Love My Tender Workshop 3

1. Love My TenderWorkshop 3 IC Value Ltd

2. Tender PQQ • PQQ must objectively test • Capability and Capacity • and be relevant to the scope and scale of the contract being tendered • PQQ must ensure equality of treatment and ensure that no supplier is discriminated against or not fully considered • Fact based • That means objective not subjective • Prequalification is of the capability and capacity of the business or organisation • Contracting Authority must also test mandatory and minimum criteria • Mandatory • If you cannot comply then this is a Go / No Go issue • Minimum Criteria • A type of accreditation or ratio of contract size to turnover of applicant

3. FinaNcial Capacity • Office of Government Commerce Guidelines for Supplier Financial Appraisal • In the context of the EU rules, financial appraisal is a selection (not an award) criterion and is designed to identify the financial risks to be assessed alongside other relevant qualitative and quantitative factors… • The key objective of financial appraisal in the procurement process is to analyse a supplier’s financial position and determine the level of risk that it would represent to the Authority – having regard to the contract requirement and value, criticality, and the nature of the market. • The assessment of risk should be based on sound business judgement rather than just the mechanistic application of financial formulae • The financial appraisal also needs to form part of a broader, holistic assessment of the candidate, which looks at capacity (the ability to deliver), capability (to a required standard) and the degree of dependency on a single contract or customer.

4. Financial Capacity No fixed rules – check Standing Orders and Procurement Strategies (or ask!) about: • Minimum Turnover • Evidence of Cash Flow • Think about the impact that the current financial crisis is having upon your business, • Think about what price you will be able to charge in the current public sector austerity measures environment.

5. PQQ Summary for Lothians • 14 companies expressed an interest • 7 PQQs completed and submitted by deadline • 7 Submitted own PQQs for comment

6. PQQs Submitted by deadline ( 6th November 2011)

7. PQQ Scoring • Part A – 25 • Part B – 15 • Part C – 10 • Part D – 35 • Part E- 10 • Part F- 0 • Part G- 5

8. Review of PQQ:INSTAR HR Ltd ( Management and Investigation) • the overview needs more about how you will meet the requirements • The PQQ is strong on your organisation’s systems, services and products but the first version did not relate this approach to EHRC as your customer and the contract that you would be working on. • On the whole a PQQ should be about using past evidence of good success to show how you will meet the EHRC requirement. • You are trying to build up a rapport with the customer on paper. • Perhaps Gordon could say a little about the full review process that we underwent this weekend.

9. Review of PQQ: ELS • Section A is good but needs to look at what the buyer wants in the requirement, you are trying to sell your company to the purchaser so it is important to relate your services to the customers requirement in this section in the description of your organisation. • Section B. It is important even if newly trading to submit some financial info. A minimum would be a cash flow forecast and an up to date monthly profit and loss. The council is trying to minimise its risk here and wants to work with organisations who can evidence financial management. • Section c Complete. • Section D. It is important here to fill in in all the boxes and to show even if it is private sector work that you have done how you meet the requirements. It is also important that if you are given a word count to at least use 85% of it. • Section E. Never assume that the purchasers panel will understand what the SQA requirement is. Detail it for them and use the word counts. If you don't write it down they cant score it. On the H&S question detail the provision of the training even if informal is important especially when you remember that almost all of your competition will. The Environment and Equal Opportunity response is strong. • Section F&G Complete

10. Review of PQQ: Chauffer Drive • A small point normally you must attach the form, not paste it into the email. • Excellent section A- Good mix of your company and purchasers needs. Good references to the purchasers type of organisation. • Part B - Complete - Shows good mix of work • Part c- Complete. • Part D - needs more on q25 • Part E - good .section, could do with a bit in q 29 of how the quality controls will ensure this projects delivery and you lose 1 point in the environmental section as you ticked option B and not A. • PART F & G Complete

11. Review of PQQ: ITS • The PQQ is strong on your own organisation’s systems, services and products but is not relating this approach to the client as your customer and the contract that you would be working on. • On the whole a PQQ should be about using past evidence of good success to show how you will meet the requirement. You are trying to build up a rapport with the customer on paper. Customers like to be referenced. • An example would be in question 45 where This section still needs a little work. It needs to use your examples and actually show how these examples are relevant to the Grampian Police requirement. This is the first section that you get to show that you understand what they are looking for. So it is useful to start the section by saying, this case study is chosen as it a close match to the Grampian requirement for........... and then go on to use your example. • Most Public sector organisations use Dun and Bradstreet for Credit Checking purposes. You should get a copy and make sure you are happy with it. • Part D need you to reference and show how what you have done in the past meets this customers requirement. • A final point if possible put as much in the form and less in appendices and if you are going to attach appendices add an index and reference in the question. You may still have to meet any word count.

