How to tender. The basics.

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How to tender. The basics.

  1. 1. Sean Hamill 2005 Successful Tendering Sean Hamill Successful Tendering –The Basics Sean Hamill
  2. 2. Sean Hamill 2005 Successful Tendering <ul><li>Housekeeping </li></ul><ul><li>Objectives </li></ul><ul><li>Introduction </li></ul><ul><li>Identifying a need and Picking Targets </li></ul><ul><li>Pick our targets </li></ul><ul><li>EU Rules and Regulations </li></ul><ul><li>Tender Process and Evaluation </li></ul><ul><li>E-Procurement and Tendering </li></ul><ul><li>Debriefing </li></ul><ul><li>Review of Today </li></ul>Agenda Sean Hamill
  3. 3. Sean Hamill 2005 Successful Tendering <ul><li>Objectives </li></ul><ul><li>  Identify suitable bidding opportunities </li></ul><ul><li>Understanding Local & Central Government </li></ul><ul><li>Financial Constraints </li></ul><ul><li>Understanding EU & Government Rules </li></ul><ul><li>The Tender Process. How does it work? </li></ul><ul><li>How does the evaluation process work? </li></ul><ul><li>Improving your win rate in the Public Sector </li></ul>Sean Hamill
  4. 4. Sean Hamill 2005 Successful Tendering Identify the Need Define the Requirement Identify Potential Suppliers Invite Supplier Offers Assess Supplier Offers Agree Prices & Terms Contract Manage Performance Sean Hamill
  5. 5. Sean Hamill 2005 Successful Tendering Understanding Local & Central Government Sean Hamill
  6. 6. Sean Hamill 2005 Successful Tendering What do they buy!!!!!!!!!!!!!!!!! Waste management, residential care, transport taxis, banking, removals, Salt, groceries, piano tuning, books, Insurance, agency staff, professional services, temporary accommodation, security services, vehicles, printing and design, laundry, building materials, property, horticultural materials, plant hire, IT, special needs, clothing, engineering services, equipment, Sub contractors, Energy Communications, Sports Equipment, Window Cleaning, catering, cleaning, office supplies, ETC, ETC, ETC, ETC Sean Hamill
  7. 7. Sean Hamill 2005 Successful Tendering The Rules and Regulations Sean Hamill
  8. 8. Sean Hamill 2005 Successful Tendering Financial Internal to Lean Skills Councils ( typically ) • Up to £1,000 GPC Card at least one quotation • £1,000 - £20,000 at least 3 quotes • £20,000 - £156,449 at least 5 PIN Process submitted Tender • Over £156,449 EU Procurement ( OJEU ) Sean Hamill
  9. 9. Sean Hamill 2005 Successful Tendering Internal to District Councils ( typically ) • Up to £10,000 at least one quotation • £10,001 - £60,000 at least 3 quotes • Over £60,000 but less than £156,449 PIN Process submitted Tenders • Over £156,449 EU Procurement ( OJEU ) Financial Sean Hamill
  10. 10. Sean Hamill 2005 Successful Tendering Understanding EU and Government Rules Sean Hamill
  11. 11. Sean Hamill 2005 Successful Tendering Public Sector Tender Procedures PIN Definitions: • Pre indicative notice • Prior information notice Details of contracts added up over twelve months   All contract details where aggregated spend exceeds the Standing Order value Sean Hamill
  12. 12. Sean Hamill 2005 Successful Tendering Public Sector Tender Procedures Open • Unlimited number of bidders • Usually used for the purchase of goods . EOI (Expression of Interest) Sean Hamill
  13. 13. Sean Hamill 2005 Successful Tendering Public Sector Tender Procedures Restricted • Short-listing of bidders • Non standard or large service requirement • EOI (Expression of Interest) • Two stage process: • Pre-qualification questionnaire assessment • An invitation to tender   Sean Hamill
  14. 14. Sean Hamill 2005 Successful Tendering <ul><li>  </li></ul><ul><li>Pre-Qualification </li></ul><ul><li>Financial strength issue - can the candidate cope </li></ul><ul><li>financially with this size of contract or the asset </li></ul><ul><li>requirement? </li></ul><ul><li>Dependency issue - will the candidate become over- </li></ul><ul><li>dependent on this contract or contracting authority? </li></ul><ul><li>Capacity issue - does the candidate have sufficient </li></ul><ul><li>resources to meet the contract demands? </li></ul><ul><li>Capability issue - does the candidate have the </li></ul><ul><li>necessary skills & experience to carry out the work? </li></ul><ul><li>Technical status / Professional status </li></ul>Sean Hamill
