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2. Procurement
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1. Local Government Tendering:Bidding For Business With Local Authorities Mark Cage – Procurement & Contracts Manager
Children’s Joint Commissioning Unit Worcestershire County Council.
2. 2 Procurement & Contracting Synopsis: Local Government Tendering is sometimes seen by private companies and agencies as an impossible mountain to climb full of bureaucratic hurdles and hoops to jump through.
The aim of this workshop is to lift the lid on the world of local government tendering and give providers the tools and know how to submit a winning tender!
3. Typical tendering process – Part B / low value
4. 4 Procurement & Contracting So What’s In It For Businesses? Every year Local Authorities tender for Ł millions work.
If you win a tender there is no chance of the LA going into receivership.
Payment is guaranteed.
Payment is usually quick.
LA experience leads to more work.
5. Expenditure On Provider Services 5 Commissioning & Contracting
6. What’s in it for Local Authorities
Fairer to providers
Evidences value for money - competition
Contractual clarity and robustness
Greater transparency – audit trail/evidence
Taps into innovation
Fulfills the growing commissioning agenda
7. How Do I Get to Hear of Tender Opportunities Within LA’s ? Council web sites
Regional web sites
European journals
Search agencies
Journals
News reports/ads.
Word of mouth 7 Procurement & Contracting
8. Advertising West Midlands Hub
For residential: www.westmidlandsplacements.com
Tenders Electronic Daily (EU procurements) http://ted.europa.eu/Exec?Template=TED/editorial_page.htm&DataFlow=ShowPage.dfl&StatLang=EN
Supply2.gov.uk (low value) http://www.supply2.gov.uk/?utm_source=google&utm_medium=cpc&utm_term=government%2Bcontracts
Worcestershire Tender Portal
http://www.worcestershire.gov.uk/etendering/
9. What do I do when I see a tender I want to go for? Read the tender documents and note any queries.
Note the return date and any other key dates such as open meeting, interview and site visit dates - these are usually not negotiable.
Note what additional documents you need to submit with the tender.
Consider who you will need to help you complete the tender (including attending interviews and hosting site visits)
9 Procurement & Contracting
10. The Tender Process Pre tender
Tender advertised (optional)
Deadline for submission of queries
Open meeting (optional)
Written answers to queries (optional)
Tender submission deadline (date and time)
Tender assessed
Interviews and site visits (optional)
Tender award
But it doesn’t end there……….. 10 Procurement & Contracting
11. Common mistakes in tendering
Failing to follow the instructions
Omission of documents
Envelopes identify tenderer
Late submission
Wrong address
Signed by 'wrong' organisation
Failing to clarify
Tender price over advertised budget
Tender not tailored to requirement
Lack of detail on delivery
Assuming commissioners know your organisation
You should only be evaluated on what is written in your tender/PQQ
Incorrect costings
Assume no additional funding
12. 12 Procurement & Contracting TOP TIPS Know how to find out about tenders.
When you get the tender pack be sure to read it in good time. Note what you need to provide within the tender and make plans to get the information you need in good time.- Prepare & Plan in advance
Query anything you don’t understand.
Submit the tender in good time (a deadline is a deadline, and follow any instructions for tenderers)
Keep dates free for site visits and/or interviews.
Learn from your tender failures (and successes) – Feedback.
Ask for a debrief if appropriate.
13. Contract Award Contract
An agreement between parties which is binding in law
Fundamentals include:
Offer (your tender)
A promise to do/not do something
Acceptance (usually the letter to the successful tenderer)
On accepting an offer, a contract is formed
Acceptance must be unqualified
Consideration
All parties must provide consideration of some value
Invitation to tender
Not an offer but an ‘invitation to treat’
14. 14 Procurement & Contracting Contracts: How you know what is expected of you and how the LA knows what you want?
15. Contracts
Specification
Conditions Of Contract
Special Requirements/Conditions
Invoicing arrangements.
Contract monitoring and review.
Getting paid.
Contract start date & end date.
Signatures 15 Procurement & Contracting
16. Framework Agreements Agreements for the provision of an unspecified level of requirements over a specified period
One or more provider/buying organisations
Opposite of spot purchasing
Set up using the usual tendering exercise
If terms of framework are insufficiently precise then a mini-competition with all suppliers capable of meeting the need
Used because:
Quicker procurement
Reduced cost of procurement
Robust contract terms and management
Savings through aggregation
17. Select Lists / Preferred Provider Agreements Agreements for the provision of an unspecified level of requirements over a specified period
One or more provider/buying organisations
No price structure to be included
Generally used for low value or simple tenders
Set up using the usual tendering exercise
Generally mini tenders within select list every time
Used because:
Quicker procurement
Reduced cost of procurement
Less documentation required
18. 18 Procurement & Contracting Monitoring How do you know if your contract is doing what it is supposed to do?
19. 19 Procurement & Contracting Thank you For Listening ….. Any Questions
20. Acknowledgment: How to Complete a Tender:
I would like to acknowledge the use of some of the slides from the above presentation. Copies of the full presentation may be found on :
www.westmidlandsplacements.com 20 Procurement & Contracting