from food to aeroplanes to uniforms)
- Councils in your area purchase off SMEs MANY HAVE HOW TO DO BUSINESS WITH THEM GUIDES They purchase a whole list of supplies and services with some of the services being Cleaning of Buildings, Window Cleaning, Grounds Maintenance, Vehicle Maintenance, Catering, Pest Control, Consultancy Services, Refuse collection, Security, Training, Agency Staff WORKS are from Plumbing to Construction AGAIN NOTE MANY OF THE HIGHEST-VALUE GOVERNMENT CONTRACTS ARE LET TO LARGE COMPANIES. HOWEVER, SMALL COMPANIES CAN STILL PLAY A PART IN THESE CONTRACTS, PERHAPS AS SUBCONTRACTORS OR BY FORMING CONSORTIA SOME HAVE CAPITAL BUILDS AMONGST THE SERVICES THEY PROCURE AND OTHERS HAVE BUILDING MAINTENANCE
- Councils in your area purchase off the construction sector MANY HAVE HOW TO DO BUSINESS WITH THEM GUIDES They purchase a whole list of supplies and services with some of the services being Cleaning of Buildings, Window Cleaning, Grounds Maintenance, Vehicle Maintenance, Catering, Pest Control, Consultancy Services, Refuse collection, Security, Training, Agency Staff WORKS are from Plumbing to Construction AGAIN NOTE MANY OF THE HIGHEST-VALUE GOVERNMENT CONTRACTS ARE LET TO LARGE COMPANIES. HOWEVER, SMALL COMPANIES CAN STILL PLAY A PART IN THESE CONTRACTS, PERHAPS AS SUBCONTRACTORS OR BY FORMING CONSORTIA SOME HAVE CAPITAL BUILDS AMONGST THE SERVICES THEY PROCURE AND OTHERS HAVE BUILDING MAINTENANCE
- Tender/bid opportunities with private organisations or public organisations that fall below the European Public Procurement legal threshold are highlighted in local, national newspapers or trade magazines – this can be time consuming though and many opportunities could potentially be missed AGAIN DON’T FORGET YOU DO NOT NEED TO BE THE MAIN CONTRACTOR BUT A SUB CONTRACTOR TO THE MAIN TENDER WINNER
- 21 Las out of the now 41 La’s in NW Post opportunties on Chest All Merseyside councils signed up excl Wirral, all of Cumbria, all Gtr Mcr excl Wigan, only Blackpool in Lancashire and None in Cheshire Las pay to utilise the site FREE TO SUPPLIERS
- Supply2.gov launched 2006 Developed by SBS AND OGC Now owned by BERR and managed by BIP Solutions Designed to give companies access to lower-value opportunities offered by the Public Sector (typically contracts of value less than £100k Has the above FREE FOR LOW VALUE CONTRACTS IN CHOSEN LOCAL AREA, FEES FOR OTHER AREAS AND HIGHER VALUE CONTRACTS GIVES ACCESS TO PUBLICLY FUNDED R&D PROJECTS AND UK NEWS AND INTELLIGENCE INCLUDING PUBLIC PROCUREMENT NEWS ALERTS BUT A FEE FOR THESE ALSO UPGRADE FEES HIGH VALUE CONTRACTS FOR SUBREGION £95 + VAT OLD PRICES BUT IN REGION OF: REGIONAL EG NW LOW VALUE £70 HIGH VALUE £145 HOME COUNTRY EG ENGLAND LOW VALUE £99 HIGH VALUE £380 NATIONALY EG UK LOW VALUE £180 HIGH VALUE £750 MARKET MONITOR (INTELLIGENCE) £240 R+D CONTRACTS £180 ALL FEES EXCLUDE VAT
