WINNING BUSINESS ONLINE

Rachel Fletcher

FCS Associates Ltd

15th June 2012

FCS ASSOCIATES LTD

• Specialist Bid Writing, Funding

and Strategic Business Planning

Consultancy

Key Services:

• Bid Writing: For public sector

tenders, grants and charity funding

• Enterprise Coaching: Business

planning, funding reviews procurement support.

• FCS Tracker: Personalised weekly

funding e-bulletin

• Bid Writing Workshops:

Interactive, tailored workshops to support tender development.

FCS TRACKER

� Personalised contract and grant e-bulletin

� Weekly service

� Unique and robust

� Telephone support to

navigate websites and portals

� Reviews over 250 sources

� Constantly expanding database of opportunities

� Can be instantly updated to

look at new contract areas

KEY THEMES OF TODAY’S PRESENTATION

Introduction to

E-Procurement

CHALLENGES AND OPPORTUNITIES

� Weak national economy

� Increasing global competition

� Difficulty of managing late payments/non-payments

However:

� New Business Opportunity: £236b is spent each year by the

public sector, increasingly using e-procurement

� Local government ~£40 billion every year on goods and

services 50% supplied by SMEs/micro businesses

WHAT IS E-PROCUREMENT

� Use of electronic methods in every stage of the purchasing process

� Advertising contracts

� Managing contracts

� Evaluating tenders

� Paying suppliers

� Dynamic purchasing systems

� Benefits

� Reduce paperwork

� Improve efficiency

� Help you process orders more quickly

� Speed up payment

IS IT REALLY COMPLICATED?

� Yes and No

� Protecting taxpayers money

� Processes have to be:

� Transparent

� Fair for All

� Value for Money

� Longer decision making, policies/accreditations needed

� But public sector are:

� Good payers

� Stable organisations

� Buy a vast range of products and services

� Rock salt to business support – everything in between

POTENTIAL PUBLIC SECTOR CUSTOMERS

� Central government departments and agencies

� Devolved administrations in Scotland, Wales and Northern Ireland

� Local Authorities

� National Health Service

� Police service

� Armed forces

� Universities

� Colleges

� Prisons

� Could also be a sub-contractor for high -value contracts won by other, larger businesses.

TYPES OF PROCUREMENT PROCEDURES

� Open � ITT sent to all.

� Restricted� Two-stage process, PQQ followed by an ITT to short

listed suppliers

� Competitive Dialogue� Used for complex procurements whereby authority

negotiates with companies to develop suitable solution.

� Negotiated � Only used in limited circumstances to allow contract

negotiations with one or more suppliers.

� Framework Agreement� Used as a call-off basis. Mini-competition may be

held to identify the best supplier. A contract is only formed when an order is placed for a specific requirement.

Finding Opportunities and Being Found

E-MARKETPLACE: FINDING OPPORTUNITIES

1. Free websites � Contracts Finder (replaced supply to gov)

� Public Tenders.net

2. Free On-Line Portals:� SCSM

� The Chest

� Source Derbyshire

3. Purchasing Consortium Portals: (Fee is Payable)� Crescent Purchasing Consortium

4. Opportunities Websites (Fee is Payable)� Tenders Direct, QSL Ltd etc

Organisation Specific Sites:– Emergency Services: https://www.bluelight.gov.uk/portal/cms.nsf/vHomePage/fSection?OpenDocument

– CompeteFor: https://www.competefor.com/business/opportunitySearchForm.html

– MOD contract: http://www.contracts.mod.uk/introduction/index.shtml

National / Regional Portals

� National: http://www.contractsfinder.businesslink.gov.uk

� Yorkshire Councils: http://scms.alito.co.uk/

� Enterprising Barnsley: http://www.enterprisingbarnsley.co.uk/

� North Eastern Purchasing Organisation NEPO: https://www.qtegov.com/procontract

� Public Tenders.net: www.publictenders.net

� Source Derbyshire: http://www.sourcederbyshire.co.uk

� North West : https://www.thechest.nwce.gov.uk/cms/cms.nsf

� Wales E-tendering: https://etenderwales.bravosolution.co.uk/web/login.shtml

European:

