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Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
Winning Government Business workshop
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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.

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  • 1. At the completion of the workshop participants will understand: 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 Workshop Objective
  • 2. Agenda Part A: How government purchases Engaging with Government Part B: How government evaluates your response Value for Money Responding to government offer documents, and Responding to grants.
  • 3. Part A Engaging with Government
  • 4. How Government Purchases Request for Quotation Request for Tender Open or closed tenders Expression of Interest From existing contracts One off purchase Single Entity Purchase Contracts State Purchase Contracts Pre-qualification arrangements
  • 5. Expression of Interest First stage of a procurement Used to determine market capability and capacity Can lead to a restricted RFT, or direct negotiation First stage of marketing to government Always apply - where you have the relevant capabilities and expertise.
  • 6. Tenders and Quotations A marketing activity to build government business. The main difference between quotations and tenders is based on an assessment of: The complexity and risk of the procurement The capability of the organisation conducting the procurement, and A market analysis. The Victorian government no longer uses a dollar threshold to determine whether a RFT or RFQ is used.
  • 7. Complexity Assessment Tool Quadrant Description (example only) 1 Transactional Small value and low-risk transactions where approved suppliers (e.g. state purchase contracts) are not available. 2 Leveraged Frequently used goods/services in a competitive marketplace that are procured by an individual department or whole of government, where the organisation has the ability to drive value. 3 Focused Procured goods/services where a limited number of suppliers are available or where novel commercial arrangements are in place. May include whole of government contracts. 4 Strategic Goods/services in a competitive market that are high value, where business criticality is high, and/or where the good/service is of State significance. May include whole of government contracts.
  • 8. Request for Quotation (RFQ) 65% of Government procurement activity RFQ is typically: issued to a small number of suppliers for a fixed piece of work of lower complexity and value. Most RFQs fall into the ‘Transactional’ or ‘Leveraged’ categories in the Complexity Assessment Tool. Most RFQs are issued to companies that are already known to Government and are not released publically Important to be known to government
  • 9. Introduction to a Request for Tender RFT is typically: to the open market of higher complexity and value for fixed or ongoing pieces of work Advertised on a Wednesday: The Herald Sun www.tenders.vic.gov.au Most RFTs fall into the ‘Focused’ or ‘Strategic’ categories in the Complexity Assessment Tool. Always respond where you can fulfil the tender requirements
  • 10. Purpose of a Tender Tenderers must use a tender to differentiate themselves from competitors, not just to demonstrate that they can do the job.
  • 11. Key Parts of a RFQ and RFT New ‘Invitation to Supply’ template for a RFQ and RFT with four main parts The main difference between a RFQ and RFT is the level of detail provided under each part A template Invitation to Supply can be accessed from the Victorian Government Procurement portal: www.procurement.vic.gov.au
  • 12. Key Parts of a RFQ and RFT Page 5 of your workbook Part A: The Invitation: A1: Introduction Project officer Briefing sessions Q and A Evaluation criteria Submission requirements, closing time and date A2: Specifications: Mandatory, Highly Desirable and Desirable requirements Part B: Conditions of Participation: Rules applying to the Invitation process (Victorian Government and departmental specific) cont….
  • 13. Key Parts of a RFT (continued) Part C: Conditions of Contract: Core contract requirements Insurance requirements Service level requirements Part D: Tenderer’s Response Schedules: Questions to be answered by tenderers Place for answers Place for any pertinent, Additional Information Part E: Victorian Industry Participation Policy Statement (if required): Policy requirements and timings for completion NB: this can be completed following the shortlist stage.
  • 14. Exercise 1 – RFT Structure 1. Where do I find Evaluation Criteria and how do I use them in preparing my tender response? 2. Where do I provide my Response and must I use the template if one has been provided? 3. How do I know what information I have to provide? 4. How do I know if I can ask questions about the Tender and when I can ask them? 5. Where do I look to see what insurances I need to provide? 6. How much information should I provide in my Response and how do I know if there is a word limit? 7. How can I tell when the RFT / RFQ submission is due and the format it has to be provided in? Refer to page 7 of your workbook.
  • 15. One-off Contracts Can be established via RFQ or RFT Fixed contract value Fixed term For a predetermined good or service One-off purchase Single customer www.contracts.vic.gov.au
  • 16. Single Entity Purchase Contracts Generally established via a RFT Generally no expenditure limit Extended term, for example up to 3 years For a frequently used good or service Ongoing purchases Enables purchasing within a department www.contracts.vic.gov.au
  • 17. State Purchase Contracts State Purchase Contracts eg: Stationery and Office Supplies Software Printing services Established through open tender Generally no expenditure limit Panel or sole supplier arrangement Extended contract term Enables purchasing across the government
  • 18. Prequalification Arrangements Victorian government prequalification schemes: Construction Supplier Register VicRoads Prequalification Register eServices Register Marketing Services Register IT Infrastructure Register (servers, storage equipment, networking equipment and related services)
  • 19. Key Government Engagement Strategies To win government business you must get your business name and service recognised. Step 1: Build a targeted engagement strategy Use the Government resources supplied in this Workbook on pages 13 to 17 to identify the right contact in the right agency Step 2: Set up a meeting Email the relevant departmental contact to organise a meeting Demonstrate how your offering benefits that Department Tailor the information to suit the requirements of that department and contact person. Step 3: Find suitable business opportunities RFQ or RFT, Procurement Activity Plans and the Contract Register
  • 20. Key Government Engagement Strategies Step 4: Develop a relationship with your target audience Bid for relevant work, attend debriefs, attend Government sponsored events and belong to industry associations Step 5: Discover the information sources departments use to find out about products and services and advertise your company information via these sources (for example pre-qualification register, or industry network).