12. Review of PQQ: North West Carers • Section A is good but needs to look at what the buyer wants in the requirement, you are trying to sell your company to the purchaser so it is important to relate your services to the customers requirement in this section in the description of your organisation. If you are given 400 words that is normally because the tenders is looking for at least 85% of 400 words. Are you registered with the Care Commission? What was your last score?. • Part B - Complete - Shows good mix of work. As you are a charity it might be worth making sure that your credit score stacks up. • Section c Complete. • Section D. It is important here to fill in in the boxes, use the word allocations and sell yourself and to show the work that you have done and how it evidences that you meet the purchasers requirements and that you talk about them. It is also important that if you are given a word count to at least use 85% of it. • Section D. Never assume that the purchasers panel will underatand what the PQASSO requirement is. Detail it for them and use the word counts. If you dont write it down they cant score it. If you do informal H&S training what is it?. The Environment and Equal Opportunity response is strong. • Section F&G Complete

13. Review of PQQ: LBD • The PQQ is strong on your own organisation’s systems, services and products but is not relating this approach to the client as your customer and the contract that you would be working on. • On the whole a PQQ should be about using past evidence of good success to show how you will meet the requirement. You are trying to build up a rapport with the customer on paper. • Customers like to be referenced. An example would be in question 24 where This section still needs a little work. It needs to use your examples and actually show how these examples are relevant to the NHS requirement. This is the first section that you get to show that you understand what they are looking for. So it is useful to start the section by saying, this case study is chosen as it a close match to the NHS requirement for........... and then go on to use your example. • Most Public sector organisations use Dun and Bradstreet for Credit Checking purposes and I have already sent you a separate answer on this point by email. Also please look at the ratio if a contract is for £200000 and your turnover is £100000, then the authority is unlikely to award. You should get a copy of your credit report and make sure you are happy with it. • Part D need you to reference and show how what you have done in the past meets this customers requirement.

14. Review of PQQ -AViour • Section A is good but needs to look at what the buyer wants in the requirement, you are trying to sell your company to the purchaser so it is important to relate your services to the customers requirement in this section in the description of your organisation. • Section B. It is important even if a small company to submit some financial info. A minimum would be a cash flow forecast and an up to date monthly profit and loss. The council is trying to minimise its risk here and wants to work with organisations who can evidence financial management. • Section c Complete. • Section D. Third party staff are agency staff. It is important here to fill in in all the boxes and use the word count add tables and charts to supplement and clarify the information. It is also important that if you are given a word count to at least use 85% of it. • Section E. Quality is King and showing that you have internal control is key. Detail it for them and use the word counts. If you don't write it down they cant score it. An environment policy is now almost mandatory. The Equal Opportunity response is strong. • Section F&G Complete

15. Review of PQQ- East Ayrshire Coalfield Environment Initiative • Section A is good but needs to look at what the buyer wants in the requirement, you are trying to sell your company to the purchaser so it is important to relate your services to the customers requirement in this section in the description of your organisation. • Section B. The Financial Section needs to demonstrate that the organisation has financial management at its core. This needs to make the purchaser feel that there is no risk to giving you the contract. Put yourself in the shoes of the customer and think what you would want to see in this box. A minimum is some sort of forecast accounts. This is not about what the organisation needs to do legally but what it will need to do to win the contract. • Section C Complete. • Section D. It is important here to fill in in all the boxes and use the word count add tables and charts to supplement and clarify the information. It is also important that if you are given a word count to at least use 85% of it This section still needs a little work. It needs to use your examples and actually show how these examples are relevant to the requirement. This is the first section that you get to show that you understand what they are looking for. So it is useful to start the section by saying, this case study is chosen as it a close match to the requirement for........... and then go on to use your example. As you are a small company you need to show in this one example as much relevance to the requirement as possible. • Section E. Quality is King and showing that you have internal control is key- good answer strong answers in this section but use the word allocation . • Section F&G Complete

