IC Value Ltd

The process of acquisition of goods, services and works…

From polish and paper towels through to care services and buildings

PlusThe exploiting of your hidden Assets to win the

business

Public Sector spend £billions of public funds (Your Taxes)

Subject to audit Subject to EU and UK legislation Accountable to government and the electorate Many services are sensitive or high profile

particularly those which the third sector are involved in.

Political•Scottish Government review•Diversification of supply chains•Equality of participation•Sustainability•Olympics/Commonwealth Games•European legislation

Economic•Changes in funding•Contract bundling & rationalisation•More sophisticated understanding of value•Requirement for cost savings•Commercial organisations have £ vested interest in social outcomes•Concept of qualitative cost

Social•Corporate social responsibility•Global vs. local•Polarisation of enlightenment vs. prejudice•Social cohesion & engagement•Ageing population

Technological•Efficiency of response & mgt•E-tendering•E-auctions•Electronic market places•E-payment•Real time information

European

National

Local

•EU Procurement DirectivesEU Procurement Directives

•Council Council ProceduresProcedures

•Local Local AgreementsAgreements

•Government StrategyGovernment Strategy

•Statutory RequirementsStatutory Requirements

Formality of the process increases in line with value and risk.

Scottish Enterprise Example: £1,000 - £20,000 - Obtain 3 written quotes Over £10,000 - Normally a competitive tendering

exercise, consider a minimum of 3 suppliers and evaluate in terms of value for money and quality.

Over £140K – EU Directives apply.

Contracts are only awarded to large companies Huge spend on offer. Difficult to find opportunities. Greater opportunity for longer term contracts Processes involved in bidding are complex and

costly. Procurement teams don’t understand SMEs and

social enterprises. Difficult to win contracts when bidding

collaboratively. Generally good payers & proper arrangements.

Value for Money (VfM)“The optimum combination of whole-life

cost and quality (or fitness for purpose) to meet user’s requirements. This is rarely synonymous with price”

Embraces the concept of the “price-quality” relationship.

Low Value Below £50k Local purchasing rules apply Formability of process increases with contract

value.

High Value Above £100k EU procurement rules may apply Formal tendering procedures Framework agreements

Myriad of websites and portals (in Scotland PCS)

High value contracts easy to find (harder to win)

Lower value opportunities harder to find (easiest to win).

Less transparency in the commercial sector.

• Everyone should get to know what contracts are available

• Everyone should be assessed on an objective and fair basis as to their capability

• Predictable procedures should be followed allowing equal treatment

• Minimum timescales should be respected to allow bidders time to prepare

• Criteria should be set in advance and publicised

• Bidders should have an opportunity to ensure their rights are respected

Love My Tender is a programme delivered for the Supplier Development Programme.

It helps Organisations become Tender Ready.

So far the programme has been delivered to 350 companies in Scotland and many of them are winning tenders.

• A set of 3 interactive workshops designed to:

• Enable you to identify and package your hidden assets including branding, reputation and track record.

• Helps you to understand the public sector marketplaces.

• Helps you to simplify your product or service description to meet the public sector customer requirement by selling the uniqueness of your offering.

• To help you become experts in managing both your packages of hidden assets and other business assets to win the tenders

• People• Operating Procedures• Systems• Policies• Values• Customers• Suppliers• Networks• Image• Structure• Intellectual Property

Use them to sell your business to others Package them to answer a question in a

PQQ or an ITT Use them to break down the barriers

that prevent you from winning tenders Use them to give your organisation a

unique offering that meets your customers needs

Build your brand with customers and suppliers

They add value to public sector delivery by using:• Specialist knowledge, experience and/or skills. • Local knowledge and delivery that can be greener,

give local employment, be more tailored and lower cost because of lower overheads and meet the customers targets.

• Particular ways of involving people in service delivery whether as users or self-help/autonomous groups.

• Independence from existing and past structures/models of service and so can try to deliver services in new and innovative ways.

• Can provide a risk sharing approach for the public sector.

• Access to the wider community without institutional baggage.

• Freedom and flexibility from institutional pressures

SMEs and Voluntary Sector can be highly advantageous to effective service delivery: They can respond swiftly to market changesThey can bring genuine local knowledge to

their serviceThey can help invigorate local economies

and provide local employmentThey can provide quality provision

• Procurers understand Suppliers• Procedures are not unduly arduous• Collaborative working is genuinely

supported• Aggregation of contracts is not used

unnecessarily• Quality is appropriately balanced with

price

and the entry of SMEs and Voluntary Sector organisations is really welcome.

You will be confident that the following have been packaged and

sold to your customer:

Organisation Capacity and Capability

Product/Service Development

Staff Skills Assessment

Evidence Check List

Unique Selling Points

Where to find the Opportunity

Marketing Your Organisation

Delivering the contract

Where do you fit into the supply chain?

