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Financial Viability and how to prove it

05/04/2012 by · 1 Comment

Are Public Sector bodies as transparent as they can be about their reasons and processes for establishing the financial viability checks?  It is clear that everything does need to be clearly accountable however there is a strong trend to lean on small businesses in the procurement process as buyers are risk averse.

Accountants and auditors have highlighted that their internal contract management systems may be inadequate and that the suppliers’ financial standing may pose a risk of loss or poor service.

So how can a small or medium sized business prepare for the increased scrutiny?  Based on reviewing those reports here is our top 5 tips that indicate you have the systems in place to meet the needs of the buyers:

  1. Create financial performance thresholds for each contract – be clear about the process of escalation and outline the plan for early notification
  2. Provide accurate up to the day information to the public sector senior management teams to allay any concerns – don’t run accounts in quarterly arrears
  3. Create a secure ICT pathway dedicated to the financial management of the project with restricted access – link finance to contract performance and provide clear reasons for good, on target or poor performance
  4. Present clear lines of escalated responsibility and provide the reverse for decision making show the financial cascade – be clear about who is measured against the budgeted performance targets and help them understand why they are specifically accountable
  5. Explain how you isolate each project from the risk presented by new contracts; this from personal experience is one factor I had not taken into account.
Want to find out more about what the Buyer wants and how to win public sector contracts? Our blog ‘ What does the buyer want‘ can help.
Filed Under: Uncategorized ·

Get Tender Ready with The TROC button today

13/02/2012 by · Leave a Comment

What Does It Mean?

Get Tender Ready with the TROC todayCompanies that have passed the TROC (Tender Readiness Online Check) or otherwise prequalified to respond to large private or public sector invitations to tender may display this symbol.

What Does It Mean For Tendering Authorities And Procurement Officers?

Public Sector organisations should look for this symbol on SME company websites, because:
  • An SME company displaying THE TROC TENDER READY symbol is indicating that it has met the minimum criteria qualifying it to respond to a Public Sector tender
  • This means that the tendering body can confidently approach the company and invite them to participate in a procurement exercise.
  • Looking for the TROC TENDER READY button will help tendering authorities to meet the Government’s aspiration that ‘25% of public sector contracts should be awarded to SMEs’.

The TROC Tender Ready symbol is a private sector initiative, with no government funding or taxpayers’ money involved.

Companies who have successfully completed and passed a Public Sector PQQ or won a contract within the last TWELVE months should contact info@procurementconnection.org.uk to get their badge and press pack.

It’s up to the both the Private and Public Sectors, as well as the press and other media organisations, to raise awareness of the TROC Tender Ready symbol: it will help procurement officers to identify ‘Tender Ready’ busineeses and therefore help more SMEs to win Public Sector contracts.

Filed Under: Checklist, Top Tips, Win Bids · Tagged: , , , , , , , , , ,

SMEs and public sector tenders

16/12/2011 by · Leave a Comment

What do the latest changes mean for your business?

Small and medium sized enterprises (SMEs) can feel locked out of government tenders by the Pre-Qualification Questionnaire (PQQ) requirements. The Cabinet Office wants this to change and over the last year they’ve taken some steps to do just that. In this article we’re going to take a look at what they’ve recommended and how that could make things easier for your business and applying for public sector tenders.

There are a few issues that face SMEs when public sector tendering. The first is that public sector departments are risk averse because of limited budgets and competing political demands. No authority wants to hire a small company and discover it can’t fulfil the contract. To avoid this UK government tenders focus on compliance and financial robustness, favouring established companies.

Worse, SMEs can be inadvertently filtered out of the process by asking far too much of them in compliance requirements or in the scale of the contract. The Cabinet Office is currently recommending that contracting authorities split their contracts into separate micro-lots for each required service. This ought to help SMEs by reducing the size of each contract and allowing them to take advantage of their specialist expertise that a large company trying to do everything might not possess.