16. Review of PQQ- Meigle Colour Printers Ltd • Overall a very good PQQ. Ensure that you know what is in any credit check before they do. They will probably use Dun and Bradstreet. • Part D- Try and give a bit more than a yes/ no answer. You are trying to give the impression of a safe pair of hands that has all the systems in place and few risks. • Question 26 The PQQ is strong on your own organisation’s systems, services and products but is not relating this approach to the client as your customer and the contract that you would be working on. On the whole a PQQ should be about using past evidence of good success to show how you will meet the requirement. You are trying to build up a rapport with the customer on paper. Customers like to be referenced. • An example would be in questions 26 and 27 where this section still needs a little work. It needs to use your examples and actually show how these examples are relevant to the Scottish Parliament requirement. This is the first section that you get to show that you understand what they are looking for. So it is useful to start the section by saying, this case study is chosen as it a close match to the Scottish Parliament requirement for........... and then go on to use your example. • Your quality processes are clear and detailed and a strong response

17. Review of PQQ - Sue Ryder • Part A - Good strong response to get full marks try and ensure you have made the link from your services to what the tender requires and make sure you stress your uniqueness and evidence your ability to deliver what this customer wants. Remember there is no such customer as the public sector. There are lots of potential customers within that sector. • Part B - strong complete answer, please get someone to check your credit rating but on this answer very strong approach. • Part C - Complete. • Part D - needs a bit more info, could be put in a table, this is the section to sell yourself and link your experience to this customers requirement. • Part E - I think this section needs a bit on how SR has put into place any measures after any of these actions. On the whole this section may cause some issues for SR particularly with some of the most risk averse public sector customers in Scotland. If you would like more confidential feedback please email me maria.weir@ic-value.com • Part G - complete

18. Review of PQQ-McLeman QS Network Ltd • Part A - Good response to get full marks try and ensure you have made the link from your services to what the tender requires and make sure you stress your uniqueness and evidence your ability to deliver what this customer wants. Remember there is no such customer as the public sector. There are lots of potential customers within that sector. • Part B - strong complete answer, please get someone to check your credit rating but on this answer very strong approach. • Part C - Complete. • Part D - needs a bit more info, could be put in a table, this is the section to sell yourself and link your experience to this customers requirement. • Part E - Excellent section, very complete just link it to the contract requirements for full marks • Part F&G - complete

19. Review of PQQ-Northern Lights • The PQQ is strong on your own organisation’s systems, services and products but is not relating this approach to this client as your customer and the contract that you would be working on. • On the whole a PQQ should be about using past evidence of good success to show how you will meet the requirement. You are trying to build up a rapport with the customer on paper. • Customers like to be referenced. An example would be in question 28 where this section still needs a little work. It needs to use your examples and actually show how these examples are relevant to the Angus requirement. This is the first section that you get to show that you understand what they are looking for. So it is useful to start the section by saying, these case studies are chosen as it a close match to the Angus requirement for........... and then go on to use your example. • As they have given you such a specific requirement spec you need to reference that and show how what you have done in the past meets this customers requirement. • A final point if possible put as much in the form and less in appendices and if you are going to attach appendices add an index and reference in the question.

20. Review of PQQ-Revive Catering • This is one of the best PQQ’s that I have seen with the exception of the Finance section. • The PQQ is extremely strong on your own organisation’s systems, services and products and is good on relating this approach to this client as your customer and the contract that you would be working on. • On the whole a PQQ should be about using past evidence of good success to show how you will meet the requirement. You are trying to build up a rapport with the customer on paper. You are doing this. • The one weakness with the PQQ is its lack of financial information. It is important even if newly trading to submit some financial info. A minimum would be a cash flow forecast and an up to date monthly profit and loss plus a bank reference. The council is trying to minimise its risk here and wants to work with organisations who can evidence financial management. • The sections on quality are very strong and interesting to read.

21. Review of PQQ- LOKTEC • The PQQ is strong on your own organisation’s systems, services and products but is not relating this approach to this client as your customer and the contract that you would be working on. As I did not have any of the appendices it was difficult to see your full response so you may have done that there.. • On the whole a PQQ should be about using past evidence of good success to show how you will meet the requirement. You are trying to build up a rapport with the customer on paper. • As they have given you such a specific requirement spec you need to reference that and show how what you have done in the past meets this customers requirement. • A final point if possible put as much in the form and less in appendices and if you are going to attach appendices add an index and reference in the question.

