Tender Ready in 10 Steps

1. Tender Ready in 10 Steps Workshop 1 – 21st March Workshop 2 – 28th March Workshop 3 – 4th April Gill Joy, Owen Paterson Intend Business Development LLP Tender Ready in 10 Steps - Aberdeen

2. Tender Ready in 10 StepsObjectives √ • Understand what buyers are looking for • Learn how to find and assess relevant opportunities in your sector • Obtain practical guidance and templates to assist the bidding process/commercial quotes • Create structured tender responses that attract high scores • Develop a blueprint for your own professional tenderdesk and an action plan for successful tendering/commercial bids Tender Ready in 10 Steps - Aberdeen

3. Tender Ready!! The 10 Steps 10 Creating a Tender Desk 7 8 9 “People” aspects Of Tendering Policies & Standards Presenting Professional tenders 4 5 6 Buyer’s View – prepare and evaluate tenders Presenting Company information Responding to Technical & Quality questions 1 2 3 Understanding the Procurement Landscape Introduction to Tender Documents Market Intelligence & Bid Strategies Tender Ready in 10 Steps - Aberdeen

4. Understanding the Procurement Environment 1 • What is Procurement? • Buying Authorities & Government Organisations • Procurement Regulations – the basics • Procurement Reform – more power to the supplier’s elbow • Tendering systems Tender Ready in 10 Steps - Aberdeen

5. What is Procurement? Procurement is the whole process of acquisition from third parties and covers goods, services and works projects. This process spans the whole life cycle from initial concept and definition of business needs through to the end of useful life of an asset or end of services contract Tender Ready in 10 Steps - Aberdeen

6. Grants, SLAs & Contracts Source: 'Tendering for Public Sector Contracts: a practical guide for social economy organisations‘, Social Economy Scotland Tender Ready in 10 Steps - Aberdeen

7. Public Sector Buying Authorities • The Scottish Government and other Scottish government agencies (Historic Scotland); • The National Health Service (NHS Tayside); • Local Authorities (Aberdeen City/Aberdeenshire Councils); • UK government departments based in Scotland (Inland Revenue, Jobcentre Plus); • Key public services such as the police, fire service, judiciary (Lothian and Borders Fire & Rescue); • Further and Higher Education establishments (Dundee College, Robert Gordons University); • A series of non-departmental government bodies (Scottish Natural Heritage) Tender Ready in 10 Steps - Aberdeen

8. Buyers: Who spends what? Data provided by Scottish Government from 179 public bodies: 169 public bodies covering data from 2008-09 and 10 public bodies from 2007-08 Source: Independent Budget Review July 2010 Tender Ready in 10 Steps - Aberdeen

9. Legal Framework EU Treaty - Principles for Public Procurement • EU Procurement Directives • EC Directive 2004/18 – “Public Contracts Directive” • EC Directive 2004/17 – “Utilities Directive” • EC “Remedies” Directives – amended 2007 Case law UK and Europe • UK implementations of EU Directives • Public/Utilities Contracts (Scotland) Regs 2006 • Amendment Regulations 2009 Freedom of Information (Scotland) Act 2002 Standing Orders for Contracts made under Section 81 of the Local Government (Scotland) Act, 1973 Tender Ready in 10 Steps - Aberdeen

10. Legal Principles Achieve Value for Money through open and fair competition. Adhere to EU treaty principles: Equal treatment – get information at same time Non-discrimination – no contracts restricted to local suppliers Mutal recognition – recognise certificates from other countries Proportionality – requirements must fit the services procured Transparency – all requirements clear in contract document Tender Ready in 10 Steps - Aberdeen

11. Types of tenders Those covered by EC/UK Regulations: • Tenders issued by public sector authority (Works, Supply, Services) • Above nationally/EC agreed value • May also include contracts for companies that exist to deliver public services Those NOT fully covered by EC/UK Regulations: • Tenders issued by a commercial company • Public contract below agreed value (sub-threshold) – treatment depends on authority internal rules • Part B services (eg health and social services, education and training where less EU interest) Tender Ready in 10 Steps - Aberdeen

12. Thresholds 2010-11 for EU contracts Contracted byServices &GoodsWorks Central Govt £101,323 £3,927,260 Other Public £156,442 £3,927,260 Tender Ready in 10 Steps - Aberdeen

13. Part B Services Hotel & Restaurant services Supporting transport services Personnel placement and supply Security services (Vocational) Education services Health and social services Recreational, cultural and sporting services Tender Ready in 10 Steps - Aberdeen

14. Impact of Regulations • Adequate opportunity to learn what contracts are available • Assessed on objective/fair basis as to capability • Most Economically Advantageous Tender (MEAT) = Price and Quality • Lowest Price • Predictable procedures should be followed allowing equal treatment • Open, Restricted, Framework, Auction, etc • Minimum timescales should be respected to allow bidders time to prepare • Not the case for low value contracts or Part B services Tender Ready in 10 Steps - Aberdeen

