Tendering in the Current Climate How to win 81% of tenders you submit 22nd May 2012 Chartered Institute of Marketing Jim Williams – Managing Director Tender Management Consultancy Limited Head Office: Business Connect Village, 24 Derby Street Liverpool, L5 9PR, United Kingdom (T) - +44 (151) 207 7818 (T) - +44 (020) 7977 1433 (M) – +44 7525 346 158 [email protected] www.tendermanagement.co.uk © 2012 Tender Management Consultancy Ltd 1 Structure • Formalities / Housekeeping • 5 Key Interventions • Questions – ask as we go along! Presentation Overview Tendering in the current climate – Getting the 5 key stages right! 1. Reviewing: research, intelligence, know your client and decision to bid 2. Capturing : developing your archive of credentials 3. Managing: the tender process as a team and the winning process... 4. Writing: the bid to persuade and influence - where to include this.... 5. Improving: the outcome, feedback and continuous improvement Specific Questions about the tendering process What You Are Going to Learn • Reviewing: Intelligence & Research - Understanding the buyer • Capturing : Developing and maximising your credentials • Bid Management: Tips and Best Practice Tender Process • Writing: How to write persuasively to influence • Improving: Gaining the write feedback win or lose Involvement • Willingness to participate • Desire to learn, asking questions! • Acceptance of the views of others • Respect for the feelings of others • Sharing some stories Open Forum – Your views on tendering • Experienced in writing bids (supplier) • Experienced in evaluating bids (buyer) • Submitting Pre-qualifications • Submitting Tenders • Public Sector Procurement knowledge • Private Sector Procurement knowledge • Who likes tendering?? Step 1:Research - Public Sector Process 1. Understanding the Procurement Process Procuring a public sector contract? Procuring a private sector contract? Do you know your client? Procurement Standard Cycle Vendor Rating/ Review of Performance Defining the Specification Defining the Contractual Terms Payment Sourcing the Market Negotiating / Contracting Supplier Appraisal Analysing Quotes/ Tenders Inviting Quotes/ Tenders Commissioning, Procurement & Tendering Procurement is the acquisition of goods and/or services at the best possible total ownership cost (in the right quantities and quality, at the right time and from the right source) for the direct benefit of, or use by, organisations or individuals, generally via a contract. Tendering is the making of a formal offer to undertake to supply particular goods and/or services. Procurement Rules • Market Knowledge • Procurement and Commissioning terminology and rules • Sourcing Tenders – Capturing all relevant opportunities Know the Rules! • Procurement Codes • Contract Notices and Awards • Tender Evaluation Criteria • Creating Your Tender Response The Public Sector Market Opportunity • Central Government Departments • Non Departmental Public Bodies • Strategic Health Authorities • Foundation Trusts • Mental Health Trusts • Primary Care Trusts • Acute Trusts • Universities • State & Independent Primary Schools • Secondary Schools • Police Authorities • Ambulance Services • Fire Brigades • Registered Social Landlords • Local Authority Purchasing Departments Public Sector - Know the Market • No of businesses in UK? 4.7 million • No employing over 250 staff? 6,000 • No employing over 5 staff? 1 million • 99% of all businesses are SMEs • Over 300,000 suppliers • Over half of all public sector procurement is with SMEs Glossary of Procurement Terms – Know you Client • • • • • • • • • • PQQ – Pre-Qualification Questionnaire RFQ – Request for Quotation ITT – Invitation for Tender OJEU - Official Journal of the European Union Contract Notice/ Award Restricted/Open Procurement Procedure CPV – Common Procurement Vocabulary NUTS: “nomenclature of territorial units for statistics.” LOTS – Work type or by location Any others – please ask me!! Procurement Rules • EU threshold – £156,000. • Above this level, all tenders must follow full OJEU Rules • Below this level, authorities can develop own rules • ‘Standing Orders’ Procurement Rules Open Tendering • All interested parties submit bids in response to a Council request • Everyone who expresses an interest is sent full details of the tender/quotation Restricted Tendering (Two Stage Process) • Evaluation of interested parties • Only pre-qualified parties are sent details of the tender/quotation Top 6 Free Websites to Source Tenders • • • • • www.ted.europa.eu www.contractsfinder.com ** www.chest.nwce.gov.uk www.supply2health.nhs.uk www.bluelight.gov.uk high value low value regional health emergency services • ** Contracts Finder replaced www.supply2.gov.uk from April 2011 Contract Notice / Award • Understanding / Interpretation • Place of issue • Place of delivery • CPVs • NUTS code • Lots • Value Evaluation – PQQ – Scores out of 100% - ‘Looking Backwards’ Section Score (%) Legal Pass / Fail Financial Pass / Fail Technical Ability / Experience 40 Health & Safety 10 Equality & Diversity 7.5 Environment & Sustainability 7.5 Quality 10 Business Continuity 5 References 20 Typical PQQ Scoring Framework Evaluation – ITT – Price & Quality – ‘Looking Forwards’ Section Score (%) Quality 60  Evidence of Experience  Method Statements  Contract Management  Key staff  Evidence with Case Studies Price 40 Typical ITT Scoring Framework 5 key stages in the Bid process 1. Evaluating: the opportunity 2. Capturing : the archive of credentials 3. Managing: the PQQ process as a team 4. Writing: the document to persuade and influence 5. Reviewing: the outcome to continually improvement Gaining Intelligence – Goal Setting • • • • • • • PQQ’s 9 out of 10? Are we building relationships now? Who have they selected before and why? Who are the key decision makers? Are we capturing evidence now? Who are the project directors/key team? Understanding the buyers mindset • Why do they want to start using this type of product/service now and intelligence gathering? • Who did the client use in the past and why? • Why is this tender of particular importance to them? • What are the key client objectives? • Can you meet/deliver these objectives? • Have you a relationship? • Do you know scoring the criteria? 