Bob Moodie & Vicky Byers NJM European, Economic & Management Consultants Ltd

1. Selling to the Public Sector – helping Leicestershire SMEs unlock their potential Bob Moodie & Vicky Byers NJM European, Economic & Management Consultants Ltd Public Sector Contracts: Writing Winning Bids

2. Writing Winning Bids • Introduction • First Steps - Opportunity Identification • Developing a Strategic Approach to bidding • Pre-Qualification Questionnaires • Invitations To Tender • Do’s & Don’ts & Avoiding a Poor Score • Tender Presentations

3. A New Procurement Environment

4. Opportunity Identification Who?

5. Opportunities: Public Sector • UK Public procurement is estimated at over £175 billion per annum (13% of UK GDP). • Leicestershire County Council spends over £300 million each year on goods, works and services. From 2011-12 to 2014-15, the Council will need to make savings of around £82m, including £22m from commissioning and procurement. • Leicester City Council’s estimated procurement budget for the Authority was £260 million p.a. (2007-2008). From 2011-12 to 2014-15, the Council will need to make savings of around £100m from its total annual budget of circa £1bn. • NHS Leicestershire & Rutland Procurement Partnership influences spend of approximately £250 million on goods and services each year.

6. Opportunities: Public Sector 9 Local Authorities: • Leicestershire County Council • Leicester City Council • North West Leicestershire District Council • Charnwood Borough Council • Melton Borough Council • Blaby District Council • Harborough District Council • Oadby & Wigston Borough Council • Hinckley & Bosworth District Council • 3 Universities: Leicester, Loughborough, De Montfort • 7 FE colleges: Stephenson, Loughborough, Brooksby Melton, North Warwickshire & Hinckley, South Leicestershire, Leicester, Loughborough University School of Art & Design • Schools Other: • NHS (subject to major review) • Housing Associations / RSLs • The Emergency Services

7. Opportunity Identification Where?

8. Finding Opportunities • Where should you look / who should you know?

9. Contract Notices: Key Websites

10. Opportunity Identification How?

11. Procurement Procedure

12. Local Procedures

13. Be Systematic & Get Organised

14. Be Systematic & Get Organised • What is your target market? • In your target market who are the key buyers - Personnel at Department level and Procurement Officers (important for low value contracts that are not formally advertised)? • Engage procurement personnel - make sure they know you exist, seed ideas • Find out about approved (accredited) supplier lists however note that authorities are moving towards framework agreements • Register your details on tender e-portals and set up for Alerts service, newsletters etc

15. Be Systematic & Get Organised • Set up internal processes and individual(s) to monitor tender portals, alerts, sources and review feedback • Network (buyers/commissioners, meet the buyer events) • Competitor analysis (New Transparency:£500+invoices) • Search for potential business partners / collaborators / subcontractors • Develop / improve your key policies so that you comply with public sector tender competition requirements • Accreditation (e.g. CHAS, ISO, IiP etc)

16. A new and critical source of intelligence • As part of Coalition Government commitment to transparency in public expenditure (as of February 2011) every Local Authority must publish details of invoices of £500+ • Information can be used to identify competitors and/or potential collaborators/subcontract opportunities

17. Developing a Strategic Approach To bid or not to bid?

18. Strategic Decision Making • Is the tender a good fit in relation to your company’s activities? • Can you meet the eligibility criteria (technical qualifications, policy compliance e.g. Quality Assurance, Insurance) ? • Do you have a good track record in relation to the opportunity? • Do you have the trading history (e.g. 2 years Accounts)? • Do you have the capability and capacity to deliver the contract if successful? • Can you make sense of the budget and can you deliver the contract on time?

19. Strategic Decision Making • What are the risks? • Who are your competitors? • What percentage of your turnover does the contract represent? • Do you need a partner(s) or will you use subcontractors? • What is the percentage chance of success? • Do you have the time and resources to devote to preparing a good bid?

