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How to Tender for Public Sector Contracts


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Slides from the Clonmel Chamber event 'How to Tender for Public Sector Contracts'

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How to Tender for Public Sector Contracts

  1. 2. How to Tender
  2. 3. Agnition <ul><ul><li>In business since 2005 </li></ul></ul><ul><ul><li>Won our first tender that year </li></ul></ul><ul><ul><li>In 2010, we were successful with 55% of the tenders we submitted </li></ul></ul>
  3. 4. Agnition
  4. 5. Where to Start? <ul><ul><li>Sourcing Tenders </li></ul></ul><ul><ul><li>Setting up Alerts </li></ul></ul><ul><ul><li>Understanding Tenders ITT, RFP, RFT </li></ul></ul><ul><ul><li>Knowing Decision Makers </li></ul></ul><ul><ul><li>Closed Tenders </li></ul></ul>
  5. 6. Making the Decision <ul><ul><li>Evaluating the Cost and Time </li></ul></ul><ul><ul><li>The Long Shot </li></ul></ul><ul><ul><li>Is it Worth it? </li></ul></ul><ul><ul><li>The Inside Track…how to use </li></ul></ul>
  6. 7. Sticking to the Rules <ul><ul><li>Handling Questions </li></ul></ul><ul><ul><li>Sticking to the Tender Format </li></ul></ul><ul><ul><li>Using Checklists </li></ul></ul><ul><ul><li>Compliance - Tax, Insurance, Financials </li></ul></ul>
  7. 8. Making the Cut <ul><ul><li>Qualifying </li></ul></ul><ul><ul><li>Submitting – print, email, e-postbox </li></ul></ul><ul><ul><li>The importance of the Cover Letter </li></ul></ul><ul><ul><li>Attending the Opening </li></ul></ul><ul><ul><li>Making The Short list </li></ul></ul><ul><ul><li>Making the Presentation </li></ul></ul>
  8. 9. After you Win <ul><ul><li>Exchanging Contracts </li></ul></ul><ul><ul><li>Dealing with Procurement </li></ul></ul><ul><ul><li>Purchase Orders </li></ul></ul><ul><ul><li>Invoicing </li></ul></ul><ul><ul><li>Witholding Tax </li></ul></ul><ul><ul><li>VAT </li></ul></ul><ul><ul><li>Prompt Payment Act </li></ul></ul>
  9. 10. If you Lose <ul><ul><li>Getting Feedback </li></ul></ul><ul><ul><ul><li>Number of quotes received </li></ul></ul></ul><ul><ul><ul><li>Evaluation criteria – ranking, marks awarded to winning bid vs marks for you </li></ul></ul></ul><ul><ul><li>Using Feedback </li></ul></ul><ul><ul><ul><li>Improve </li></ul></ul></ul><ul><ul><ul><li>Understand the competition </li></ul></ul></ul>
  10. 11. Build Up Your Stock <ul><ul><li>Company details </li></ul></ul><ul><ul><li>References </li></ul></ul><ul><ul><li>Testimonials </li></ul></ul><ul><ul><li>Product description </li></ul></ul><ul><ul><li>Approach </li></ul></ul>
  11. 12. Some Pitfalls <ul><ul><li>Attention to detail </li></ul></ul><ul><ul><li>Printing, emailing and electronic mailbox </li></ul></ul><ul><ul><li>Names and addresses </li></ul></ul><ul><ul><li>The Deadline </li></ul></ul><ul><ul><li>And Finally, ask, ask, ask… </li></ul></ul>
  12. 13. In Summary <ul><ul><li>Tenders take time </li></ul></ul><ul><ul><li>Investment </li></ul></ul><ul><ul><li>Marketing </li></ul></ul><ul><ul><li>Learn from highs and lows </li></ul></ul><ul><ul><li>Continuous process improvement </li></ul></ul><ul><ul><li>Assess regularly </li></ul></ul>
  13. 15. 04/29/10 Mary O'Halloran Senior Procurement Manager Client Relations Clonmel Chamber 17 th February 2011