� TED/OJEU – Tenders Electronic Daily: http://ted.europa.eu/TED/browse/browseByBO.do

Recommended FREE Websites

REGISTRATION: PROCUREMENT WEB PORTALS

� Have to register if you visit for the first time

� Cannot respond if you are not registered

� Can receive e-bulletins of opportunities

2 Types:

� Simple: e-mail, company details and password

� Complex: (To provide Buyers with information)

� Company Information� Service description, case studies and referees

� Financial data

� Insurance certificates� Questionnaires required completion for specific

services

� On-line tutorial available to help you

� Can update at anytime

RSS Feeds or 'Really Simple Syndication'

Allows you to stay updated and save time by retrieving the latest content from the sites you are interested in.

PROACTIVE OPPORTUNITY SEARCHING

TITLECONTRACT DESCRIPTION START DATE END DATE

EXTENSION PERIOD AMOUNT

TOTAL OR ANNUAL SUPPLIER CONTACT COMMENT

Day opportunities

Day care in a residential setting 01/04/2008 30/09/2011 175634.00 Annual Age Concern

John Harding Under review

Insurance Programme

Programme of Insurance Covers 01/10/2008 30/09/2011 2 years 1140000.00 Annual Travelers/Zurich/AXA Neil Darlow

•Many public sector organisations have a list of current

contracts on their website

•E.g. BMBCContract Register

•Details of current contracts, size and who delivers it

•Contact name to find out more

•http://www.barnsley.gov.uk/services/business/tenders-and-

contracts/procurement-contracts-lists/

� Know whose responsibility it is to identify opportunities

� Ensure a process is in place for holidays / sickness

� Do organise your approach

� Weekly/monthly website checks

� Know which bulletins you receive information from

� Have a centralised information system for

weblinks/logins/passwords

� Do thoroughly read opportunities

� Don’t dismiss opportunities based on the title

� Always read the specification if you think it might

be relevant

DO’S AND DON’TS: IDENTIFYING OPPORTUNITIES

Are You Tender Ready?

Are You Tender Ready?

� What does being Tender Ready mean?

� Having all the information you need at short notice

to apply for tenders and grants

TENDER READY REQUIREMENTS

Responding to an Opportunity

PROCUREMENT PROCESS: 9 STEPS

Assessment of Opportunities

� How do you know if you should pursue a contract

opportunity? Do a SWOT Analysis

� No right or wrong answer, a question of best using

resources available

� Key Issues this consider:

� How much input is needed?

� Does it fit with company’s long term growth strategy

� Cash flow implications

� Timescales realistic for delivery?

� Do you know the organisation?

� Realistic deadline?

� Known competitors?

SUBMITTING EOI’S AND PQQ’SExpression of Interest (EOI)

� E-mail to request a PQQ or ITT

� May need to be registered on relevant portal to submit an EOI

Pre-Qualification Questionnaire (PQQ)

� Vetting process

� PQQ – ongoing or specific to individual tenders

� Generic business related information e.g. organisational structure / financial credibility

� Can be online or paper based

� Will have deadlines for submission – must be completed or will not be invited to tender

� Assesses the competencies of organisation in areas of quality, equality and diversity, health and safety, financial health of provider

EXAMPLE PQQ:

PLEASE COMPLETE ONLY REQUIRED SECTIONS & QUESTIONSNot all sections of this questionnaire are required to be

completed, please complete those sections as indicated in the

column opposite.

