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Winning government business workshop

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Resources from Business Victoria's workshop that will help you to understand the process of supplying goods and services to Government.

Resources from Business Victoria's workshop that will help you to understand the process of supplying goods and services to Government.

Published in Business , News & Politics
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  • 1. Workshop ObjectiveAt the completion of the workshop participants willunderstand: How government purchases goods and services How to engage with government, both within and across departments How to market unique capabilities to government How to maximise opportunities for success when responding to government offer documents
  • 2. AgendaPart A: How government purchases Contacting and marketing to GovernmentPart B: Tips on responding to government offer documents How government evaluates your response, and Value for Money
  • 3. Part AEngaging with Government
  • 4. How Government PurchasesRequest for QuotationRequest for Tender Open or closed tendersExpression of InterestFrom existing contracts One off purchase Single Entity Purchase Contracts State Purchase Contracts Page 2
  • 5. Request for Quotation (RFQ)60% of Government procurement activityMinimum requirements to encourage competition andensure value for money:
  • 6. Request for Quotation (RFQ)Key parts of a RFQ: Specification or requirements Evaluation criteria Contract terms (usually short form) Submission detailsRFQ template: www.procurement.vic.gov.auDBI eQuotation system www.evalua.com.au Page 3
  • 7. Introduction to a Request for TenderRFT for a good/service >$150,000 (incl GST)to the open marketAdvertised on a Wednesday: The Herald Sun www.tenders.vic.gov.auAlways respond where you can fulfil thetender requirements Page 4
  • 8. Purpose of a Tender Tenderers must use a tender to differentiate themselves fromcompetitors, not just to demonstrate that they can do the job.
  • 9. Key Parts of a RFTPart A: Conditions of Tender: Tender conditions Briefing sessions Evaluation criteria Submission requirements, closing time and date Other key tender requirementsPart B: Specifications: Mandatory, Highly Desirable and Desirable requirementsPart C: Conditions of Contract: Core contract requirements Insurance requirements Service level requirements Page 4-5
  • 10. Key Parts of a RFT (continued)Part D: Tenderer‟s Response Schedules: Questions to be answered by tenderers Place for answers Place for any pertinent, Additional InformationPart E: Ethical Employment Statement: Policy requirements and timings for completion NB: this is to be completed following the shortlist stagePart F: Victorian Industry Participation Policy Statement: Policy requirements and timings for completion NB: this is to be completed following the shortlist stage.
  • 11. Exercise 1 – RFT Structure1. Where do I find evaluation criteria?2. Where do I provide my response?3. How do I know what information I have to provide?4. Can I ask questions about the tender?5. What insurances do I need to provide?6. How much information should I provide in my response?7. When is the RFT submission due? Page 6
  • 12. One-off ContractsCan be established via RFQ or RFTFixed contract valueFixed termFor a predetermined good or serviceOne-off purchaseSingle customerwww.contracts.vic.gov.au Page 7
  • 13. Single Entity Purchase ContractsEstablished via a RFTGenerally no expenditure limitExtended term, up to 3 yearsFor a frequently used good or serviceOngoing purchasesEnables purchasing within a departmentwww.contracts.vic.gov.au Page 7
  • 14. State Purchase ContractsState Purchase Contracts eg: Stationery and Office Supplies eServices Panel Marketing Services PanelEstablished through open tenderGenerally no expenditure limitPanel or sole supplier arrangementExtended contract termEnables purchasing across the government Page 7-8
  • 15. Prequalification ArrangementsTwo main prequalification schemes withinVictoria: Construction Supplier Register VicRoads Prequalification Register Page 9
  • 16. Government Entry PointsContracts Registerwww.contracts.vic.gov.auState Purchase Contractswww.procurement.vic.gov.auContact points for State Purchase ContractsContact points for Departmental procurement officersTimeframes for retenderingContract Value
  • 17. Reasons to Contact a Contract ManagerUnderstand the need for the product or serviceUnderstand the nature of the product or serviceIntroduce your company and service offeringUnderstand timings for contract expiry and retender (ifapplicable)Get information on any related procurements, andGet placed on the Contract Manager‟s list of suppliercontacts