  14. 16. 04/29/10 Topics Covered <ul><ul><li>Accessing the Public Sector </li></ul></ul><ul><ul><li>Preparing for success </li></ul></ul><ul><ul><li>How to improve your chances </li></ul></ul><ul><ul><li>What are Buyers looking for? </li></ul></ul><ul><ul><li>Tendering Tips </li></ul></ul>
  15. 17. 04/29/10 Context Pub Context Public Sector Spend in Procurement lic Sector Spend in Procurement
  16. 18. 04/29/10 Context of NPS's Establishment: “ Government's Belief That Reform of Structural & Operational Frameworks for Public Procurement of Goods and Services Will Deliver Significant Savings to the Exchequer”
  17. 19. 04/29/10 NPS Mission: <ul><ul><li>Access to Best Value Goods & Services </li></ul></ul><ul><ul><li>Reduced Administrative Overheads & Full Legal Compliance </li></ul></ul><ul><ul><li>Professional Public Procurement Practices </li></ul></ul><ul><ul><li>Benefits for Exchequers and Business Suppliers </li></ul></ul>
  18. 20. 04/29/10 STRATEGY Goal 1 Strategic Sourcing Goal 2 Education Training Goal 3 eProcurement Human Resource Development Research & Benchmarking Measurement Statistics, Market Targeting Performance Internal Supporting Strategies
  19. 21. 04/29/10 Top Spend Categories <ul><ul><li>Construction </li></ul></ul><ul><ul><li>ICT </li></ul></ul><ul><ul><li>Travel </li></ul></ul><ul><ul><li>Energy </li></ul></ul><ul><ul><li>Professional Services </li></ul></ul><ul><ul><li>Roads </li></ul></ul><ul><ul><li>Energy </li></ul></ul><ul><ul><li>Waste Disposal </li></ul></ul><ul><ul><li>Water </li></ul></ul><ul><ul><li>Plant & Equipment </li></ul></ul>21. Printing & Publishing 22. Janitorial & Cleaning 23. Recruitment 24. Training 25. Stationery 26. Uniforms & Clothing 27. Audits & Accounting 28. Office Equipment 29. Insurance 11. Medical Supplies 12. Transport 13. Advertising 14. Telephones 15. Postage 16. General Maintenance 17. Laboratory Supplies 18. Fuel 19. Food, Catering 20. Security Services
  20. 22. 04/29/10 Public Sector Procurement Environment <ul><ul><li>Government Departments, State Bodies, Agencies HSE, Local Authorities </li></ul></ul><ul><ul><li>Education Sector – Universities, Schools, Colleges </li></ul></ul><ul><ul><li>Size of Market – Ireland €19 Billion 2007 </li></ul></ul><ul><ul><li>Information sources: </li></ul></ul><ul><ul><ul><ul><li>eTenders Website </li></ul></ul></ul></ul><ul><ul><ul><ul><li>LAQuotes </li></ul></ul></ul></ul><ul><ul><ul><ul><li>E-sourcing NI </li></ul></ul></ul></ul><ul><ul><ul><ul><li>OGC </li></ul></ul></ul></ul><ul><ul><ul><ul><li>TED </li></ul></ul></ul></ul>
  21. 23. 04/29/10 Public Procurement Principles <ul><ul><li>Equal Treatment </li></ul></ul><ul><ul><li>Transparency </li></ul></ul><ul><ul><li>Proportionality </li></ul></ul><ul><ul><li>Mutual Recognition </li></ul></ul><ul><ul><li>Dictates how contracting bodies but not what they buy </li></ul></ul>
  22. 24. 04/29/10 EU the Basics - Procedures <ul><ul><li>Single stage procedure </li></ul></ul><ul><ul><li>Two stage processes </li></ul></ul>Submit “application” to be invited to tender Evidence your capability and capacity to meet requirement Open- anyone may tender
  23. 25. 04/29/10 EU the basics- Two Stage Procedures <ul><ul><li>Restricted </li></ul></ul><ul><ul><ul><ul><li>Minimum number invited to tender </li></ul></ul></ul></ul><ul><ul><li>Competitive Dialogue </li></ul></ul><ul><ul><ul><ul><li>Very complex requirements </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dialogue before invitations to tender issued </li></ul></ul></ul></ul><ul><ul><li>Negotiated </li></ul></ul><ul><ul><ul><ul><li>RFT issued and responses form basis of negotiation </li></ul></ul></ul></ul>