G – General Background Information

F – Financial

H – Health & Safety

Q – Quality Assurance

D – Diversity & Equality General

DH – Diversity & Equality High Relevance

C – Corporate Responsibility

E – Environmental

W – WEEE Directive

R – RoSH Directive

V – Verification

CONTRACT TITLE

Provision of Training Consultancy

Services for the University of

Birmingham’s People and Organisational

Development Department

PQQ - SKILLS ENHANCEMENT FUND

SUBMITTING THE PQQ

� Usually submitted on-line

� Don't do at last minute: Frequent overload

� Check all your responses carefully

� Ensure that you’ve included all the necessary documentation

� Sign and date the Declaration section of the form –one of the most common reasons for a PQQ to be

non-compliant is that it is not signed, or not signed by a senior manager or executive

� Ensure that the awarding authority receives your

PQQ on time – late arrivals will be rejected.

INVITED TO SUBMIT AN ITT: 6 KEY DOCUMENTS

Bid Development Process

Tender Ready

Bid Formulation

Bid Writing

Submission

Presentation

SUCCESSFAILUREFAILURE

Implementation

Evaluation

Feedback

THE DO’S AND DON’TS: BID DEVELOPMENT

� Before you start writing

READ ALL SUPPORTING DOCUMENTATION

� Ascertain if you require clarification on certain points

� Attend Briefing Events (where organised)

� Take into account the evaluation criteria

� Start as soon as possible

� Determine your tender-writing strategy• Identify the bid development team• Include input from across the organisation to add

value and innovation

� Don’t put pen to paper until you have created an outline plan

THE BID FORMULATION -SUMMARY

� What: Aims and objectives. Needs to be clear and measurable. SMART

� Why: The strategic link. What is the evidence of need for the project? PEST

� Who: Staff qualifications and specialist expertise.

Organisation charts, CV’s

� How: Project Methodology. How the

service/product be delivered,

BID EVALUATION

� Must have a clear understanding before you put your bid together

� Bid scoring varies widely

� Sometime only certain questions are scored

� Threshold questions (pass/fail): e.g. financials, insurances,

accreditations

� Question Weighting: Areas depend upon client’s view of the

importance specific aspect.

� Lowest Price or MEAT (most frequent)

� Most Economically Advantageous Tender

� Assess how you propose to deliver the contract (quality)

as well as the cost of the contract (price). To win the contract, your tender will need to demonstrate the best

balance of quality and price – not just the lowest price.

STEP 4

Do’s and Don’ts of Bid

Writing

BID WRITING - KEY TIPS� Read the question, then read it again

� Highlight key sentences: italics – bold

� Use ITT as a questionnaire

� Make use of the Q&A facilities

� Set clear objectives and reiterate them throughout the bid

� Use clients language

� Proof read and ensure a consistent writing style

� Use bespoke diagrams to emphasise and support your argument

� Double check finance tables

� Check references

� Check submission process

DON’TS: BID WRITING� Leave questions unanswered

� Switch reader off:

� Small font

� Tight line spacing

� Poor spelling

� Confused numbering / bullets

� Do not assume anything

� Good bid on paper: but undeliverable

� Timescale

� Costs

� Deliverables and outputs

� Leave until last minute

DO: BID WRITING

� Develop a working document to be worked into a draft bid

� Prioritise bid writing activity

� Homeworking/quiet space

� Formulate bid writing action plan:� Establish bid writing individual/team

� Agree realistic deadlines

� Use colleagues– the biggest resource!

� Restrict comment

� Request specific Input

� ‘Critical Friend’

� Have sufficient time

IN THE FUTURE: E-AUCTIONS

� E-Auctions: Electronic Reverse Auction

� An eAuction is a means in which pre-qualified suppliers

can bid electronically for a contract.

� Suppliers bid progressively lower during the auctions

period.

� May be used in conjunction with open or restricted

procedures

� Most have a pre–qualification stage, to ensure other important evaluation criteria are taken into

account as well as cost,

� Currently, relatively rare, used for commodity–type products

SUMMARY

� E-procurement is a huge business opportunity

� Not as complex as it first appears

� Direction of travel

� Lots of on-line help:

� Tutorials

� E-bulletins

� RSS feeds

� Need to invest time to understand processes and

opportunities

� Being organised helps!