20. Strategic Decision Making Solo or Collaborative Bidding? • Form a consortium if: • You don’t have the capability or capacity • You can’t meet the 20% rule • Options: • Consortium • Joint Bidding • Lead Contractor & Subcontractor • Legal basics – will you be jointly and severally liable? • Memorandum of understanding (MoU) / Partnership agreement / (Non Disclosure agreement (NDA); Agreement not to compete in other tender) • Service level agreement (SLA)/contract • NB. consortium should be properly led, constructed and managed

21. Consortia

22. PQQs & ITTs

23. Procurement Process Overview Procure Contract Notice EOI PQQ Tender Commission Manage Evaluate Review Award

24. Pre-Qualification Questionnaires The First Hurdle • Evaluation of your organisation • The aim of the PQQ is to check that your company is (for the contract term) • Technically competent • Financially sound • Legally compliant • Gives the buyer a means of short-listing interested organisations on the basis of fair and objective criteria

25. PQQ: Example Scoring Framework

26. Example ‘Scoring’ Criteria

27. PQQ Information General Business Information • Business Details • Status (Sole contractor / consortium) • Ownership • Business Probity • Professional Conduct Documentation required may include: • Company History • HR Information • Administrative Information (Company Registration/VAT Number) • Quality Standards Accreditation / Certificates

28. PQQ Information Financial & Insurance Information: • Turnover • Accounts • Insurance Documentation Required may include: • Audited accounts, Management accounts, Parent company accounts • Bankers statements & accountants’ references • Financial projections, including cashflow forecasts • Details of previous contracts and values • Capital availability • Certification of Incorporation, Certificate of Name Change • Insurance Certificates NB financial vetting is based on sound business judgement and not just the application of financial formulae

29. PQQ Information General Business Activities • Overview of Existing Business Activities • Overview of Main Areas of Expertise & Accreditation • What percentage of your business is concerned with providing services similar to the contract requirement • HR Information (Number of Staff, Staff Profiles) Contract Specification • Explain and demonstrate your Capability and Capacity to fulfil the contract requirement • Case Studies (relevant to contract specification and demonstrating your ability to fulfil the size, scope and complexity of this contract) • Subcontractors • Relevant References (norm = 3 recent referees) & contact details

30. PQQ Information Essential Policies: • Quality Management • Equality & Diversity • Health & Safety • Environment Management & Sustainability Why are they necessary? • They are a legal requirement • They are a purchaser requirement • They help articulate the company’s values and principles for both staff and clients • They bring business benefits and are relevant to contract delivery

31. Health & Safety, Equality & Diversity & Environment Policies Can you articulate the business benefits of these policies as they may relate to the conduct of the contract?

32. ♪♫♪ Accentuate the Positive ♪♫♪ Do you have a Health & Safety Policy? Weak Answer: • “Yes, see Appendix 1” Good Answer: • “The Health & Safety of our staff and customers is a vital part of the company’s quality process. We operate a comprehensive Health & Safety Policy (see Appendix 1) covering all aspects of our products (services) and operations and it is reviewed biannually.” • For an SME employing less than 5 people: “Although we are not required legally to have a Health & Safety Policy, we take this matter very seriously and have adopted a Health & Safety Policy in the interests of our staff and clients (see Appendix 1)”

33. ♪♫♪ Accentuate the Positive ♪♫♪ What Quality Assurance arrangements does your company operate? If no accreditation is held please explain why not and what alternative steps you take to ensure quality at work? Weak Answer: • “We operate our own quality system. We have determined that formal accreditation is inappropriate to our company’s needs. Complaints are the responsibility of the Managing Director.” Good Answer: • “We regard quality as a vitally important part of our business activity and we operate a comprehensive and strict internal quality assurance process covering all aspects of our business activity (details can be found in Appendix 2). We are committed to a process of continuous improvement and we are in the process of applying for ISO 9001 (we expect to be assessed in May of this year)”

34. Business Continuity • What is your Approach to Risk Management in terms of Business Continuity? • Do you have a formal Business Continuity Management Programme? If YES, enclose a copy of your plan/programme document • Within the last 3 years have there been any occasions when you business operation has been disrupted? • If YES what were the circumstances and what was the effect upon your customers? • Do you have a strategy for ensuring continuity of supply from your critical suppliers?

35. Avoiding a Poor Score Common reasons for a poor score: • Failure to follow the instructions • Writing by committee, no narrative flow and lack of control/ownership • Incomplete or missing answers/sections • Supporting documentation incomplete • Repeating answers or referring to ‘see above’ (questions are rarely repeated) • Over emphasising what you sell, rather than what they are looking to buy • Recycling old tenders ‘Cutting & pasting’! • Providing response on general capability instead as opposed to specific contract requirements

36. Invitation To Tender (ITT) The Second Hurdle • Evaluation of your detailed proposal • What are you going to do • How are you going to do it • Who is going to do it • How much will it cost • What is your track record / prior experience • Compliance • References