22. Off Line PQQ Scoring Summary

23. PQQ Agreed Disposition Once All Bids are scored • General rule is to ITT at least five candidates to tender • At least five but subject to minimum score • If scores are all low then what does that mean? Specification could be “not very good” or advertising has not generated enough interest in contract (unlikely if OJEU) • Where to draw the line and include / exclude participants needs to be fair and not discriminate against any business or organisation. So in this case where there is only a point of difference then both invited.

24. What Happens Next • Invitation to Tender is issued to all pre-qualified • Specification • Terms & Conditions • Briefing date for Candidates • Tender Deadline and preparing a project plan to prepare and deliver your tender (40 days and counting down!) if it is above the threshold

25. What SHOULD YOU EXPECT • Equal treatment – get information at same time • Non-discrimination – no preference for local/national suppliers! • Mutal recognition – recognise certificates from other countries • Proportionality – requirements must fit the services procured • Transparency – all requirements clear in contract document

26. ITT DO’s • Read the Specification document and Terms and Conditions FIRST • Ask Questions before you start. • Attend any Briefing meetings if offered • Check the responses to questions daily and read any updates • Start early • Save regularly • Market Yourself and Meet the Customers Needs • Publish your response well before closing date –any tenders that are received passed the closing date and time are not accepted. • Only use the message facility on provided for queries • Check that the ITT is complete before submitting • Attachments must be attached • All asterisked sections MUST be completed • If you need guidance try the “supplier help guide” on the e-tendering portal or ask the general enquiry line at Public Contracts Scotland • And again ....... • Market Yourself and Meet the Customers Needs

27. ITT dont’s • Alter the documentation • Try to upload documents other than Word or Excel unless this is specified. • Omit or Add Attachments • if attachments are missing when you are evaluated then you will not be successful • If you added things they don't want they will be discarded • Leave it until the last minute to submit / publish your tender • Leave your e-tendering session running with no activity – Many you time-out after 15 minutes and you lose all unsaved work

28. Standstill and Feed Back • necessary for the contracting authority to issue notice of their decision to unsuccessful candidate suppliers at least 10 calendar days prior to their entry into the contract • Does not apply to below threshold procurements, or to procurements outside the full scope of the Directives (e.g. Part B services) or where there is only one tenderer • The mandatory standstill period begins the day after the award decision is notified to all tenderers in writing by either fax or e-mail. If the standstill period ends on a non-working day, it must be extended to the next working day.

29. Stanstill and Feedback • Obligation on the contracting authority to provide additional debriefing within the mandatory standstill period if an unsuccessful tenderer requests it by the end of the second working day following the commencement of the standstill period. Contracting authorities must allow for a minimum of three working days between providing the additional debriefing and the end of the standstill period. • Additional debrief shall inform the tenderer of the reasons why he was unsuccessful and, if the tenderer submitted an admissible tender, shall inform him of the characteristics and relative advantages of the successful tender. • For debrief requests received within the standstill period but after the two working days deadline, contracting authorities are not bound to provide further debriefing within the standstill period but still need to provide it within 10 days of receiving a written request • Debriefing for unsuccessful PQQ applicants: • Varying practice re timing – after tender list agreed and notified, after award decision for tender but within standstill period • Detailed info http://www.scotland.gov.uk/Publications/2006/11/16102303/euguidance#a13

30. Remedies Action – What to do if you have a problem • Raise it with the contracting authority • Raise it with the single point of enquiry line who will try and mediate but will not arbitrate • Ask for feedback whether you win or lose • Use the Standstill process and the remedies provisions brought into law in Dec 2009 • Seek legal advice and action as a last resort. • Use the Freedom of Information Act

31. Freedom OF Information – An Example From Angus Council • Freedom of Information • The Freedom of Information (Scotland) Act 2002 came into force on 1 January 2005 and requires all local authorities, including Angus Council, to give access to recorded information about, amongst other things, its contracts. It is not lawful for the council to 'contract out' of its Freedom of Information obligations. • The exemptions allowed under the Act are limited and most are also subject to a test that the public interest in withholding the information is greater than the public interest in releasing it (the 'public interest test'). • In so far as contract information is concerned, some of the Scottish Information Commissioner's recent decisions (see http://www.itspublicknowledge.info/ApplicationsandDecisions/Decisions/Decisions.php) have made it clear than the exemption for commercial interests (where disclosure would be likely to prejudice substantially the commercial interests of any person, subject to the public interest test) will not be readily met unless genuine and substantial commercial prejudice can be established.

