Age UK London & Age UK 19 th January 2018 Tendering Workshop

1. Age UK London & Age UK 19th January 2018 Tendering Workshop Kathleen Egan, Operations Manager Age UK London, Kegan@ageuklondon.org.uk John Mason, Development & Support, Age UK J.Mason@ageuk.org.uk

2. Format 1. Context External & Internal External - Legal Framework for Tendering & LTR Commissioners Aims & tender specification Forms of Tender & Tender Process, Framework agreements Internal Decision to Tender , FCR & sustainability 2. Organisation & Management of Tender process Planning, Costs, Expertise, Tendering Resources, Portals 3. Completing Tender Documents Completing PQQ & Method Statements, Scoring & Weighting Using strengths, added value and innovation Building on weaknesses, Social Value Act, Policies & Procedures 4. Pricing Staff Costs, Presentation of pricing, Unit Costs, FCR, Negotiation 5. Presentations & Interviews Format & Expertise 6. Tips & Resources

3. Context External & Internal

4. Tendering Open Tender Approved Provider List Single Tender Negotiated Tender Framework Agreements

5. Tender Process • Register interest & receive pack • Pre-tender qualification - PQQ • Invitation to tender – ITT • Open for questions • Submission • Evaluation & shortlisting • Presentation/Interview • Contract awarded • Standstill period

6. Legal Issues • Understand the legal requirements • Important to follow tender rules • Tender is basis for contract • Needs to be done carefully, conservatively, realistically and properly approved • Misrepresentation – not worth the risk • Freedom of Information – clarity on commercial confidentiality • TUPE

7. Bound by contents of tender submissionBound by price plus other commitments – tender needs to be done carefully, conservatively, and properly approved.

8. TUPE • Transfer of Undertakings (Protection of Employment) Regulations (2006) • Applies where contract is being reassigned • All employees employed in the previous undertaking immediately transfer to new supplier • All rights and liabilities transfer with the individuals • Protection of terms and conditions of staff who are affected by the transfer including pay rates and pension entitlement unless there are acceptable “economic, technical or organisational reasons” • Staff cannot be dismissed unless there are similar ETO reasons • If no equivalent job is available within new structure then not obliged to re-employ BUT very difficult to demonstrate

9. TUPE • Seek independent legal advice about TUPE implications • Basic outline – which circumstances are covered, which staff could be subject to transfer, • what is meant by maintaining terms and conditions, • exceptions, potential liabilities for new supplier • Implications for tender – • Pay scales • Pensions • Covering legal liabilities • Need to convince Commissioner that you have considered the issue – produce statement, and that you have experience of dealing with TUPE or sufficiently robust legal back-up that you can cope with • The employer has a defence to a claim if it has an “ETO”, which is an economic, technical or organisational reason that requires changes in the workforce. • Redundancy is an example of an “ETO” reason. Employers are still required to follow a fair procedure

10. Framework Agreements • Knowing your unit costs and marginal costs • Minimum delivery guaranteed to break even given fixed costs • How much work these tenders are to complete • What return of real contract are you likely to receive? • Consider danger of overload if successful if asked to provide additional capacity

11. Public Services (Social Value) Act 2012 • Public sector to include NHS, Police, criminal justice as well as Las • Procurement = VFM, quality, public and social value • Linked to greater role for social sector to manage public services • Challenge and personalise wider public sector • Usually price and quality but may include social value and impact • Additional gains for the community and society • Includes Volunteers

12. Social Value & Tendering • Explain how add social impact and how do it • Influence commissioners decisions pre-tender • Understand commissioners social impact goals - What they want, specify, evaluate, measure, pay? • Measure impact from clients, staff to Board • Not over emphasise - Miss key requirements • Reinvestment of surpluses into community and social initiatives • Empowerment of service users

13. Decision to Tender? • Trust Deeds / Strategic Plan • Enhance or detract from current business? • Do you have capacity? Partnership possibilities NB assess risk • Management and Support/Admin structure • FCR • What do you know of Commissioner? • Do you have relevant experience in this area? Area – both geographical and business • Proposed contract acceptable? • TUPE & Other Risks • Poor Reputation in the area • Risk of not tendering - Longer term positioning and sustainability

14. Organisation & Management

15. Pre Tender • Starting at point of Tender is too late! • Strategic local positioning and strategic planning • Retention of existing services • Expand – geographically and/or new services/new client groups • Relationship building e.g. role in local Falls strategy, • Partnerships Plan, risk assessment, due diligence

16. Your Tendering Process • Internal and External • Who leads / coordinates and signs off • Linking Business Development & Operations • Do you understand why this Service is needed and can therefore convey in Tender? • Need commitment to the service to clearly convey methods and outcomes • Relationships and Accountability

17. Tender Process • PQQ –Pre Qualifying Questionnaire- Will be standardised way of Authority to ‘shortlist’ Usually financial history/Policy and procedure/organisation background May be all or some of these processes • First Opportunity to present yourself to commissioner • First impressions of the commissioner too! • Open for Questions • Open to all • Good chance to check out competition • Find out the process and scoring mechanism if not already detailed.