  24. 26. 04/29/10 How NPS Advertises Contracts Competitive process should be used unless there are justifiable & exceptional circumstances High value Purchase € 25K up to EU Threshold: €125K Advertise in eTenders (open) € 125K – Advertise in OJEU & eTenders Low Value Purchase - < €1K – One Verbal Quote < €5K – One Written Quote Intermediate Value Purchase Between €5K & €25K - Formal Tender Process – Minimum 3 quotes by Invitation or Open Process (Debriefing)
  25. 27. 04/29/10 Sources of Opportunities
  26. 28. 04/29/10 Changing Landscape <ul><ul><li>One Dept. taking lead on shared procurements </li></ul></ul><ul><ul><li>Move to address concerns of SME's </li></ul></ul>
  27. 29. 04/29/10 Barriers to SME Participation <ul><ul><li>Unnecesssarily High Qualification Levels </li></ul></ul><ul><ul><li>Insufficient Time to Prepare/Submit Tenders </li></ul></ul><ul><ul><li>Difficulty in understanding Evaluation Procedure </li></ul></ul><ul><ul><li>Cost (lowest?) the Primary Criterion </li></ul></ul>
  28. 30. 04/29/10 Study/Report Recommendations <ul><ul><li>Advertise opportunities </li></ul></ul><ul><ul><li>Have Trained/Professional Purchases </li></ul></ul><ul><ul><li>Simplify Procedures/Reduce Bureaucracy </li></ul></ul><ul><ul><li>eProcurement/Technology to Reduce Costs </li></ul></ul><ul><ul><li>Break Larger Requirement into Lots (where appropriate) </li></ul></ul><ul><ul><li>Purchasers Engage More with Suppliers </li></ul></ul>
  29. 31. 04/29/10 Circular 10/10 – Main Features <ul><ul><li>€ 25K/50K etenders Advertising Threshold </li></ul></ul><ul><ul><li>Open Procedures up to €125K/250K </li></ul></ul><ul><ul><li>Appropriate Capacity Requiremetns – Technical, Financial </li></ul></ul><ul><ul><li>Company Financial Turnover Issues </li></ul></ul><ul><ul><li>Need for Proportionality </li></ul></ul>
  30. 32. 04/29/10 Circular 10/10 – Main Features <ul><ul><li>Declaration & Evidence at Award/Shortlisting Stage </li></ul></ul><ul><li>(or fullest extent possible) </li></ul><ul><ul><li>Sub-divide Bigger Contracts into Lots (where appropriate) </li></ul></ul><ul><ul><li>Charging Businesses to Compete Precluded </li></ul></ul>
  31. 33. 04/29/10 Benefits of New eTenders System <ul><ul><li>Supplier Register </li></ul></ul><ul><ul><li>Pre-qualification </li></ul></ul><ul><ul><li>Request for Tender </li></ul></ul><ul><ul><li>Quick Quotes </li></ul></ul>
  32. 34. 04/29/10 Understand The Evaluation Process Three steps- regardless of procedure used Qualification Selection Award
  33. 35. 04/29/10 Exclusion Criteria <ul><ul><li>Bankrupt or About to be Wound Up </li></ul></ul><ul><ul><li>Conviction of Offence for Professional Misconduct </li></ul></ul><ul><ul><li>Been Guilty of Corruption, Fraud or Money Laundering </li></ul></ul><ul><ul><li>Misrepresented Information </li></ul></ul>
  34. 36. 04/29/10 Evaluation of Process <ul><ul><li>Lowest Price </li></ul></ul><ul><li>or </li></ul><ul><ul><li>MEAT (Most Economically Advantageous Tender) </li></ul></ul><ul><ul><li>Other Factors </li></ul></ul><ul><ul><ul><ul><li>Whole of life cost </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Price </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Running costs </li></ul></ul></ul></ul><ul><ul><ul><ul><li>After Sales Services </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Disposal costs </li></ul></ul></ul></ul>
