understanding public procurement

UNDERSTANDING PUBLIC PROCUREMENT

All public procurement activity is based on (EU / UK) directives as described in the diagram above.

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Why small companies have trouble securing public sector contracts

A recent Parliamentary report shows that small businesses are still finding difficult to bid for public sector contracts, despite Government policies and attempts to intervene.

A major problem is not the fact that public sector agencies are preparing the pathways so that SME's find the process of tendering a lot easier – a recent survey conducted in the London area by Business Junction concluded that most SME’s do not tender for public sector contracts,

Their perception is that they will be unsuccessful and their time and resources would be better spent on pursuing activities which are less demanding and whose outcome is more within their grasp.

Read more here: SME Procurement Report


Small businesses provide a valuable contribution to the needs of the public sector through innovation, responsiveness and quality in the provision of goods

From the Glover report, government was now required to have a free-to-use portal by the end of next year for every wider public sector contract above £20,000Read more here: Glover Report

Collaborative procurement proposals will result in a shake-up of procurement across all UK public sector organizations.Read more here: Savings in Collaborative Procurement

A recent (2009) report advises that the public sector is still prone to overly complex tendering process for government contracts. Read more here: SME Tendering Report

The Public Contracts Regulations of (2006) followed the (EU) directive issued in 2004, this states that a competitive dialogue should be used when requesting tenders for complex projects. Read more here: Competitive Dialogue

http://www.publicservice.co.uk/feature_story.asp?id=11891

http://www.publicnet.co.uk/features/2009/05/05/collaborative-procurment-to-bring-efficiency-savings/

http://www.google.com/url?sa=X&q=http://www.channelweb.co.uk/crn/analysis/2241591/public-sector-holds-key-4626735&ct=ga&cd=hEVSAIUmzfQ&usg=AFQjCNGHxjGw6W4pw3n_x8Gn0fx5oQ_laA

http://www.google.com/url?sa=X&q=http://www.channelweb.co.uk/crn/analysis/2241591/public-sector-holds-key-4626735&ct=ga&cd=hEVSAIUmzfQ&usg=AFQjCNGHxjGw6W4pw3n_x8Gn0fx5oQ_laA

http://www.ogc.gov.uk/documents/guide_competitive_dialogue.pdf


All public procurement will involve the completion of pre-qualification questionnaire,It is essential that would be suppliers to the public sector familiarise themselves with the normal processes, i.e.: completing documents correctly and delivering all Required documents on time.

Firms who are interested in obtaining contracts from the public sector are advised toview the accompanying “Understanding Pre-Qualification Questionnaires” document. A brief introduction is included on the following pages.


This brief overview consists of a standard generic terms that enable companies to understand the importance prequalification. The Official (PQQ) form is normally completed and certified as being accurate by one of the company's directors.

Completion of an (Official PQQ Form) does not commit the Issuing Authority in any way nor is it intended to circumvent any legal requirements required under EU /UK Procurement Directives or Competition rules.

The form only requests company information, levels of competence to perform the required task, financial viability, staff, environment, policy documents and other relevant company and personnel information.

NOTE:


The completed document may be provided either in hard copy or electronic format.

All requests for clarification or further information in respect of a PQQ should be addressed to the named contact point. No approach of any kind in connection with the PQQ should be made to any other person within, or associated with the Issuing Authority.

The PQQ forms the first part of the procurement process. Respondents must adhere to the format of the PQQ when answering all questions. Where questions cannot be fully answered, relevant explanation including details should be provided.

Respondents are required to sign a declaration as follows: [I, the undersigned, confirm that the information contained in this PQQ response is correct at the time of completion.


WHY THE NEED FOR A PROCUREMENT? – COULD I BE SUCCESSFUL?

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WHY NOT TRY TO TENDER

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Generic Guidance Notes:

Develop tendering expertise - nominate and train someone to coordinate everything centrally.

Your trained employee gives a great boost to efficiencies and acknowledge the importance of the 'license to tender' role held by the nominated person. They help build on this persons existing knowledge and expertise and provide an excellent 're-focus' opportunity.

Plan ahead - identify what is required to get the best possible chance of winning the contract.

