How to secure Public Sector Contracts

1. How to secure Public Sector Contracts 18th September 2013

2. Introduction to the buyers The public procurement context and opportunity Business Perspective – Your Views on securing public sector business Smarter tendering – Tips for securing that contract – Q & A Existing Support – Social Enterprise Network Meet the Buyer – An opportunity for networking The agenda for today

3. The Buying Organisations Derby City Council – Ray Poxon Derby Homes – Tony Billingham Erewash Borough Council – Howard Lane Derby University – Andy Brown

4. www.derby.ac.uk Procurement at The University of Derby www.derby.ac.uk

5. Andy Brown Head of Procurement 01332-592400a.brown4@derby.ac.ukJane Brailsford Senior Procurement Officer 01332- 592401 j.brailsford@derby.ac.uk PROCUREMENT CONTACTS www.derby.ac.uk

6. Key Facts and Contacts • Annual Non Pay spend of approximately £40M • 50% of supply base within the Midlands • Procurement Team set the framework and manage all high value tenders • Departments order own items • Key Departments: • Information Technology Services - Neil Williams Director of IT Services • Estates Management -Ian Willgoose Director of Estates • Halls of Residence – Mark Travers Operations Director www.derby.ac.uk

7. Key Commodities • IT Hardware – servers, desktops and laptops, audio visual equipment, networking equipment, storage, consumables, telecommunications. • IT Software – vast range of enterprise level and bespoke software • Estates items – building maintenance, cleaning services and consumables, building consumables, ironmongery, electrical, plumbing, office and classroom furniture. • Estates Development – professional services, demolition, refurbishment works, interior fit out, new build. • Halls of Residence – refurbishment works, building maintenance, mechanical and electrical, residential furniture. www.derby.ac.uk

8. How the University Buys • Tendering via University of Derby intend site https://in-tendhost.co.uk/derby/aspx/Home look at recent tenders list. • Via National Government Framework Government Procurement Service. • Via University Frameworks North Eastern Universities Purchasing Consortia NEUPC http://www.neupc.ac.uk/ and other national frameworks www.derby.ac.uk

9. Current and Future Tenders • Current – CCTV, automatic door and barrier maintenance. occupational health, • Future Tenders - Frameworks for professional services and construction activities, student travel • promotional products, smartcard technology. www.derby.ac.uk

10. Context Policies and Objectives DCC Objectives: A thriving sustainable economy People achieving their learning potential A skilled and motivated workforce Other authorities have similar objectives DCC 40% contracts Derbyshire 65% East Midlands 39% suppliers Derbyshire 52% East Midlands DCC’s aim is to increase these numbers but we must remain compliant and achieve VFM. Suppliers need to play their part.

11. Context Economics Severe public sector budget cuts and spending pressures Price & Value for Money (VfM) VfM is the optimum combination of cost, quality and fitness for purpose to meet the buyer’s requirements Most Economically Advantageous Tender (MEAT) rather than Lowest Price Collaborative buying by authorities – purchasing consortia Rationalisation & Framework Agreements, Contract Bundling Reduction of public sector in-house management; overheads, potential for increased outsourcing Need to balance the above with the benefits of sourcing locally.

12. ContextTechnology E-Procurement: Public sector bodies are increasingly using electronic based procurement systems and processes: E-Portals E-tendering E-auctions Purchasing (VISA) Cards (pCards) E-contract management and reporting

13. ContextProcurement rules

14. ContextPublic Procurement regulations Public procurement regulations apply to all public sector contracts with specific rules for those over set values, or 'thresholds‘ £173,934 for Goods and Services £4,348,350 for Works The Regulations are designed to ensure free and fair access to, and competition for, public sector contracts. They set down procedures and standards for choosing tenderers and awarding contracts. All procurement activity must demonstrate transparency, equal treatment and be non discriminatory Mandatory minimum timescales for procurement process. Potential penalties for the Council for non compliance Public Service (Social Value) Act We cannot discriminate in favour of local suppliers