10 ways to understand.... 1. Research Customer 2. Intelligence gathering on procurement strategy – how and who do they buy from? 3. What’s important to them – not you... 4. Stakeholders Matrix – who is linked, any initiatives 5. Values – Mission – Strategy 6. Build Relationships 7. Freedom on Information 8. Knowledge of Market / Sector 9. Legislation / Process / Language 10. Mirror (WSIBFY) and (WIIFM) 10 C’s of Supplier Assessments You are the Client!!! What characteristics of a supplier make you confident to buy??? Write down 10 Words 2 minutes beginning with ‘C’ The 10 C’s of Supplier Appraisal Competence To undertake the work Capacity To meet the purchaser’s total needs Commitment In terms of quality, service & cost pressures Control Systems Inventory, costs, people & information Cash Financial stability and ability to invest Cost Proportionate with quality and service Consistency Of quality and delivery, leading to improvement Culture Shared values and business principles Clean Meeting legislative and environmental requirements Communication Willingness to communicate / use of electronic data interchange systems 5 key stages in the Bid process 1. Evaluating: the opportunity 2. Capturing : the archive of credentials 3. Managing: the PQQ process as a team 4. Writing: the document to persuade and influence 5. Reviewing: the outcome to continually improvement Step 2 - Capturing - CV’s - Selling • What is your biggest achievement? • Any career highlights...award winning? • Any client testimonials? • Tailor and structure to the project • Relevance.....Technical...so what? • Relevant Evidence is crucial in high scoring tenders Capturing: Case Studies – Selling... • Key client objectives... • Biggest challenges faced? • How did you overcome these... • Any project highlights...award winning? • Any client testimonials? • Did you meet the objectives • Numbers / Results / Outcomes – So what? 5 key stages in the Bid process 1. Evaluating: the opportunity 2. Capturing : the archive of credentials 3. Managing: the bid process as a team 4. Writing: the document to persuade and influence 5. Reviewing: the outcome to continually improvement Step 3: Managing: Why leave it so late........ Stand up if you have submitted a PQQ/Tender a week early Read the Documents  Background / Objectives  ‘Mark up’ the Document – Attention to detail  Find out the evaluation criteria and sub-criteria  Create a matrix/control document with the questions and     scores Read the question twice (at least) – highlight sections of questions – see examples from Cliff Set up headings and structure/answer plan Never ASSUME Ask questions Planning ‘’Planning is a critical part of the process – you have to manage a tender like running a project’’  Bid Capture Documents  Defining and agreeing winning themes  Agreeing answer plans, style guides Planning is Vital! Planning Stage - Structure of Response Present the right information Answer plans and Storyboards Present it in the right order Create the right impression Keep to Deadlines! 5 key stages in the Bid process 1. Evaluating: the opportunity 2. Capturing : the archive of credentials 3. Managing: the PQQ process as a team 4. Writing: the document to persuade 5. Reviewing: the outcome to continually improvement Step 4 - Writing your response • Agree Answer Plans before writing • Address every question and point in full • Consider weighting of questions and concentrate on those that are highest scoring • Emphasise your Benefits • It’s all about evidence (Awards, Testimonials, Outcomes, KPI’s) • Include an Executive Summary (best practice) Principles of Information Mapping • Reducing the Complexity of the Written Word • Establish a common modular framework for the assembly of written text • Avoid assembly by different people causing incompatible formatting and style • Stop writing ‘Post Graduate’ spoken words, trying to write complex text – make it simple, clear and concise – not cluttering the message, brand and service A4 page structure - Label, Chunk, List, Draw • Visual Symmetry (information mapping) • Label - Buzz Words / mirroring – strap lines to grab attention • Label contains list of verbs (i.e. doing) • 75 words in a Chunk (forces you to condense) • List – Bullet Points • Draw – Picture / Flow Chart • Relationship to black v white on paper as a percentage Persuasive Writing • Selling • Value Proposition • Identifying Customer Needs and Outcomes • Providing solutions to meet / exceed the requirements • Summarising your credentials • Highlighting evidence demonstrating this Finally – Improving and Getting Feedback • Always get a debrief win/lose • Ask the right questions • Be professional • Build this into your bid process Questions Thanks for listening! Any further questions please contact me or the team… Jim Williams – Managing Director Tender Management Consultancy Limited Head Office: Business Connect Village, 24 Derby Street Liverpool, L5 9PR, United Kingdom (T) - +44 (151) 207 7818 (T) - +44 (020) 7977 1433 (M) – +44 7525 346 158 [email protected] www.tendermanagement.co.uk