Irish Small & Medium Enterprises Association

Speakers:

Mary O'Halloran Jim Ryan Senior Procurement Senior Procurement Manager Manager Client Relations Strategic Sourcing

Welcome from the N.P.S.

Objectives for This Morning:

How to Improve Your

Chances

Provide High Level Overview

of the N.P.S.

Understanding of

Public Procurement

Process

Topics Covered I

• Background to the N.P.S.

• Value for Money in Public Procurement

• Benefits in dealing with N.P.S.

• What we Expect from a Good Supplier

• How to Improve your Chances

Topics Covered II

• Tendering Do’s & Don’ts

• Tender Evaluation Criteria

• Debriefing

• Presentations as Part of Tender Submission

N.P.S. Background

• Procurement was Disorganised & Non-Professional in Public Sector

- Often part-time function – but complex, procedural & technical

- Very Few Full Time Professionals

• Price Waterhouse Coopers Report (2001) Recommendations:

- Establishment of Centralised N.P.P.P.U. (est. 2004 - policy unit)

- Establishment of N.P.S. (est. 2009)

Concern Expressed re:

• Number Differing Contracts for Similar Goods &

Services

• Purchase of Same Outside of Contract

• Varying Standards Across Contracting Authorities

e.g.:

Setting Suitable Turnover Figures & Realistic

Levels Insurance Liability

Context

Public Sector Spend in Procurement

Goods & Services - Billion €8

Capital Works - Billion €7

Context of NPS's Establishment:

Government's Belief That Reform of Structural & Operational Frameworks for Public Procurement of Goods and Services Will Deliver Significant Savings to the Exchequer

March 2009

Government Approves Establishment of NPS - Complement of 26 Staff

- HQ Trim, Co. Meath

- Board of NPS:

Minister of State Martin Mansergh T.D.

Department of Finance

Department of Education

Department of Environment

HSE

Department of Finance & Personnel N.I.

NPS Mission:

Provision of Professional Procurement Services &

Advice

- Will Ensure Public Service has Access to Best Value

Goods & Services

- Reduced Administrative Overheads & Full Legal

Compliance

Result: Enables Provision of Superior Public Services

StrategySTRATEGY

Goal 1StrategicSourcing

Goal 2EducationTraining

Goal 3eProcurement

Goal 4Advisory &

Guidance Services

Internal Supporting StrategiesHuman Resource Research & Benchmarking Statistics, Market Targeting

Development Measurement Performance

Procurement Strategy – Making Savings

• Analyse Spend & Determine Expenditure on Principal

Goods & Services (NPS est. Top 30 Spends)

• Identify & develop Opportunities for Aggregations

Across Public bodies

• Savings through Economies of Scale

• Identify Optimum Scale of Contracts at National, Local

& Regional Levels

Top Thirty Spend CategoriesConstructionICTTravelEnergyProfessional ServicesRoadsEnergyWaste DisposalWaterPlant & EquipmentMedical SuppliesTransportAdvertisingTelephones

PostageGeneral MaintenanceLaboratory SuppliesFuelFood, CateringSecurity ServicesPrinting & PublishingJanitorial & CleaningRecruitmentTrainingStationeryUniforms & ClothingAudits & AccountingOffice EquipmentInsuranceEtc.

Barriers to Achieving Savings

• Lack of Competition for Public Contracts

• Poor Participation from SME's

• Misinformation Among Businesses Regarding

• Lack of Full Time Dedicated Procurement Personnel

Across Public Sector

Measures to Achieve Savings

• Provision of Learning & Development Opportunities

for Public Service Customers & Suppliers

• Provision of Educational Material & Training

• Proactive Engagement with ISME, SFA, IBEC etc.

• Increase Firms' Awareness of Tendering Opportunities

Streamlining Procurement Procedures

• Review of all Procurement Documentation

• Identify Areas for Standardisation – Buyers & Suppliers

• Simplify and Provide Templates

• Solicit opinions of Buyers & Suppliers

• Ensure Ease of Participation to

eProcurement• eTenders Website to be Developed & Enhanced

- Major tool for Public Sector Procurement

- Serves as Portal for Suppliers

- More Functionality – Easier to Use by Smaller Firms

• Devise Strategy to Utilise for eAuctions & Disposal &

Redistribution of Goods Throughout Public Service

Summary

• Attain Administrative Efficiencies Through Elimination of Tendering for Similar Goods & Services by Wide Range of Public Services

• Develop More Professional Public Procurement Practices

→ Generate Long Term Benefits for Exchequer & Business Suppliers of Goods & Services

Benefits of Dealing With NPS

• Significant Opportunities Available• Professional, Well Trained Team – Best International

