At the completion of the workshop participants willunderstand:

How government purchases goods and services

How to engage with government, both within and across departments

How to market unique capabilities to government

How to maximise opportunities for success when responding to government offer documents

Workshop Objective

Agenda

Part A:

How government purchases

Contacting and marketing to Government

Part B:

Tips on responding to government offer documents

How government evaluates your response, and

Value for Money

Part A

Engaging with Government

How Government Purchases

Request for Quotation

Request for TenderOpen or closed tenders

Expression of Interest

From existing contractsOne off purchaseSingle Entity Purchase ContractsState Purchase Contracts

Page 2

Request for Quotation (RFQ)

60% of Government procurement activity

Minimum requirements to encourage competition and ensure value for money:

Request for Quotation (RFQ)

Key parts of a RFQ:Specification or requirementsEvaluation criteriaContract terms (usually short form)Submission details

RFQ template:www.procurement.vic.gov.au

DBI eQuotation systemwww.evalua.com.au

Page 3

Introduction to a Request for Tender

RFT for a good/service >$150,000 (incl GST) to the open market

Advertised on a Wednesday:The Herald Sunwww.tenders.vic.gov.au

Always respond where you can fulfil the tender requirements

Page 4

Purpose of a Tender

Tenderers must use a tender todifferentiate themselves from

competitors, not just to demonstratethat they can do the job.

Key Parts of a RFT

Part A: Conditions of Tender:Tender conditionsBriefing sessionsEvaluation criteriaSubmission requirements, closing time and dateOther key tender requirements

Part B: Specifications:Mandatory, Highly Desirable and Desirable requirements

Part C: Conditions of Contract:Core contract requirementsInsurance requirementsService level requirements Page 4-5

Key Parts of a RFT (continued)

Part D: Tenderer’s Response Schedules:Questions to be answered by tenderersPlace for answersPlace for any pertinent, Additional Information

Part E: Ethical Employment Statement:Policy requirements and timings for completionNB: this is to be completed following the shortlist stage

Part F: Victorian Industry Participation Policy Statement:Policy requirements and timings for completionNB: this is to be completed following the shortlist stage.

Exercise 1 – RFT Structure

1. Where do I find evaluation criteria?2. Where do I provide my response?3. How do I know what information I have to provide?4. Can I ask questions about the tender?5. What insurances do I need to provide?6. How much information should I provide in my

response?7. When is the RFT submission due?

Page 6

One-off Contracts

Can be established via RFQ or RFT

Fixed contract value

Fixed term

For a predetermined good or service

One-off purchase

Single customer

www.contracts.vic.gov.au

Page 7

Single Entity Purchase Contracts

Established via a RFT

Generally no expenditure limit

Extended term, up to 3 years

For a frequently used good or service

Ongoing purchases

Enables purchasing within a department

www.contracts.vic.gov.au

Page 7

State Purchase Contracts

State Purchase Contracts eg:Stationery and Office SupplieseServices PanelMarketing Services Panel

Established through open tender

Generally no expenditure limit

Panel or sole supplier arrangement

Extended contract term

Enables purchasing across the government

Page 7-8

Prequalification Arrangements

Two main prequalification schemes withinVictoria:

Construction Supplier Register

VicRoads Prequalification Register

Page 9

Government Entry Points

Contracts Registerwww.contracts.vic.gov.au

State Purchase Contractswww.procurement.vic.gov.au

Contact points for State Purchase Contracts

Contact points for Departmental procurement officers

Timeframes for retendering

Contract Value

Reasons to Contact a Contract Manager

Understand the need for the product or service

Understand the nature of the product or service

Introduce your company and service offering

Understand timings for contract expiry and retender (if applicable)

