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Laying the procurement pipeline

12/12/2012 by · Leave a Comment

New information has emerged from the Cabinet Office describing the £84bn ‘procurement pipeline’ planned for the next five years. Covering 18 business sectors, the pipeline lays out the government’s anticipated project needs over the next few years. Notices of this kind have been published since November 2011; the most recent announcement adds professional services, financial services, waste management, and fire services.

The government’s goal is to make it easier for companies to plan ahead, something that has traditionally been difficult for organisations working with the public sector. Skills gaps can be identified and dealt with earlier. Moreover, it is evidence of a laudable transparency in government spending that can only help improve processes and efficiency.

Back in April business secretary Vince Cable laid out the reasoning behind these plans. “Frankly, we’ve been too short-term in how we’ve done procurement in the past. Our key competitors in Europe already see procurement as an integral part of a proper industrial strategy and it’s time we did the same.” Recent procurement scandals and political rows have made it difficult for the government to prove it has any kind of industrial policy at all, and rather overshadowed the wave of initiatives, ideas and proposals streaming out of the cabinet office.

This initiative comes at a time when many businesses reliant on government contracts (especially those devoted to major infrastructure projects) are struggling. Construction giant Balfour Beatty recently issued a profit warning based on a dearth of major schemes, while a former Laing O’Rourke executive recently told the press that lack of infrastructure investment and planning in the UK would lead his ambitions elsewhere. Infrastructure schemes have fallen by half in the year to October, while £3bn of construction work is behind schedule or even entirely halted as a result of planning appeals. Friends and colleagues in the construction sector have sitting around waiting for suitable bids to emerge.

The Pipeline can give companies time to plan ahead which they might not have had before. Win that Bid’s vast experience in a number of sectors can help you make best use of that time, to be ready to grab the opportunities ahead.

Filed Under: Business Strategy, Construction, Find Tenders, Framework Agreements, Opportunities · Tagged: , , , , , , ,

Virgin Rail and the right to challenge

07/11/2012 by · Leave a Comment

The origins of the Virgin Rail scandal last month rapidly became lost in the recrimination and blame, as the Department for Transport attempt to apportion culpability and pundits discuss the role and capabilities of the civil service. When self-styled “tie-wearing adventurer” Richard Branson launched his legal challenge to the West Coast franchise decision two months ago, it was widely regarded as a knee-jerk, even ill-considered action of a man known for scrappy battles on behalf of his business.

The DfT was due to award a long term franchise to FirstGroup until “significant technical flaws” became evident during their preparations for the Virgin lawsuit. These flaws became evident in the risk assessments of First’s winning bid.

Virgin faced substantial risks in mounting a challenge to the DfT. Some of these risks were revealed in the initial media coverage of the challenge that portrayed Richard Branson as an opportunist and a sore loser (not helped by Virgin Rail’s relatively poor public reputation). If the legal case had failed Virgin’s commercial reputation (and finances) would have suffered.

They had a number of options, all of them risky:

Under Public Procurement law Virgin could mount a formal challenge. To do this they would have to allege that the contracting authority has run the process in an unfair or opaque manner. If they were successful in this, the contract award would have to be suspended while the issue is resolved – allowing more time to discover exactly what happened (and why they lost).

Their second option would be a judicial review. They would need to show a public interest in such an action – easily achieved, given the political climate – but the latter stage would be more difficult. Virgin would essentially have to prove that no reasonable authority would have made the contract decision. Before the events of last month, this was considered unlikely to happen.

In the event, Virgin were able to prove that large parts of the process was flawed. The DfT has spent the last few weeks apportioning blame, mainly directing it at the civil servants involved. In turn, there has been a lot of scrutiny directed at the structure of the procurement process –

A great many qualified professionals have been lured out the public sector by higher wages in recent months, and this, combined with poor systems of review, greatly contributed to the fiasco. We have been discussing government initiatives on this blog for months – all of them seem doomed to failure if the Civil Service can’t do something to arrest the skills gap in government procurement.