  15. 15. Sean Hamill 2005 Successful Tendering 3 rd Party Vendor Qualification > How • Constructionline - construction industry • Utilities Vendor Database - power, water, transport • First Point Assessment - Oil industry • NHS - National Health Service Purchasing & Supply   > Why • Bench-marked against industry standard / national accreditation Sean Hamill
  16. 16. Sean Hamill 2005 Successful Tendering <ul><li>  </li></ul><ul><li>Framework Agreements </li></ul><ul><li>Where a number of suppliers are awarded </li></ul><ul><li>A way of overcoming aggregation rules </li></ul><ul><li>Awarded along the same lines as any other contract </li></ul><ul><li>Always bear in mind that to be awarded onto a </li></ul><ul><li>Framework Agreement doesn’t mean you have been </li></ul><ul><li>awarded a guarantee or any work </li></ul>Sean Hamill
  17. 17. Sean Hamill 2005 The Tender Process – How does it work? Sean Hamill
  18. 18. Sean Hamill 2005 Successful Tendering <ul><li>Reason for Tender Practice </li></ul><ul><li>Vetting Potential Suppliers Developing Markets </li></ul><ul><li>Bona fide & are capable suppliers </li></ul><ul><li>Formal pre-qualification </li></ul><ul><li>Pre-determined criteria for appraisal </li></ul><ul><li>Standardisation </li></ul><ul><li>Consistent approach </li></ul><ul><li>Consistent measurement </li></ul>Sean Hamill
  19. 19. Sean Hamill 2005 Successful Tendering <ul><li>Benefits of the Tendering Process </li></ul><ul><li>  </li></ul><ul><li>Provides clear public accountability </li></ul><ul><li>Protects employees from bias </li></ul><ul><li>Level playing field to judge the market </li></ul><ul><li>Ensures value for money </li></ul><ul><li>Potential suppliers have the same clear understanding of </li></ul><ul><li>the requirement </li></ul><ul><li>Sound basis for a properly constructed contract </li></ul><ul><li>It prevents complacency </li></ul>Sean Hamill
  20. 20. Sean Hamill 2005 Successful Tendering Every Tender Must Contain <ul><li>Formal invitation </li></ul><ul><li>Instructions to tenderers </li></ul><ul><li>The closing date </li></ul><ul><li>Contract award criteria </li></ul><ul><li>Definition of size & scope </li></ul><ul><li>Comprehensive specification </li></ul><ul><li>Conditions of contract and </li></ul><ul><li>change </li></ul><ul><li>Contract period & extension </li></ul><ul><li>options ( If any ) </li></ul><ul><li>Change controls </li></ul><ul><li>How to deal with variations </li></ul><ul><li>A termination clause </li></ul><ul><li>Instructions for return of tender </li></ul><ul><li>Pricing document </li></ul>Sean Hamill
  21. 21. <ul><li>Expression of interest </li></ul><ul><ul><ul><li>Formal written communication, legal requirement. </li></ul></ul></ul><ul><li>Pre-qualification questionnaire </li></ul><ul><ul><li>Structured document, linked to their selection criteria </li></ul></ul><ul><ul><li>Will contain more detailed information on company financial position and referees </li></ul></ul>Sean Hamill 2005 Successful Tendering Sean Hamill
  22. 22. Sean Hamill 2005 Successful Tendering Sean Hamill
  23. 23. Sean Hamill 2005 Successful Tendering <ul><li>Contract Conditions </li></ul><ul><li>  </li></ul><ul><li>  </li></ul><ul><li>Local Authorities trade on their terms and conditions. </li></ul><ul><li>Contracts are offered on that basis </li></ul><ul><li>  </li></ul><ul><li>SME’s cannot impose their T’s & C’s </li></ul>Sean Hamill
  24. 24. Sean Hamill 2005 Successful Tendering <ul><li>Your Objectives </li></ul><ul><li>  </li></ul><ul><li>Avoid elimination </li></ul><ul><li>Create favourable impression </li></ul><ul><li>Provide information promptly </li></ul><ul><li>Answer all questions as fully as possible </li></ul><ul><li>Tell the truth </li></ul><ul><li>Match responses to customer </li></ul><ul><li>Pick up on clues </li></ul>Sean Hamill
  25. 25. Sean Hamill 2005 Successful Tendering <ul><li>Compliance check </li></ul><ul><li>  </li></ul><ul><li>Read ALL the instructions to tenderer's </li></ul><ul><li>Required information/certificates </li></ul><ul><li>Check, check oh and CHECK AGAIN !! </li></ul><ul><li>More than one pair of eyes is very important </li></ul>Sean Hamill
  26. 26. Sean Hamill 2005 Successful Tendering <ul><li>Briefing Tenderers </li></ul><ul><li>Single session for all </li></ul><ul><li>Named person answers tenderers questions </li></ul><ul><li>Possibly find out who the competition are </li></ul><ul><li>Make contact – People to People </li></ul>Sean Hamill
  27. 27. Sean Hamill 2005 Successful Tendering Receipt of Tender Documents Tenders normally opened by end of first day after closing date • Documents are secure • Never opened before closing dates • All submissions opened at same time • Authorised officers ( at least two present) open tender submissions • All late tenders are excluded • Each bid is dated & signed as opened Sean Hamill