Get information on any related procurements, and

Get placed on the Contract Manager’s list of supplier contacts

Victorian Government Business Opportunities

Victorian Government Tenders website

www.tender.vic.gov.au

DBI eQuotation System

www.evalua.com.au

Construction Supplier Register

www.transport.vic.gov.au

Health Purchasing Victoria (HPV)

www.hpv.org.au

VicRoads

www.vicroads.vic.gov.auPage 13-14

Other Government Opportunities

Local Governmentwww.evalua.com.au/viclg-infohub/bin/view/Main/

Municipal Association of Victoria (MAV)

www.mav.asn.auProcurement Australia

www.procurementaustralia.com.au

Federal Governmentwww.tenders.gov.au (AusTender)

Page 15

Key Government Engagement Strategies

Build a targeted engagement strategy

Demonstrate how your goods or services can benefit a department

Tailor information to suit the needs of the department

Discover business opportunities using the links on “Government Business Opportunities’

Page 19

Key Government Engagement Strategies (cont)

Build relationships

Respond to tenders and quotations to build brand awareness within Government

Attend debriefs

Attend government sponsored events

Belong to an industry association

Peak Industry Bodies

Chartered Institute of Purchasing and Supply Australasia (CIPSA)

Australasian Procurement and Construction Council (APCC)

Australian Institute of Project Managers (AIPM)

Australian Information Industry Association (AIIA)

All are excellent networking opportunities with government representatives (particularly government buyers)

Page 19

Exercise 2 – Contacting Government

Using a scenario of a supplier of traditional and electronic white boardsidentify up to 10 steps that supplier should take to contact and market togovernment.

Refer to page 20 of your Workbook.

Step 1: Review websites under ‘Government Business Opportunities’ for any upcoming tenders or quotes

Step 2: Review SPC for Stationery for contact officer details (i.e. staff responsible for buying stationery and/or related items)

Step 3: Develop a targeted message to email to those identified contact officers within departments

Page 20

Exercise 2 (continued)

Step 4: Request a meeting to understand department need and timings for any procurement activities for white boards

Step 5: Provide short, sharp material to leave with the contact officer

Step 6: Follow up after 4 -6 weeks

Step 7: Respond to every tender or quote that is relevant

Step 8: Attend debriefs

Step 9: Join an industry association, for example CIPSA

Step 10: Attend networking events sponsored by that industry association

Part B

Responding to Government Offers

10 Tips for Winning Government Business

Tip #1 Read the Question

Successful tenderers almost always answer all parts of the question correctly

TipsHighlight the core requirementUnderline each sub requirement(s) (or hints)Don’t read Part D in isolation:

Review the Specifications (Part B), and

Review the Evaluation Criteria (Part A)

Page 21

Example

Briefly detail recent experience of similar work. The Department is looking for succinct and relevant information. Information is only required in relation to the three most relevant activities. The reason why each activity is relevant is required.

Specifications - Sample

Engage key stakeholders in the implementation of the new procurement framework and development of documentation.

Determine whether, and how, the existing tools and templates, processes, protocols, procedures, policies, guidelines and training/induction programs will adequately support the new procurement framework and procurement principles.

Develop all tools, templates, processes, protocols, policies, guidelines and training/induction to assist with the transition into the new procurement framework, and align these with the Department of Treasury and Finance documents under development.

Evaluation Criteria

EVALUATION CRITERIA - SAMPLE

1.2 Capability and past performance Extensive knowledge of the current and future legislative environment of Victorian State Government Knowledge of Victorian Government procurement policies and associated processes Demonstrated experience implementing significant procurement reform An appropriate staffing structure to support the Project availability of experienced staff Demonstrated experience in the industry from a referee’s view

1.3 Client engagement focus

Demonstrated experience in change management methodology and procurement methodology through a strongclient engagement focus Demonstrated policies and practices to:

engage clients systems to measure customer satisfaction backup and advice

Tip # 2 Respond Fully to the Question

Evaluators can only evaluate the content of the tender response

Evidence is important

Be honest

Demonstrate you understand the product or service government wants

Demonstrate how you are in a unique position to provide the service

Differentiate your service offeringPage 21

Example

“Please state your compliance to the Specifications and where your company does not comply or partially complies please provide details

of this non-compliance or partial compliance”.