  • 21. Government Resources Victorian Government Directory www.vic.gov.au/contactsandservices/directory/ State Purchase Contracts (SPCs) www.procurement.vic.gov.au Contracts Register www.contracts.vic.gov.au Industry Capability Network (ICN) www.icnvic.org.au Victorian government procurement portal www.procurement.vic.gov.au Invitation to Supply Template Procurement Activity Plans
  • 22. Reasons to Contact a Contract Manager Understand the need for the product or service Understand the nature of the product or service Introduce your company and service offering Understand timings for contract expiry and retender (if applicable) Get information on any related procurements Get placed on the Contract Manager’s list of supplier contacts, and Follow up every 4 to 6 weeks.
  • 23. Find Business Opportunities Contracts Register www.contracts.vic.gov.au State Purchase Contracts www.procurement.vic.gov.au Contact officer Timeframes for retendering Contract Value Victorian Government Tenders website www.tender.vic.gov.au
  • 24. Find Business Opportunities Construction Supplier Register www.dtf.vic.gov.au eServices Register www.procurement.vic.gov.au/eservices Health Purchasing Victoria (HPV) www.hpv.org.au VicRoads www.vicroads.vic.gov.au
  • 25. Other Government Opportunities Local Government www.tenderlink.com and www.tendersearch.com.au Municipal Association of Victoria (MAV) www.mav.asn.au Procurement Australia www.procurementaustralia.com.au Federal Government www.tenders.gov.au (AusTender)
  • 26. Peak Industry Bodies Chartered Institute of Purchasing and Supply Australasia (CIPSA) Australasian Procurement and Construction Council (APCC) Australian Institute of Project Managers (AIPM) Australian Information Industry Association (AIIA) All are excellent networking opportunities with government representatives (particularly government buyers)
  • 27. Exercise 2 – Contacting Government Identify the steps you would take to contact and market to Government. Following the workshop build these steps into a government engagement strategy for your business. Refer to page 25 of your Workbook.
  • 28. Part B Responding to Government Offers 10 Tips for Winning Government Business
  • 29. Evaluation Process Duration and stages of evaluation Evaluation criteria Weightings Evaluation scoring Value for money
  • 30. Calculation of Value for Money A balanced benefit measure reflecting the non-financial score versus cost including: Capability Past performance Quality Customer service Financial viability Contract matters Fit for purpose VFM = Non Financial Score / Cost
  • 31. Exercise 7 - Matrix Evaluation Model EVALUATION CRITERIA SUPPLIER “A” SUPPLIER “B” SUPPLIER “C” Professional Competence Weight Score Wt*Sc Score Wt*Sc Score Wt*Sc Compliance to Specification 5 3 15 5 25 4 20 Plan and approach 5 5 25 4 20 5 25 Quality Systems for Deliverables 4 5 20 7 28 5 20 Capability 4 5 20 6 24 7 28 Past Performance 4 6 24 8 32 7 28 Innovation 4 5 20 5 20 5 20 Total Score 124 149 141 Costs $61,000 $69,500 $123,480 VFM 124 / $61,000 * 100 = 0.20 149 / $69,500 * 100 = 0.22 141 / $123,480* 100 = 0.12
  • 32. Tip #1 Read the Question Successful tenderers almost always answer all parts of the question correctly Tips Highlight the core requirement Underline each sub requirement(s) (or hints) Don’t read Part D Response Schedules in isolation: Review the Specifications (Part B), and Review the Evaluation Criteria (Part A)
  • 33. Example Briefly detail recent experience of similar work. The Department is looking for succinct and relevant information. Information is only required in relation to the three most relevant activities. The reason why each activity is relevant is required.
  • 34. Tip # 2 Respond Fully to the Question Evaluators can only evaluate the content of the tender response Evidence is important Be honest Demonstrate you understand the product or service government wants Demonstrate how you are in a unique position to provide the service Differentiate your service offering
  • 35. Example “Please state your compliance to the Specifications and where your company does not comply or partially complies please provide details of this non-compliance or partial compliance”.
  • 36. How to Respond Fully with Limited Government Experience Demonstrate how commercial experience is relevant to government requirements Demonstrate your understanding of government requirements Demonstrate roadmap for building capability Demonstrate resources and opportunities to increase resource base
  • 37. 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.
  • 38. How to Respond Address each question as if your capabilities, strengths and people are unknown. Describe reference projects or sites in detail and state how this is relevant. Describe how your resources are appropriate for the job. Describe your methodologies and approaches in detail.