Richard Branson’s decision to challenge has been vindicated. The DfT has ordered a number of independent reviews and Virgin has been awarded a short term contract under circumstances that some rivals claim were actively uncompetitive (there should have been a tender for the contract extension). Since the fiasco Virgin has changed strategy dramatically, aiming to expand its market share into the East Coast lines that GNER and National Express mismanaged back into government hands three years ago (under contracts similar to the one offered to FirstGroup). They will likely also retain the West Coast franchise in the long term, if they can see off competition from Abellio.

Virgin Rail weighed up the risks inherent in challenging the bid and made the strategic decision to do. Meanwhile, we’ve been noticing that numerous tenders are having their deadlines put back – maybe as a result of jumpy procurement officials? Win that Bid can help you weigh up the risks in your own bids, and comprehend the contracting authority.

Filed Under: Business Strategy, Framework Agreements, Policies, Tenders, Top Tips · Tagged: , , , , ,

Paying attention to EU procurement rules so you don’t have to

11/09/2012 by · Leave a Comment

The Cabinet Office has released a Procurement Policy Note (PPN) discussing the latest results of negotiations in Brussels about changing the procurement rules which ultimately define public sector tenders. These EU rules can be a bit obscure and so it is interesting to get a window into the process and progress of these discussions.

There are a few specific areas of interest to bid writers within the document.

Reducing minimum timescales

The government has supported proposals to reduce the minimum timescales for responding to advertised procurements and preparing tender documents. So far a reduction from 40 to 35 days has been agreed upon, under the open procedure.

Increasing the use of self-declarations

Regular readers of this blog will have seen several articles about government initiatives (not to mention scandals and complaints from business) surrounding the length and requirements of public sector tender PQQ documents. The latest response is to increase the use of self-declarations, whereby only the winning bidder must submit documents and certificates proving their status, while self-declarations of compliance must be accepted by the procurement officers up to that point. This will be a welcome change for SMEs and smaller bidders, if it isn’t open to abuse.

Financial Requirements for SMEs

The Cabinet Office has continued to argue that SME business should be encouraged by breaking large bids into lots, at the discretion of the purchasing authority. It also wants to reduce the turnover requirements relative to contract size. Together with proposals in favour of “innovative public service delivery-agents” such as employee owned “mutual”, these are further moves in favour of diversifying the pool of bidders from which governments and public sector purchasing authorities draw their contracts.

The final results of these discussions will probably be adopted in early 2013. Win that Bid can help bid writers keep up to date with the latest public sector tender developments.

Filed Under: Business Strategy, Opportunities, Policies, PQQ, PQQs, Procurement · Tagged: , , , , ,

Could the G4S security contract have worked?

23/07/2012 by · Leave a Comment

Last week Win that Bid published a blog quoting a director from G4S as he proclaimed the rise of police privatisation. I wasn’t entirely positive about the prospect… and even as it went live on the site G4S became embroiled in a massive contract scandal reported across the world, destroying their share price.

There has been lots of press coverage about the company’s failures, but what about the contract itself? Could they have succeeded in meeting it at all?

There were warning signs last September, when the firm reported that it would not be able to recruit more than guards than it was originally contracted for without a great deal of prior warning. The Home Office then took four months to confirm what it actually needed (far more than the contract called for, naturally). All security staff have to be centrally vetted and licensed through the Security Industry Authority (SIA) before they can be deployed, drastically slowing down their recruitment process. There seems to have been an awful lack of clarity about the pricing structure of the tender contract, which allowed the Olympic Sponsors to add more and more requirements to the contract. G4S simply couldn’t provide the resources asked for, and didn’t communicate that very well.

This raises a second issue with the contract: there was no provision for outsourcing. The authorities wanted to hand the entire £200 million contract to a single security company. This created problems for G4S and seems like a wasted opportunity; Win that Bid has worked with plenty of qualified security companies in London. Many of them were very interested in pursuing Olympic security contracts and were disappointed to find that there were no opportunities for them do so, either because of the sheer scale of the contract or because they were vulnerable to changes in the tender contract. The tender contract isolated G4S; before taking the contract they should have considered their contingency plans in the event the requirements changed, as they usually do in contracts this large and politicised.

Based on these facts, G4S certainly appears to have a strong case to complain about the government’s conduct in this contract. It hasn’t taken that opportunity. Possibly, it simply doesn’t want to jeopardise the security contracts it already has with the government. The political climate and the scale of the bid certainly left G4S in a very poor negotiating position; something that any company should consider before bidding for a tender.

