Preparing To Tender For Public Sector Works

1. Preparing To Tender For Public Sector Works Andrea Campbell

2. Agenda • 10.00 Session 1 – Introduction to Procurement • Procurement in the public sector work • Explaining contract types • Procurement process cycle • Finding opportunities • 10.45 Neil Hopkins - Head of Procurement at Birmingham City Council • 11.15 Break • 11.30 Session 2 – Succeeding at PQQ stage • Purpose of Pre-Qualification Questionnaires (PQQ) • Answering the standard elements of a PQQ • Dealing with Qualitative Questions • Common mistakes made

3. Agenda • 12.30 Lunch • 1.15 Session 3 • 10 Tips for procurement presentation and interviews • 2.15 Break • 2.30 Questions and Answers • 3.00 Finish

4. Housekeeping • We are not expecting a fire drill today • Toilets are out by reception • Lunch and refreshments will be served out by reception and will be clearly marked • This is an interactive event – we welcome questions and comments

5. Purpose of the event • To discover what public sector procurement is • Why public sector bodies use these procurement methods • How to find opportunities • What is a good quality document • What are the common mistakes and how to avoid them • You want to be involved!

6. Session 1Introduction to Procurement

7. What is procurement? SESSION 1 Definition: “The process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset.”

8. What is procurement? SESSION 1 In other words… • Procurement is the process that the public sector follows when purchasing goods, works or services from: • Deciding what to buy • Deciding how to buy it • Choosing who to buy it from • Agreeing a contract with a supplier, to • Managing that contract until the end or the end of the useful lifetime of the item / service.

9. What is the public sector? SESSION 1 • The public sector nationally includes: • central civil government departments • the Northern Ireland assembly, National Assembly for Wales and Scottish Executive • the NHS • the Ministry of Defence • local authorities • schools and colleges

10. What is the public sector? SESSION 1 • In Birmingham the public sector includes: • Birmingham City Council • Birmingham East and North PCT • Heart of Birmingham Teaching PCT • NHS South Birmingham • Birmingham University • Birmingham City University • Aston University • West Midlands Fire Service • West Midlands Police

11. Key objectives SESSION 1 1. Value for Money (VFM) The right combination of A high quality service or product & Optimum cost to achieve the desired outcome for the intended service recipient

12. Key objectives SESSION 1 • Transparency and Accountability All public sector bodies are responsible for getting value for money in their purchasing as they are spending tax payers money. They must be able to demonstrate that it has been spent efficiently, effectively and not wastefully.

13. Procurement rules SESSION 1 • All public sector contracts, no matter what their value, are covered by an EC treaty. This sets down principles to prevent discrimination against companies from any member state and ensure open competition. These principles are backed up in law by the EC procurement directives. • Most public sector contracts are tendered because by tendering contracts public bodies can make sure that they: • get value for money • are open and fair in their purchasing activities • comply with procurement law

14. What is competitive tendering SESSION 1 • Competitive tendering means seeking competitive bids (tenders) for contracts. • Contracts are advertised and any interested companies can tender for them. • The values for tendering can differ between public sector bodies.

15. What is competitive tendering SESSION 1 Types of Services / Good tendered for LOW VALUE CONTRACTS Services & Suppliers Below £100,000 Works Under £3.8 million • Catering • Cleaning • Construction • Food • IT Services • Leisure • Office Furniture • Property Management Works • Stationery • Vehicle Acquisition • Venue Hire • Plus much more HIGH VALUE CONTRACTS Services & Suppliers Above £100,000 Works Over £3.8 million

16. Contract Types SESSION 1 Corporate Contracts • For provision of supplies / services across entire organisations. Usually long term. One off contracts • For provision of one off services or supplies for a specific part of an organisation or department. Framework contracts • A contracts set up with a number of companies who are then called on to provide ad hoc goods / services during the life of the contract. Usually used for legal, consultancy or care services PFI contracts • Long term high value contracts negotiated with large contractors, who may then sub-contract elements of the work out to smaller or more specialist companies.

17. Common procurement methods SESSION 1 Open Contracts – single stage process • A notice is placed giving all interested suppliers the opportunity to tender. • 52 days must be allowed from despatch of the notice to receipt of tenders. • Contract documentation must be sent to suppliers within 4 days of receiving a request. • Any additional information must be provided at least 6 days before the final date of receipt of tenders.

18. Example Open Process SESSION 1 Request for the documentation is sent Tender information is received Contract Notice is issued Document collated and submitted All submissions are evaluated Contract award notice is issued Contract started Alcatel period

19. Common procurement methods SESSION 1 Restricted Contracts – multiple stage process • A notice is placed allowing 37 days for interested suppliers to respond. • Invitations to Tender are sent only to selected tenderers, allowing 40 days for their response. • Contract documentation must be sent to suppliers within 4 days of receiving a request. • Any additional information must be provided at least 6 days before the final date of receipt of tenders.