  35. 37. 04/29/10 Prepare for Success <ul><li>Managing your key information </li></ul><ul><li>Maintain a Tender Content Library to Include </li></ul><ul><ul><li>Company Organisation Chart </li></ul></ul><ul><ul><li>Financial Accounts/Statements </li></ul></ul><ul><ul><li>Company Policy’s </li></ul></ul><ul><ul><li>Accreditation Documents </li></ul></ul><ul><ul><li>Insurances </li></ul></ul><ul><ul><li>References </li></ul></ul><ul><ul><li>Key Staff Biographies </li></ul></ul>
  36. 38. 04/29/10 How to Improve your Chances <ul><ul><li>Delegation of Bid preparation </li></ul></ul><ul><ul><li>Assign Team Leader </li></ul></ul><ul><ul><li>Include a member of each relevant Dept </li></ul></ul><ul><ul><li>Draft, review and sign off </li></ul></ul>
  37. 39. 04/29/10 Read Document Carefully <ul><ul><li>Read the Documentation carefully </li></ul></ul><ul><ul><ul><li>Make sure you understand it </li></ul></ul></ul><ul><ul><ul><li>Identify instructions </li></ul></ul></ul><ul><ul><ul><li>How do they want the information? </li></ul></ul></ul><ul><ul><li>Look for “strong” words </li></ul></ul><ul><ul><ul><li>Shall, will, must </li></ul></ul></ul><ul><ul><ul><li>Make sure you do what they ask </li></ul></ul></ul><ul><ul><ul><li>Have they asked for additional information </li></ul></ul></ul>
  38. 40. 04/29/10 Read Document Carefully ctd. . . <ul><ul><li>Seek clarification is necessary </li></ul></ul><ul><ul><li>E-tendering systems </li></ul></ul><ul><ul><ul><li>Understand what’s involved in uploading your documents </li></ul></ul></ul><ul><ul><ul><li>Some required information to be keyed on-line </li></ul></ul></ul><ul><ul><ul><li>This takes time and needs to be planned </li></ul></ul></ul>
  39. 41. 04/29/10 Understand The Specification <ul><ul><li>Identify what are mandatory (key) requirements </li></ul></ul><ul><ul><ul><ul><li>Make sure you address them </li></ul></ul></ul></ul><ul><ul><ul><ul><li>If you can’t, question your chances of winning the tender </li></ul></ul></ul></ul><ul><ul><li>Identify the desirable requirements </li></ul></ul><ul><ul><ul><ul><li>Can you address them and how </li></ul></ul></ul></ul><ul><ul><li>Will it be enough to give you a “winning” tender </li></ul></ul><ul><ul><li>Seek clarification if necessary </li></ul></ul>
  40. 42. 04/29/10 Innovation <ul><ul><li>Provide a fully-complaint response if required to do so </li></ul></ul><ul><ul><li>If you wish to propose a better way of satisfying the requirement </li></ul></ul><ul><ul><ul><ul><li>Present it in a separate document clearly identifying this as an alternative proposal </li></ul></ul></ul></ul><ul><ul><li>Include full Risk Assessment </li></ul></ul><ul><ul><li>Clearly demonstrate how the alternative approach will meet the Authority’s needs and provide even better Value for Money then your complaint bid. </li></ul></ul>
  41. 43. 04/29/10 What Buyers Want <ul><ul><li>Evidence that the applicant can meet the need by demonstrating its: </li></ul></ul><ul><ul><ul><ul><li>Capability </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Capacity </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Relevant experience </li></ul></ul></ul></ul><ul><ul><li>Meet the ITT specification: </li></ul></ul><ul><ul><ul><ul><li>Will deliver what’s being asked for </li></ul></ul></ul></ul><ul><ul><li>Comply with the ITT requirements: </li></ul></ul><ul><ul><ul><ul><li>Provide the requested information in the format specified </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Agree to the Contract Terms & Conditions </li></ul></ul></ul></ul>