37. ITT Information Invitation to Tender (ITT) pack will include: • Instructions to Tenderers • Introduction from buyer who will set out the vision • The Specification • The Evaluation Criteria & Relative Weighting • Form of Tender • Draft Contract Terms and Conditions • Declarations / Bona Fide • Pricing Schedule

38. Preparing the Tender Managing the preparation of your bid • Get your team together, appoint a bid manager and conduct detailed review and interpretation of tender requirements. • Determine whether you require clarification of any aspect of the tender and ask the question(s) allowing enough time for a response. • Check regularly to see if any questions/answers have been submitted by competitors. Be aware that any question you ask will be notified to other suppliers) • Prepare work plan & allocation of roles/tasks/milestones with reference to tender & submission deadline. • NB: Build in time to review, refine and style bid

39. Preparing the Tender Tender Design: What is the Buyer looking for? • Design a clearly structured tender response aligned against each tender requirement and criteria (e.g. core, gateway and specific). Ensure compliance! • Demonstrate a clear understanding of the brief (i.e. the challenges are understood and addressed) • Methodology: clearly show who (CVs) does what, why, when, how and benefits from buyer’s perspective – illustrate with diagram (Gantt) • Identify and demonstrate clearly your capability and the innovation of your offer (USP) - can your offer exceed the contract requirements and provide additional benefits, outcomes? • Contract management and communication (i.e. how you interface with the client to monitor project)

40. Preparing the Tender Standing Out from the Crowd • Have you articulated ‘Why choose us?’ • Have you fully defined the key features, quality and benefits of your approach? • Have you used and made the most of recent and relevant case studies to illustrate your track record? • Have you gone the extra mile in manifesting your understanding of the brief and the design of your solution? • Conduct a mock assessment against the evaluation criteria and relative weighting • Presentation

41. Case Studies: Example Structure • Client Name & Contract Title • Work of same/similar nature, scope and scale • What, When and How you did it • Client Benefit (Outputs & Outcomes) • Innovation & Added Value • Contract Value/Price • Reference confirming work was performed to client satisfaction and to schedule NB Be concise and relevant

42. Preparing the Tender:Costing Your Proposal • Follow Instructions in Tender re presentation of costs/fees/prices • For services: Charging Rate(s) (Daily/Hourly) & Time & Personnel • Fixed Cost / Variable Cost • Expenses & Disbursements • Contingency • VAT • Innovative Cost Proposals • Discounted Cost e.g. 5% early payment, economies of scale and efficiency savings linked to contract term and/or number of contracts (Lots) awarded • Buyer comfort: Offer 10% Contract Price Withheld until completion

43. Risk: What is your Approach

44. Exercise • As a local company, how might you emphasise that you have a number of advantages?

45. Exercise: Answers Wrong Answer: • The Council should give contracts to local companies as a matter of course, because it retains profit in the area and improves local employment levels. Right answers: • Close proximity to client : Allows customers to change their requirements at short notice • Local knowledge: Specialised knowledge of local issues or local communities • Fast response time, leading to better and more flexible service • Improved environmental impact of shorter travel distance; potential economies of expenses • Similar demographic profile of service deliverers to service users

46. Preparing the Tender:Bid Writing Language & Style: • Write in plain English: short sentences and paragraphs; • Avoid jargon and unexplained abbreviations • Use ‘active’ verbs, refer to ‘we’ and ‘you’ • In your response try to reflect key wording as found in the tender specification • Punctuation and spelling really matter • Lay-out: Use clear headings aligned to tender specification; standardise fonts, illustrate where possible Aim for clarity, brevity, readability and persuasion

47. Preparing the Tender:Do’s & Don’ts • Do not attempt to find an “inside track” (canvassing) • Respond by the correct date + time (electronic, electronic + post, post?) avoid last minute submissions • Ensure the submission is complete AND signed including copies of requested documentation, e.g. insurance certificates, policies, audited accounts etc • Use tender envelope/label if provided and check if there is a tender reference • Look carefully at the evaluation criteria, scores and “weighting”. This should influence time and effort in preparation of answers

48. Buyer Preferences

49. Converting Opportunities Tender Presentations

50. Tender Presentation • Review and familiarise yourself witt the ITT and the Tender you submitted • Has anything changed since the Tender was submitted which you believe: • Impacts the Tender Specification • Affects your capability and capacity • Allows you to bring additional value • Anticipate and prepare responses to likely ‘difficult’ questions • Take copies of your tender with you as the tender panel may wish to question you on specific elements • Select Presenter(s) • Rehearse