- ALMOST ALL PUBLIC PROCUREMENT CONTRACTS FOR BUSINESS WORTH MORE THAN THE EC LIMIT WHICH IS ROUGHLY £100K MUST BE PUBLISHED IN OJEU. THIS PROVIDES INFORMATION ON THE CURRENT REQUIREMENTS AND INVITES SUPPLIERS TO EXPRESS AND INTREST, OR TO TENDER DIRECTLY IN SOME CASES, DEPENDING ON THE CONTRACT PROCEDURE. IT ALSO SETS OUT INFORMATION ABOUT CONTRACTS THAT HAVE BEEN AWARDED. OFFICIAL JOURNAL EUROPEAN UNION is a bit misleading as production of the hard copy version ceased in 1997. It can now be accessed on CD Rom or via intermediaries such as the TED site and others mentioned later. Around 2500 new tender notices are advertised every week, Invitations to tender, Pre information notices, qualification systems and contract award notices from over 80 countries world wide – Around 10% - 15% of these are from the UK and NI. Where possible at the start of each financial year, a public authority issues a Pre Information or Periodic Indicative Notice (PIN) to indicate which contracts they plan to tender for in the next year – As contracts are due, individual invitations to tender are advertised on OJEU. It provides information on the current contract requirements and invites suppliers to express an interest, or to tender directly in some cases, depending on the contract procedure It also sets out information about contracts which have been awarded – GREAT OPPORTUNITY IF YOU ARE A SUB CONTRACTOR TO FIND OUT WHO THE WINNING CONTRACTOR WAS AND APPROACH THEM TO BE A SUB CONTRACTOR There are several ways of gaining access to OJEU data TENDERS ELECTRONIC DAILY (TED) IS THE FREE ON-LINE VERSION OF OJEU. IT USES SUBJECT AND COUNTRY CODES TO GIVE YOU DIRECT ACCESS TO NOTICES WHICH MAY BE OF INTEREST TO YOU YOU CAN GET COPIES OF OJEU (AVAILABLE ON CD-ROM FORMAT) BY PAYING A SUBSCRIPTION OR BY BUYING COPIES FROM THE STATIONARY OFFICE THE STATIONARY OFFICE ALSO HAS A SCANFAX SERVICE WHICH IS ONE OF A NUMBER OF OJEU SCANNING SERVICES THAT WILL FAX SPECIFIC EXTRACTS FROM OJEU NOTE TENDERS HAVE DEADLINES FOR EXPRESSING AN INTEREST OR SUBMITTING A TENDER THEREFORE YOU WILL NEED TO BE LOOKING AT OPPORTUNITIES ON A REGULAR BASIS – AND THIS CAN BE VERY TIME CONSUMING
- Don’t waste your time, there are lots of publications, lots of government departments, lots of search sites, decide how much you are looking to commit to supplying to the public sector PLAN YOUR APPROACH PLAN THE RESOURCES YOU ARE COMMITTING TO IT IDENTIFY ROLES AND RESPONSIBILITIES TARGETED STRATEGY OF ORGANISATIONS AND SECTORS PROFILE AND POSITION YOUR BUSINESS RESEARCH KEYWORDS AND ‘COMMON PROCUREMENT VOCABULARLY CODES’ – USED IN OJEU EVALUATE HOW EFFECTIVE SEARCH SITES ARE BY UTILISING FREE TRIALS AND MEMBERSHIP BEFORE PAYING FEES AND SUBSCRIPTIONS NEVER FORGET WHAT YOU WANT IS BUSINESS
- There are a number of EC Procurement directives under the EC Treaty that cover all public sector procurement contracts within the European Community, no matter what their value Principles are set down to prevent discrimination against firms from any member state The EC Procurement directives have been included in UK law as a number of regulations set down procedures and standards FOR CONTRACTS ABOVE THRESHOLD – Based on OPENESS, NON DISCRIMINATION AND COMPETITION – for awarding contracts with an estimated value above a set limit or THRESHOLD THRESHOLDS ARE SET IN EURO’S WITH THE UK FIXING THE STERLING EQUIVALENT FOR TWO YEARS THE RULES ON PRECISELY WHICH CONTRACTS MUST APPEAR IN OJEU ARE VERY DETAILED AND THEIR THRESHOLDS