15. Impact of Regulations • Criteria should be set in advance and publicised • Eg. Price 40% Quality 60% • Quality criteria include methodology, performance, sustainability, experience, innovation etc • Tech spec must not be drafted as to distort competition • Max length for framework agreements 4yrs • Regulated award and feedback mechanisms Tender Ready in 10 Steps - Aberdeen

16. Sub-threshold contracts Authority must: “ensure a degree of advertising which is sufficient to enable open competition and meet the requirements of the principles of equal treatment, non-discrimination and transparency” Tender Ready in 10 Steps - Aberdeen

17. Standing Orders • Standing Orders define how public authorities (Councils, Police Boards etc) conduct their procurement processes including sub-threshold • Not all the same! • May include mandatory requirements (eg Constructionline membership) • Can be changed? Clackmannan Council changed SOs to advertise all contracts > £10K Tender Ready in 10 Steps - Aberdeen

18. Procurement Reform Scottish Government Procurement Reform Programme 2006 objectives • Better purchasing – target £740m in first 3yrs • Best practice/skills • Improved processes/cross sector working Tender Ready in 10 Steps - Aberdeen

19. Procurement Reform • E-Procurement • Standardised Pre-Qualification Questionnaire (PQQ) & other documents • Public Contracts Scotland & Quick Quote • Scottish Procurement Handbook • Single Point of Enquiry • Suppliers Charter • Collaborative buying organisations Tender Ready in 10 Steps - Aberdeen

20. Source: Scottish Government Tender Ready in 10 Steps - Aberdeen

21. Scotland Excel – commodity • Contract: Education Furniture Period: 2 Nov 2009 to 7 Feb 2011Commodity Manager: Natalie CliffTel: 0141 842 6654e-mail: natalie.cliff@scotland-excel.org.uk British ThorntonCaledonian Furniture Manufacturing LtdEME Furniture LtdGopak LtdHavelock Europa plc T/A ESA McIntoshRemploy LimitedSenator International LtdSICO Europe LtdStage Systems Ltd Tender Ready in 10 Steps - Aberdeen

22. Central Govt Centre of Procurement Expertise Tender Ready in 10 Steps - Aberdeen

23. Issues for suppliers • Large national “A” contracts are difficult for SMEs to win – look for Lots/ subcontracts • Framework contracts can be for 4yrs • Need to research where your products/ services fit in the Vision pyramid & check timings • Make contact with central buying teams – share market knowledge Tender Ready in 10 Steps - Aberdeen

24. E-tendering systems Tender Ready in 10 Steps - Aberdeen

25. Introduction to Tender Documents 2 • Tender Ready Checklist • Examples of PQQ and Tender • Basic eligibility checks • General tips for completing tenders and PQQs • Techniques for answering the “killer” questions Tender Ready in 10 Steps - Aberdeen

26. Tender Ready Checklist Tender Ready in 10 Steps - Aberdeen

27. PQQs andTenders PQQ – PreQualification Questionnaire • Used in Restricted Tenders (2 stages) • Standard formats for some parts • sPQQ project aims to eliminate duplication of effort for basic company capability information Open Tenders • ITT Invitation to Tender, no prequal • Variety of formats Tender Ready in 10 Steps - Aberdeen

28. Basic eligibility checks (Pass/Fail) Business Probity Turnover (occasionally) Security Clearance Insurance : Employers Liability; Public Liability; Product Liability; Professional Indemnity 2 or 3 Years’ Financial Accounts - signed Equality & Diversity Policy Environmental Policy Health & Safety Policy Constructionline or other membership ( occasionally) ISO 9001 certified Quality Management system Tender Ready in 10 Steps - Aberdeen

29. General tips for completing tenders and PQQs Tender Ready in 10 Steps - Aberdeen

30. Getting started • Review tender documents in full as early as possible (create or update checklist) • Check for bidder briefing sessions • Look out for missing pages and text errors • Send any questions asap (check if copied to all bidders and any deadlines) Tender Ready in 10 Steps - Aberdeen

31. Getting started • Check award criteria (MEAT or lowest price?) • Selection criteria for PQQ stage – check weighting • Scoring method published? • Any minimum standards required? (eg turnover) • Identify any difficult/ambiguous questions • Review available market info (Awards, current contract performance, competitors, news, etc) • Brief your team/ partners / sub-contractors Tender Ready in 10 Steps - Aberdeen

32. Good practice • Offer something that others do not • Show understanding of client priorities • Show ability to work collaboratively/share risk • Validate all claims • Structure longer text answers – reflect the question text • Tackle any pre-conceptions Tender Ready in 10 Steps - Aberdeen

