1

MANAGING FINANCE IN PUBLIC SECTOR

LECTURE

THE PROCESS BY WHICH PROJECTS ARE PUT OUT TO TENDER

2

ASSESSMENT CRITERIA• 3.1

– Determine process by which projects are put out to tender

3

TENDERING FOR PUBLIC SECTOR CONTRACTS

• Tender usually refers to the process whereby governments and financial institutions invite bids for large projects that must be submitted within a fixed deadline.

• Tendering is the process of making an offer, bid or proposal, or expressing interest in response to an invitation or request for tender.

• There may be opportunities for your business to provide goods or services to the public sector, either through a direct contract or by becoming a subcontractor.

4

TENDERING FOR PUBLIC SECTOR CONTRACTS

• The public sector includes: – Central Government Departments And

Agencies– Non-departmental Public Bodies– The NHS And Its Local Trusts– Local Authorities– Universities And Colleges

5

SEARCHING FOR PUBLIC SECTOR CONTRACTS

• As well as using Contracts Finder, you can also find out about opportunities by:– looking for contract notices in

newspapers and trade magazines– contacting the

Small Business Research Initiative (SBRI), which provides funding for new products

– contacting your local Enterprise Europe Network on the Enterprise Europe Network website

6

GROUP TASK 1TENDER PROCESS

1. Do a research on the TENDER PROCESS IN A PUBLIC SECTOR ORGANISATION (SUTTON COUNCIL) and produce a FLOWCHART and accompanying explanation.

7

INVITATION TO TENDER

Tenderers Questionnaire(All firms applying to tender or tendering to the Council are required to complete thisQuestionnaire to give necessary information about the firm applying.)

Instructions to Tenderersthe instructions tenderers must observe when tendering and states when, how and where tenders must be submitted, what information firms must include with their tenders and the conditions under which such tenders are submitted.

SpecificationThe particular requirements of the supply are set out here detailing quality, quantity, support services required and any constraints in place.

Method StatementsThe method statement is an essential part of the process and is evaluated by the Council as part of the tender along with price and the questionnaire.

Contract ConditionsThe legal terms and conditions include the obligations of the contracting parties, payment arrangements, and how variations, instructions and disputes are to be handled.

Form of Tender This is the document, which tenderers sign to formalise their tender, and may summarise the tender price.

Certificates.

There are two certificates to be completed by all tenderers and these are the certificate as to canvassing and a certificate of non-collusion.

8

INVITATION TO TENDER

• SUTTON COUNCIL INVITATION TO TENDER THE DESIGN AND

CONSRUCTION FOR SUTTON RESIDENTIAL CARE HOME (REFERENCE

- RC0873820)• You are here-by invited by London Borough

of Sutton to provide DESIGN AND CONSRUCTION FOR SUTTON RESIDENTIAL CARE HOME .

• The tender should be in accordance with the Form of Tender and Instructions for Tenderers as enclosed.

9

INVITATION TO TENDER

• It is your responsibility as Tenderers to make sure that your tender is submitted not later than the indicated time.

• Tender after that time will not be considered. • The council is not bound to allow the lowest

price and shall not be bound to permit the Contractor as the only supplier.

10

INVITATION TO TENDER

• Enquiries regarding this Invitation to Tender should also be addressed to – Emmanuel (the Director of Health Services) – telephone number: 0208 3315 426, – e-mail: emma@sutton.gov.uk.

• Please acknowledge receipt of this Invitation to Tender and its accompanying documents confirming your intention to submit a tender as requested.

• Yours faithfully,• Sutton Council

11

WRITING A TENDER DOCUMENT• Most tender processes will include the

following documents: -• Tenderers Questionnaire• All firms applying to tender or tendering to

the Council are required to complete this questionnaire to give necessary information about the firm applying.

12

TENDER DOCUMENTS EXPLAINED• The questionnaire includes questions

regarding:– the firms business and financial status, – compliance with equalities and health and

safety requirements, – experience and references and – approach to environmental issues.

• For select list or EU Restricted processes the completed questionnaires will be evaluated to short list firms to tender at expression of interest stage.

13

TENDER DOCUMENTS EXPLAINED• Instructions to Tenderers• This document sets out the instructions

tenderers must observe when tendering and states:– when, how and where tenders must be

submitted,– what information firms must include with

their tenders and – the conditions under which such tenders

are submitted.

14

TENDER DOCUMENTS EXPLAINED• Specification

– The particular requirements of the supply are set out here detailing quality, quantity, support

– services required and any constraints in place.• Method Statements

– Tenderers are required to submit their methods for delivering the contract requirements by answering a number of method statement questions.

– The method statement is an essential part of the process and is evaluated by the Council as part of the tender along with price and the questionnaire.

15

TENDER DOCUMENTS EXPLAINED• Contract Conditions

– The legal terms and conditions under which the contract is to be offered governing the legal relationship between the contracting parties.

– The conditions include the obligations of the contracting parties, payment arrangements, and how variations, instructions and disputes are to be handled.

• (EXAMPLE OF CONTRACT CONDITION ON TRANSFER OF CONTRACT)

• The Contractor shall not transfer, assign or sub-let the Contract or any part of it, to any person without the prior written permission of the College, which may be given or withheld by the College in their absolute discretion.

16

TENDER DOCUMENTS EXPLAINED

• Form of Tender• This is a document that is signed by the

supplier to indicate that it understands the tender requirements and accepts the terms and conditions of the tender.

17

TENDER DOCUMENTS EXPLAINED• Certificates

– There are two certificates to be completed by all tenderers and these are the certificate as to canvassing and a certificate of non-collusion.

– A Certificate of Canvassing certifies that the supplier has not / will not canvass or solicit any representative of the awarding body (such as Councillor, Officer or Employee of a Council) in connection with the preparation, submission and evaluation of their tender proposal.

18

NON-COLLUSION CERTIFICATE

• Non-Collusion Certificate ensures that the supplier certifies that their tender is made in good faith, and that they have not fixed or adjusted the amount of the tender in accordance with any arrangement with any other person.

19

TENDER DOCUMENTS EXPLAINED

• Price Schedule / Schedule of Rates– Many tenders are based on multiple prices

or rates this document will be provided for tenderers to complete in such cases.

20

EXAMPLE OF METHOD STATEMENT

21

22

23

24

25

26

EXAMPLE OF TENDER FORM

27

EXAMPLE OF TENDER FORM

28