15. Context Internal Rules • Each organisation has its own rules • The formality of procedures increases in line with the contract value and risk (DCC): • DCC may also procure via frameworks, inc those awarded by other public sector bodies e.g. Government Procurement Service, ESPO, and other Local authorities: • http://gps.cabinetoffice.gov.uk/ • http://www.espo.org/

16. Procurement Process Overview Procure Contract Notice EOI PQQ Tender Commissioning Manage Evaluate Review Award

17. Procedures

18. Completing the paperwork • Pre-qualification stage - Evaluation of your organisation • Finances, Insurance, Previous Experience / past performance, References, Quality, Equality and Sustainability • These are selection criteria • 2. Invitation to Tender Stage - Evaluation of the bids • State how your proposal meets our current and future requirements • These are award criteria. Buyer will state the criteria and weightings

19. Public Sector opportunitiesDerbyshire Local Authorities Derbyshire County Council Derby City Council 8 District Councils Housing Associations Education University and FE Colleges Schools Emergency Services NHS

20. Business Perspective Your views on barriers to securing public sector business (1) • Finding the opportunities • Don’t know where they are advertised • Don’t have contact details for buyers • Limited bid writing capability and time to complete • Don’t understand the documents / clauses / requirements • Don’t know how to complete the tender • Unclear tender questions and instructions • Lowest Price chosen every time

21. Business Perspective Your views on barriers to securing public sector business (2) • No local weighting or acknowledgement for current local delivery and known track record • Contracts are seemingly being awarded to organisations out of the City • Nothing prior to opportunities being announced for local organisations to be clear about what the opportunity is and what the Local Authority are looking for • Certain parts of the City Council do not work within an integrated commissioning ethos • Given that local providers are consistently being unsuccessful in gaining public sector contracts, nothing is being done with local providers about putting good tenders together.

22. Business Perspective Inability to deliver all the activities and outcomes required Not able to meet ‘unnecessary’ PQQ criteria Having to fill in PQQ for every tender Lots are often too large for SMEs Long term frameworks used Too many large companies bidding for smaller jobs Lack of previous public sector experience Lack of ISO accreditation Unrealistic cost expectations Your views on barriers to securing public sector business (3)

23. Addressing the Barriers Top Tips for Securing the Contract Howard Lane

24. Be Prepared Identify potential public sector customers Many publish Contracts registers or forward procurement plans on their website Attend ‘meet the Buyer’ events Review contract award notices to identify sub-contract opportunities e.g. DCC has outsourced its IT function so doesn’t buy PCs directly but via the contractor.

25. Be Prepared Find and register with Sources of opportunities in advance:

26. Be Prepared Create a “Go / No go” matrix as emotions often run high, so determine beforehand if the opportunity really is suitable Download / print off ALL PQQ / tender documents and read them carefully: Is the specification relevant to your business activities? Do you have a track record in the area? What % of turnover does the contract represent – 30% rule? What are the risks, who are your competitors and what is the % chance of success? Is there an incumbent? Can you answer each question with the information required? Do you have the supporting documentation in place for compliance? Can you make commercial sense of the advertised contract value? Do you have the in-house resources to deliver – do you need partners / subcontractors? Do you have the time / resources to prepare the bid by the deadline?

27. Be Prepared Be ready to tender – Prepare: Financial information – Accounts, Insurance, Check credit rating Policies – Quality Management, Equality and Diversity, Health and Safety, Environmental Management Business activity statement / Unique Selling points (USP) Referee Contact details for recent contracts Subcontractors Case studies / examples of work

28. Preparing a response The scores on the doors…………… Before you even consider responding to a tender have a look at the evaluation criteria: Can you meet the Pass/Fail criteria? Prioritise the sections with the highest weighting Ensure you answer all the questions – Don’t assume the buyer has prior knowledge of your organisation

29. Preparing a response Get the right people involved If you need to collaborate with other organisations, prepare in advance Consider having a regular review of tenders pending, tenders in progress and tenders submitted Consider accreditation (eg. Constructionline, CHAS, ISO, IiP etc.)