The Finance Problem

Public sector tendering often requires demonstrating financial stability backed up with plenty of financial data, which can be a problem for many SMEs. They may simply have not been operating long enough to meet those requirements and probably lack the required level of insurance. They may not have enough staff to collate all the information they need.

The new guidelines encourage procurers to allow for alternative forms of financial information. UK government tenders and their contracting authorities are being encouraged to be more open about exactly what details are necessary.

Changes in “Technical and Professional Capacity”

The last thing any local authority wants is to be made complicit in some awful pollution or racism scandal by one of their contractors. So they’ve tended to put equal opportunities, health and safety and environmental compliance into the “technical or professional capacity” section of the PQQ. It can be expensive to prove that an SME is in compliance with all these rules.

The Cabinet Office has asked contracting authorities to remember that this section should only be about previous similar contracts, quality control and technical staff. This doesn’t mean that the compliance issues are now irrelevant: instead, the local authority is likely to use the “eligibility” section to ascertain whether the bidder has a record of dumping hydrogen sulphide into municipal swimming pools. The hope is that the move will draw a much clearer distinction between mandatory and discretionary grounds for disqualification, helping SMEs. If a contracting authority isn’t clear about where the line is, ask!

Big Changes in Best Practice

The Cabinet Office has issued a model PQQ in line with all these new changes which government departments are now required to use. By only including the minimum requirements of the regulations, the hope is that the bar won’t be set too high for SMEs to consider. Better still for SMEs, the Cabinet Office has a “mystery shopper” report. Suppliers are being encouraged to report poor procurement practices and unclear tenders.

The new guidelines for PQQs all aim to make the process simpler and cheaper for SMEs to engage in, and provide more outlets for them to question decisions or get feedback. Not all of the potential hurdles have disappeared, but they have got lower.

We would love to hear about how the changes have affected your business so what do you think?

Interested in finding local government opportunities?

Interested in hiring a bid writer to help you win a local government tender?

Filed Under: Bid Writing, General, Opportunities, PQQ, PQQs, Procurement, Tender Writing, Tenders, Top Tips, Uncategorized, Win Bids, Win That Bid ·

Good proposal feedback questions to ask the client

29/10/2011 by · Leave a Comment

Not getting chosen at the end of a long tender or bid process is painful.  However, it is a necessary evil of taking part.  Once the initial shock is over, the worse thing you can do is to forget about it and move on to applying for the next one that crosses your desk.  One of the important things to do is to conduct an internal and external review.   We often get asked how to phrase these questions when you are sitting in front of the buyer as it could be tempting to scream at them… “What’s Wrong With Us?  Do you know how much time we spent on working on this proposal????”

Here are some of our suggestions:

1.  How did the proposal contribute to loosing the tender?

2.  Was our proposal easy to evaluate?

3.  Did the proposal comply?

4.  How did it compare on content and price to our other competitors?

5.  Would you recommend we continue to respond to your tenders?

We would love to hear from you and what you find works the best/gets the best results.

Filed Under: Bid Writing, Bids, Business Strategy, Home News, Win That Bid · Tagged: , ,

Two Stage Tendering for Destination Builds

28/09/2011 by · Leave a Comment

Perhaps the most crucial factors contributing to the success of a destination builds (tourist attractions, hotels, restaurants, head offices) are location and design.  Once chosen, there’s not much you can do about location.  Design however, is a different matter.  Not only does it cause challenges throughout the initial fit out, over time the building will need to re-design to keep up to date.

There are four main methods of procurement and central to each is the responsibility of design.

1) Construct Only: This method sees the developer appoint a design team which will control all areas of design until the project is finished.  Once the design of the building is completed the developer will tender for a construction team.  This tender will be solely for construction duties and as bidding is for a finished design, tenderers can bid a lump sum.  The main advantage of this procurement process is that the developer retains control of design, vital to the owners. The contractor is also taking on less risk than a project that may still change so costs can be driven down.  However, this step by step process demands a lot more time than ones where building and design can overlap or coincide.