  • 18. Victorian Government Business OpportunitiesVictorian Government Tenders websitewww.tender.vic.gov.auDBI eQuotation Systemwww.evalua.com.auConstruction Supplier Registerwww.transport.vic.gov.auHealth Purchasing Victoria (HPV)www.hpv.org.auVicRoadswww.vicroads.vic.gov.au Page 13-14
  • 19. Other Government OpportunitiesLocal Governmentwww.evalua.com.au/viclg-infohub/bin/view/Main/Municipal Association of Victoria (MAV)www.mav.asn.auProcurement Australiawww.procurementaustralia.com.auFederal Governmentwww.tenders.gov.au (AusTender) Page 15
  • 20. Key Government Engagement StrategiesBuild a targeted engagement strategyDemonstrate how your goods or services can benefit adepartmentTailor information to suit the needs of the departmentDiscover business opportunities using the links on“Government Business Opportunities‟ Page 19
  • 21. Key Government Engagement Strategies (cont)Build relationshipsRespond to tenders and quotations to build brandawareness within GovernmentAttend debriefsAttend government sponsored eventsBelong to an industry association
  • 22. Peak Industry BodiesChartered Institute of Purchasing and SupplyAustralasia (CIPSA)Australasian Procurement and Construction Council(APCC)Australian Institute of Project Managers (AIPM)Australian Information Industry Association (AIIA)All are excellent networking opportunities withgovernment representatives (particularly governmentbuyers) Page 19
  • 23. Exercise 2 – Contacting GovernmentUsing a scenario of a supplier of traditional and electronic white boardsidentify up to 10 steps that supplier should take to contact and market togovernment.Refer to page 20 of your Workbook. Step 1: Review websites under „Government Business Opportunities‟ for any upcoming tenders or quotes Step 2: Review SPC for Stationery for contact officer details (i.e. staff responsible for buying stationery and/or related items) Step 3: Develop a targeted message to email to those identified contact officers within departments Page 20
  • 24. Exercise 2 (continued)Step 4: Request a meeting to understand department need and timings forany procurement activities for white boardsStep 5: Provide short, sharp material to leave with the contact officerStep 6: Follow up after 4 -6 weeksStep 7: Respond to every tender or quote that is relevantStep 8: Attend debriefsStep 9: Join an industry association, for example CIPSAStep 10: Attend networking events sponsored by that industry association
  • 25. Part BResponding to Government Offers10 Tips for Winning Government Business
  • 26. Tip #1 Read the QuestionSuccessful tenderers almost always answer allparts of the question correctlyTips Highlight the core requirement Underline each sub requirement(s) (or hints) Don‟t read Part D in isolation: Review the Specifications (Part B), and Review the Evaluation Criteria (Part A) Page 21
  • 27. ExampleBriefly detail recent experience of similar work.The Department is looking for succinct andrelevant information. Information is onlyrequired in relation to the three most relevantactivities. The reason why each activity isrelevant is required.
  • 28. Specifications - SampleEngage key stakeholders in the implementation of the new procurementframework and development of documentation.Determine whether, and how, the existing tools and templates, processes,protocols, procedures, policies, guidelines and training/induction programswill adequately support the new procurement framework and procurementprinciples.Develop all tools, templates, processes, protocols, policies, guidelines andtraining/induction to assist with the transition into the new procurementframework, and align these with the Department of Treasury and Financedocuments under development.
  • 29. Evaluation CriteriaEVALUATION CRITERIA - SAMPLE1.2 Capability and past performance Extensive knowledge of the current and future legislative environment of Victorian State Government Knowledge of Victorian Government procurement policies and associated processes Demonstrated experience implementing significant procurement reform An appropriate staffing structure to support the Project availability of experienced staff Demonstrated experience in the industry from a referee‟s view1.3 Client engagement focus Demonstrated experience in change management methodology and procurement methodology through a strong client engagement focus Demonstrated policies and practices to: engage clients systems to measure customer satisfaction backup and advice
  • 30. Tip # 2 Respond Fully to the QuestionEvaluators can only evaluate the content of the tenderresponseEvidence is importantBe honestDemonstrate you understand the product or servicegovernment wantsDemonstrate how you are in a unique position toprovide the serviceDifferentiate your service offering Page 21
  • 31. Example “Please state your compliance to theSpecifications and where your company does notcomply or partially complies please provide details of this non-compliance or partial compliance”.