30. Preparing a response Understand the rules and timelines… Understand the process for each tender Word limit Presentation Font size Use of colour Hard copy, soft copy or both Use tender envelope / label if provided Adhere to the timelines given – Avoid last minute submissions Late tenders won’t be accepted

31. Preparing a response Understand the requirement, if in doubt ASK Buyers will circulate clarifications to all bidders so check correspondence regularly Don’t assume the buyer wants the ‘same as last time’ Don’t price for a ‘Rolls Royce’ service when a ‘Mondeo’ has been specified Budgets are tighter than ever before Bid for the specified requirement and if there are opportunities for efficiency or alternative solutions which offer a benefit offer these as an option.

32. Preparing a response Ensure that all information explicitly requested is provided Refer to the actual question e.g. Q3.1.2 Where appropriate, add well referenced appendices Read and interpret the tender carefully and address the implied issues Avoid ‘cut and paste’ Double check that all attachments are included and documents signed where necessary

33. Preparing a response: Buyer Preferences

34. Opportunities for learning Free On-line ‘Learn Direct’ Course Winning the Contract Free! Would you like to win public sector business contracts? This course provides an introduction to the public sector, explains the procurement process and offers practical advice to help you identify new business opportunities http://www1.learndirect-business.com/business-courses/winning-the-contract/

35. Local suppliers • Being local on its own is not an advantage. But stress the potential benefits: • Less distance to travel (carbon impact?) • Quicker response time (better service offering?) • More flexible (change your order....) • Lower overheads • Understand local issues/communities • Local supply chains

36. After the award notification Request feedback even if you won the tender there may still be room for improvement; If you didn’t win, make sure you learn why.

37. Keep on selling Use your usual sales techniques Phone and ask Build networks Phone and ask Send carefully targeted, concise information Phone and ask Be brief, be focused, be reasonable Phone and ask Remember you are one of many!

38. A Successful supplier will be…….. Compliant Tender Format & Requirements Policies, Insurances, etc. Persuasive USP – Unique Selling Point Added Value and/or Innovation Competitive Quality Price

40. Business Perspective – Have we provided the answers? Finding the opportunities Don’t know where they are advertised - YES Don’t have contact details for buyers - Meet them later Limited bid writing capability & time to complete – Plan ahead Don’t understand the documents / clauses / requirements - ASK Don’t know how to complete the tender – ASK DNCC / FSB / CA Unclear tender questions and instructions – ASK the buyer Lowest Price chosen every time – NO – MEAT chosen

41. Business Perspective – Your Views on barriers to securing public sector business Continued 2 No local weighting or acknowledgement for current local delivery and known track record – Local bias not legal – track record is scored Contracts are seemingly being awarded to organisations out of the City – 40% awarded to Derbyshire organisations Nothing prior to opportunities being announced for local organisations to be clear about what the opportunity is and what the Local Authority are looking for – Buyers to note Certain parts of the City Council do not work within an integrated commissioning ethos – More information needed to respond Given that local providers are consistently being unsuccessful in gaining public sector contracts, nothing is being done with local providers about putting good tenders together. Todays event?

42. Business Perceptions – Your Views on barriers to securing public sector business (continued) Inability to deliver all the activities and outcomes required – Form consortium to bid? Not able to meet ‘unnecessary’ PQQ criteria – Query before submission date but remember buyer must protect against risks Having to fill in PQQ for every tender – East Midlands standardised PQQ Lots are often too large for SMEs – Buyers to note – Suppliers to form consortium? Highways example Long term frameworks used – buyers to note – suppliers to consider bidding for frameworks Too many large companies bidding for smaller jobs – tenders are open to all Lack of previous public sector experience – stress relevant experience Lack of ISO accreditation – not always essential Unrealistic cost expectations – review cost model and bid accordingly

43. Existing Support Helen Carter – DNCC Tenders Alert service Business Advice Website D2N2 LEP Source Derbyshire

44. Existing Support Matt Allbones - Community Action Social Enterprise Network project This ERDF funded project supports individuals, groups and organisations to be: Less grant-reliant Tender ready Sustainable Through: Effective support, guidance and mentoring Network events Sharing Services Bulk purchasing opportunities Consortia development

45. Close of formal session George Cowcher - DNCC Please now take the opportunity to ‘Meet the buyers’