A company trying to win any bid, let alone a security contract, should make sure they plan for contingencies. G4S weren’t prepared for big changes in the contract, and have paid for it.

Filed Under: Business Strategy, Construction, Olympics 2012, Uncategorized · Tagged: , , ,

How will the Public Services (Social Value) Act 2012 change your bid?

16/07/2012 by · 1 Comment

There have been some recent changes in the way that public bodies can take social considerations into account when procuring public contracts. The new Public Services (Social Value) Act 2012 aims to clarify the issue a bit.

The Act (applied to public service contracts) creates a statutory requirement for public authorities to have regard to economic, social and environmental well-being in connection with public services contracts and for connected purposes. However, the Act also states that these decisions must also be directly relevant to what is being produced in the first place. This is roughly equivalent to what the EU procurement regime already allowed for.

From the bid writer’s point of view, the main thing is to look at where the question of Social Value will come up in the tender writing process:

Before the public sector tender is issued: the contracting authority will try to identify non-commercial, social value considerations before they commence the procurement process. This will have a big impact on the technical specifications of the project that a bid writer should take into account.

In the terms of the Contract: if the contracting authority does decide it wants to place emphasis on a particular social need, it might include “special” conditions.

The selection stage: the contracting authority could well reject applicants who don’t meet the non-commercial needs of the contract. Bid writers should make sure that their bid meets those requirement.  For instance, the contracting authority might want to fulfil an environmental consideration and choose a company with a proven record in that area.

The Act states that the selection criteria must be non-discriminatory, proportionate and linked to the subject matter.

Need help writing a public sector tender? Contact one of our team today on 0203405 1850 and we can help.

Filed Under: Bids, Business Strategy, Proposal Writing · Tagged: , , , , ,

Police privatisation: an arresting opportunity?

13/07/2012 by · Leave a Comment

David Taylor-Smith of the security company G4S recently grabbed headlines by stating that private companies will be running large parts of the UK’s police service within five years. His statements were supported by news that at least 10 police forces are considering outsourcing parts of their service to the private sector in response to funding shortfalls brought on by government cuts.

Taylor-Smith’s statements simply focused minds on a trend already causing consternation among many observers. The American experience in privatised law enforcement has been riddled by stories of corruption, genuinely horrible scandals and enormous pork barrel spending at taxpayer’s expense. And while people laugh at the classic Fry and Laurie sketch from decades ago, areas of London have already reverted to the Victorian situation of overlapping private spaces patrolled by company personnel, disrupting police response times and creating some disturbing civil rights issues. If frontline police services are privatised, precedent suggests that most of those tender contracts will go to established firms with extensive backroom contacts.

Not all of the requirements being investigated by the police are so controversial. Managing the vehicle fleet, providing legal support and even helping victims and witnesses; these opportunities for bid writers are all less likely to be delayed or prevented by political clashes.  Existing companies experienced in public sector tenders for maintenance, human resources or social care could find important roles within the police force.

Bid writers looking to win public sector tenders in the police force must be aware of how politicised the process could potentially become.  Consider the image of the company and be ready to discuss issues of social value during the bidding process. The stated goal of the outsourcing deals is to reduce costs; bid writers will encounter procurers who hope they can reduce their overheads while improving levels of service at the same time.

As more information about potential police tender opportunities becomes available, companies should carefully consider their options. Win that Bid can help bid writers, both in putting together an appropriate tender document, but also in deciding whether an apparently lucrative policing tender contract is going become a dangerous albatross in the long term.

Filed Under: Bid Management, Business Strategy, Olympics 2012, Opportunities, Tender Writing · Tagged: , , , , ,

New risks and opportunities for consultants in the public sector.

17/02/2012 by · Leave a Comment

The government wants to cut down on the amount it spends on consultants. In the last year it cut its consultancy spending by almost two thirds. The latest change was announced by the Cabinet Office last month. All consultancy contracts worth over £100,000 will be have to be procured by means of a framework agreement called ConsultancyONE. This will replace any existing framework agreements and last for a duration of 4 years. The government wants to supervise consultancy related public sector tenders more closely.

