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Perfecting your Tendering Skills to Win that Contract! 1 October 2013 Darren Richardson

Perfecting your Tendering Skills to Win that Contract! 1 October 2013 Darren Richardson. What is “public procurement”?.

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Perfecting your Tendering Skills to Win that Contract! 1 October 2013 Darren Richardson

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  1. Perfecting your Tendering Skills to Win that Contract! 1 October 2013 Darren Richardson

  2. What is “public procurement”? Public procurement is the process of the acquisition, usually by means of a contractual arrangement after public competition, of goods, services, works and other supplies by the public service. Northern Ireland Public Procurement Policy, Version 8 – October 2012

  3. The size of the opportunity… • All-island market worth approx. €12/£10bn • Significant opportunities for SMEs: • In 2010/2011, NI Central Gov awarded 2,618 contracts • Total value estimated at £1.4bn • 44% by value awarded to SMEs (up to 250 employees) • 23% of contracts awarded to businesses with less than 10 employees • 33% of all contracts awarded were for £10k or less

  4. So what’s the catch? Suppliers say: • Weighting on price too high • Too much below cost selling • Inconsistent quality of RFTs or ITTs • Inadequate de-briefing • Deadlines too tight • Requirements too onerous

  5. So what’s the catch? Buyers say: • It is a legal requirement to tender • Process is rules based – no discretion • First task is to eliminate non-compliant bids (easy to do) • Get value for money (aka lowest price?) • Avoid litigation (so de-briefings often inadequate)

  6. Price in the current environment Given the current financial climate, with the credit crunch affecting the global and local economy, there is increasing pressure on Government finances, and now more than ever, there is a need to maximise the return on public expenditure. As Finance Minister and Chair of the Procurement Board, I am determined to ensure that the Government in Northern Ireland spends its resources wisely, and delivers best value for money. Sammy Wilson MP MLA, Minister of Finance and Personnel Chairman of the Northern Ireland Procurement Board – July 2012

  7. Price in the current environment The procurement reform programme is targeting up to €500m of much needed savings for tax payers over the next 3 years. The reformed procurement functions will adopt a consistent approach across the public service by addressing 3 things: controlling demand (looking at how we buy), controlling the specification (looking at what we buy) and controlling the value (looking at price and quality). Brian Hayes TD, Minister of State for Public Service Reform and the Office of Public Works – July 2013

  8. What is “Value for Money”? • “The most advantageous combination of cost, quality and sustainability to meet customer requirements” • Cost: “consideration of the whole life cost” • Quality: “meeting a specification which is fit for purpose and sufficient to meet the customer’s requirements” • Sustainability: “economic, social and environmental benefits”

  9. Essential ingredients for success

  10. So why do we lose tenders? • Too expensive • They are non-compliant • Documentation incomplete • Not enough detail provided • Award criteria not fully addressed • Sloppy presentation and poorly written material • Missed the deadline • ….something else?

  11. So why do we lose tenders?

  12. The competitive landscape • Production of a Digital Media Film for Marble Arch Caves / Global Geopark (Fermanagh DC) • Value of the tender: £30k • Number of requests: 18 • Number of submissions: 15 • Upgrading of public right of way between Fallagh and Rouskey (Omagh DC) • Approximate value: £40k • Number of requests: 70 • Number of submissions: 22

  13. How can we increase our chances?

  14. How can we increase our chances?

  15. Advertised Other

  16. How does our customer buy? ROI Official Journal of the European Union (OJEU) Tenders Electronic Daily (TED) – ted.europa.eu €5m (works) €130k / €200k Needs to be publicly advertised (Circular 10/10) www.etenders.gov.ie €50k (works) €25k (other) Varies according to buying organisation

  17. How does our customer buy? NI Official Journal of the European Union (OJEU) Tenders Electronic Daily (TED) – ted.europa.eu £4.35m (works) £113k / £174k Central Government & some Councils use eSourcing NI (e-sourcingni.bravosolution.co.uk) But varies according to buying organisation £30k (BUT CAN VARY) Varies according to buying organisation

  18. NI market is fragmented Central Government

  19. NI market is fragmented Local Government (a sample only – 26 Councils in total)

  20. How can we increase our chances?

  21. Sources of tenders • Pro-active targeting of buyers – select lists • https://e-sourcingni.bravosolution.co.uk • http://www.etenders.gov.ie/ • Council websites – including www.laquotes.ie • National & Local press • Commercial sources: • Contrax Weekly Ireland (www.contraxonline.com) • Glenigan Constructing Insight (www.glenigan.com) • and many others (ask for a trial)

  22. How can we increase our chances?

  23. How can SMEs participate • Go it alone on an appropriate contract • Identify sub-threshold opportunities • Have a clear Value Proposition (and communicate it) • Act as a sub-contractor • Identify successful bidders and target them • Partner as a member of consortium • Need to demonstrate the value you can bring • InterTradeIreland launching new initiative

  24. www.cpdni.gov/uk

  25. www.cpdni.gov/uk

  26. How can we increase our chances?

  27. Developing an excellent bid • Read the ITT/PQQ; the detail is important • Pay specific attention to award criteria marks • Ask clarification questions – don’t assume • Structure the bid document appropriately • Make it attractive, easy to read and navigate • Allow plenty of time – including to review/edit

  28. Developing an excellent bid • Use relevant examples or references • Include resources that are fit for purpose; exclude passengers • Highlight awards, certificates, standards • Complete pricing as requested

  29. ‘Green Procurement’ • Becoming more common across all sectors • Can be included as: • Environmental Management • Sustainability • Eco-innovation • Often represents an ‘unknown’ for SMEs • A&E approach: use SimplyDocs (BUT TAILOR IT) • Utilise the support under the STEM programme

  30. HSE – Multi Supplier Framework Agreement for the provision & Supply of Fresh & Prepared Fruit & Vegetables Products

  31. Craigavon Borough Council – Supply and Delivery of Cleaning / Paper Products

  32. Road Safety Authority - Framework Agreement for theProvision of Printing Services

  33. Belfast City Council

  34. simply-docs.co.uk

  35. How can we increase our chances?

  36. In summary • Understand your buyer and your market • Sub-threshold opportunities / select lists • Annual tenders for commodity products / services • Answer the exam question • Make it easy for the buyer to award you the marks • Be comprehensive, but succinct • Numbers not stories: quantify where possible • Ask clarification questions if necessary

  37. In summary • General pitfalls to avoid • Don’t bid if you can’t meet the Pass / Fail criteria • Check for recycling / cut & paste problems • Reviewer can only assess what’s in the document • Consider partnering (or sub-contracting) • Show VFM – if cost is a high %, don’t over-engineer it • Remember it is a competition – don’t just ‘get a bid in’ • Always seek feedback (and learn from it)

  38. The deadline is not a target….

  39. Next steps • Tender Clinic (today) • 15 minutes per company • Answer any immediate questions or queries • Go 2 Tender Programme – STEM event • Two one-day workshops (Newry) • Up to 3.5 days of mentoring support • €100 or £85 per person • Tue 26 November & 3 December • www.gototender.com for more details and booking

  40. Thank you Darren Richardson Clarity Consulting E: darren@clarity-ni.com T: 02892 626 717

  41. Perfecting your Tendering Skills to Win that Contract! 1 October 2013 Darren Richardson

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