Council Tenders“Why are they that way? ”

17th & 24th February 2016

Nawshad Hossain-IbrahimCommissioning & Procurement

Focus for this session• We are running today’s session to support

bidders in understanding the LA tender process

• You can ask for clarification via YORtender• Every invitation will include instructions and

the process the Council will follow to evaluate bids

• If you are not successful ask for feedback• Some tips on putting your submission forward

CBMDC – Adults DepartmentCore Commissioning Drivers

• Analysis - Needs, Viable range, Options, Short, Medium term

• Planning - Statutory, Quality, Political, Market capabilities

• Delivering - Key requisite outcomes, Affordability, Reporting, Risks

• Reviewing - Evaluation, Capabilities, Improvements, Analysis

What does the Council do?

Public SectorProcurement Principles

• Transparency - contract procedures must be transparent and contract opportunities should generally be publicised

• Equal treatment and non-discrimination - potential suppliers must be treated equally

• Proportionality - procurement procedures and decisions must be proportionate

• Mutual recognition - giving equal validity to qualifications and standards from other Member States, where appropriate

What does the Council Buy?

How does the Council buy?

• There are rules and regulations– Higher value contracts covered by the Public

Contracts Regulations 2015 (EU Directives)– Lower value contracts covered by Bradford’s

Contracts Standing Orders (CSOs), part of the Council’s Constitution

– Social Value Act– Best Value

Public Contracts Regulations 2015• Financial limits (changed in January 2016):

– Goods or Services £164,176• Contract have to be advertised in Europe

– LA uses the OJEU service• Minimum timescales stipulated for EU adverts• 2014 EU Directives transposed into the PCR 2015

Contracts Standing Orders (1)• Published on the Council’s website• Contracts less than £25k

– Demonstrate Best Value by inviting written quotes from a local supply base where it is available

– Quick, simple process with minimal documentation– For contracts over £5k in value the Council will seek

quotations via YORTender (i.e. electronically) – Officers can select who is asked to quote

Contracts Standing Orders (2)

• Contracts between £25k to £100k– Officers must seek at least 4 written quotations– Of which at least 2 must be local, where available– Invitation to Quote (ITQ) documentation used, and

may include cost / evaluation criteria– The ITQ will be published via YOR Tender– Officers will select who is invited to quote

• PCR Regulations 109 to 112 also can be followed– Open Competition advertised on Contracts Finder

Contracts Standing Orders (3)• Contracts over £100k ( and below EU)

– Open Procedure (single stage) Invitation to Tender (ITT)

– Restricted Procedure (works only) PQQ/ITT– Evaluation very likely to include quality criteria and cost– All documentation published on YOR Tender– No pre-selection by Officers, anyone can bid

• PCR Regulations 109 to 112 also apply– Contracts advertised on Contracts Finder

PCR / Over Threshold

• PCR Regulations 26 to 31 apply– Open Process

– Restricted Process– Competitive Procedure with Negotiation

– Competitive Dialogue– (Innovation Partnership)

Open and Restricted Processes• Pre Qualification /

Selection• Short list by testing:

– Integrity & Probity (mandatory & discretionary)

– Financial standing– Insurances– Experience, capability and

capacity• Pass / fail assessment against

criteria

• Invitation to tender• Response to specification• Method statements• Approach to contract

management and performance

• Innovation• Contract sum• Cost / Quality Evaluation

against criteria

Frameworks

• The Council makes use of Frameworks– Where it can legally access them, and– Use of the framework is good Value for Money

• Frameworks are set up by many Public Sector Organisations, for example:– Yorkshire Purchasing Organisation (YPO)– Crown Commercial Services (CCS)– Homes and Communities Agency (HCA)

Council Frameworks• Used where more than one supplier is needed

or volumes cannot be predicted

• Entry to a framework is via competitive tender• Being on a framework isn’t a guarantee of work

• Contracts awarded through a mini competition call off process

• Might include option for call off by other public sector bodies

The Social Value Act• Applies to services contracts over the EU limit,

but could be applied to any contract, the Council considers:– how what is proposed to be procured might

improve the economic, social and environmental well-being of the District;

– how, in conducting the process of procurement, it might act with a view to securing that improvement.

