PREPARE TENDERS FOR CATERING CONTRACTS

D1.HCA.CL3.06 PREPARE TENDERS FOR CATERING CONTRACTS

Prepare tenders for catering contracts This Unit comprises four Elements: • Identify tender requirements • Determine ability to meet tender requirements and conditions • Estimate costs • Prepare submission for management

Assessment Assessment for this unit may include: • Oral questions • Written questions • Work projects • Workplace observation of practical skills • Practical exercises • Formal report from employer/supervisor

Identify tender requirements Performance Criteria for this Element are : • Clarify key objectives and or requirements of tender in consultation with management • Analyse fixed and variable costing elements in consultation with management • Identify and analyse tendering criteria and conditions

Clarify key objectives and requirements A Tender: • Is a formal offer to do work/provide products &services for someone or a business • Becomes a legally-binding contract when the offer is accepted

Clarify key objectives and requirements An RFT is: • Request for Tender’ • A document from a person or business asking you to tender for the provision of identified products and services

Clarify key objectives and requirements The tendering process comprises several stages: • Identify tender opportunity • Obtain RFT documentation • Identify and clarify key objectives and requirements • Determine ability and capacity to meet tender requirements (Continued)

Clarify key objectives and requirements • Assess feasibility or viability of tendering • Determine resources required • Calculate cost • Prepare submission documentation • Submit tender • Make presentation, if required

Clarify key objectives and requirements Why do organisations issue RFTs? • They believe it is the most effective way to choose a provider • The process gives them the best price • They have found tendering out work provides them with new ideas and concepts • The process readily identifies what different caterers have to offer • They may be obliged to do so

Clarify key objectives and requirements Reasons you may respond to an RFT: • Increase market share • Grow the business • Increase revenue • Raise profit • Enhance business viability • Grow the reputation of the business in the marketplace

Clarify key objectives and requirements Catering contracts may be offered for: • Schools and Hospitals • Prisons • Work sites • Hospitality venues • Sporting and entertainment venues • Transport • One-off jobs (sub-contracting)

Clarify key objectives and requirements Ways to identify a tendering opportunity exists: • Register with government agencies • Search the internet • Check printed media (Continued)

Clarify key objectives and requirements • Receive direct notification from client: • By telephone • Via email • In person • Using the services of a Tender Information Service

Clarify key objectives and requirements Obtaining RFT documentation may: • Occur when client contacts you • Require you to register and download them from the internet • Require you to telephone a nominated person • Require you to collect a copy from an address/business • Require you to attend an information session • Involve paying a fee

Clarify key objectives and requirements You must involve management in order to: • Benefit from their experience and expertise • Determine if the business is interested in tendering or not • Advise of the potential opportunity available to the business • Authorise necessary work which needs doing • Ensure the contract price will reflect the position and needs of the business

Clarify key objectives and requirements When considering key objectives and requirements for an RFT: • Realise every RFT is different • It is critical to understand the specifics of each RFT • Make sure you have all sections of the RFT documentation

Clarify key objectives and requirements Techniques to identify and clarify RFT objectives and requirements: • Form a ‘Tender Team’ • Re-read and re-read the RFT documentation • Contact and question the client

Clarify key objectives and requirements Key objectives and requirements contained in an RFT: • Give the focus for, and an overview of the contract • Are listed under various headings in the RFT: • Objectives • Scope of work • Job/contract specifications • Provide an opportunity to identify ‘knock out’ questions or issues

Clarify key objectives and requirements ‘Knock out’ questions or issues: • Are requirements under the RFT which you cannot meet • They stop you being eligible for the contract • Must be identified very early – to avoid wasting time and money

Clarify key objectives and requirements Tender team should comprise: • Management representative • Tender manager • Admin representative • Head chef • Other cooking staff • Beverage manager

Clarify key objectives and requirements Communicating with the client: • Telephone them • Get to know them • Get to know their organisation, their problems, their situation and develop a ‘feel’ for them • Meet face-to-face with them

Clarify key objectives and requirements RFT documentation may comprise several individual documents and or sections – for example: • Cover document • Conditions • Evaluation criteria • Application document to use for the submission

Clarify key objectives and requirements Visiting the contract site: • Always try to visit the site where the catering contract is to be implemented • May be a requirement/pre-requisite for applying • May require arrangements to be made with the client contact person • May be undertaken ‘covertly’

Clarify key objectives and requirements Reasons to visit ‘the site’: • Speak to staff at the location • Inspect plant, equipment and facilities • Observe operations and evaluate food and beverage being offered • Talk to those who consume products provided

Analyse costing elements Involve management and tender team at this stage to: • Provide advice based on experience • Perform costing calculations • Assist with research • Identify costs to be included • Approve, modify or reject proposed costs • Determine ability of the organisation to obtain required resources

Analyse costing elements Fixed costs: • Costs which remain constant regardless of production volumes: • Contract management • Insurance, venue hire and security • Permanent staff • Maintenance agreements • Membership of organisations and associations

Analyse costing elements Variable costs: • Costs associated with expenditure which varies with levels/volume of production: • Food and beverage • Transportation • Power and other utilities • Some labour expenses • Laundry

Analyse costing elements When analysing fixed costs: • Ensure all costs have been identified • Calculate ‘actual’ cost for each item based on quotations, current prices, negotiations with suppliers and price comparisons • Determine how costs will be defrayed and or incorporated into final submission

