Preparing To Tender For Public Sector Works

Andrea Campbell

Agenda• 10.00 Session 1 – Introduction to Procurement

• Procurement in the public sector work• Explaining contract types• Procurement process cycle• Finding opportunities

• 10.45 Neil Hopkins - Head of Procurement at Birmingham City Council

• 11.15 Break• 11.30 Session 2 – Succeeding at PQQ stage

• Purpose of Pre-Qualification Questionnaires (PQQ)• Answering the standard elements of a PQQ• Dealing with Qualitative Questions• Common mistakes made

Agenda• 12.30 Lunch

• 1.15 Session 3• 10 Tips for procurement presentation and interviews

• 2.15 Break

• 2.30 Questions and Answers

• 3.00 Finish

Housekeeping• We are not expecting a fire drill today

• Toilets are out by reception

• Lunch and refreshments will be served out by reception and will be clearly marked

• This is an interactive event – we welcome questions and comments

Purpose of the evento To discover what public sector procurement is

o Why public sector bodies use these procurement methods

o How to find opportunities

o What is a good quality document

o What are the common mistakes and how to avoid them

o You want to be involved!

Session 1Introduction to Procurement

What is procurement?Definition:

“The process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset.”

SESSION 1

What is procurement?In other words…• Procurement is the process that the public sector follows

when purchasing goods, works or services from:o Deciding what to buy

o Deciding how to buy it

o Choosing who to buy it from

o Agreeing a contract with a supplier, to

o Managing that contract until the end or the end of the useful lifetime of the item / service.

SESSION 1

What is the public sector?• The public sector nationally includes:

o central civil government departments

o the Northern Ireland assembly, National Assembly for Wales and Scottish Executive

o the NHS

o the Ministry of Defence

o local authorities

o schools and colleges

SESSION 1

What is the public sector?• In Birmingham the public sector

includes:• Birmingham City Council• Birmingham East and North PCT• Heart of Birmingham Teaching PCT• NHS South Birmingham• Birmingham University• Birmingham City University• Aston University• West Midlands Fire Service• West Midlands Police

SESSION 1

Key objectives1. Value for Money (VFM)

The right combination of A high quality service or product

&

Optimum cost

to achieve the desired outcome for the intended service recipient

SESSION 1

Key objectives2. Transparency and Accountability

All public sector bodies are responsible for getting value for money in their purchasing as they are spending tax payers

money.

They must be able to demonstrate that it has been spent efficiently, effectively and not wastefully.

SESSION 1

Procurement rules• All public sector contracts, no matter what their value, are covered by

an EC treaty. This sets down principles to prevent discrimination against companies from any member state and ensure open competition. These principles are backed up in law by the EC procurement directives.

• Most public sector contracts are tendered because by tendering contracts public bodies can make sure that they:

• get value for money• are open and fair in their purchasing activities• comply with procurement law

SESSION 1

What is competitive tendering• Competitive tendering means seeking competitive bids

(tenders) for contracts.

• Contracts are advertised and any interested companies can tender for them.

• The values for tendering can differ between public sector bodies.

SESSION 1

What is competitive tenderingSESSION 1

LOW VALUE CONTRACTSServices & Suppliers

Below £100,000Works

Under £3.8 million

HIGH VALUE CONTRACTSServices & Suppliers

Above £100,000Works

Over £3.8 million

Types of Services / Good tendered for

• Catering• Cleaning• Construction• Food• IT Services• Leisure• Office Furniture• Property Management Works• Stationery• Vehicle Acquisition• Venue Hire

Plus much more

Contract TypesCorporate Contracts• For provision of supplies / services across entire organisations. Usually long term. 

One off contracts• For provision of one off services or supplies for a specific part of an organisation or

department.

Framework contracts• A contracts set up with a number of companies who are then called on to provide ad hoc

goods / services during the life of the contract. Usually used for legal, consultancy or care services

PFI contracts• Long term high value contracts negotiated with large contractors, who may then sub-

contract elements of the work out to smaller or more specialist companies.

SESSION 1

Common procurement methodsOpen Contracts – single stage process• A notice is placed giving all interested suppliers the

opportunity to tender. • 52 days must be allowed from despatch of the notice to

receipt of tenders. • Contract documentation must be sent to suppliers within 4

days of receiving a request. • Any additional information must be provided at least 6

days before the final date of receipt of tenders.

SESSION 1

Example Open ProcessSESSION 1

Tender information is

received

Request for the documentation is

sent

Contract Notice is issued

Document collated and

submitted

All submissions are evaluated

Contract award notice is issued

Alcatel period Contract started

Common procurement methodsRestricted Contracts – multiple stage process• A notice is placed allowing 37 days for interested suppliers

to respond. • Invitations to Tender are sent only to selected tenderers,

allowing 40 days for their response. • Contract documentation must be sent to suppliers within 4

days of receiving a request. • Any additional information must be provided at least 6

days before the final date of receipt of tenders.

