understanding public procurement

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WHY THE NEED FOR A PROCUREMENT? – COULD I BE SUCCESSFUL? Improve You r Brand Val ue Create New Revenue Channels Copyright © Tendering for Contracts Training Ltd 1997 - 2009 Provide Customer Satisfaction Provide Reliable Goods & Services Develop a Profitable Relationship Develop Good Quality Management WHY NOT TRY TO TENDER

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As a result of a recent "Understanding Public Procurement" workshop I have decided to post this presentation - as it was obvious that some if not all of the attendees did not understand the basic principles of public procurement. There were a number of complaints about (procurement proceedures) - hopefully this presentation goes some way towards explaining the policies and proceedures which involved in the public procurement process.

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  • 1. WHY THE NEED FOR A PROCUREMENT? COULD I BE SUCCESSFUL? Improve Your Brand Value Create NewRevenue Channels CopyrightTendering for Contracts Training Ltd 1997 - 2009 Provide Customer Satisfaction Provide ReliableGoods & Services Develop a Profitable Relationship Develop Good Quality Management WHY NOT TRY TO TENDER

2. CopyrightTendering for Contracts Training Ltd 1997 - 2009 How big is the Public Sector? 3. CopyrightTendering for Contracts Training Ltd 1997 - 2009 Who are these people? Who are these people? 4. CopyrightTendering for Contracts Training Ltd 1997 2009 5. CopyrightTendering for Contracts Training Ltd 1997 - 2009 Contracts Management Team Contracts Management/ Director Contract Manager Web Based Email TelephonePersonal Contact Member of our Contracts Fulfilment Team Contracts Management Administration Clients 6. CopyrightTendering for Contracts Training Ltd 1997 - 2009 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. 7. CopyrightTendering for Contracts Training Ltd 1997 - 2009 Know your own and your companys 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. 8. CopyrightTendering for Contracts Training Ltd 1997 - 2009 They can also make sure that any specification going out to contract providers will be designed to address the issues involved. Presentinnovative 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. 9. CopyrightTendering for Contracts Training Ltd 1997 - 2009 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. 10. CopyrightTendering for Contracts Training Ltd 1997 - 2009 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: 11. CopyrightTendering for Contracts Training Ltd 1997 - 2009 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: 12. CopyrightTendering for Contracts Training Ltd 1997 - 2009 HOW WELL DO YOU UNDERSTAND THEPROCUREMENT 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 THEOBJECTSON THE PAGE-( HORIZONTALLY & VERTICALLY )SO
  • THAT THERE IS NO GAP BETWEEN THE OBJECTS.
  • 2)WHOIS THIS MAN?
  • 3)WHAT IS HISRELATIONSHIPTO THE PROCUREMENT PROCESS?
  • IF YOU HAVE SUCCEEDED IN LINING UP THE OBJECTSCORRECTLY
  • YOU WILL UNDERSTAND THERELEVANCEOFNO GAPS BETWEEN THE OBJECTS-
  • WHO THIS MAN IS AND
  • WHY THIS SIMPLY TASK AND THE KNOWLEDGE IT PROVIDES - IS EXTREMELY RELEVANT TO YOUR BUSINESS.

13. CopyrightTendering for Contracts Training Ltd 1997 - 2009 CAN YOU SORT THE PROCUREMENT NIGHTMARE 14. CopyrightTendering for Contracts Training Ltd 1997 - 2009 HOW WELL DID YOU DO IN ANSWERING THE QUESTIONS AND LINING UP THE OBJECTS?IF YOU GOT (