  28. 28. Sean Hamill 2005 Successful Tendering <ul><li>  Evaluation </li></ul><ul><li>Invariably carried out by a working group </li></ul><ul><li>Finance, users and the buyer </li></ul><ul><li>Multiple copies of ITT requested </li></ul><ul><li>Only one copy priced up (maybe) </li></ul><ul><li>Service, Quality and Deliverables will then be married up </li></ul><ul><li>with pricing </li></ul><ul><li>Invariably scoring matrixes have been produced for ITT, </li></ul><ul><li>Presentations and Site Visits. </li></ul><ul><li>If you put in pictures make sure the people are still around at </li></ul><ul><li>the evaluation stage </li></ul>Sean Hamill
  29. 29. Sean Hamill 2005 Successful Tendering Evaluation Criteria   Lowest price • cheapest qualified offer Most Economically Advantageous Tender • Procurement regulations • Quality • Technical merit • Aesthetic & functional characteristics • Delivery/completion dates • Running costs • Price Sean Hamill
  30. 30. Sean Hamill 2005 Successful Tendering Sean Hamill Typical Evaluation Weighting Capacity Weighting 20% Price. Weighting 20% Technical Capability Weighting 20% Financial Strength Weighting 20% Corporate Social Responsibility Weighting 15% Contract Management. Weighting 5%
  31. 31. Sean Hamill 2005 Successful Tendering <ul><li>De-Brief </li></ul><ul><li>  </li></ul><ul><li>Ask for a debriefing (win or loose) </li></ul><ul><li>If you won does that mean your bid was perfect? </li></ul><ul><li>How did we do, how close was it </li></ul><ul><li>What next, how can you help </li></ul><ul><li>Start planning for the relationship </li></ul><ul><li>Review the process </li></ul><ul><li>Plan for the next tendering exercise </li></ul>Sean Hamill
  32. 32. Sean Hamill 2005 Successful Tendering <ul><li>E / Reverse Auctions </li></ul><ul><li>A new concept being used </li></ul><ul><li>Potential suppliers are selected by using exactly the </li></ul><ul><li>same criteria as any other procedure </li></ul><ul><li>Suppliers bid on line on the same day </li></ul><ul><li>A given period of time is given </li></ul><ul><li>Normally carried out for &quot;off the shelf” style goods </li></ul><ul><li>Subject to Post Tender Negotiation </li></ul>Sean Hamill
  33. 33. Sean Hamill 2005 Successful Tendering Tips for Success Sean Hamill
  34. 34. Sean Hamill 2005 Successful Tendering <ul><li>Tips for Success </li></ul><ul><li>  </li></ul><ul><li>Read the documents! </li></ul><ul><li>Understand the requirements before beginning </li></ul><ul><li>Submit ALL the information requested </li></ul><ul><li>Treat the tendering exercise as a project </li></ul><ul><li>Plan the process of information gathering and </li></ul><ul><li>completing the documents – The 6 P’s applies !! </li></ul><ul><li>Work as a team not a group of individuals </li></ul><ul><li>Think what the buyer wants </li></ul>Sean Hamill
  35. 35. Sean Hamill 2005 Successful Tendering <ul><li>Tips for Success (Contd. ) </li></ul><ul><li>  </li></ul><ul><li>Do you have the present contract, do you know </li></ul><ul><li>anything about it? </li></ul><ul><li>Are you competitive? </li></ul><ul><li>Can you deliver the quality required / Will you over </li></ul><ul><li>specify? </li></ul><ul><li>Is the contract for you???? </li></ul><ul><li>If no,- do not go for it! </li></ul>Sean Hamill
  36. 36. Sean Hamill 2005 Successful Tendering Company Policies & Insurance Raise yourself above the competition - presentation of supporting material • Health & Safety. • Quality Assurance • Environmental • Racial, Religious, Sexual equality • Investors in People • Insurance   Sean Hamill
  37. 37. Sean Hamill 2005 Successful Tendering Company Profile and Style <ul><li>Its your opportunity to stand out from the crowd </li></ul><ul><li>especially in highly technical or subjective disciplines. </li></ul><ul><li>It should be as individual as your handwriting. </li></ul><ul><li>You should develop a presentation style for your tender </li></ul><ul><li>documents that everytime a buyer or specifier picks one </li></ul><ul><li>up he should instantly knows its yours. </li></ul><ul><li>The objective is to stand out from the crowd. </li></ul><ul><li>Never be tempted to copy from competition or from any </li></ul><ul><li>other sources such as the Internet – They will know !! </li></ul>Sean Hamill
