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Understanding Public Procurement
 

Understanding Public Procurement

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As a result of a recent "Understanding Public Procurement" workshop I have decided to post this presentation - as it was obvious that some if not all of the attendees did not understand the basic ...

As a result of a recent "Understanding Public Procurement" workshop I have decided to post this presentation - as it was obvious that some if not all of the attendees did not understand the basic principles of public procurement.

There were a number of complaints about (procurement proceedures) - hopefully this presentation goes some way towards explaining the policies and proceedures which involved in the public procurement process.

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  • What is a PQQ - Pre Qualification Questionnaire   A (PQQ) is normally issued by the contracting authority when they require contractors to supply goods / products or services - It is one of the main documents that must be completed correctly and must be returned to the contracting authority by the specified date if the contractor wishes to be included in the tendering process and hope to win the contract.   This form is normally completed and certified as being accurate by one of the company's directors (preferably the Finance Director or, in the case of a partnership, a senior or controlling partner.)   The form normally requests generic company information, project specific prequalification detail will be requested separately at the appropriate time. It is anticipated that for certain tender exercises a director of the company may be required to confirm the accuracy of the information at the given time.   The completion of a PQQ form does not commit the contract provider in any way nor is it intended to circumvent any legal requirements under EC Procurement Directives or UK Competition rules. The contracting authority is at liberty to confirm any details entered on to the form and may request an audit of the details giving reasonable notice.   The completed document may be provided either in hard copy or electronic format. All requests for clarification or further information in respect of a PQQ should be addressed to the named contact point. No approach of any kind in connection with this PQQ should be made to any other person within, or associated with the contracting authority.     PQQ Evaluation This document represents a standard PQQ and our objective to assist small firms in completing the document correctly - We will provide (1 hour) of free advice to all firms on request.   In addition to this document, we provide a training programme for firms who wish to fully understand and successfully take part in tendering and procurement both in the private and public sector.   We provide an assessment of how the PQQ may be evaluated and the weighting factors attached to each section as part of the (1 hour) support     END
  • Conclusion: Politicians still think that buying cheap is efficiency, in their collaborative procurement agenda. We have to know the priorities otherwise the procurers and suppliers cannot understand the job they have to do, Procurement is at the heart of policy, finance and delivery. OGC Buying Solutions had more than 300 initiatives, there was a lot of information pushed out from the centre, and it was not always easy to grasp, procurement is about value and not about price.

Understanding Public Procurement Understanding Public Procurement Presentation Transcript