33. Good Practice... • Watch out for Q&A feedback • Don’t deviate from PQQ format • Answer all the questions !! • Delegate the standard stuff then CHECK • Use all the space provided • Avoid Cut & Paste Tender Ready in 10 Steps - Aberdeen

34. Good practice.. • Don’t put all information in Appendices • Cross-reference between Appendices and questions • Check process for attachments if electronic submission (max size) • Don’t leave submission until last moment Tender Ready in 10 Steps - Aberdeen

35. Key scoring elements • Technical & Management capability • Methodology/ Project management • Quality management approach • Technical & People resources • Your experience • Added value (sustainability, community benefits, innovation in past projects) • Financial capacity Tender Ready in 10 Steps - Aberdeen

36. Techniques for answering “killer” questions …. To be continued with practice in Step 6 … Tender Ready in 10 Steps - Aberdeen

37. Killer Question Topics • Technical & Management capability • Methodology/ Project management • Quality management approach • Technical & People resources • Your experience • Added value(sustainability, community benefits, innovation in past projects) Tender Ready in 10 Steps - Aberdeen

38. Killer Question Examples • Describe your technical and management approach to this project • How will you ensure high quality results are delivered to meet the specification? • How will you add value to the delivery of this contract? Tender Ready in 10 Steps - Aberdeen

39. Structured answers • What is the Buyer concerned about? Read the tender docs • What elements of the questions need addressed? Use subheadings • Evidence? • Your strengths versus the competition? Tender Ready in 10 Steps - Aberdeen

40. Market Intelligence & Bid Strategies 3 • Researching public sector clients/markets • Finding tender notices • Reading a contract notice • Bid-no Bid decisions Tender Ready in 10 Steps - Aberdeen

41. Key intelligence elements • Who are the buyers? • What tenders have they advertised? • What about the ones you don’t see on the Tenders Databases? • What are my target buyers concerned about? • How can I raise my profile? Tender Ready in 10 Steps - Aberdeen

42. Scottish Public Sector • The Scottish Parliament, Scottish Government and other Scottish government agencies • The National Health Service Scotland • Local Authorities • UK government departments based in Scotland (eg. Inland Revenue, Jobcentre Plus) • Key public services such as the police, fire service, judiciary • Further and Higher Education establishments • Non-departmental government bodies Tender Ready in 10 Steps - Aberdeen

43. European Buyers • Opportunities in Netherlands, Ireland, Scandinavia? • European Commission Directorates General • European Investment Bank • European Bank of Reconstruction & Development • Agencies: • EMEA – London (Medicines) • EUROFOUND – Dublin (Living & Working) • CEDEFOP – Brussels (Vocational training) • EEA – Copenhagen (Environment) Tender Ready in 10 Steps - Aberdeen

44. Tender search/alerts • Public Contracts Scotland – Quick Quote • Tenders Electronic Daily – UK and EU • Contracts Finder – UK contracts £10K+ • CompeteFor (London 2012 + more) • Glasgow 2014 Business Portal • Google Alerts • etc • See “Sources of tenders” document Tender Ready in 10 Steps - Aberdeen

45. Collaborative Buying Organisations OGC Buying Solutions (public sector) http://online.ogcbuyingsolutions.gov.uk/news NE Procurement https://www.qtegov.com/procontract Source East Midlands www.sourcederbyshire.co.uk (> Links) GM Procure (social housing) www.gmprocure.com Yorkshire Purchasing Organisation (general supplies) www.ypo.co.uk PRO-NE (NHS health) http://www.nhsprocurement-northeast.nhs.uk Tender Ready in 10 Steps - Aberdeen

46. Client Profiling Checklist What information should you look for when researching public sector clients? Tender Ready in 10 Steps - Aberdeen

47. Getting “below the radar” • Understand Buyer’s view of procurement – check website for issues/strategic initiatives / response to current economic challenges • Check key buyer sites for tender/request for quotes adverts, tender registers • Prior Info Notices (PINs), Buyer Profiles on PCS • Award notices to track competitor/ partner activity and spot subcontract opportunities • Contact potential clients directly (after the research above!) and ask about supplier registers Tender Ready in 10 Steps - Aberdeen

48. Buying Authority websites • Standing Orders for Contracting/ Procurement • Tender registers – Buyer profiles • Procurement Guidelines • FAQs for Suppliers • “Doing Business with XXX” • Procurement Strategies Tender Ready in 10 Steps - Aberdeen

49. Get on to Supplier Lists Public Contracts Scotland Contracts Finder (was Supply2Gov) BiP Select Certify & BiP Select Accredit Constructionline Society of Procurement Officers (SOPO) OGC Buyingsolutions Catalist Etc… ask your clients if they use these lists and how! Ask about Council supplier registers (not approved contractors lists) e.g. Tender Ready in 10 Steps - Aberdeen

50. Bid-No Bid process Stage 1: Reading Contract Notices Group Exercise Tender Ready in 10 Steps - Aberdeen