2) Design and Build: Design and build procurement involves the developer having their own design team which will begin the design process.  Then, once the design has reached a suitable stage, a design-build contract is issued.  The contractor who wins this contract will continue to develop the design, replacing the original team, while carrying out building works.  An advantage is that the work can begin earlier which will save the developer money.  It also limits the risk of extension of time claims due to design error.  There are some disadvantages.  Tenders will ask a higher price than Construct Only contracts, as they do more work.  Also, the developer loses design ownership key to the brand of the building.  It is possible for the developer to employ a team of design monitoring consultants but the opportunities for confrontation and crossed wires arise, as do more costs.

3) Two-Stage Tendering:  This can be seen as a adaptation to the Design and Build process.  It is sometimes thought of as more suitable for smaller, less complex buildings, but is increasingly popular.  This arrangement involves a contractor carrying out pre-construction work and assisting the developer’s design team.  It is usually let on a guaranteed maximum price basis.  When the design has progressed to a point where construction is able to begin, the developer will enter into either a construct only contract or possibly a design-build contract to complete the works.  The benefits of two-stage tendering to the developer involve retaining the all-important design control.  Also, as the developer has been able to engage the contractor early and obtain a fixed price for the second stage, this system provides cost and time savings.

4) Construction Management: With this system, the developer employs a construction manager as an advisor.  All works required throughout the building will be divided into packages and the construction manager will give guidance on the best way to do this.  The developer then enters into each separate contract while the construction manager oversees the process.  As everything is done under separate contracts, pre-construction works can begin while design is still being finalised.  When the design is finished one single contract can be issued for the rest of the works.  The main advantage to this method is the degree of control the developer keeps over the design.  The main disadvantage though, is that there is no single point of contact on the construction side.  Errors, queries and suggestions must involve tracking down the relevant contractor.  This is difficult for the developer and very unattractive to any lenders.  Previously, construction managers were assumed to have relatively little liability, as they are have no direct, contractual link with sub-contractors.  However, after the high profile Great Eastern Hotels case, construction managers and developers may view the arrangement differently.

Need tender writing or bid management assistance? Get in touch 0203 405 1850 or email hello@winthatbid.com

Filed Under: Bids, Business Strategy, Procurement, Tenders, Win That Bid · Tagged: , , , , , , , , , , ,

How to Find Tenders

05/09/2011 by · Leave a Comment

People often ask us how to find tenders for their business.  There are hundreds of portals in the UK – some generalist, some specialist.  Some charge a membership fee and others are free.  This article sets out a few ways to find yourself some great tendering opportunities.

Contracts Finder
 Contracts Finder is a free new service for businesses, government buyers and the public. This service comes from government under its transparency commitment and you can find:

· live contract opportunities

· closed tender documentation

· contract awards and contract documents

TED (Tenders Electronic Daily)
TED is the online version of the ‘Supplement to the Official Journal of the European Union (OJEU)’, dedicated to European public procurement. Public procurement in the UK and European Union is governed by a number of Directives and Regulations and all tender opportunities above a certain monetary threshold must be published in the OJEU. TED provides free access to business opportunities. It is updated five times a week with approximately 1500 public procurement notices from the European Union, the European Economic Area and beyond. Register on the TED website for free to get started or contact the Enterprise Europe Network for further advice and support.

Where to find Global Sporting Opportunities

Where to find Local Authority opportunities

It is worth finding out how your local authorities manage their tenders however we find that in the majority they use their own online portals, advertise in local papers and/or use an external company like Exor to manage their preferred supplier database.

Central Government

Try these for size

NHS

The Department of Health is divided into a number of business units for purchasing purposes, each with their own budgets.  We have selected a few ways to monitor different tendering and business opportunities

Specialist

Each sector often has its own specialist portals and we have put together a list of some of them

What do you think of our How to Find Tenders list – have you got a favourite to add?