Analyse costing elements Options for analysing variable costs: • Identifying all variable costs for the tender • Quantifying volumes or amounts • Determining base cost prices for each item • Conducting CVP analysis • Considering ‘required’ selling prices identified in RFT, if applicable (Continued)

Analyse costing elements • Developing cost pricing strategy • Undertaking CBA • Identifying deals from suppliers • Identifying alternatives • Considering budget implications • Predicting contribution margins • Determining individual costs as percentage of expected revenue

Analyse costing elements ‘Full cost recovery’: • May apply to some services you provide to the client • Generally does not apply to products • Means you only charge the client what it cost you to provide the service • You do not show a profit on what you provide • Shows ‘goodwill’ if you elect to provide services on this basis

Analyse costing elements ‘Cost plus’ pricing: • May be an alternative to full cost recovery • You charge the client what it cost you plus: • A nominated percentage of that cost or • A set fee per transaction

Identify and analyse tendering criteria and conditions Identifying and analysing tender criteria and conditions must be done to be certain about: • Products and services required • Timing of service delivery • Location of the contract site • Service protocols for food and beverage • Limitations as well as mandatory requirements • Compulsory submission requirements for the tender application • Date and time application must be submitted

Identify and analyse tendering criteria and conditions Ways to identify RFT criteria and conditions: • Read the RFT documentation • Attend tender meetings provided by client • Seek clarification direct from nominated contact person

Identify and analyse tendering criteria and conditions Tender criteria = standards and specifications relating to products and services which must be met in your tender submission to qualify you for consideration as a legitimate tendered: • Food safety • Catering to be provided • Quantities required • Types of food to be provided • Specification of diet types • Quality-related criteria (Continued)

Identify and analyse tendering criteria and conditions • Pricing • Cooking and preparation methods • Cooking styles • Service styles • Liquor service • Contract management team (Continued)

Identify and analyse tendering criteria and conditions • Need to cater for specified customs, religions or cultural requirements • Ancillary requirements: • Condiments • Crockery, cutlery, glassware • Napery

Identify and analyse tendering criteria and conditions Tender conditions = requirements you must accept as part of the process of making a tender submission for this contract with this client at this time: • Using facilities and equipment which exist at the contract site • Being prepared to provide additional equipment ‘at own cost’ • Providing nominated equipment • Demanding the use of certain items (by type or brand) for certain processes (Continued)

Identify and analyse tendering criteria and conditions • Agreeing to stated payment schedule • Agreeing to a range of other requirements identified in the RFT documentation which may address: • Making a presentation to explain the submission • Changes to agreed requirements

Identify and analyse tendering criteria and conditions Analysing tender criteria and conditions requires asking a series of questions on topics such as: • Do you have the necessary experience required? • Can you provide the required products and services? • What staff do you have who can deliver the tender requirements? • Does the tender enable the business to align with its plans and achieve its strategic and other goals? • What money needs to be spent, what does it need to be spent on and when does it need to be spent? (Continued)

Identify and analyse tendering criteria and conditions • Is there a match between existing business systems and technology at the contract site – in terms of: • HR? • Stock management? • Recording and reporting? • Internal communications? • Assessing financial performance? • Cash controls? (Continued)

Identify and analyse tendering criteria and conditions • Do you need a joint-venture partner? • What are country-specific legal and compliance requirements? • Are you prepared to disclose organisational information which may be ‘sensitive’ and normally regarded as ‘commercial-in-confidence’? (Continued)

Identify and analyse tendering criteria and conditions • Are you prepared to comply with stipulated conditions – for example: • Insurance coverage? • Delivery schedules? • Business type, status and registration? • Nominated eligibility criteria? • Identified limitations and constraints? • Conflict of interest provisions?

Identify and analyse tendering criteria and conditions Standard practices relating to information generated for use in a tender submission include: • Create files to secure information • Share all the information with the tender team

Identify and analyse tendering criteria and conditions Information to file and share includes: • Copies of all RFT documents – plus: • Amendments and updates • Responses from the client to questions asked • Personal comments/notes, questions and identified issues: • From reading the RFT and inspecting the site • Talking to the client • Research undertaken (Continued)

Identify and analyse tendering criteria and conditions • Feedback obtained from other relevant stakeholders: • Previous contractors • Government agencies • Copies of any other documentation relevant to the submission: • Floor plans • Menus • Quotations

Summary – Element 1 When identifying tender elements: • Actively seek out tender opportunities and obtain RFT documentation • Read, identify and analyse the requirements of the RFT • Create a tender team to assist with tendering • Identify ‘knock out’ requirements as soon as possible • Involve management in identifying tender requirements (Continued)

Summary – Element 1 • Make contact with the client to ask questions, clarify issues and arrange a meeting • Try to visit and inspect the venue where the work is to be carried out • Identify all fixed and variable costing elements • Request administration or management to analyse identified costing elements • Ask lots of questions (Continued)

Summary – Element 1 • Identify and analyse all tendering criteria and conditions listed in the RFT • Continue involvement of management and the tender team throughout the initial analysis and identification processes • Identify the evaluation criteria which will be used to judge the tender submission • File all tender-relevant information and documents • Share all information openly with tender team

Determine ability to meet tender requirements and conditions Performance Criteria for this Element are: • Assess ability to provide catering services specified in the tender • Assess viability of tendering for the provision of catering services • Identify unique requirements of tender

PREPARE TENDERS FOR CATERING CONTRACTS