32. Freedom OF Information – An Example From Angus Council • This is supplementary to the EU procurement rules applying to contracts above the relevant EU contract value thresholds (currently, approximately £156k for council supplies or services contracts and £3.9m for council construction works contracts). In summary, these provide for confidentiality to be preserved for bidders' tender information during the tender process and for ongoing confidentiality for technical and trade secrets but for mandatory publication of invitation to tender and contract award information. Other information may require to be made available on request. • As such, suppliers doing business with Angus Council should expect that their names and contact details along with overall contract value information may be made publicly available shortly after contract award.

33. Freedom OF Information – An Example From Angus Council • Angus Council will also pro-actively: • Intimate winning bidder and lowest price / most economically advantageous tender information to successful and unsuccessful bidders; • Provide tender de-briefing information on request to unsuccessful bidders; and • Publish contract award information to support sub-contracting opportunities. • The council makes use of the Public Contracts Scotland portal to publish its contract award notices and suppliers are referred there for that information. • The council also publishes its Contract Register, updated on a quarterly basis. This is a record of all the main contracts put in place by the council and of a value of greater than £5,000 over the contract duration. The Contracts Register is available at the following Tayside Procurement Consortium pages (see elsewhere on these Angus Council "Contracts and Tenders" pages for more information on the Tayside Procurement Consortium).

34. Freedom OF Information – An Example From Angus Council • Parties using the public Contracts Register are asked to note the basis on which it is provided: • The information is provided to ensure transparency over let contracts and help keep suppliers informed of broad contract renewal dates, so they can plan ahead should they be interested in bidding for relevant opportunities. • The information is public domain and may not be re-sold or re-used for any commercial purpose. • Whilst every effort is made to ensure the accuracy of the Register, the information is not guaranteed to be exhaustive or definitive so its contents should not be relied upon for any business planning or other purpose.

35. Some general PQQ tips! • If you cannot complete the form or answer the questions then you are unlikely to qualify • Similar information is required between different PQQs but each one is specific in terms of how it is evaluated and scored • Different contracts have different levels of risk associated with them so thresholds to prequalify will reflect that level of risk • The companies that prequalify depends on the level of interest and relative comparison to other companies • Complete as much of the PQQ form as you genuinely can • Make sure you complete electronic forms properly • The longer you have been in business and the better match your specific experience has in relations to the contract being tendered increases your “chances” of success unless the buyer has considered this in defining his objective criteria to account for smaller businesses

36. Top Tips FROM Supplier Development Programme • Identify appropriate opportunities. • Match opportunities with your core business or service offering. • Thoroughly examine advertised Contract Notices. • Are you ready for public procurement? • Identify any mandatory requirements? • Every prequalification is the same but different! • Attend Briefings or participate in any interaction. • Understand your own capability and capacity. • Can you collaborate with others to compete? • Know when not to bid!

37. Where to Get More Help • Economic Development Department at your local council. • Supplier Development Programme • Online from SDP at http://www.sdpscotland.co.uk/online-support.aspx • Online from Public Contracts Scotland at http://www.publiccontractsscotland.gov.uk/guides/guides_list.aspx?Type=30

38. Finding Opportunities • http://www.publiccontractsscotland.gov.uk • www.ogcbuyingsolutions.co.uk • www.pasa.doh.gov.uk • www.dh.gov.uk • www.bipcontracts.com • www.supplyinggovernment.gov.uk • www.supply2.gov.uk • www.tendermatch.com • www.contraxweekly.co.uk • www.contracts.mod.uk • www.dcicontracts.com • www.constructionline.co.uk • www.cips.org • www.nearbuyou.co.uk • www.sea-online.net • www.simap.eu.int • http://ted.publications.eu.int • www.tenders.co.uk • www.tendersdirect.co.uk

39. Any Questions • Or if you need more help: • Speak to the economic development department at your local council • The Supplier Development Programme • And ask if you can have support from the new pilot initiative giving help with PQQs by phone and email. The pilot is free so go and ask for your next PQQ.