Contracts and Tenders

Paula Reynolds, Sector Matters

Oct 2014

NICVA Members’ Event: Developing Your Fundraising Mix

Objectives

An introduction to what you need to consider when tendering for contracts and how to prepare your organisation for future bids. Tips on how to complete a successful bid.

- Dispel fears

-The importance of pre tender preparation

-Follow the instructions

Dispel fears

- Increase in opportunities in income generation

- Recognition from public sector that the voluntary and community sector is a quality provider

- Just another type of fundraising

- Doing it already….change of language e.g. ‘contracts of funding’ ‘meeting business objectives’ ‘delivery of services’

- We are commissioners of services

- As many different types of ‘tenders’ as funding applications (3 tender documents)

Some Pros and Cons

Pros:

• Profit

• Cash flow: % upfront

• Less Monitoring and evaluations

• Diversify your funding base

• Get you standard info together eg daily rates

Cons:

• Does not suit everyone: beneficiaries and capacity

• Penalties

• Time and risk in preparing proposals

What you need to consider : Be prepared to be involved in tendering

Why?- Time constraints – short process- Opportunities at end of financial year- Can be complicated!- Ultimately the same process as fundraising but can be as different each time.

- Make sure you can be involved – Do you have the ‘power’?- Do you have the skills?- Do you have the capacity to deliver?- Do you have a relationship with the commissioners?- Do you have the working capital or reserves?- Does you Board need to approve the move to tendering? Should it be reflected

in your strategic plan?- Policies and procedures – are these in place?

SUCCESS

You still have to prove you are a well governed and well run organisation that

delivers quality services on time!

Consider- What can you have ready – Master copy information

1. Your team (MAN/K)

2. Your sources: -Papers: Belfast Telegraph, Irish News and Newsletter-Esource – public sector website https://e-sourcingni.bravosolution.co.uk -Communityni.org Marketplace-tender alert service – CompeteFor (InvestNI)-supply2.gov.uk (UK wider <£100k)-TED/OJEU – Tenders Electronic daily http://ted.europa.eu/TED/main/HomePage.do-CPD website www.cpdni.gov.uk

3. Your relationships:-Commissioners-Partners

Consider- What can you have ready – Master copy information

4. Your Capability Statement

Section 1: Introduction and overview of your organisation

- Who you are: legal name and trading name if different

-When you were set up

-Legal structure

-Where you are based

-Contact details

Section 2: History

-Vision and Mission

-Strategic aims or objectives

-Key milestones/ achievements

Consider- What can you have ready – Master copy information

Mastercopy Capability statement cont’d

Section 3: Your organisation today- Turnover- income and sources- Number of staff and volunteers- Management Committee/Board and election process

Section 4: List your key projects/programmes (Master copy)- Project name- Duration- Cost and funder/commissioner- Aim and objectives- Clear explanation or description of what it was about- Summary of M&E i.e. key facts as figures indicating main outputs and benefits- Reference and their contact details

NB Please tailor to suit the needs of the tender

Consider - What can you have ready – Master copy information

Section 5: Your CVs

- Develop a standard format

- Do as many as possible e.g. think across the organisation

- Tailor to each tender

- Remember to update

Section 6: Supporting documentation

- Governing document

- Your insurances

- Your accounts (signed)

- Your accreditations and certificates

- Standard financial information – daily rates; standard over head costs

How to Write the Bid

• Assemble the team

• Read and understand the brief

Opt in or out!

Writing the tender – getting started!

Before you draft your Tender:• Develop an understanding of the project and it’s aim

• Think about costs

• Look for partners (if appropriate)

• Draft your methodology

• Consider the scoring

Writing the bid: Structure of a generic tender document

1.Understanding of the brief

2.Background to your organisation / Partnership

3.Methodology

4.Organisation / Partnership Skills – relevant experience

5.Costs

6.Timescale

7.Management & Reporting Structure

8.Added Value

9.References

10.Appendices

1. Understanding the brief

• Project background i.e. summarise the tender

• Objectives of project

• Project need or areas covered

• Timescale

• Your project outputs – i.e. what you will deliver: outputs and outcomes

2. Background to your Organisation

• Who you are and where you come from

• What you do – your services

• Your strengths and achievements

• Relevant Experience

• Partner organisations and their strengths

3 & 4 Methodology & skills and relevant experience

3. How will you run the project?

•Break it down into stages:

- What activities/outputs will happen?

- Who will be involved?

- How long will it take?

4. Skills and experience

•What skills are needed for the successful delivery of the project?

•What evidence can you give that you have these skills

•Who is in your team

5. Costs

• Breakdown ALL of the costs• Finance person on the team• Think full cost recovery

Breakdown: - Direct labour costs eg wages, pension, travel (224; 6 chargeable hours per day)- Direct costs eg room hire- Support labour eg manager; finance person; IT etc- Overheads eg Rent, heat, electricity, insurance- Profit

6. Timescale

• When you will deliver each stage

• Use a Gantt chart showing your project delivery timescale

• Check the tender documentation and their requirements

7. Management and reporting

• Who is responsible for what

• Lines of communication

• Reporting mechanism and regularity

Exercise: what would you need to put in place to show that a project is being successfully managed?

8. Added value

• What specialist skills and experience can you bring

• Understanding the brief – see Speedwell

• How can you stand out from the competition

Exercise: Added value in our sector?

9. References

Who can vouch for you?

Who have you done similar work for?

Make it easy for the commissioner and give contact details

10. Appendices

- If allowed add supporting information

- If not – DO NOT!

- Always check to see if they requested additional forms to be filled eg Equal Opps, confirmation of insurance etc

Handy hints

Keep up to date eg tender alert (028 9069 8134) or cpdni (028 9081 6200)

Keep your standard information up to date – biggest regret!

If in doubt – contact the commissioner- usually an assigned name

Give yourself plenty of time – reinforces need for prep

Work backwards in timescale

Think of style: judged on one document; this is your shop window; selling your services; language: concise and clear

Text and visuals eg Gantt chart; flow charts

Handy hints

• Commissioner wants to see: quality of service, value for money, efficiency, relevance and community benefit

• Get someone else to read over it

• If there is a presentation think about you team

• Always ask for feedback and learn form your mistakes and don’t go on the defensive

• There is a certain amount of luck so be philosophical about it!

Good luck!

Contact details

Paula Reynolds

Director of Business Development

028 9087 5018

Paula.reynolds@sectormatters.com

Denise Copeland

Governance and Charity Advice Manager

028 9087 7777

Denise.mccann@nicva.org