Built to Compete 2 Programme Marlena Zacharuk Business to Business Ltd.

1. Built to Compete 2 Programme Marlena Zacharuk Business to Business Ltd.

2. The project has now changed The aim is to focus on results and new business generation! Less workshops Larger Meet the Buyers events 1:1 support with bid writing Engage with businesses with aspiration and provide them with support and help they need to succeed in tendering for new contracts

3. Objectives Create demand in the local economy by working in depth with major local buyers engaging them in the concept of local procurement assisting them in making their contracts more small business friendly offering them 180 days of 1:1 procurement support Create business generation by helping Croydon SMEs to tender for contracts: offering them free workshops, seminars, 1:1 support with bid writing Creating opportunities at Meet the Buyers: Pre-arranged sales meetings ? new contracts won

4. The programme Information events (How to bid for public sector contracts, How to win new business with big organisations, etc.) Bid writing workshops (4 workshops per year - next one on 24th June) 1:1 support with tendering for contracts Meet the Buyers (2 per year with 15-20 buyers at each)

6. One-to-one support Goal: To encourage businesses to start bid writing and tendering for larger contracts Who is it for? 100 businesses who are ready to tender will be offered 4 days of free tender writing support Why do you need it? - Because you want to increase your chances of winning contracts you are bidding for - Improve the structure of your bid - Receive constructive feedback that will make the difference between winning and loosing a bid!

7. Thank You

8. How to bid for and win public sector contracts Tuesday, 2nd June 2009 Fairfield Halls, Croydon Caroline Plane, Larch Consulting

9. This Session Covers: Public sector Overview Approaches to Procurement Finding Opportunities Tender Process Overview

10. The Public Sector: Exploring Options UK Public Procurement spend £175 billion per annum. 500 Local Authorities in England & Wales 334 UK Universities 24,000 State & Independent Primary Schools 3,500 Secondary Schools 303 NHS Trusts 4500 Housing associations/RSLs 42 Police Services 39 Ambulance Services 58 Fire Services 25 Government Departments (Agencies attached: MOD 28) ? http://www.tagish.co.uk/ ? http://www.schoolsdirectory.co.uk/ ? http://www.housingnet.co.uk/

11. About the Public Sector Value for Money (VfM) “The optimum combination of whole-life cost and quality (or fitness for purpose) to meet user’s requirements. This is rarely synonymous with price” Embraces the concept of the “price-quality” relationship.

12. The Changing Climate

13. Regulatory Frameworks

14. Setting the Scene: Procurement Landscape Economic Development Strategy for London investing places and infrastructure, people, enterprise, marketing and promoting London. London 2012 Set to provide unprecedented opportunities CompeteFor will maximise business involvement throughout the 2012 supply chain London Procurement Programme (LPP) Launched out of the NHS Supply Chain Excellence Programme (SCEP) to drive collaboration among London's 74 NHS Trusts. Trusts across London spend in total £5 billion on goods and services every year.

15. Purchasing Process Formality of the process increases in line with value and risk. Croydon Example: £1,000 - £20,000 - Obtain 3 written quotes Over £20,000 - Normally a competitive tendering exercise, consider a minimum of 3 suppliers and evaluate in terms of value for money and quality. Over £140K – EU Directives apply.

16. True or False? Contracts are only awarded to large companies Huge spend on offer. Difficult to find opportunities. Greater opportunity for longer term contracts Processes involved in bidding are complex and costly. Procurement teams don’t understand SMEs and social enterprises. Difficult to win contracts when bidding collaboratively. Generally good payers & proper arrangements.

17. Accessing Opportunities

18. Accessing Opportunities Low Value Below £100k Local purchasing rules apply Formability of process increases with contract value. High Value Above £100k EU procurement rules may apply Formal tendering procedures Framework agreements

19. Accessing Opportunities Myriad of websites and portals High value contracts easy to find (harder to win) Lower value opportunities harder to find (easiest to win). Less transparency in the commercial sector.

20. Accessing Opportunities On-line Supplier Portals Supply 2 Gov / Sell2Wales CompeteFor Tenders Electronic Daily Sector Specific: e.g. PASA, Tenders.ac.uk Selling to Council / Contracting Authority Web Pages Croydon: http://www.croydon.gov.uk/business/tenders/ Meet the Buyer Events http://www.meetthebuyers.com/ Also don’t forget: Local press, trade press, press releases Phoning and Asking: Relationship Marketing

21. Accessing Local Opportunities Croydon Council currently spends approximately £308 million annually on a wide range of goods and services. Guidance available on how to access business opportunities Explains how to bid for council work. All contracts are advertised in at least one local newspaper and if appropriate a trade journal. All adverts are also placed on Croydon Council’s Website (www.croydon.gov.uk) and placed on the supply2gov website.