  • 32. How to Respond Fully with Limited Government ExperienceDemonstrate how commercial experience isrelevant to government requirementsDemonstrate your understanding of governmentrequirementsDemonstrate roadmap for building capabilityDemonstrate resources and opportunities toincrease resource base
  • 33. Tip # 3 Don’t Assume Everyone Knows You“We can do this because we are [company] xyz” Government evaluators cannot consider any information outside the submitted tender documents and tender process. Do not risk assumed knowledge of your company‟s capabilities and projects. Page 21
  • 34. How to RespondAddress each question as if your capabilities, strengthsand people are unknown.Describe reference projects or sites in detail and statehow this is relevant.Describe how your resources are appropriate for thejob.Describe your methodologies and approaches in detail.
  • 35. Exercise 3 – Project Management Methodology “Please provide details of the methodology and implementation approach you propose to use in providing the Services. The methodology mustinclude an approach to governance, management,implementation and be appropriate for the Service tendered for.” Page 23
  • 36. Tip # 4 Target Your ReferencesPurpose: Confirm stated company capabilities Confirm tenderer experienceCommon mistakes: Haven‟t demonstrated the delivery of competencies during previous projects Haven‟t related to the tender requirements Scatter gun approach Page 21
  • 37. Target Your Reference ProjectsHighlight the key requirements in the tender fora written referenceProvide directly relevant reference projectsProvide no more than 3 reference projectsAddress each of the Evaluation Criteria and theSpecificationsProvide recent references (up to 3 years old)
  • 38. Example: SpecificationsStrategy Development includes the provision ofstrategic vision and documentation associated withinformation and communications technology supportingeGovernment. This includes, but is not limited to: Strategy and plan development and evaluation Forecasting or analysis of future trends Strategic research and analysis Development of and advice on management frameworks (e.g. risk, service delivery management and portfolio management)
  • 39. Example: Written ReferenceRelevance to the tender Strategy and plan development and evaluation Forecasting and analysis of future demand/trends Market research and analysis Development of and advice on management frameworks (e.g. risk, procurement and service delivery management)
  • 40. Tip # 5 Embrace DuplicationAnswer each question fullyTailor each response - do not cut and pasteEmbrace duplication to reinforce yourcompany‟s skills and abilitiesBe aware of how government evaluates tendersConsistency scores well Page 22
  • 41. ExampleSpecific experience and expertise:Briefly detail your organisation‟s recent experience providingmarketing services within a multi-organisational environmentincluding experience in: Managing a number of contracts simultaneously within the one organisation, where the contracts may require differing skills and focusANDCapacity to handle work Briefly detail the ability and capacity for your organisation to handle simultaneous projects and also handle projects of a complex nature
  • 42. Tip # 6 Customer Service CountsCustomer service proposals are effective indifferentiating your tender response Can generate large variations in scoringMany tenderers share the same capabilities butnot all put effort into their customer serviceproposals Page 22
  • 43. Tips for Responding to Customer ServiceRegular meetingsRegistersRegular reporting on end user feedback3 to 5 performance measuresPresentations summarising the results of yourengagementEasy to read, informative client reportsAnalysis of project results with trending or forecastinformationLessons learned and knowledge transferDon‟t confuse customer services with value add
  • 44. Exercise 4 – Customer Service ProposalsIn your workbook prepare a response to thefollowing question: “What customer service orientated proposals do you have which will enhance your bid?” Page 24
  • 45. Tip # 7 Offer Value Added InitiativesValue add initiatives are almost a free kick todifferentiate your tender from othersDoesn‟t always mean for free: Related to the requirements of the tender Additional to the requirements Something only your company can provide Is valued by government, and Should be genuine and affordable to the tenderer Page 22
