Perfecting your Tendering Skillsto Win that Contract!

1 October 2013Darren Richardson

What is “public procurement”?

Public procurement is the process of the acquisition, usually by means of a

contractual arrangement after public competition, of goods, services, works and

other supplies by the public service.

Northern Ireland Public Procurement Policy, Version 8 – October 2012

The size of the opportunity…• All-island market worth approx. €12/£10bn• Significant opportunities for SMEs:• In 2010/2011, NI Central Gov awarded 2,618 contracts• Total value estimated at £1.4bn• 44% by value awarded to SMEs (up to 250 employees)• 23% of contracts awarded to businesses with less than 10

employees• 33% of all contracts awarded were for £10k or less

So what’s the catch?Suppliers say:

• Weighting on price too high

• Too much below cost selling

• Inconsistent quality of RFTs or ITTs

• Inadequate de-briefing

• Deadlines too tight

• Requirements too onerous

So what’s the catch?Buyers say:

• It is a legal requirement to tender

• Process is rules based – no discretion

• First task is to eliminate non-compliant bids (easy to do)

• Get value for money (aka lowest price?)

• Avoid litigation (so de-briefings often inadequate)

Price in the current environmentGiven the current financial climate, with the credit crunch affecting the global and local economy, there is increasing

pressure on Government finances, and now more than ever, there is a need to maximise the return on public expenditure.

As Finance Minister and Chair of the Procurement Board, I am determined to ensure that the Government in Northern Ireland spends its resources wisely, and delivers best value for money.

Sammy Wilson MP MLA, Minister of Finance and PersonnelChairman of the Northern Ireland Procurement Board – July 2012

Price in the current environmentThe procurement reform programme is targeting up to €500m of

much needed savings for tax payers over the next 3 years. The reformed procurement functions will adopt a consistent

approach across the public service by addressing 3 things: controlling demand (looking at how we buy), controlling the

specification (looking at what we buy) and controlling the value (looking at price and quality).

Brian Hayes TD, Minister of State for Public Service Reform and the Office of Public Works – July 2013

What is “Value for Money”?• “The most advantageous combination of cost, quality and

sustainability to meet customer requirements”• Cost: “consideration of the whole life cost”• Quality: “meeting a specification which is fit for purpose and

sufficient to meet the customer’s requirements”• Sustainability: “economic, social and environmental benefits”

Essential ingredients for success

Attitude

SkillsKnowledge

So why do we lose tenders?• Too expensive• They are non-compliant• Documentation incomplete• Not enough detail provided• Award criteria not fully addressed• Sloppy presentation and poorly written material• Missed the deadline• ….something else?

So why do we lose tenders?

The competitive landscape • Production of a Digital Media Film for Marble Arch Caves / Global Geopark

(Fermanagh DC)• Value of the tender: £30k • Number of requests: 18• Number of submissions: 15

• Upgrading of public right of way between Fallagh and Rouskey (Omagh DC)• Approximate value: £40k• Number of requests: 70• Number of submissions: 22

The competitive landscape • Production of a Digital Media Film for Marble Arch Caves / Global Geopark

(Fermanagh DC)• Value of the tender: £30k • Number of requests: 18• Number of submissions: 15

• Upgrading of public right of way between Fallagh and Rouskey (Omagh DC)• Approximate value: £40k• Number of requests: 70• Number of submissions: 22

How can we increase our chances?Understand your Market

Identify a tender &

make bid / no-bid

decision

Identify how we are going

to win

Develop and submit an

excellent bid

Learn from the

experience – whatever the

outcome

How can we increase our chances?Understand your Market

Identify a tender &

make bid / no-bid

decision

Identify how we are going

to win

Develop and submit an

excellent bid

Learn from the

experience – whatever the

outcome

Advertised

Other

How does our customer buy? ROI

€50k (works) €25k (other)

€5m (works)€130k / €200k

Official Journal of the European Union (OJEU)Tenders Electronic Daily (TED) – ted.europa.eu

Needs to be publicly advertised (Circular 10/10)www.etenders.gov.ie

Varies according to buying organisation

How does our customer buy? NI

£30k(BUT CAN VARY)

£4.35m (works)£113k / £174k

Official Journal of the European Union (OJEU)Tenders Electronic Daily (TED) – ted.europa.eu

Central Government & some Councils use eSourcing NI(e-sourcingni.bravosolution.co.uk)

But varies according to buying organisation

Varies according to buying organisation

NI market is fragmented

Value Central GovernmentWorks

Central GovernmentSupplies and Services

Above £5,000,000 (works) or£113,057 (supplies & services)