  38. 38. A Company Profile <ul><li>Why? </li></ul><ul><ul><ul><li>Often required before being invited to tender </li></ul></ul></ul><ul><ul><ul><li>Typically companies may be asked for one of the </li></ul></ul></ul><ul><ul><ul><ul><li>following before inviting them to tender: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Expression of interest </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Pre-qualification questionnaire </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Company profile </li></ul></ul></ul></ul></ul><ul><ul><li>Marketing tool </li></ul></ul><ul><ul><li>Training and induction document </li></ul></ul>Sean Hamill 2005 Successful Tendering Sean Hamill
  39. 39. What makes up a company profile <ul><ul><li>Name of the company </li></ul></ul><ul><ul><li>Contact name </li></ul></ul><ul><ul><li>Address </li></ul></ul><ul><ul><li>Tel/Fax/Email/Website details </li></ul></ul><ul><ul><li>Company background, current organisational structure and present services </li></ul></ul><ul><ul><li>Details of turnover </li></ul></ul><ul><ul><li>Current management profiles </li></ul></ul><ul><ul><li>Broad skills and qualifications of the staff and organisation </li></ul></ul><ul><ul><li>Experience and relevant projects </li></ul></ul><ul><ul><li>References, client list </li></ul></ul>Sean Hamill 2005 Successful Tendering Sean Hamill
  40. 40. Building a case study <ul><li>Case studies are ideal ways to demonstrate how you have delivered </li></ul><ul><li>quality work which is relevant to the tender requirements </li></ul><ul><li>Case studies could include: </li></ul><ul><ul><li>Case study company details </li></ul></ul><ul><ul><li>Picture or company logo </li></ul></ul><ul><ul><li>Brief description of the aims and objectives of the project </li></ul></ul><ul><ul><li>Brief description of the achievements of the project </li></ul></ul><ul><ul><li>Brief description of the problems encountered and how they were overcome </li></ul></ul><ul><ul><li>A reference from the MD or other senior manager </li></ul></ul>Sean Hamill 2005 Successful Tendering Sean Hamill
  41. 41. Choosing referee’s Sean Hamill 2005 Successful Tendering Sean Hamill List names of possible referees Decide who is suitable and reliable Are you on good terms with them? Contact them and ask their permission “ Who could you suggest as potential referees, and why?”
  42. 42. Sean Hamill 2005 Successful Tendering SUMMARY OF TODAY Sean Hamill
  43. 43. Sean Hamill 2005 Successful Tendering Identify the Need Define the Requirement Identify Potential Suppliers Invite Supplier Offers Assess Supplier Offers Agree Prices & Terms Contract Manage Performance Sean Hamill
  44. 44. Sean Hamill 2005 Successful Tendering Sean Hamill
  45. 45. Sean Hamill 2005 Successful Tendering <ul><li>Identify & assess opportunities </li></ul><ul><li>Identify targets as early as possible in cycle </li></ul><ul><li>Pick best prospects for success </li></ul><ul><li>Understand how local authorities work </li></ul><ul><li>Have knowledge of rules & regulations </li></ul><ul><li>Understand the tendering process </li></ul><ul><li>Know what to do to win business </li></ul><ul><li>Can you manage the relationship </li></ul><ul><li>Don’t be afraid to walk away from unsuitable business </li></ul>Sean Hamill
  46. 46. Sean Hamill 2005 Successful Tendering <ul><li>Your Objectives </li></ul><ul><li>  </li></ul><ul><li>Avoid elimination </li></ul><ul><li>Create favourable impression </li></ul><ul><li>Provide information promptly </li></ul><ul><li>Answer all questions as fully as possible </li></ul><ul><li>Tell the truth </li></ul><ul><li>Match responses to customer </li></ul><ul><li>Pick up on clues </li></ul>Sean Hamill
  47. 47. Sean Hamill 2005 Successful Tendering <ul><li>Debrief </li></ul><ul><li>  </li></ul><ul><li>Ask for a debrief even if you win. </li></ul><ul><li>Was your bid really that perfect? </li></ul><ul><li>  Structure the questions </li></ul><ul><li>  If unsuccessful. Use lessons to improve your next </li></ul><ul><li>response, only Rocky wins every one !!! </li></ul>Sean Hamill
  48. 48. Sean Hamill 2005 Successful Tendering Useful Websites www.SupplyingGovernment.qov.uk www.OGC.gov.uk www.OGCBuyinqSolutions.qov.uk www.Simap.eu.int www.hse.qov.uk/pubns/indq259.pdf www.envirowise.qov.uk www.ogc.gov.uk/sdtoolkit/reference/ogc_library/procurement/codeofcusprac.pdf Sean Hamill
  49. 49. Sean Hamill 2005 Successful Tendering THANK YOU FOR YOUR TIME    ARE THERE ANY QUESTIONS? Sean Hamill

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