The change in the framework presents both risks and opportunities for consultancies. Bid writers will find contracts easier to find and pursue – there will be more details provided in the OJEU notice and the PQQ has been simplified. Bid writers will no longer need previous experience of working in the public sector is no longer required. Moreover, the framework will breakdown into much smaller lots for specialist consultancy. This ought to make it much easier for smaller, specialist consultancies (especially SMEs) to meet the requirements of public sector tenders. Larger consultancy companies may be forced to reconsider their existing strategy when faced with these new competitors.

Filed Under: Business Strategy, Framework Agreements ·

Believe in your Corporate Social Responsibility policy!

15/02/2012 by · Leave a Comment
The Carbon Disclosure Project, a non-profit devoted to encouraging more environmentally responsible practices in business has released a report on “supplier management”. In particular, it highlights the increasing willingness of companies to drop suppliers who don’t abide by their CSR policies or environmental promises.

There are several reasons for this. The first is arguably the desire of large companies to “greenwash” their image, particularly now that scandalous practices in offshore manufacturing (notably those effecting Apple in China last year) are becoming much less easier for multinationals to hide.

The other driving force is a growing awareness of the financial benefits of cutting emissions within their supply chains. Many large companies have achieved savings in their own internal systems but according to the UK Carbon Trust fewer than half of multi-nationals (40%) are addressing their “upstream” emissions, i.e those generated by their suppliers. Ultimately, rising energy and commodity prices mean that more efficient, sustainable practices will become ever more important in keeping costs down, and this will become important in private sector tenders.

Businesses writing tenders are being encouraged to optimise their logistical processes, focusing on reducing waste and improving their environmental practices, two activities which almost always complement each other. Private sector tenders will be looking for companies that accept the necessity of environmental corporate social responsibility and more importantly can prove that they have implemented their strategies. Win that Bid can help companies writing tenders make their CSR as relevant and attractive as possible.

Filed Under: Business Strategy, Policies, Waste · Tagged: , , , , ,

New tender opportunities in Defence?

13/02/2012 by · Leave a Comment
The Defence white paper released on 1st February 2012 has some important news for bid writers. Notably, it raises the possibility that the MOD will be procuring from a much wider range of sources than they had been previously. The paper states:

“Wherever possible, we will seek to fulfil the UK’s defence and security requirements through open competition in the domestic and global market, buying off-the-shelf where appropriate”

It is debatable how far this aim will be met. It will meet resistance from both vested interests in the defence industry and a number of powerful arguments about the practicalities of defending the nation using equipment sourced from outside. This makes it difficult for bid writers to predict exactly how MOD tenders will work in the future.

The MOD has made some more concrete initiatives of interest to bid writers. The threshold for advertising tendering opportunities has been reduced by 75% to £10,000 and they can now be found on Contracts Finder. Internal guidelines are being changed to ensure that PQQs produced by SMEs are not rejected on the basis of rigid turnover-to-contract value ratios without proper assessment of companies’ actual capacity and potential. This, along with the new Defence Suppliers Forum might present new tendering opportunities for bid writers in the future.

Filed Under: Business Strategy, Opportunities, Tenders · Tagged: , , , , , ,

What exactly does the buyer want?

23/01/2012 by · Leave a Comment

When aiming for a tender contract it’s important to consider what the procurer wants from the contract. This is a vital part of winning contract opportunities.

Public and private sector organisations are putting a relentless focus on cost efficiencies. Many companies believe that the main role of their procurement team is to deliver cost savings and this will be a critical aspect of many contract opportunities.

However important these savings are, they may not be the only goal of the organisation. This is particularly true of companies that are looking to expand their business. They may wish to increase their productivity and competitiveness in the long term, by introducing new systems, methods or tools. Equally, they might want a new approach to a critical area of their business which appears to be failing.

The majority of procurement work involves SMEs. These companies do not always have the most effective procurement methods and so it is particularly important to communicate with them about the aims of their tender contract and discover what it they want now, and what they will want in the future.

Filed Under: Bid Writing, Business Strategy, Kick-Off Meeting, Opportunities, Procurement · Tagged: , , , , ,
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