VARY DEPENDENT ON WHETHER IT IS SUPPLIES, SERVICES OR WORKS AND FOR CERTAIN TYPES OF SERVICES AND ALSO DIFFER FOR UTILITY CONTRACTS I WOULD NOT GET TOO CONCERNED ABOUT THE THRESHOLDS ( AS A RULE OF THUMB TENDERS FOR APPROX £100K FOR GOODS AND SERVICES AND £4M FOR WORKS – HOWEVER THERE ARE MANY EXCEPTIONS TO THESE RULES – MANY DEPARTMENTS HAVE MADE IT THEIR POLICY TO ADVERTISE MORE WIDELY ON OJEU) IT IS EASIER TO THINK OF HIGH VALUE CONTRACTS BEING OVER £100K AND LOW VALUE CONTRACTS BEING BELOW £100K BEST VALUE ABOUT IMPROVING QUALITY OF SERVICE TO PUBLIC – EMBRACES CONCEPT OF THE ‘PRICE-QUALITY’ RELALTIONSHIP ABOUT ECONOMICALLY MOST ADVANTAGEOUS RATHER THAN BEST PRICE
- ASK GROUP WHAT THEIR E CAPABILITIES ARE – E MAIL, ELECTRONIC PAYMENT, WEBSITE ETC Public-sector organisations are increasingly using e-procurement for contracts in order to boost efficiency E-procurement involves the use of electronic methods in every stage of the purchasing process, from advertising contracts and evaluating tenders to paying suppliers and even managing contracts. E-procurement can benefit suppliers in a number of ways. It can: Reduce paperwork, improve efficiency, help you process orders more quickly, speed up payment
- SOME OF THESE MAYBE REQUIRED TO ANSWER THE QUESTIONS IN THE PQQ AND FULL TENDER DEPENDS ON WHAT YOU ARE DELIVERING IF YOU ARE SERVICE DELIVERY ESPECIALLY TRG TO UNEMPLOYED INDIVIDUALS ETC EQUAL OPS NEEDS TO GO BEYOND YOUR ORG TO RECRUITMENT OF PARTICIPANTS AND DELIVERY TO THEM EXOR IS A TRUSTMARK SCHEME TO QUALITY APPROVE TRADES PEOPLE WHO CARRY OUT WORK IN THE HOME DO YOU HAVE THEM, BETTER GETTING POLICIES IN PLACE PRIOR TO THE TENDERING PROCESS LIVERPOOL CHAMBER OF COMMERCE HAVE A TOOLKIT TO ASSIST IN WRITING POLICIES
- SOME OF THESE MAYBE REQUIRED TO ANSWER THE QUESTIONS IN THE PQQ AND FULL TENDER DEPENDS ON WHAT YOU ARE DELIVERING IF YOU ARE SERVICE DELIVERY ESPECIALLY TRG TO UNEMPLOYED INDIVIDUALS ETC EQUAL OPS NEEDS TO GO BEYOND YOUR ORG TO RECRUITMENT OF PARTICIPANTS AND DELIVERY TO THEM EXOR IS A TRUSTMARK SCHEME TO QUALITY APPROVE TRADES PEOPLE WHO CARRY OUT WORK IN THE HOME DO YOU HAVE THEM, BETTER GETTING POLICIES IN PLACE PRIOR TO THE TENDERING PROCESS LIVERPOOL CHAMBER OF COMMERCE HAVE A TOOLKIT TO ASSIST IN WRITING POLICIES
- ALL COMPANIES ARE DIFFERENT, BUT BUYERS WILL EXPECT TO SEE COMPANIES HOLDING THE RELEVANT INSURANCES AND LEVELS OF COVER APPROPRIATE TO THEIR OPERATION EMPLOYERS LIABILITY REQUIRED FOR ALL COMPANIES IN UK WHO HAVE EMPLOYEES AND IS TO COVER YOUR EMPLOYEES AGAINST BODILY INJURY OR DISEASE SUSTAINED IN THE COURSE OF THEIR EMPLOYMENT PUBLIC LIABILITY TO COVER YOU IF MEMBERS OF THE PUBLIC COME INTO YOUR PREMISES AND COVERS YOU IF THEY CLAIM BECAUSE THEY WERE INJURED PROFESSIONAL INDEMNITY PARAMOUNT IF YOU ARE IN THE BUSINESS OF SELLING YOUR KNOWLEDGE OR SKILLS – COVERS YOU IF CLIENT CLAIMS THAT YOU WERE NEGLIGENT AND THEY OR THEIR BUSINESS SUFFERS AS A CONSEQUENCE PRODUCT LIABILITY UNDER THE CONSUMER PROTECTION ACT 1987 YOU ARE RESPONSIBLE FOR ANY DAMAGE OR INJURY THAT A PRODUCT YOU SUPPLY MAY CAUSE POLLUTION RISK COVERS LOSSES AND COSTS ARISING AS A RESULT OF DAMAGE TO THE ENVIRONMENT CAUSED BY YOUR BUSINESS – OFTEN PUBLIC LIABILITY CAN COVER THIS DIRECTORS AND OFFICERS LIABILITY – THEY ARE EXPOSED TO OVER 200 AREAS OF STATUTORY LIABILITY UNDER 1985, 1989 AND 2006 COMPANIES ACTS – SO THEY COULD HAVE UNLIMITED PERSONAL LIABILITY FOR THEIR ACTIONS AND DECISIONS ON BEHALF OF THE COMPANY EG H&S, DATA PROTECTION, MAINTAINING ACCOUNTS, FRAUD, NEGLIGENCE – DESIGNED TO PROTECT DIRECTOROS AND OFFICERS PERSONAL ASSETS FIDELITY OR CRIME INSURANCE COVERS YOU AGAINST LOSS OF MONEY OR STOCK AS A RESULT OF THEFT OR DISHONESTY BY YOUR EMPLOYEES
- THE BIGGEST TENDER FINANCIALLY IS NOT ALWAYS THE BEST OPPORTUNITY FOR YOU THERE ARE MANY FACTORS TO CONSIDER
- If you do not have the time or resources to bid – do not upset your current customers just to fit in a speculative bidding process SOMETIMES BIDS ARE PUT OUT BY BUYERS TO TEST THE MARKET OR ARE FISHING FOR IDEAS AND THEY ARE NOT SERIOUS, SOMETIMES THEY KNOW WHO THEY WANT TO DELIVER BUT NEED TO GO THROUGH A TENDER PROCESS SO MAKE SURE YOUR NOT JUST THERE TO MAKE UP THE NUMBERS Can you meet the requirements of the bid – be honest – if no can you cover for the ‘gap’ – if no you need to question if it is worth your while – do not waste time chasing lost causes!! Can you resource the delivery of the bid – are your financial lines in place, do you have the spare capacity – if not you will not be able to deliver it if you were successful and non delivery can be costly both financially and on your reputation DO NOT BUST THE BUSINESS BY OVER TRADING – GET THE RESOURCES IN PLACE FIRST
- Key headline stages in the tender writing process
- Key headline stages in the tender writing process
- Key headline stages in the tender writing process
- Where does it go wrong Don’t understand whats being asked for and the bid clearly lacks and understanding of volumes and what is entailed in delivering what is being asked for Don’t meet spec When your accounts have been reviewed the buyer is concerned about your viability and thus whether they will get their contract delivered Don’t pad out bids, say what needs to be said – Its not a contest of how big or how thick you can make it!! Lack experience Bid does not hang together statements are not substantiated or it flits from one element to another and is no easy to read Not turning up to supplier meetings pre bidding, both means you probably don’t have all the info you need and gives the wrong impression to the buyer, who has organised events to pass on important info
- Like news bulletins give the punch lines and then work backwards with the details You have an audience but they may not be listening – you have to get them to listem They say we absorb more new information through vision than any other of our senses out of a 100% vision is at 75%, Hearing 13%, Touch 6% etc etc Ask yourself what will make the audience sit up an listen, biggest attention motivators are supposed to be sex and money but I would stay off those two at this stage and tell them whats in it for them Sell benefits not just the features Lists in presentations make it easy for people to digest the info Keep the language simple and don’t use language that may make your audience uncomfortable or you will turn them off