Filed Under: Bids, Business Strategy, Find Tenders, General, Olympics 2012, Opportunities, Procurement, Top Tips, Win That Bid · Tagged: , , , , , , , , , ,

Questions to ask yourself before starting down the Tender Writing route

16/06/2011 by · Leave a Comment
When about to embark on the long journey towards winning a tender, we think that these questions are important discussion points for your team.  Even if you think that the PQQ is quick to complete, this is only the tip of the iceberg.  To ensure that you are in the best position to win your next tender or proposal you must ask yourself these questions before beginning the tender writing process:
Can my company exactly match the buyer’s needs?
  • You may look at a contract and think that your company can do most of the work but if there are areas that it cannot manage, your chances of qualifying or winning are seriously reduced.
  • Limiting areas include specification, geographical location and coverage, mandatory accreditations etc.
  • Is the contract the right size for my business?
  • You shouldn’t bid if the contract value is more than 25% of your turnover. Buyers will be checking that the tender contract value does not exceed 20-30% of the tendering company’s turnover to be sure the contract value will not be too much for the company to handle.
  • The size of your company dictates the maximum size of contract it is likely to win.
Can I show relevant experience?
  • Buyers like suppliers who can prove they can do the job, therefore references from similar organisations for similar work are ideal.
  • If you haven’t got these, you will need to show you have ‘transferable skills’ from customers with similar needs.
  • If the work you are bidding for is not a ‘core competence’ (i.e. it represents only a small element of your company’s overall turnover) it can reduce your chances of success.
Has my company got sufficient trading history?
  • Public sector buyers generally ask for (audited) accounts from the last 3 years (although sometimes 2 years is enough). This means that start-ups are not always in the best position to win bids.
  • Has the business seen year on year growth and if not is there a valid explanation for why not?
Has my company got enough time and expertise spare?
  • Will this project clash with any existing or upcoming work?
  • Tender writing is time consuming – you will need to invest a significant amount of your time and resources to create a winning bid
  • Tendering can also be a daunting task, especially if you do not have the right skills or expertise readily available
Is it a Framework Agreement?
  • If it is, how likely are you to get work that will make your application worth it?
  • Will I have to subcontract?
  • If you do, are you sure that this is the kind of work you want?
  • How will the subcontracting part or parts of the contract be viewed by the client?
  • Can you demonstrate supply chain quality assurance is achieved?
  • What is your subcontractor recruitment policy?
  • Is there an effective management process for subcontractors?

If you are still not sure and need help with your tender writing then do call us on 0203 405 1850 to help you evaluate your next big opportunity.

Filed Under: Bid Writing, PQQ, PQQs, Proposal Writing, Tender Writing, Tenders, Top Tips · Tagged: , , , ,

Tender Writing: Creating compelling win themes

08/06/2011 by · Leave a Comment

Creating a killer set of win themes can make the difference between success and failure when pitching your solution to a potential client.  Win themes are basically a set of marketing statements that should run through your proposal or tender writing.

When tender writing creating your win themes is the place to start. If you’re having trouble creating a strong win theme, try brainstorming the following potential issues facing your client:

  • What risk does your client most fear concerning this project?
  • Is there any red tape that your client is particularly concerned by? New legislation? Discrimination regulation? Noise pollution during construction? Archaeological excavation?
  • What special vision does your client have for the project? To what extent are they looking for quality, excellence and innovation?

Then make a list of the following:

  1. Imagine you are your client. Rank the concerns you have just brainstormed from the biggest to the smallest to create an issues list in order of importance.
  2. Next to each of these issues, brainstorm all the ways in which your project can offer a solution.
  3. Rank these solutions against your competitors’. Can you offer greater quality, reliability, efficiency, cost-effectiveness etc.?

You now have two lists, an issues list and a solutions list. Can you link the ideas near the top of each list?

The ideas from this process should enable you to find the main subject of a competitive and relevant Win Theme.

Having problems with your Win Themes and want to put together a killer presentation then give Win That Bid a call today.

Filed Under: Bid Writing, Business Strategy, General, Proposal Writing, Tender Writing · Tagged: , , ,

Tender Writing Insights: What is a Framework Agreement?

20/05/2011 by · Leave a Comment

A framework agreement is an opportunity for you, the supplier, to be included in a shortlist of suppliers for a fixed period (eg. 4 years). Whether it’s worth your time depends partly on how fairly the buyer allocates work within the shortlisted suppliers.