18. Check … • Check you have all the documents • Check you understand what is expected of you • Take particular note of all the deadlines – including confirmation of intention to bid • Study all documents carefully • Draw up an Action /Staff Resource Plan for submitting tender with dates given contingency • Agreed information and version control and key dates • Take advantage of opportunity to ask questions • Make sure you return all the documents

19. Submission • Return all documents – Check list and dates and times - 9am, 5pm or 12pm • Appropriately signed documents • Do not identify organisation on tender envelope • Do not alter documentation • No Collusive Tendering. • Do not alter documentation – use the formats given and if necessary provide extra explanation . • Allow time to upload of portal based and for IT problems

20. Completing Tender Documents

21. Different approaches • Negotiated tender/invitation to negotiate • Competitive dialogue • Framework agreements; call offs and mini competitions

22. Analysing the Specification • Need to identify what commissioners are looking for – what are their priorities, concerns etc. as revealed by the Specification etc. • Price • Quality • Innovation • Access • Hitting specific targets • Throughput • Capacity • Link to other priorities, services, National and Local Strategies, Trends etc.

23. Analysing the Specification • Commissioner driven by cost reduction and /or need to increase volume – affects nature of service e.g. Care navigation versus community connectors • Quality – may want better quality for similar price – in terms of processes or outputs / outcomes. • Innovation – using tender process to come up with new (hopefully more effective) ways of doing things. • Access – may be concerned about who is accessing or receiving service – in terms of age, ethnicity, level of tariff, household type, location, living circumstance, previous experience etc. • Hitting specific targets – e.g. helping people to access treatment or numbers of referrals to primary health care or reduction in re-offending, levels of integration etc. • Throughput – the speed with which service users are dealt with. • Capacity – more outputs / more places / more episodes for same amount (or less) of money. • Links to other priorities –health inequality. Suicide targets etc.

24. Method Statements • Most important document of the tender and most resource intensive • Check the weighting of all elements of the tender, should be stated within the tender • Ensure that you address the Commissioners’ aims, objectives and specification • Include strengths, added value and innovation • Make sure proposals are realistic, practical and deliverable

25. Method Statements • Say what you will actually do and how you will do it with examples of how it is currently done • Need to ensure you get your strengths, in and show how you will deal with your weaknesses – combine your perception of what they are looking for with a demonstration of your USP. • Can include testing and review at end of e.g. year 1 • Methodology – how would you go about achieving certain objectives • Experience of carrying out certain tasks successfully

26. Method Statements • Ideas – how to achieve something e.g. improving throughput • Policies and procedures e.g. HR, Health & safety, support planning • Understanding e.g. needs of the client group • Mobilisation plan for setting up the Service – to ensure continuity • May also be looking for ideas to build upon – start of partnership. • Need to ensure that answers are both coherent and convincing.

27. Method Statement • Back up ideas with evidence of ability to deliver • Best if one person is responsible for putting together – but others comment or answer with specialist knowledge including use of ‘Champions’ • Check the weighting and word/character count for each question • Answer all and each part of the question in order e.g. ‘Your answer should address A) B) C) etc. Easy points to lose if you don’t include them all And answer in the same order as asked so the commissioner can follow it through

28. Potential Weaknesses • Lack of local presence local knowledge or local relationships. Long management lines. • Lack of relevant experience of service • Bad experiences – failing /decommissioned services, staff turnover • Bad relationship with the commissioner/s locally • Potential role conflicts - working as advocate for users and enforcing LA policies for example • Financial & governance weaknesses • low levels of reserves, not robust processes, internal upheavals. Man Ctte / Board under-strength. Regulatory action pending etc.

29. Strengths • Areas of Expertise/ Track Record /Evidence of Quality • Local Presence • Evidence of Success – Move-on, e.g. Clients into financial stability • Access to Resources • Economies of Scale • Working Relationships • Policies and Procedures • Social Value – economic, social and environmental

30. Strengths • Your USP – over others . • Intractable problems dealing with ‘difficult’ clients • External recognition/validation of industry leadership role. • Experience of developing particular types of services.. • Value- led values evidence e.g. user involvement, • Quality – e.g. ISO . • Innovative methods Different way of doing things • Contract delivered track record of delivering including new services egg person centred/integrated/holistic

31. Strengths • Access to resources – office base, training programme, ability to cross-subsidise. Financial strength • Potential savings through economies of scale – services / infrastructure already paid for. • Understanding of links with other fields. Experience/ good working relationships with key partners or with specialist providers – e.g. minority groups, hard to reach groups etc. • Established policies and procedures – operational or infrastructure – HR, H & S etc. Good training plans/guidance for staff.