SESSION 1

SESSION 1

Request for the documentation

is sent

Contract Notice is issued

Example Restricted Process PQQ

documentation is received

PQQ completed and

submitted

ITT evaluated

ITT completed and

submitted

Possible interview

and/or site visit

Finalscores

calculated

Evaluationundertaken

Results announced for

ITT stage

ITT issued to successful companies

Feedback Offered

Contract notice is issued

Feedback offered

Alcatel period

Contract started

Other procurement methods• Accelerated Restricted

• Negotiated Procedure

• Accelerated Negotiated

• Competitive Dialogue

SESSION 1

Finding Opportunities• Find it in Birmingham

www.finditinbirmingham.co.uk• Tenders Electronic Daily (TED)

www.ted.europa.eu• Supply2Gov

www.supply2.gov.uk

SESSION 1

NEIL HOPKINSHEAD OF PROCUREMENT

BIRMINGHAM CITY COUNCIL

Session 2Succeeding at PQQ Stage

Purpose of PQQ• The main purpose of a PQQ is to ensure that all companies

who are invited to tender can meet the minimum financial and technical requirements to undertake the advertised work.

• When public sector organisations place advertisements for tenders and request expressions of interest, they may receive hundreds of responses. A PQQ is almost always used as a way to shortlist these responses.

Purpose of PQQ• Completing a PQQ is often the first step in the tender

process.

• PQQs issued by the public sector are often more detailed than those issued by the private sector because the public sector has greater responsibilities and is accountable for spending public money. Therefore they need to know that their suppliers follow good practices.

Standard elements of a PQQ• General Company Information• Technical Capability• Financial Information• Insurance• Statutory Information

General Company InformationBasic Information such as

oNameo Address o Contact detailso Company registration numbero Legal statusoNames of directors, partners,

or trustees

Do you know your company registration

number?

Do you have an organisational chart already made up?

Is your website up to date?

Technical CapabilityEvidence of your ability to deliver• Experience • References• Standards and competence of your staff in relation

to this type of work• Registration, licenses or particular technologies

that you may need to deliver the contract

Have you got case studies prepared?

Do you regularly ask clients to be referees?

Do you have all the training certificates for

your staff?

Financial InformationAssessing your financial stability • 3 years accounts, and if 3 years are not available, accounts

for the period that you have been trading• Banker's references• The ratio of the contract you are applying for to your

annual turnover• Your credit rating• Levels of reserves and profit and loss accounts• Parent company accounts (if applicable)

Have you checked your business credit rating?

Who does your bank references?

Does your accounting software give you

management reports?

InsuranceNormally at pre-set minimum limits

• Public Liability – £10m• Employers Liability – £5m• Professional Indemnity (if applicable)

– usually set at £2m

You will normally have to supply certificates as well as the facts and figures

Have your got your certificates?

Can you get this much insurance at a reasonable

price?

Statutory Information• Business and Professional standing

o Including questions about mandatory exclusions

• Health and Safetyo Your Health and Safety policyo Information around what you do to manage Health and Safety in

your organisation. This could be details of responsible staff, risk assessment procedures, or details of any accidents or fatalities that may have occurred in your organisation.

• Equal Opportunitieso An Equal Opportunities / Equality and Diversity policyo Evidence that you have not been found guilty of any offences

relating to discrimination.

Statutory Information• Quality

o A policy or statement of how you manage qualityo A formally recognised accreditation or kitemark (e.g. ISO 9000)o An in-house Quality Management System

• Environmento Details of your environmental policyo Details of any environmental management system you may follow

(e.g. EMAS)o Details of what you do to ensure you carry out your business in an

environmentally friendly manner

Dealing with Qualitative QuestionsWhat are qualitative questions?

o They are used to differentiate you from your competitive

o They are a chance for you to demonstrate why you are the right supplier or contractor

o They are the questions which often carry large marks

Getting it right• Consider the objectives of those procuring the

serviceo Why is the question there?o What do they want to know?o How can you evidence what you are saying?

• Quality of the writingo Is it logical, concise and grammatically correct?o Is it easy to read?o Have your followed the guidelines (word count)?o Have you answered the question?

Common mistakes made• Simple administration failures such as not signing the

tender • Late delivery or delivery to the wrong person or place• Not following instructions• Not answering the questions• No evidence offered• Poor presentation• Not following the number system• They are not competitive

TIME TO BREAK FOR LUNCHBACK FOR 1.15PM

Session 3Top 10 Presentation Tips

Top 10 tips1. Find out the format in advance2. Find out how from the organisation will be

there3. Arrive early4. Send the right people5. Don’t drift off topic

Top 10 tips6. Don’t use it as a chance to sell your

company – stay focussed7. Don’t run over time – practice makes

perfect8. Try not to waffle9. Be prepared10.Be yourself

Session 4Questions and Answers