Our experienced consultants have worked for most large buyers, so we have inside knowledge that we use when selecting suitable tenders and framework agreements to recommend to you as part of our bid co-ordination service.

Framework agreements are much bigger and meatier than your average PQQ and you will need to set plenty of time aside to complete.

Buyers like framework agreements because they are a useful way of procuring services. They offer:

  • continuous improvement within long-term relationships
  • better value and greater community wealth
  • reduced transaction costs

If you want to try to win a framework agreement, consider these:

  • You will be on a supplier list of many
  • There is no guarantee of work, so before making a start on the lengthy documentation, always try to get to know the buyer and whether they are fair in sharing the work around the list of suppliers (ask us)

From the buyer’s viewpoint, a framework agreement is a way to procure products and services over a period of time for a number of projects or schemes. The implications for a local supply chain can be adverse if local suppliers are excluded in favour of national companies.

Some of our clients have said that they spent too much time writing a tender for a framework agreement, winning the contract to much excitement and then not receiving a jot of work from it.  Others have built their business success on winning a framework agreement where the work has been fairly shared between the suppliers.

What have been your experiences on winning framework agreements (or losing them)? We would love to hear your thoughts on this or any aspect of the tender writing process. Drop us a line at hello@winthatbid.com, give us a call on 0208 405 1850 or contact us on Twitter.

Filed Under: Framework Agreements, Proposal Writing, Tender Writing, Tenders, Top Tips · Tagged: , ,

Are you ready for the Bribery Act?

06/04/2011 by · Leave a Comment

The Bribery Act 2010 is due to come into effect very soon but are you prepared for the change it will bring?

Increasingly, public sector tenders require the supplier to explain their anti-bribery and anti-corruption processes and procedures. Despite a number of delays The Bribery Act is now due to come into force on 1st July 2011. The purpose of the Act amongst other things will be to:

  • provide a more effective legal framework to combat bribery in the public or private sectors
  • create two general offences covering the offering, promising or giving of an advantage, and requesting, agreeing to receive or accepting of an advantage
  • create a discrete offence of bribery of a foreign public official
  • create a new offence of failure by a commercial organisation to prevent a bribe being paid for or on its behalf (it will be a defence if the organisation has adequate procedures in place to prevent bribery
  • replace the fragmented and complex offences at common law and in the Prevention of Corruption Acts 1889-1916
  • require the Secretary of State to publish guidance about procedures that relevant commercial organisations can put in place to prevent bribery on their behalf
  • help tackle the threat that bribery poses to economic progress and development around the world.

The Ministry of Justice published updated procedure guidance on 30th March 2011 that can be put into place by commercial organisations. The report advises that an organisation can form a case against the offence of failing to prevent bribery providing that they can prove adequate procedures are in place in the organisation. This is under section 7 of the Bribery Act 2010.

The guidance sets out six principles that will assist commercial organisations with planning, implementing, monitoring and reviewing their business to ensure it is bribery free.

The principles are:

  1. Proportionate procedures
  2. Top level commitment
  3. Risk assessment
  4. Due diligence
  5. Communication
  6. Monitoring and Review

After each principle there are suggested practical guidelines to help your organisation address them. This designates control to the organisations to review their business and undertake the relevant risk assessments to determine whether or not their procedures are sufficiently robust. If your organisation does not meet the required standard, you are advised to implement anti-bribery procedures as soon as possible.

The guidance presents a risk based approach to adopting the sufficient procedures and acknowledges that different procedures will suit different organisations depending on

  • size of the company
  • markets in which the business operates in
  • the nature of the company’s business partners and transactions.

If you are flummoxed with your obligations under this new act or are having difficulties with any aspect of your bids and tenders, Win That Bid is simply a phone call away.

Filed Under: Checklist, Policies, PQQ, PQQs, Procurement, Tender Writing, Tenders, Top Tips, Win That Bid · Tagged: , , , , , , , , , , ,
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