32. Added Value • Cross-subsidy/ Other funding • Economies of Scale • Might already have elements of infrastructure in place. • Might be able provide access to additional services – e.g. advice service, group work, training programmes, work experience etc. or to specific expertise (either internal or external Access to additional services and expertise • Financial value – producing objectives but for less money, or producing more outcomes for same money

33. Added Value • Innovation – focus on the outcomes not the process • Quality/ Experience/ Innovation • Rapid Mobilisation – demonstrate plan • Experience already worked through specific issues – might not need to start from scratch. • Framework of Robust and tested policies and procedures – . • Already doing the job – is inevitably much easier – could get going more quickly. • May be other ways in which you can shorten the length of time it will take to get started.

34. Community Benefit • Local employment and training and sourcing of goods/materials • Apprenticeships and training programmes esp. for disadvantage people • Employment standards and practices –London Living wage • Coproduction – user review • Sustainable products

35. Tender Documents • Information for Tenderers • Conditions of Contract • Articles of Agreement • Specification • Pricing Document • Tender Submission • Collusion Certificate - Not fixed or adjusted the prices, No communication about price • Non Canvassing Certificate • Parent Company Guarantee • Involvement in other bids • Bona Fide competitive document – No agreement with any other party. No payments or inducements

36. Recent Tenders Observations • Price:Quality varying hugely as the primary issue but value for money increasing. NB 80:20 to 20:80 ratio • Single point of access – more co-ordination. • Good working relationship with Commissioner – long term relationship • Developing partnerships – good quality signposting – more joined up services. • Improving access to Services • Improving throughput – including quality of service. • Increase preventative outcomes

37. Recent Tenders Observations • Market Testing -using provider expertise to improve processes – referral and assessment, and outcome monitoring. • Encouraging innovation in service delivery • Encourage choice, independence and maximise independent potential • Effective safety net and prevention • Increase in Social Value in some areas and reduction in others

38. Exercise 1 - Looking at the Befriending Tender Spec and Questions • See the Questions at front • Focus on Section 8 – Section 14 (page 6 -page 14_ and Section 28 (page 21) • Scan the headings for the rest • What are your initial observations of this spec? What are the Commissioners after in this service? • What would you see as the main weaknesses of your Age UK in addressing this Spec? • How might you overcome these weaknesses • What would be your main strengths? • Would you tender? If not why not?

39. Pricing Key message : Ensure full cost recovery Or Plan how you will subsidise and why!

40. Overview • Check the ITT documents • Possible approaches by commissioners: Ceiling , Range , Set Price, No price … • Check the weighting and how it is to be scored

41. Consideration of response • Bidding low against ceiling or against the range • The price in submission is the price you are paid as it is in the contract • Plan for uplifts in the three years /five years .. • Sometimes the ITT contract value means its not worth bidding

42. What is Full Cost Recovery ? • Include the on costs for staff • Capital costs /overheads –usually between 15 and 20% -include in the budget • All the items of expenditure for the service delivery are included • Indirect costs –regulation costs for CQC services ; impact measurement costs

43. Pricing for services • Templates used • The value that commissioners set on price – weighting can vary considerably • The emphasis can be on value for money and added value • But sometimes it’s not

44. Pricing Exercise - Key Information on the service • Expectation of paid staff and volunteers to provide the service • 7 day service /365 a year 11am to 7pm daily • Supporting 1900 people a year • Includes transport home • Includes referrals from A & E and GP and Intermediate Care • Two tier support • Tier 1 – Take home and settle ( up to 3 hours) • Tier 2 : Follow up and support ( up to 6 weeks)

45. Pricing Exercise -Complete as a group in 30 minutes/Templates to be provided Purpose: to consider all costings for the service • Key Information on the ITT: • Price has a ceiling of £265k per annum • Price is worth 40% of the evaluation • Scored by the lowest bid earning 40% and all other scores are compared to the lowest as a ratio and scored • There could be disqualification for an unrealistic price • No other information is required for price evaluation

47. Presentations & Interviews

48. Presentation • Answer the presentation topic • Check arrangements in advance. Timings, technology, handouts , directions etc. • Stick to the point. Do not get lost in the detail • Slides not too technical – no whizzing in and out • Use the time wisely • Check arrangements in advance. Timings, technology, handouts , directions etc. • Stick to the point. Do not get lost in the detail • Slides not too technical – or impenetrable graphics use bullet points and organograms

49. Presentation • First slide is format to structure the presentation • Don’t have too many people doing the presentation but have the right people • Available back-up in case staffing/technology failure • Don’t read prepared script, - short briefing points for prompts of important points - maintain eye contact • Hard copy Back-up available– NB Panel have to note everything and IT can fail • NB Quality of ideas • Expertise/practical experience shows you can deliver • Topics – Service delivery, staffing, partnerships, commissioners objectives, costs, why xxx Age UK , added value, innovation, partnership

50. Interview • Answer the questions succinctly in plain English and with recent examples of delivery • Go beyond to stress what you have to offer that is different to others • Second guess likely questions – NB if very tight competition may be on specifics of methods e.g. safeguarding • Stress what you have to offer that is different. Be prepared to answer how you • Overcoming your weaknesses. • Single person if possible. Others available to answer questions. • Decide who answers questions