Practice• Prompt Payment• Procedures Fair & Transparent• All Tenders Treated Equally• NPS to Introduce Code of Practice for Suppliers• NPS to List upcoming Contracts on Our Website

What We Expect from a Good Supplier

• Delivers on Time and Keeps Promises

• Provides Good, Consistent Quality (fit for purpose)

• Financially Sound, With Good Track Record

• Lowest Life-Cycle Costs – Long Term

• Adequate Resources

• Responsive to Our Needs

• After-Sales Service

• Courtesy & Cooperation

Advantages of Dealing with SME’s

• Greater Flexibility – Delivery Dates

• More Responsive to Customer Needs

• Willingness to Get Job Done to Tight Deadlines

• More Personal Service – Often Lead to Innovative Solutions

• Greater Focus on Quality

• Lower Overheads Which Can Lead to Lower Costs

How to Improve Your Chances

• Register with etenders website – familiarise & Take Training• Feel Free to Market your Product/Service as for Private Firms• Establish When Contracts are Due & Who Relevant Personnel are• Tender only for work You can Do• Familiarise Yourself With Public Sector Procurement Procedures• Pay Attention to Selection & Award Criteria• Seek Prompt Clarification if unsure re Tender Documentation• Always request Feedback – debriefing – Even When Tender Was

successful

Public Sector Procurement Environment

- Government Departments, State Bodies, Agencies HSE - Local Authorities - Education Sector – Universities, Schools, Colleges - Size of Market – Ireland €19 Billion 2007 - Information sources:

- etenders Website - LAQuotes

- e-sourcing NI - OGC - TED

Public Procurement Principles I• EU Legislation Governs all Public Sector Procurement

Above Certain Threshold – Tough but Fair

• Four Fundamental Principles:

Equal Treatment – all Suppliers Treated Equally & Fairly –

no Discrimination

Transparency – Open Competition, Rules & Criteria

Publicised

Public Procurement Principles II

Proportionality – Demands on Suppliers Relevant & Directly

Related to Contract

Mutual Recognition – Standards & Qualifications Used Throughout

the EU Should Receive Equal Recognition

Public Procurement Dictates how Contracting Bodies Buy,

not What They buy

How NPS Advertises ContractsLow Value Purchase - < €1K – One Verbal Quote < €5K – One Written QuoteIntermediate Value Purchase

- Between €5K & €50K - Formal Tender Process – - Minimum 3 quotes by Invitation or Open Process (Debriefing)

High value Purchase- > €50K up to EU Threshold: €125K

- Advertise in eTenders (open) or Get 5 Quotes Direct - > €125K – Advertise in OJEU & eTenders

Competitive Process Should be Used Unless There are Justifiable & Exceptional Circumstances

Finding Requests For Tender (RFT’s)• Government RFT’s Advertised on www.etenders.gov.ie• Register Online and Search for RFT’s Appropiate to Your Area• Automated email Alert if RFT and Your Chosen Business Area

Match• Four Types of Publication on etenders Website:

• Prior Information notice (PIN)• Pre-Qualification Questionnaire (PQQ)• Request for Tenders• Contract Award Notice

Types of PublicationPIN – Issued by Contracting Authority to Alert Market to Forthcoming Opportunities – Not Invitation to TenderPQQ – Enable Authority to Creat a Shortlist of Potential Bidders by

evaluating their suitability in terms of: (1) Technical Knowledge & Experience (2) Capability & Capacity (3) Economic & Financial StandingRFT – Following PQQ Process, List of Qualified Suppliers are

Requested to Tender (and Evaluated) Following Publication of RFT

Typical Tendering Process

Definition: A Tender is “ an offer in writing to supply goods or services, at a fixed price”

• Decide Scope of Requirement & Tendering Strategy• Decide Selection & Award Criteria• Advertise in etenders and/or OJEU (if Above Threshold)• Team Evaluates Tenders• Award of Contract• Put Contract in Place • Monitor Contract

Tendering Do’s and Don’ts I• Assign Responsibility for Coordination of Bid to One Individual

• Bid Plan Should Set Out Bid Proposal, Responsibility for Content & Delivery Deadline

• Bid Checklist to Include:

RFT document - is Requirement Clear?

If Not Seek Clarification as Per Communications Protocol

Identify Authors for Each Section of Proposal Document

Answer all Questions as Full as Possible, with Examples & Referencing Relevant Prior Experience

Give Staff CV’s Standardised Format

Include Past Performance References

Presentation – Check to Ensure no Errors etc.