20. Example Restricted Process SESSION 1 Request for the documentation is sent PQQ completed and submitted PQQ documentation is received Contract Notice is issued ITT issued to successful companies Results announced for ITT stage Evaluation undertaken Feedback Offered Final scores calculated Possible interview and/or site visit ITT completed and submitted ITT evaluated Contract started Alcatel period Feedback offered Contract notice is issued

21. Other procurement methods SESSION 1 • Accelerated Restricted • Negotiated Procedure • Accelerated Negotiated • Competitive Dialogue

22. Finding Opportunities SESSION 1 • Find it in Birmingham www.finditinbirmingham.co.uk • Tenders Electronic Daily (TED) www.ted.europa.eu • Supply2Gov www.supply2.gov.uk

23. NEIL HOPKINS HEAD OF PROCUREMENT BIRMINGHAM CITY COUNCIL

24. Session 2Succeeding at PQQ Stage

25. Purpose of PQQ • The main purpose of a PQQ is to ensure that all companies who are invited to tender can meet the minimum financial and technical requirements to undertake the advertised work. • When public sector organisations place advertisements for tenders and request expressions of interest, they may receive hundreds of responses. A PQQ is almost always used as a way to shortlist these responses.

26. Purpose of PQQ • Completing a PQQ is often the first step in the tender process. • PQQs issued by the public sector are often more detailed than those issued by the private sector because the public sector has greater responsibilities and is accountable for spending public money. Therefore they need to know that their suppliers follow good practices.

27. Standard elements of a PQQ • General Company Information • Technical Capability • Financial Information • Insurance • Statutory Information

28. General Company Information Basic Information such as • Name • Address • Contact details • Company registration number • Legal status • Names of directors, partners, or trustees Do you know your company registration number? Do you have an organisational chart already made up? Is your website up to date?

29. Technical Capability Evidence of your ability to deliver • Experience • References • Standards and competence of your staff in relation to this type of work • Registration, licenses or particular technologies that you may need to deliver the contract Do you have all the training certificates for your staff? Have you got case studies prepared? Do you regularly ask clients to be referees?

30. Financial Information Assessing your financial stability • 3 years accounts, and if 3 years are not available, accounts for the period that you have been trading • Banker's references • The ratio of the contract you are applying for to your annual turnover • Your credit rating • Levels of reserves and profit and loss accounts • Parent company accounts (if applicable) Who does your bank references? Have you checked your business credit rating? Does your accounting software give you management reports?

31. Insurance Have your got your certificates? Normally at pre-set minimum limits • Public Liability – £10m • Employers Liability – £5m • Professional Indemnity (if applicable) – usually set at £2m You will normally have to supply certificates as well as the facts and figures Can you get this much insurance at a reasonable price?

32. Statutory Information • Business and Professional standing • Including questions about mandatory exclusions • Health and Safety • Your Health and Safety policy • Information around what you do to manage Health and Safety in your organisation. This could be details of responsible staff, risk assessment procedures, or details of any accidents or fatalities that may have occurred in your organisation. • Equal Opportunities • An Equal Opportunities / Equality and Diversity policy • Evidence that you have not been found guilty of any offences relating to discrimination.

33. Statutory Information • Quality • A policy or statement of how you manage quality • A formally recognised accreditation or kitemark (e.g. ISO 9000) • An in-house Quality Management System • Environment • Details of your environmental policy • Details of any environmental management system you may follow (e.g. EMAS) • Details of what you do to ensure you carry out your business in an environmentally friendly manner

34. Dealing with Qualitative Questions What are qualitative questions? • They are used to differentiate you from your competitive • They are a chance for you to demonstrate why you are the right supplier or contractor • They are the questions which often carry large marks

35. Getting it right • Consider the objectives of those procuring the service • Why is the question there? • What do they want to know? • How can you evidence what you are saying? • Quality of the writing • Is it logical, concise and grammatically correct? • Is it easy to read? • Have your followed the guidelines (word count)? • Have you answered the question?

36. Common mistakes made • Simple administration failures such as not signing the tender • Late delivery or delivery to the wrong person or place • Not following instructions • Not answering the questions • No evidence offered • Poor presentation • Not following the number system • They are not competitive

37. TIME TO BREAK FOR LUNCH BACK FOR 1.15PM

38. Session 3Top 10 Presentation Tips

39. Top 10 tips • Find out the format in advance • Find out how from the organisation will be there • Arrive early • Send the right people • Don’t drift off topic

40. Top 10 tips • Don’t use it as a chance to sell your company – stay focussed • Don’t run over time – practice makes perfect • Try not to waffle • Be prepared • Be yourself

41. Session 4Questions and Answers