Planning ahead is a good way of finding scope for efficiencies. It gives time to question and assess, if alternative solutions are available (e.g.. forming a consortium or partnership), and if the timing is right.

It is recommended that contracts are linked to the business development plan.




http://www.tfc-training.com/flh/tfct_pre.exe



Know your own and your company’s strengths - how much can you invest, are there limits?

You will not need an 'in-depth' knowledge of the legal requirements surrounding procurement set by European and UK government. You need an awareness of appropriate conduct in dealing with the Public Sector, any conflicts of interest and awareness of the limits when it comes to tendering.

As part of general good practice, before going ahead with a tender, check whether another supplier wants to form a partnership with you so there is an opportunity for some collaborative selling. A contractor can choose to work with a consortium when giving out new contracts.

Don't spend hours saving a pound - consider the total cost of tendering,there really is no point spending 3 hours time to save £1. - this can sometimes be forgotten in the need to win more business.






They can also make sure that any specification going out to contract providers will be designed to address the issues involved.

Present innovative business solutions with confidence by understanding the rules that apply.

The person with the 'license to tender' role can make a real difference in spotting the inefficiencies within any tender.

Identify and adapt simple and straightforward selling strategies that can be benefit all the stakeholders.

Spend time & effort sharing and listening to real problems the public sector faces.






Develop the skills needed to successfully manage the contract. And have the confidence to challenge a negative decision by the purchaser.

Keep a close eye on contracts which have short notice periods for termination.

Good contract management helps to meet deadlines, maintain quality standards and avoid un-necessary risks, increasing the scope to build confidence in future business relationships.

A project plan should be drawn up, setting out all the strands of work that is required, how the strands will be taken forward and note of the completion timescales.

The most important aspect of any tender timetable is to have plenty of space to conduct the process. The more complicated / important the contract the more time that will be needed.






It is really tempting when selling something to try to be the 'best brand'. People tend to feel comfortable with a brand recognized from marketing campaigns.

Their familiarity with best brands doesn't necessarily mean they are willing to pay more money for best value..

Every time a brand item is asked for it is worth answering the question - "why that particular brand?". The alternative brands on the market often match up and at a much more competitive price.

There are very many good products on the market that offer quality and reliability equal to or in excess of the branded product - and at a competitive price.

E.g. show that your cheaper paper will not jam the printer and cost more in staff time but that it works just as fine as the more expensive branded paper

Do's and Don'ts in The Sales Process:






Form a (local) consortium to give a better deal - A consortium is simply an association or group of businesses who join together to minimize costs, to maximize selling power and provide better value.

The higher the volume of business going through these agreements the better the quality and price you can offer.

Greater negotiating power - the public sector may be tempted to take advantage of smaller businesses; however, the threat of losing products and services from a consortium will have an impact.

Sharing the administrative workload, increases selling power, greater volumes of business may create better deals for the group, reduced costs

Ability to provide goods/services as a consortium would provide the necessary size and influence, larger deals means that small businesses can make better use of their expertise

The main benefits are:

Improve your selling power:






HOW WELL DO YOU UNDERSTAND THE PROCUREMENT PROCESS?

PUBLIC PROCUREMENT IS BASED ON (2) FUNDAMENTAL PRINCIPLES.

ON THE FOLLOWING PAGE ARE A NUMBER OF DIFFERENT SHAPED

OBJECTCTS THAT REPRESENTS ALL TYPES OF PUBLIC PROCUREMENT.

IF YOU ARE THOROUGHLY FAMILIAR WITH THE PRINCIPLES OF PROCUREMENT – YOU SHOULD BE ABLE TO;

1) LINE UP ALL THE OBJECTS ON THE PAGE - (HORIZONTALLY & VERTICALLY) SO THAT THERE IS NO GAP BETWEEN THE OBJECTS.

2) WHAT IS HIS RELATIONSHIP TO THE PROCUREMENT PROCESS?