How to Respond Fully with Limited Government Experience

Demonstrate how commercial experience is relevant to government requirements

Demonstrate your understanding of government requirements

Demonstrate roadmap for building capability

Demonstrate resources and opportunities to increase resource base

Tip # 3 Don’t Assume Everyone Knows You

“We can do this because we are [company] xyz”

Government evaluators cannot consider any information outside the submitted tender documents and tender process.

Do not risk assumed knowledge of your company’s capabilities and projects.

Page 21

How to Respond

Address each question as if your capabilities, strengths and people are unknown.

Describe reference projects or sites in detail and state how this is relevant.

Describe how your resources are appropriate for the job.

Describe your methodologies and approaches in detail.

Exercise 3 – Project Management Methodology

“Please provide details of the methodology and implementation approach you propose to use in providing the Services. The methodology must

include an approach to governance, management, implementation and be appropriate for the Service

tendered for.”

Page 23

Tip # 4 Target Your References

Purpose:Confirm stated company capabilitiesConfirm tenderer experience

Common mistakes:Haven’t demonstrated the delivery of competencies during previous projectsHaven’t related to the tender requirementsScatter gun approach

Page 21

Target Your Reference Projects

Highlight the key requirements in the tender for a written reference

Provide directly relevant reference projects

Provide no more than 3 reference projects

Address each of the Evaluation Criteria and the Specifications

Provide recent references (up to 3 years old)

Example: Specifications

Strategy Development includes the provision of strategic vision and documentation associated with information and communications technology supporting eGovernment. This includes, but is not limited to:

Strategy and plan development and evaluation

Forecasting or analysis of future trends

Strategic research and analysis

Development of and advice on management frameworks (e.g. risk, service delivery management and portfolio management)

Example: Written Reference

Relevance to the tender

Strategy and plan development and evaluation

Forecasting and analysis of future demand/trends

Market research and analysis

Development of and advice on management frameworks (e.g. risk, procurement and service delivery management)

Tip # 5 Embrace Duplication

Answer each question fully

Tailor each response - do not cut and paste

Embrace duplication to reinforce your company’s skills and abilities

Be aware of how government evaluates tenders

Consistency scores well

Page 22

Example

Specific experience and expertise:

Briefly detail your organisation’s recent experience providingmarketing services within a multi-organisational environmentincluding experience in:

Managing a number of contracts simultaneously within the one organisation, where the contracts may require differing skills and focus

ANDCapacity to handle work

Briefly detail the ability and capacity for your organisation to handle simultaneous projects and also handle projects of a complex nature

Tip # 6 Customer Service Counts

Customer service proposals are effective in differentiating your tender response

Can generate large variations in scoring

Many tenderers share the same capabilities but not all put effort into their customer service proposals

Page 22

Tips for Responding to Customer Service

Regular meetingsRegisters Regular reporting on end user feedback3 to 5 performance measuresPresentations summarising the results of your engagementEasy to read, informative client reports Analysis of project results with trending or forecast informationLessons learned and knowledge transferDon’t confuse customer services with value add

Exercise 4 – Customer Service Proposals

In your workbook prepare a response to the following question:

“What customer service orientated proposals do you have which will enhance your bid?”

Page 24

Tip # 7 Offer Value Added Initiatives

Value add initiatives are almost a free kick to differentiate your tender from others

Doesn’t always mean for free:

Related to the requirements of the tenderAdditional to the requirementsSomething only your company can provideIs valued by government, andShould be genuine and affordable to the tenderer

Page 22

Examples

Effectiveness review of implemented strategies

Training

Supporting documentation

On the floor support

Consider how your value add initiative can turn into follow on business

Exercise 5 – Identify Value-Add Initiatives

Using your workbook identify 4 value add initiatives yourbusiness could offer the government, and consider:

The additional value this delivers to government

How the initiative could foster new business opportunities with that government client

The cost to your business of providing that value add initiative

Page 28

Tip # 8 Understand Key Policy Requirements

Transparency, equity, accountability and competition

Do not tender if you can’t comply with the key policy requirementswww.procurement.vic.gov.au

Conditions of Tender and Specifications

Page 22

Relevant Policies

Conduct of Commercial Engagements (probity)

Ethical Purchasing Policy (EPP)

Victorian Industry Participation Policy (VIPP)

Disclosure of Contracts Policy www.contracts.vic.gov.au

Tender Complaints Policy

Tip # 9 Submit a Complete Response

Examples of a complete response:

A tender with pricing

A tender with a complete contract compliance statement

A tender with references

Material information is all provided

Page 22

Checklist for Tender Completion

List each schedule in Part D:Schedule 1: Tender FormSchedule 2: Conflict of InterestUp to 20 schedules

Match the evaluation criteria to the response schedules

Match the mandatory specifications to the response schedules

Page 30

Checklist for Tender Completion

Full pricing details

Completed compliance statements to contract and specifications

Completed insurance details

List of 3 referees

Signed physical copies of schedules 1 and 2 (where requested)

Correct number of copies of the tender document or CDs

Completed “additional information’

Any drawings/designs etc. requested for in the tender document

Electronic Response

Before submitting an electronic response please insert your CD / USB into 3 different PCs to ensure the content is there and that it can be read.

Tip # 10 Get Your Response in on Time!

Late tenders will not be accepted, unless there isconclusive evidence that the late lodgement ofthe Tender:

Resulted from the mishandling of the Tender by the DepartmentWas hindered by a major incident and the integrity of the Tendering Process will not be compromised by accepting a Tender after the closing time.

Page 22

Further Tendering Advice

Minimum insurance requirementsRisk adjusted insurance amounts

LiabilityRisk adjusted liability amounts

Financial and performance guarantees

Service level management

How to Differentiate Your Response

Offer value add initiatives

Offer customer service proposals

Offer environmentally friendly initiatives

Differentiate your response:Quality systemsInnovationResearch and DevelopmentKnowledge management

Page 25

Exercise 6 – Quality Systems

“If you are not in the process of achieving certification, please provide details of how you intend to assure that the deliverables meet the Department’s requirements for quality?”

Page 29

Evaluation Process

Duration and stages of evaluation

Evaluation criteria

Weightings

Evaluation scoring

Value for money

Exercise 7 - Matrix Evaluation Model

EVALUATION CRITERIA   SUPPLIER “A” SUPPLIER “B” SUPPLIER “C”Professional Competence Weight Score Wt*Sc Score Wt*Sc Score Wt*ScCompliance to Specification 5 3

 

15 5

 

25 4

 

20

 Plan and approach 5 5 25

 

4 20 5

 

25

 Quality Systems for Deliverables

4 5 20 7 28 5 20

Capability 4 5 20

 

6

 

24

 

7

 

28

 Past Performance 4 6 24 8 32 7 28Innovation 4 5 20 5 20 5 20Total Score     124   149   141Costs   $61,000 $69,500 $123,480VFM   124 / $61,000 * 100 = 0.20 149 / $69,500 * 100 = 0.22 141 / $123,480* 100 = 0.12

Page 36

Calculation of Value for Money

A balanced benefit measure reflecting the non-financial score versus cost including:

CapabilityPast performanceQualityCustomer serviceFinancial viabilityContract mattersFit for purpose

VFM = Non Financial Score / Cost

Page 33

Value for Money

High tender score 100 20 100 80 32 60 24 40 16 20 4 20 Low tender score 0 10 5 2.5 1

High cost

Low cost

Closing Statement

Contact government

Target your marketing

Develop a competitive advantage

Maximise your chance of winning government businesswww.business.vic.gov.au/tenders

Questions?

Thank you for attending

Check outbusiness.vic.gov.au/workshops

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