  42. 44. 04/29/10 What Buyers Want Cont. <ul><ul><li>Provide overall Value for Money and is Affordable </li></ul></ul><ul><ul><ul><ul><li>Include added value at no extra cost </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Are within their allocated budget </li></ul></ul></ul></ul><ul><ul><li>At interview – If Requested </li></ul></ul><ul><ul><ul><ul><li>Present as a cohesive unit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Project confidence and “a safe pair of hands” </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Understand the requirement </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>the tender submission </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The “numbers” </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Make you someone they want to work with </li></ul></ul></ul></ul>
  43. 45. 04/29/10 Tendering Tips <ul><ul><li>Follow Requested Format & Instructions to Tenderers </li></ul></ul><ul><ul><li>Attach all Requested Documentation &/or Samples </li></ul></ul><ul><ul><li>Criteria Weightings Indicate Relative Importance Each Area </li></ul></ul><ul><ul><li>Ensure Sufficient Information to Allow Each Criterion be Evaluated </li></ul></ul><ul><ul><li>Complete Pricing Schedule Very Carefully </li></ul></ul>
  44. 46. 04/29/10 Tendering Tips <ul><ul><li>Attend Authority’s Tender briefing sessions- Ask questions! </li></ul></ul><ul><ul><li>Always be Clear & Concise – Relevant </li></ul></ul><ul><ul><li>Ensure tender is delivered on time and to correct address! </li></ul></ul><ul><ul><li>Do Not Submit General “Brochure” Proposal – be Specific to Competition </li></ul></ul>
  45. 47. 04/29/10 Ideal Tenders <ul><ul><li>Clearly show how and why your tender is the Most Economically Advantageous Tender </li></ul></ul><ul><ul><li>Are customer focused </li></ul></ul><ul><ul><li>Are innovative </li></ul></ul><ul><ul><li>Identify and address risk </li></ul></ul><ul><ul><li>Show clearly how they will deliver continuous development and improvement </li></ul></ul>
  46. 48. 04/29/10 Post Tender Review <ul><li>Should be carried Out by Tender/Bid Manager & Consider Following: </li></ul><ul><ul><li>Poor Planning </li></ul></ul><ul><ul><ul><ul><li>Was the Bid Rushed & Did Quality Suffer? </li></ul></ul></ul></ul><ul><ul><li>Poor Administration </li></ul></ul><ul><ul><ul><ul><li>Was there Missing or Erroneous Content? </li></ul></ul></ul></ul>
  47. 49. 04/29/10 Post Tender Review ctd. . . <ul><ul><li>Costing </li></ul></ul><ul><ul><ul><ul><li>Was it Set at the Correct Level </li></ul></ul></ul></ul><ul><ul><li>Information </li></ul></ul><ul><ul><ul><ul><li>Were Essential Elements Missing? </li></ul></ul></ul></ul><ul><ul><li>Were the Requirements Read Correctly </li></ul></ul><ul><ul><ul><ul><li>Resulting in Incorrect/Non-Compliant Solution? </li></ul></ul></ul></ul>
  48. 50. 04/29/10 Debriefing <ul><ul><li>If Debriefings are offered attend if at all possible </li></ul></ul><ul><ul><li>Prepare your questions in advance </li></ul></ul><ul><ul><li>Remain calm </li></ul></ul><ul><ul><li>Ensure relevant team members attend </li></ul></ul>
  49. 51. 04/29/10 Mary O'Halloran Senior Procurement Manager Client Relations [email_address]