Delivery – Ensure Delivery to Correct Address by Deadline

Have a Backup Plan Just in Case

Tendering Do’s and Don’ts II• Follow Requested Format & Instructions to Tenderers• Attach all Requested Documentation &/or Samples• Criteria Weightings Indicate Relative Importance Each Area• Ensure Sufficient Information to Allow Each Criterion be

Evaluated• Complete Pricing Schedule Very Carefully• May be invited to Attend “Bidders Conference” – for

Clarifications• Always be Clear & Concise – Relevant• Do Not Submit General “Brochure” Proposal – be Specific to

Competition

Tendering Do’s and Don’ts III• Maintain a Tender Content Library to Include:

Tax Clearance CertificateAuditor’s Letter Confirming Last 3 Years AccountsInsurance Brokers Letter Conforming Employer’s Liability, Public

Liability & Professional IndemnityBank ReferencesISO AccreditationKey Staff Profiles & CV’sStaff Portrait PlatesOrganisational ChartHealth & Safety StatementQuality Policy Statement

Post tender ReviewShould be carried Out by Tender/Bid Manager &

Consider Following:• Poor Planning – was the Bid Rushed & Did Quality

Suffer?• Poor Administration – Was there Missing or

Erroneous Content?• Costing – Was it Set at the Correct Level Information – Were Essential Elements Missing?• Were the Requirements Read Correctly –

Resulting in Incorrect/Non-Compliant Solution?

Tender - Evaluation Criteria

• Selection Criteria

• Exclusion Criteria

• Award Criteria – a Look at Products/Services

Candidate/Tender Selection Criteria

• Financial & Economic Standing (current banking reference)

• Turnover • Insurances – Professional Indemnity, Employers

Liability - must have appropriate & proportionate insurance cover

Relevant Experience

• Recent Experience Relevant to the Project

• Provide Details of Examples & Evidence

• Referees – Client Endorsement

• Provide – Project Name

- Details of Project Manager

- Quality Standards

- Price

- Completion Date

- Health & Safety Record

Technical Skills

• Skills and Experience of Professional & Technical

Personnel Intended to Assign on the Project

- Provide Names

- Function

- Technical Expertise

- CV's to be Provided

Management Skills & Systems

• Details of Organisation's Management Personnel & Management Systems to be Assigned to Proper

- Quality Assurance Standards (ISO etc.) - Programme Software - Health & Safety Management System

Exclusion Criteria

• Bankrupt or About to be Wound Up

• Conviction of Offence for Professional Misconduct

• Failed to Pay Social Welfare Contributions

• Been Guilty of Corruption, Fraud or Money Laundering

• Misrepresented Information

Evaluation

• Lowest Price

or

• MEAT

- Business Proposal 60%

- Price 40%

Evaluation of Price• Lowest Price or MEAT (Most Economically

Advantageous)

• Other Factors

• Whole of life cost

• Price

• Running Costs

• After Sales Service

• Disposal costs

Contract Award Criteria

• Award Criteria Relates to the Product or Project

Specifically

• Proposed Methodology - Approach

• Price

Debriefing

• Voluntary Process• Opportunity Gain Feedback From Contracting Authorities

• Helps Improve Performance by Identifying Strengths & Weaknesses relative to Winning Tender

• Generates Confidence & Reassurance in Integrity of Process

• Emphasises Team Based Nature of Evaluation – not Individual Effort

• Opportunity to understand what Contracting Authority Needs Are

Advantages for Buyer• Encourages Greater Participation

• Promotes Competition

• Lead to More Informed Market – Better Value, Better

Tenders

• Opportunity to Identify Ways to Improve Process for

Future

What Debriefing is Not

• Not Forum to Debate Processor Discuss Merits of

Award Decision

• Not Forum to Discuss other Tenders – Only Your Tender

Will be Discussed

• Stay Calm during Debriefing

• Have Your Questions Prepared in Advance of Meeting

Presentations as Part of Tender Submission

• Only Companies Short Listed for Interviews

• When Preparing Emphasise Areas Bearing on Evaluation Marks

• Decide Who Should Attend From Your Organisation

• Bring Technical Advisers if Necessary

• Each Attendee Should Have Role and Speak

• Avoid Sole Speaker Talking For Group

Slide Show as Presentation

• Be Clear & Concise – no More Than 20 Minutes• Address Purpose of Presentation

- Key Messages

- Visual or Text Orientated

- Engage With Audience

- Show Enthusiasm

• First Impressions Count – But No Need to be Showman

• Prepare for Possible Questions

• End on a High Note

Thank You

Mary O'Halloran Jim Ryan mary.ohalloran@opw.ie jim.ryan@opw.ie