OJEUted.europa.eu

OJEUted.europa.eu

£30k to EU thresholds Advertised on eSourcing*new processes in place* Advertised on eSourcing

Below £30k Random selection using Constructionline

Not advertisedUse Purchasers Portal

Central Government

• Over £30k eSourcing, Council website & local press• £8k – £30k seek 4 written quotations• £3k – £8k seek 3 written quotations• Below £3k no written quotations required

Belfast City Council

• Over £15k Council website & local press• £10k – £15k use eSourcing (BUT NOT

ADVERTISED)• £5k – £10k seek 4 quotations• £1k – £5k seek 3 quotations• Below £1k no quotations required

Omagh District Council

• Above £15k Council website & local press• £10k – £15k seek 6 quotations• £5k – £10k seek 4 quotations• £1k – £5k seek 3 quotations• Below £1k no quotations required

Fermanagh District Council

NI market is fragmentedLocal Government (a sample only – 26 Councils in total)

How can we increase our chances?Understand your Market

Identify a tender &

make bid / no-bid

decision

Identify how we are going

to win

Develop and submit an

excellent bid

Learn from the

experience – whatever the

outcome

Sources of tenders• Pro-active targeting of buyers – select lists• https://e-sourcingni.bravosolution.co.uk• http://www.etenders.gov.ie/• Council websites – including www.laquotes.ie • National & Local press • Commercial sources:• Contrax Weekly Ireland (www.contraxonline.com)• Glenigan Constructing Insight (www.glenigan.com)• and many others (ask for a trial)

How can we increase our chances?Understand your Market

Identify a tender &

make bid / no-bid

decision

Identify how we are going

to win

Develop and submit an

excellent bid

Learn from the

experience – whatever the

outcome

How can SMEs participate• Go it alone on an appropriate contract• Identify sub-threshold opportunities• Have a clear Value Proposition (and communicate it)

• Act as a sub-contractor• Identify successful bidders and target them

• Partner as a member of consortium• Need to demonstrate the value you can bring• InterTradeIreland launching new initiative

www.cpdni.gov/uk

www.cpdni.gov/uk

How can we increase our chances?Understand your Market

Identify a tender &

make bid / no-bid

decision

Identify how we are going

to win

Develop and submit an

excellent bid

Learn from the

experience – whatever the

outcome

Developing an excellent bid• Read the ITT/PQQ; the detail is important

• Pay specific attention to award criteria marks

• Ask clarification questions – don’t assume

• Structure the bid document appropriately

• Make it attractive, easy to read and navigate

• Allow plenty of time – including to review/edit

Developing an excellent bid• Use relevant examples or references

• Include resources that are fit for purpose; exclude passengers

• Highlight awards, certificates, standards

• Complete pricing as requested

‘Green Procurement’• Becoming more common across all sectors

• Can be included as:• Environmental Management• Sustainability• Eco-innovation

• Often represents an ‘unknown’ for SMEs• A&E approach: use SimplyDocs (BUT TAILOR IT)• Utilise the support under the STEM programme

HSE – Multi Supplier Framework Agreement for the provision & Supply

of Fresh & Prepared Fruit & Vegetables Products

Craigavon Borough Council – Supply and Delivery of Cleaning /

Paper Products

Road Safety Authority - Framework Agreement for theProvision of Printing Services

Belfast City Council

simply-docs.co.uk

How can we increase our chances?Understand your Market

Identify a tender &

make bid / no-bid

decision

Identify how we are going

to win

Develop and submit an

excellent bid

Learn from the

experience – whatever the

outcome

In summary• Understand your buyer and your market• Sub-threshold opportunities / select lists• Annual tenders for commodity products / services

• Answer the exam question• Make it easy for the buyer to award you the marks• Be comprehensive, but succinct• Numbers not stories: quantify where possible

• Ask clarification questions if necessary

In summary• General pitfalls to avoid• Don’t bid if you can’t meet the Pass / Fail criteria• Check for recycling / cut & paste problems• Reviewer can only assess what’s in the document

• Consider partnering (or sub-contracting)

• Show VFM – if cost is a high %, don’t over-engineer it

• Remember it is a competition – don’t just ‘get a bid in’

• Always seek feedback (and learn from it)

The deadline is not a target….

Next steps• Tender Clinic (today)

• 15 minutes per company• Answer any immediate questions or queries

• Go 2 Tender Programme – STEM event• Two one-day workshops (Newry)• Up to 3.5 days of mentoring support• €100 or £85 per person• Tue 26 November & 3 December• www.gototender.com for more details and booking

Thank you

Darren RichardsonClarity Consulting

E: darren@clarity-ni.comT: 02892 626 717