– should it consult on these matters

Sub-contracting and Consortia

• What are they?

• What is the difference between them?

Sub-ContractingWhat is a sub -contract?This is a separate agreement made between two or more organisations to deliver part (or whole) of one agency’s contracted service

It lays out the basis on which the service is to be sub-contracted included payment & cost, risk sharing, disputes and relationship management

ConsortiaWhat is a consortia or consortium? •A consortium of agencies is a ‘group of groups’ who come together under a ‘lead consortia entity’ to bid for a tender opportunity together

TUPETransfer of Undertakings (Protection of Employment) regulations

Two types of transfer protected under TUPE law:•Business transfers •Service provision changes

TUPE - Business transfers

• This is where a business or part of a business moves from one employer to another. This can include mergers where 2 companies close and combine to form a new one.

• The identity of the employer must change, to be protected under TUPE during a business transfer

TUPE -Service provision changesThis is when:•a service provided in-house (e.g. cleaning, workplace catering) is awarded to a contractor•a contract ends and is given to a new contractor

•a contract ends and the work is transferred in-house

TUPE…..Think about Pensions

• TUPE is bound by case law and precedence• Council cannot decide if TUPE applies

• Pensions – for LA staff, for non LA staff • Organisations are urged to seek professional

advice in relation to TUPE & Pensions

TUPE (Further Info)

• Some useful links • https://www.gov.uk/transfers-takeovers/overview• http://www.acas.org.uk/tupe• http://www.legislation.gov.uk/uksi/2006/246/contents/made• http://www.cipd.co.uk/hr-resources/factsheets/transfer-of-

undertakings-tupe.aspx

Public sector procurement may take a long time

• Some procurements have to follow EU rules, with prescribed time limits

• Some tenders generate a very high level of response

• Awarding large contracts may require a decision from the Council Executive

• We aim to give accurate timescales at the outset

Where are Council Contracts Advertised?• It’s all freely available on the web• Over the appropriate EU Threshold Contract Notices must

be advertised in Europe (ted.europa.eu)• Bradford’s Contract Notices link to YOR Tender• Below EU the Council uses YOR Tender

(www.yortender.co.uk)• Details of all awarded contracts >£5k, and all grants are

published (www.bradford.gov.uk)• Contracts Finder (www.gov.uk/contracts-finder)

European Website

YOR Tender

YOR Tender

• Easy to use, plus Due North helpdesk

• The electronic tendering platform used by Local Authorities in Yorkshire and Humberside

• Bradford will place all contract opportunities over £5k on YOR Tender using Quick Quotes

Financial VettingWhat size contract can I bid for ?

• The Maximum is x2 your turnover (Low Financial risk contract)

• However this can be reduced by a number of factors: – Financial Risk associated with the contract

– Financial health of the bidder

So – with all the previous information, What are LA tenders seeking to do?

2 objectives :•Good preparation to secure affordable, quality submission•Clearly set out our Evaluation criteria under which a robust contract is awarded

And – What’s a Bidder submitting a tender seeking to do?

2 objectives:•To tell us how (& how well) you will meet our requirements, and•Offer us Value for Money

Why does your proposal matter?• It is your only opportunity to introduce

your business, explain your approach and solutions to the Council’s needs, and stand out from the competition

• Therefore being able to write a good tender proposal is essential.

The Tender Pack

• Instructions; how to bid and how the Council will evaluate

• Specification; what is required• Performance criteria; in contract measure of delivery• Pricing Document and Form of Tender• Evaluation Criteria; including quality questions,

method statements and, or price• Terms & Conditions of Contract

Before ‘Putting Pen to Paper’

• Some points to consider:– Estimated contract value and your turnover

(turnover required should not > x2 contract value)

– Can you meet the specification?