3) IF YOU HAVE SUCCEEDED IN LINING UP THE OBJECTS CORRECTLY –

4) YOU WILL UNDERSTAND THE RELEVANCE OF NO GAPS BETWEEN THE OBJECTS

5) WHO THIS MAN IS AND WHY THIS SIMPLY TASK AND THE KNOWLEDGE IT PROVIDES – AND THIS MAN IS EXTREMELY RELEVANT TO YOUR BUSINESS







CAN YOU SORT THE PROCUREMENT NIGHTMARE



HOW WELL DID YOU DO IN ANSWERING THE QUESTIONS AND LINING UP THE OBJECTS?

IF YOU GOT (<1 OUT OF 3) CORRECT – YOU DEFINITELY NEED OUR HELP

IF YOU GOT (2 OUT OF 3) – YOU CAN CARRY ON AS IS – BUT MAY STILL NEED OUR HELP

IF YOU GOT (3 OUT OF 3) – CONGRATULATIONS – YOU DO NOT NEED OUR HELP!

THE BASIC PRINCIPLES OF PROCURENT ARE? (P******* & P**********) THIS MAN IS CALLED (THE A******)

HE IS THE MAIN REASON THAT PUBLIC PROCUREMENT IS SUCH A PAIN

ALL PUBLIC AGENCIES HAVE TO DEAL WITH THIS MAN ON A REGUALR BASIS – THEY ARE PERSONALLY LIABLE FOR ANY GAP - MUST BE NO GAPS - HENCE THE QUIZ!

ON THE FOLLOWING PAGE YOU WILL FIND THE CORRECT RESPONSE TO THE QUIZ





P O L I C I E S

PROCEEDURES

VARIOUS TYPES OF CONTRACTS - EU - STANDARDIZED P&P


SO YOU CAN SEE THAT IT DOES NOT MATTER WHAT TYPE OF PUBLIC PROCUREMENT IS INVOLVED THERE ARE ALWAYS

MOST SME’S WHO CONSIDER PUBLIC PROCUREMENT - ARE CONFUSED BETWEEN PROCUREMENT POLICIES AND PROCUREMENT PROCEEDURES.

POLICIES

PROCEEDURES

AUDITORS

HENCE THEY COMPLAIN – BUT THEIR COMPLAINT IS OFTEN TO THE WRONG PERSON OR GROUP.

WE EXIST TO ASSIST SME’S UNDERSTAND & BENEFIT FROM PUBLIC PROCUREMENT.





WE PROVIDE

ONE 2 ONE SUPPORT

4

SME’s

in TENDERING 4

PUBLIC & PRIVATE SECTOR CONTRACTS

FREE & UNLIMITED SUPPORT WHEN YOU SIGN UP TO OUR COURSE OR FOR ANY CONSULTANCY







Tendering for Contracts Training:Tendering for Contracts Training provides online tendering and procurement training that enables firms identify and benefit from new business opportunities in the public and private sectors.

Training Objectives:Our training has been specifically developed to assist small firms bid for contracts both in the public or private sector, respond to invitation to tender notices, respond to request for proposals, prepare and submit tender documents, implement quality management systems, effectively market products and services to contract providers and efficiently manage contract projects.

Testimonial:As a procurement specialist for over 20 years, I believe this to be an excellent on-line training programme, suitable for both managers / owners of firms and individuals, it prepares them to tender for contracts with confidence, and develop new business through effective training that enables profitable engagement in the tendering and procurement process. (Former Chief Procurement Officer, Centrica Plc)






http://www.tfc-training.com/tfct_pre.htm

http://www.tfc-training.com/references.htm




Example of additional procurement information available when learners signup:

Top Ten Procurement Tips http://www.tfc-training.com/top_ten_procurement_tips.htm

Request for Proposal - Best Practice

Other useful information designed to improve your knowledge of procurement

Pre-Qualification Questionnaire – Guidance Notes http://www.tfc-training.com/flh/tfct_pre.exe

http://www.tfc-training.com/spend_management.htm

Please note you will have to register to gain access to these pages

Procurement - Spend Management


Contact details: Lloyd Sewell - Director Tendering for Contracts Training Ltd 23 Elmbridge Road Cranleigh Surrey GU6 8NH Tel : 845 438 1663 - Mob: 07866 607197

Email: [email protected] Url: www.tfc-training.com

To listen an audio presentation – http://www.tfc-training.com/tfct_pre.htm

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