  • 46. ExamplesEffectiveness review of implemented strategiesTrainingSupporting documentationOn the floor supportConsider how your value add initiative can turninto follow on business
  • 47. Exercise 5 – Identify Value-Add InitiativesUsing your workbook identify 4 value add initiatives yourbusiness could offer the government, and consider: The additional value this delivers to government How the initiative could foster new business opportunities with that government client The cost to your business of providing that value add initiative Page 28
  • 48. Tip # 8 Understand Key Policy RequirementsTransparency, equity, accountability andcompetitionDo not tender if you can‟t comply with the keypolicy requirementswww.procurement.vic.gov.auConditions of Tender and Specifications Page 22
  • 49. Relevant PoliciesConduct of Commercial Engagements (probity)Ethical Purchasing Policy (EPP)Victorian Industry Participation Policy (VIPP)Disclosure of Contracts Policywww.contracts.vic.gov.auTender Complaints Policy
  • 50. Tip # 9 Submit a Complete ResponseExamples of a complete response: A tender with pricing A tender with a complete contract compliance statement A tender with references Material information is all provided Page 22
  • 51. Checklist for Tender CompletionList each schedule in Part D: Schedule 1: Tender Form Schedule 2: Conflict of Interest Up to 20 schedulesMatch the evaluation criteria to the responseschedulesMatch the mandatory specifications to theresponse schedules Page 30
  • 52. Checklist for Tender CompletionFull pricing detailsCompleted compliance statements to contract and specificationsCompleted insurance detailsList of 3 refereesSigned physical copies of schedules 1 and 2 (where requested)Correct number of copies of the tender document or CDsCompleted “additional information‟Any drawings/designs etc. requested for in the tender document
  • 53. Electronic ResponseBefore submitting an electronic responseplease insert your CD / USB into 3 different PCsto ensure the content is there and that it can beread.
  • 54. Tip # 10 Get Your Response in on Time!Late tenders will not be accepted, unless there isconclusive evidence that the late lodgement ofthe Tender: Resulted from the mishandling of the Tender by the Department Was hindered by a major incident and the integrity of the Tendering Process will not be compromised by accepting a Tender after the closing time. Page 22
  • 55. Further Tendering AdviceMinimum insurance requirements Risk adjusted insurance amountsLiability Risk adjusted liability amountsFinancial and performance guaranteesService level management
  • 56. How to Differentiate Your ResponseOffer value add initiativesOffer customer service proposalsOffer environmentally friendly initiativesDifferentiate your response: Quality systems Innovation Research and Development Knowledge management Page 25
  • 57. Exercise 6 – Quality Systems“If you are not in the process of achievingcertification, please provide details of how youintend to assure that the deliverables meet theDepartment’s requirements for quality?” Page 29
  • 58. Evaluation ProcessDuration and stages of evaluationEvaluation criteriaWeightingsEvaluation scoringValue for money
  • 59. Exercise 7 - Matrix Evaluation ModelEVALUATION CRITERIA SUPPLIER “A” SUPPLIER “B” SUPPLIER “C”Professional Competence Weight Score Wt*Sc Score Wt*Sc Score Wt*ScCompliance to Specification 5 3 15 5 25 4 20Plan and approach 5 5 25 4 20 5 25Quality Systems for 4 5 20 7 28 5 20DeliverablesCapability 4 5 20 6 24 7 28Past Performance 4 6 24 8 32 7 28Innovation 4 5 20 5 20 5 20Total Score 124 149 141Costs $61,000 $69,500 $123,480VFM 124 / $61,000 * 100 = 0.20 149 / $69,500 * 100 = 0.22 141 / $123,480* 100 = 0.12 Page 36
  • 60. Calculation of Value for MoneyA balanced benefit measure reflecting the non-financialscore versus cost including: Capability Past performance Quality Customer service Financial viability Contract matters Fit for purposeVFM = Non Financial Score / Cost Page 33
  • 61. Value for MoneyHigh tender score 100 20 100 80 32 60 24 40 16 20 4 20Low tender score 0 10 5 2.5 1 High Low cost cost
  • 62. Closing StatementContact governmentTarget your marketingDevelop a competitive advantageMaximise your chance of winning governmentbusinesswww.business.vic.gov.au/tenders
  • 63. Questions? Thank you for attending Check outbusiness.vic.gov.au/workshops for more workshop information