  • WHY THE NEED FOR A PROCUREMENT? – COULD I BE SUCCESSFUL? Improve Your Brand Value Create New Revenue Channels Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Provide Customer Satisfaction Provide Reliable Goods & Services Develop a Profitable Relationship Develop Good Quality Management WHY NOT TRY TO TENDER
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 How big is the Public Sector?
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Who are these people? Who are these people?
  • Copyright © Tendering for Contracts Training Ltd 1997 – 2009
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Contracts Management Team Contracts Management / Director Contract Manager Web Based Email Telephone Personal Contact Member of our Contracts Fulfilment Team Contracts Management Administration Clients
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Generic Guidance Notes: Develop tendering expertise - nominate and train someone to coordinate everything centrally. Your trained employee gives a great boost to efficiencies and acknowledge the importance of the 'license to tender' role held by the nominated person. They help build on this persons existing knowledge and expertise and provide an excellent 're-focus' opportunity. Plan ahead - identify what is required to get the best possible chance of winning the contract. Planning ahead is a good way of finding scope for efficiencies. It gives time to question and assess, if alternative solutions are available (e.g.. forming a consortium or partnership), and if the timing is right. It is recommended that contracts are linked to the business development plan.
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Know your own and your company’s strengths - how much can you invest, are there limits? You will not need an 'in-depth' knowledge of the legal requirements surrounding procurement set by European and UK government. You need an awareness of appropriate conduct in dealing with the Public Sector, any conflicts of interest and awareness of the limits when it comes to tendering. As part of general good practice, before going ahead with a tender, check whether another supplier wants to form a partnership with you so there is an opportunity for some collaborative selling. A contractor can choose to work with a consortium when giving out new contracts. Don't spend hours saving a pound - consider the total cost of tendering, there really is no point spending 3 hours time to save £1. - this can sometimes be forgotten in the need to win more business.
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 They can also make sure that any specification going out to contract providers will be designed to address the issues involved. Present innovative business solutions with confidence by understanding the rules that apply. The person with the 'license to tender ' role can make a real difference in spotting the inefficiencies within any tender. Identify and adapt simple and straightforward selling strategies that can be benefit all the stakeholders. Spend time & effort sharing and listening to real problems the public sector faces.
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Develop the skills needed to successfully manage the contract. And have the confidence to challenge a negative decision by the purchaser. Keep a close eye on contracts which have short notice periods for termination. Good contract management helps to meet deadlines, maintain quality standards and avoid un-necessary risks, increasing the scope to build confidence in future business relationships. A project plan should be drawn up, setting out all the strands of work that is required, how the strands will be taken forward and note of the completion timescales. The most important aspect of any tender timetable is to have plenty of space to conduct the process. The more complicated / important the contract the more time that will be needed.
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 It is really tempting when selling something to try to be the 'best brand'. People tend to feel comfortable with a brand recognized from marketing campaigns. Their familiarity with best brands doesn't necessarily mean they are willing to pay more money for best value.. Every time a brand item is asked for it is worth answering the question - "why that particular brand?". The alternative brands on the market often match up and at a much more competitive price. There are very many good products on the market that offer quality and reliability equal to or in excess of the branded product - and at a competitive price. E.g. show that your cheaper paper will not jam the printer and cost more in staff time but that it works just as fine as the more expensive branded paper Do's and Don'ts in The Sales Process:
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Form a (local) consortium to give a better deal - A consortium is simply an association or group of businesses who join together to minimize costs, to maximize selling power and provide better value. The higher the volume of business going through these agreements the better the quality and price you can offer. Greater negotiating power - the public sector may be tempted to take advantage of smaller businesses; however, the threat of losing products and services from a consortium will have an impact. Sharing the administrative workload, increases selling power, greater volumes of business may create better deals for the group, reduced costs Ability to provide goods/services as a consortium would provide the necessary size and influence, larger deals means that small businesses can make better use of their expertise The main benefits are: Improve your selling power:
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 HOW WELL DO YOU UNDERSTAND THE PROCUREMENT PROCESS ?
    • PUBLIC PROCUREMENT IS BASED ON (2) FUNDAMENTAL PRINCIPLES.
    • ON THE FOLLOWING PAGE ARE A NUMBER OF DIFFERENT SHAPED
    • OBJECTCTS THAT REPRESENTS ALL TYPES OF PUBLIC PROCUREMENT.
    • IF YOU ARE THOROUGHLY FAMILIAR WITH THE PRINCIPLES OF PROCUREMENT – YOU SHOULD BE ABLE TO
    • 1) LINE UP ALL THE OBJECTS ON THE PAGE - ( HORIZONTALLY & VERTICALLY ) SO
    • THAT THERE IS NO GAP BETWEEN THE OBJECTS.
    • 2) WHO IS THIS MAN? –
    • 3) WHAT IS HIS RELATIONSHIP TO THE PROCUREMENT PROCESS?
    • IF YOU HAVE SUCCEEDED IN LINING UP THE OBJECTS CORRECTLY –
    • YOU WILL UNDERSTAND THE RELEVANCE OF NO GAPS BETWEEN THE OBJECTS -
    • WHO THIS MAN IS AND
    • WHY THIS SIMPLY TASK AND THE KNOWLEDGE IT PROVIDES - IS EXTREMELY RELEVANT TO YOUR BUSINESS.
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 CAN YOU SORT THE PROCUREMENT NIGHTMARE
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 HOW WELL DID YOU DO IN ANSWERING THE QUESTIONS AND LINING UP THE OBJECTS? IF YOU GOT (<1 OUT OF 3) CORRECT – YOU DEFINITELY NEED OUR HELP IF YOU GOT (2 OUT OF 3) – YOU CAN CARRY ON AS IS – BUT MAY STILL NEED OUR HELP IF YOU GOT (3 OUT OF 3) – CONGRATULATIONS – YOU DO NOT NEED OUR HELP! THE BASIC PRINCIPLES OF PROCURENT ARE? (P******* & P**********) THIS MAN IS CALLED (THE A******) HE IS THE MAIN REASON THAT PUBLIC PROCUREMENT IS SUCH A PAIN ALL PUBLIC AGENCIES HAVE TO DEAL WITH THIS MAN ON A REGUALR BASIS – THEY ARE PERSONALLY LIABLE FOR ANY GAP - MUST BE NO GAPS - HENCE THE QUIZ! ON THE FOLLOWING PAGE YOU WILL FIND THE CORRECT RESPONSE TO THE QUIZ
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 P O L I C I E S PROCEEDURES VARIOUS TYPES OF CONTRACTS - EU - STANDARDIZED P&P
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009
    • SO YOU CAN SEE THAT IT DOES NOT MATTER WHAT TYPE OF PUBLIC PROCUREMENT IS INVOLVED THERE ARE ALWAYS
    • POLICIES
    • PROCEEDURES
    • AUDITORS
    MOST SME’S WHO CONSIDER PUBLIC PROCUREMENT - ARE CONFUSED BETWEEN PROCUREMENT POLICIES AND PROCUREMENT PROCEEDURES. HENCE THEY COMPLAIN – BUT THEIR COMPLAINT IS OFTEN TO THE WRONG PERSON OR GROUP. WE EXIST TO ASSIST SME’S UNDERSTAND & BENEFIT FROM PUBLIC PROCUREMENT.
  • WE PROVIDE ONE 2 ONE SUPPORT 4 SME’s in TENDERING 4 PUBLIC & PRIVATE SECTOR CONTRACTS FREE & UNLIMITED WHEN YOU SIGN UP TO OUR COURSE OR FOR ANY CONSULTANCY Copyright © Tendering for Contracts Training Ltd 1997 - 2009
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Tendering for Contracts Training: Tendering for Contracts Training provides online tendering and procurement training that enables firms identify and benefit from new business opportunities in the public and private sectors. Training Objectives: Our training has been specifically developed to assist small firms bid for contracts both in the public or private sector, respond to invitation to tender notices, respond to request for proposals, prepare and submit tender documents, implement quality management systems, effectively market products and services to contract providers and efficiently manage contract projects. Testimonial: As a procurement specialist for over 20 years, I believe this to be an excellent on-line training programme, suitable for both managers / owners of firms and individuals, it prepares them to tender for contracts with confidence, and develop new business through effective training that enables profitable engagement in the tendering and procurement process. (Former Chief Procurement Officer, Centrica Plc )
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Example of additional procurement information available when learners signup:
    • Top Ten Procurement Tips
    • http://www.tfc-training.com/top_ten_procurement_tips.htm
    • Request for Proposal - Best Practice
    • Other useful information designed to improve your knowledge of procurement
    • Pre-Qualification Questionnaire – Guidance Notes
    • http://www.tfc-training.com/flh/tfct_pre.exe
    http://www.tfc-training.com/spend_management.htm
    • Please note you will have to register to gain access to these pages
    • Procurement - Spend Management
  • Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Contact details: Lloyd Sewell - Director Tendering for Contracts Training Ltd 23 Elmbridge Road Cranleigh Surrey GU6 8NH Tel : 01483 267098 - Mob: 07866 607197 - FF: 0845 438 1663 Email: [email_address] Url: www.tfc-training.com To listen an audio presentation – http://www.tfc-training.com/tfct_pre.htm END To sign up to out training click here – http://www.tfc-training.com/sales.htm YOU MAY CONTACT US AT ANY TIME – WE DO NOT CHARGE FOR INITIAL CONSULTATIONS.