  • 39. Exercise 3 – Project Management Methodology On page 28 of your workbook prepare a response to the following question: “Please provide details of the methodology and implementation approach you propose to use in providing the Products / Services.”
  • 40. Tip # 4 Target Your References Purpose: Confirm stated company capabilities Confirm tenderer experience Common mistakes: Haven’t demonstrated the delivery of competencies during previous projects Haven’t related to the tender requirements Scatter gun approach
  • 41. Target Your Reference Projects Highlight the key requirements in the tender for a written reference Provide directly relevant reference projects Provide no more than 3 reference projects Address each of the Evaluation Criteria and the Specifications Provide recent references (up to 3 years old)
  • 42. Tip # 5 Embrace Duplication Answer each question fully Tailor each response - do not copy and paste Embrace duplication to reinforce your company’s skills and abilities Be aware of how government evaluates tenders Consistency scores well
  • 43. Example Specific experience and expertise: Briefly detail your organisation’s recent experience providing marketing services within a multi-organisational environment including experience in: Managing a number of contracts simultaneously within the one organisation, where the contracts may require differing skills and focus AND Capacity to handle work Briefly detail the ability and capacity for your organisation to handle simultaneous projects and also handle projects of a complex nature
  • 44. Tip # 6 Customer Service Counts Customer service proposals are effective in differentiating your tender response Can generate large variations in scoring Many tenderers share the same capabilities but not all put effort into their customer service proposals
  • 45. Tips for Responding to Customer Service Regular meetings Registers Regular reporting on end user feedback 3 to 5 performance measures Presentations summarising the results of your engagement Easy to read, informative client reports Analysis of project results with trending or forecast information Lessons learned and knowledge transfer Don’t confuse customer services with value add
  • 46. Exercise 4 – Customer Service Proposals On page 29 of your workbook prepare a response to the following question: “What customer service orientated proposals do you have which will enhance your bid?”
  • 47. Tip # 7 Offer Value Added Initiatives Value add initiatives are almost a free kick to differentiate your tender from others Doesn’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
  • 48. Examples Effectiveness review of implemented strategies Training Supporting documentation On the floor support Consider how your value add initiative can turn into follow on business
  • 49. Exercise 5 – Identify Value-Add Initiatives On page 34 of your workbook identify 4 value add initiatives your business 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 .
  • 50. Tip # 8 Understand Key Policy Requirements Transparency, equity, accountability and competition Do not tender if you can’t comply with the key policy requirements www.procurement.vic.gov.au Conditions of Participation (Part B)
  • 51. Relevant Policies Probity (under the Market Approach Policy) Market Approach Policy Victorian Industry Participation Policy (VIPP) Disclosure of Contracts (under the Contracts Management and Contracts Disclosure Policy) Tender Complaints Management (under the Governance Policy)
  • 52. Further Tender Requirements Minimum insurance requirements Risk adjusted insurance amounts Liability Risk adjusted liability amounts Financial and performance guarantees Service level management
  • 53. Tip # 9 Submit a Complete Response Examples 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
  • 54. Checklist for Tender Completion List each schedule required in Part D Response Schedules Match the evaluation criteria to the response schedules Match the mandatory specifications to the response schedules
  • 55. Checklist for Tender Completion Full pricing details Completed compliance statements to contract and specifications Completed insurance details List of 3 referees Signed physical copies of schedules 1 and 2 (where requested) Correct number of copies of the tender document or USB Completed “additional information’ Any drawings/designs etc. requested for in the tender document
  • 56. Electronic Response Before submitting an electronic response please insert your CD / USB into 3 different PCs to ensure the content is there and that it can be read.
  • 57. Tip # 10 Get Your Response in on Time! Late tenders will not be accepted, unless there is conclusive evidence that the late lodgement of the 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.
  • 58. Responding to Government Grants Grants area primary vehicle to: support industry development, and /or deliver against published government policies and programs The assessment of grants is similar to tenders and success is largely dependent on answering the questions well Use the ‘10 Tips’
  • 59. Responding to Government Grants Primary eligibility criteria: geographic location (for example Victoria): a minimum of 50% local operations 100% of R&D, design or innovation activities should be locally based size and revenue of a business (SMEs <200 FTEs and $50M) Provide solutions to a stated government need that can also be commercialised
  • 60. Responding to Government Grants Further criteria: Use of innovative technology Economic development Community development Productivity gains Growth opportunities Opportunities for commercialisation Financial viability
  • 61. How to Differentiate Your Response Offer value add initiatives Offer customer service proposals Offer environmentally friendly initiatives Differentiate your response: Quality systems Innovation Research and Development Knowledge management
  • 62. Exercise 6 – Quality Systems “If you are not in the process of achieving certification, please provide details of how you intend to assure that the deliverables meet the Department’s requirements for quality?” Refer to page 35 of your workbook
  • 63. Closing Statement Contact government Target your marketing Develop a competitive advantage Maximise your chance of winning government business www.business.vic.gov.au/tenders
  • 64. Questions? Thank you for attending Check out business.vic.gov.au/events for more information

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