– Compliance with sector industry standards– Mandatory & Discretionary grounds for

exclusion (and if necessary ‘self cleaning’)

What makes a good bid?

• An accurate and compliant response to the tender opportunity– Direct answers to the questions asked– Clear, relevant proposals for delivering the

specification– Clear Pricing

• And, what should it not be– Made up of marketing and sales material

Improving Your Bid

• Do not assume that the evaluation team know your business

• Focus on the quality of information submitted not the quantity

• Ensure that all responses are provided in sufficient detail

What makes your bid stand out• Demonstrate and evidence how you meet the

requirements

• Ensure that any examples are relevant

• Do not use acronyms unless they have been defined

Your bid will only be evaluated on the information you provide and on whether it meets the requirements set out in the Tender.

Evaluation

All of the information in the tender is evaluated by a panel that scores the tenders received. The panel assesses:•Your company's technical, financial and economic capability•The quality of your proposals•Your costs

What is being evaluated?

• Give responses that allow your bid to be

evaluated. DO NOT state that information/answers will be provided later

• When asked to provided references you should provide the names of organisation you

have carried out the same or similar work for

Evaluation (1)

• How does the Council evaluate your bid?

• In line with the published evaluation criteria

Evaluation (2)

• Compliance, is the bid complete, and un-qualified

• Selection, or Pre Qualification Criteria– Can be a mix of Pass / Fail, and minimum score

• Award Criteria– Scored response to questions in line with the evaluation

criteria

Evaluation (3)

• Price• Most Economically Advantageous

Tender (MEAT)– Cost / Quality Evaluation

Evaluation (4)

• May seek references• Explore abnormally low tenders• For contracts >£100k undertake

financial evaluation– Generally completed in house using your audited,

published accounts– Construction; Constructionline notational values

Evaluation (5)

• Notify successful and unsuccessful bidders

• For contracts > relevant EU Threshold– Commence 10 standstill period (Alcatel)– Unsuccessful bidders can seek feedback,

and have opportunity to challenge

– Publish Award Notice on OJEU

Will your submission secure a good score?• Check the response against KEY requirements, start-

up, operational management, reporting & exit provisions

Do ensure that your bid meets the requirements of the specification. tell us what you are going to do to deliver this service in Bradford

Don’t provide a response detailing what you do currently if this is different from the specified requirements.

Make sure the submission is compliant

Do make use of the word count this will allow you to provide the level of detail required

Don’t go over the word count, any excess words will not be evaluated.

Don’t include documents that have not been asked for, they will be discounted.

Watch the time, Get a fresh pair of eyes to read the submission• Always proof read your submission before submitting• Always leave sufficient time• Tenders will not be accepted after the closing date

and time for any reason.• Always check that you have uploaded ALL the

documents required.• Documents cannot be submitted after the closing

date and time.

Check your tender submission is complete• Ensure you have signed ALL relevant

documents in All the relevant places• If you are unclear of any of the

requirements, raise a clarification via YORtender

And, because every bid is not successful• Ask for a de-brief, you are entitled• Other local authorities will have similar

requirements• Every local authority must publish a list

of the contracts it awards, the value and the expiry date

Examples of unsuccessful tenders• Simple administration failures such as not signing

the tender or getting it in on time to the right place and person

• Additional or supporting information - not provided, or bits are missed out entirely

• They didn’t answer the questions , or meet the requirements

• They are unclear and inconsistent• They are not competitive .

Contract Award

• In writing, signed copies to be returned• Contracts with ‘residual’ risk will be

signed as a deed under seal• Pre-commencement Meeting• TUPE may apply• Agree implementation plan

Thank you

Questions & Answer Opportunity

Council Tenders“Why are they that way? ”

24th February 2016

Nawshad Hossain-IbrahimCommissioning & Procurement