22. Current / Recent Opportunities Croydon Council: Mentoring scheme for young people with learning disabilities South London Waste Partnership - long term residual waste contract. Croydon Churches Housing Association: Landscape gardening LB Newham: Printed matter and related products Arts Council: Financial consultancy services Royal Parks – Tree Maintenance Imperial College NHS Trust - Translation Services UCL Hospitals NHS Foundation Trust - Architectural Services The Learning Trust: Repair and maintenance services of boilers

23. Tiered Supply Chains Where do you fit into the supply chain? Use examples to explain how tiered supply chains work, and help the delegates identify where they would fit in to the supply chain. For small groups, it is worth taking the time to go through each company (or type of company) individually to help explain whether or not they are likely to be first-tier suppliers. Lots of organisations will never become first tier suppliers to the public sector, and therefore they do not need to attend the rest of the workshops. For example, a company that manufactures door handles will probably not be a direct supplier to a local authority. The first tier supplier might be an FM company, who might subcontract work to a joinery or fit-out company, who would probaby buy their door handles from a builder’s merchants. The manufacturer would need to supply the builder’s merchant, or maybe the joinery company, but the local authority would not be purchasing directly.Use examples to explain how tiered supply chains work, and help the delegates identify where they would fit in to the supply chain. For small groups, it is worth taking the time to go through each company (or type of company) individually to help explain whether or not they are likely to be first-tier suppliers. Lots of organisations will never become first tier suppliers to the public sector, and therefore they do not need to attend the rest of the workshops. For example, a company that manufactures door handles will probably not be a direct supplier to a local authority. The first tier supplier might be an FM company, who might subcontract work to a joinery or fit-out company, who would probaby buy their door handles from a builder’s merchants. The manufacturer would need to supply the builder’s merchant, or maybe the joinery company, but the local authority would not be purchasing directly.

24. Collaborative Bidding Options: Subcontractor Joint Bidding Delivery Partner Consortium Pros and Cons to each approach: Brand Identity Cost Reliability Sharing sensitive information Risk

25. Tender Process Overview

26. Tender Procedures Most Common: Open - Everyone who responds submits a full priced tender Restricted - The contracting authority use a “pre-selection” process and invites a limited number of respondents to tender

27. Two Stage Tender

28. Understanding Pre-qualification The contracting authority use a “pre-selection” process and invites a limited number of respondents to tender. Are you a safe and appropriate choice? Evaluation - 3 key areas: Business Probity Financial Standing Technical Ability Mix of pass / fail and qualitative criteria.

29. Understanding Pre-qualification Key Policies Equality & Diversity Health & Safety Environment & Sustainability Quality Sustainability and Social Responsibility Issues high on the corporate and public sector agendas.

30. The Invitation to Tender A Pack of Documents: A letter of invitation to tender Instructions to Tenderers Standard Conditions of Contract Specification Pricing Schedule Form of Tender Any other relevant document Tender envelope, label

31. Writing the Bid The Basics: What / How / Who/ When / How Much? Add Value: Demonstrate a clear understanding of the specification Adds value and brings innovation to the specification Explains “why choose us?”

32. How Tenders Are Evaluated Published evaluation criteria: Best Price Most Economically Advantageous Tender (MEAT) Usually evaluated by a panel Scoring matrix used to objectify subjective opinions Scores are weighted Tendering rigorously controlled and audited

33. Tender Presentations Often follows a prescribed format Little opportunity to engage No positive feedback Some simple tips: Arrive in good time Practice using media and equipment Do not use jargon or technical terms Be pleasant, professional, friendly Prepare very thoroughly Summarise in the last slide

34. Asking for Feedback Explain why you need the feedback Ask at the right time Give them a chance to prepare a helpful answer Be specific in what you want to learn Don’t forget to ask in successful bids too!

35. Action Planning

36. Help is available….. Croydon Enterprise - a complete package of support for local people who want to start or grow their own business, develop their skills or find a new career. Business Link London - main portal for businesses seeking support Supply London provides support to London's SMEs with a specific focus on public sector procurement. South London Business provides information, advice and guidance to companies in the twelve London Boroughs south of the River Thames Greater London Enterprise provides a wide range of business support to those looking to grow their business.

37. Don’t forget next event: ‘How to write amazing tenders’ - workshop Date: 24th June 2009, 9:30 –13:30 Venue: Jury’s Inn Hotel, Croydon Covers: Becoming Fit to Supply Completing a PQQ Bid Writing Skills Presenting Your Bid Practical tips and techniques To sign up or for a copy of this presentation email angela@btob.co.uk

38. ACT NOW!