Local Authority

Maintenance Contract

Catering Contract

Filter hood cleaning

FruitPainting & Decorating

Door handles

Options: Subcontractor Joint Bidding Delivery Partner Consortium

Pros and Cons to each approach: Brand Identity Cost Reliability Sharing sensitive information Risk

Most Common:Open - Everyone who responds submits a full

priced tender

Restricted - The contracting authority use a “pre-selection” process and invites a limited number of respondents to tender

24

Contract Contract NoticeNotice

Expression Expression of Interestof Interest

Pre-Qualifying Pre-Qualifying StageStage

PQQ EvaluationPQQ Evaluation

Tender Tender EvaluationEvaluation

Contract Contract AwardAward

Invitations to Invitations to Tender issuedTender issued

Prepare Tender Prepare Tender & Submit& Submit

The contracting authority use a “pre-selection” process and invites a limited number of respondents to tender.

Are you a safe and appropriate choice? Evaluation - 3 key areas:

Business Probity Financial Standing Technical Ability

Mix of pass / fail and qualitative criteria.

Key PoliciesEquality & DiversityHealth & SafetyEnvironment & SustainabilityQuality

Sustainability and Social Responsibility Issues high on the corporate and public sector agendas.

A Pack of Documents:A letter of invitation to tender Instructions to TenderersStandard Conditions of ContractSpecificationPricing ScheduleForm of TenderAny other relevant document

Tender envelope, label

Because you want to increase your chances of winning contracts you are bidding for

Improve the structure of your bid Receive constructive feedback that will make the

difference between winning and loosing a bid!

The Basics:What / How / Who/ When / How Much?

Add Value:Demonstrate a clear understanding of the

specificationAdds value and brings innovation to the

specificationExplains “why choose us?”

Published evaluation criteria: Best Price Most Economically Advantageous Tender (MEAT)

Usually evaluated by a panelScoring matrix used to objectify subjective

opinionsScores are weightedTendering rigorously controlled and audited

Often follows a prescribed format Little opportunity to engage No positive feedback Some simple tips:

Arrive in good time Practice using media and equipment Do not use jargon or technical terms Be pleasant, professional, friendly Prepare very thoroughly Summarise in the last slide

Explain why you need the feedback Ask at the right time Give them a chance to prepare a helpful

answer Be specific in what you want to learn Don’t forget to ask in successful bids

too!

Action Completed

Develop a list of target organisations

Find out about Approved Supplier Lists for my product or service with my target organisations

Register on Public Contracts Scotland

Find out about Meet the Buyer Events

Develop / Revise Key Policies

Attend further Training?

You will be tendering for an opportunity to join the Fife Council Framework for one of 3 things Delivering Care of the Elderly activities to 1000

elderly people a year Providing Repair and Maintenance across all

trades to Fife Council for all Council Properties Providing all types of consultancy, marketing and

PR to all council Departments If this is not applicable you can either provide your

own scenario or send us a previous PQQ for feedback

fill in the PQQ fully. focus on pulling together info to complete the PQQ

and storing it centrally undertake a credit check on you company Return it to laura.fitzpatrick@ic-value.com By Monday 3rd October at 5pm please

Question Response

Legal structure if any, including holding or parent company?      

Registered charity. If Yes primary purpose?   

Total number of employees?

Permanent, short term, training.

Business plan in place, last updated?  

Business Policies in Place, environmental, Equal ops. H&S last updated

Annual turnover figures for last 3 years – indicate whether audited or un-audited. Credit Rating?

Number of tenders applied for in past 12 months? Number successful?    

  Do you currently have a history of growth and are you currently self-sustaining?      

Key contracts delivered

over the last 2 years that

represent your organisations

capacity and expertise.

Project 1

CouncilChangeManageme

ntContract

Project 2

Consultancy Project with SME’s

Project 3

ContractWithLocalschools

Project 4

Project 5 Project 6

Size of contract £200,000

£90,000 £15,000 £ £ £

Duration 3 years 2 years 1 year

Number of people engaged

4 30 3

Number trained 1 15 2

Main contractor or sub-contractor?

main main Sub contractor

Percentage of total contracts

Public, Private, Social Economy contract?

public public public

Full cost recovery or return on investment?

no Return on Investment

Return on Investment

Margin %? 20%

                 

10 8 6 4 20Good

Bad

o     o     o     o     o     o     

Targets

     Any Obstacles?

     Is there potential for partnership working with other Social Economy/private business?

Knowledge of new contracts available, and coming upPublicPrivateSocial Economy

     Is your legal status adequately flexible and stable for drawing up a long-term business plan and bidding for contracts?

     Other areas you would like to get involved in?

     New contracts you would like to bid for/win?

ResponseGuidance

Question Responds

Do you know who your prospective customers are?

     

What does your prospective customer want?      

Have you spoken to the people responsible for making decisions before any tenders have been put out?

     

What is your saleable product or service?      

Can your service be packaged to help the customer understand what it is? What is your capacity to deliver that product or service? I.e. do you know your limits?

     

Can you tailor your product to your customer’s requirements? I.e. fit into area based initiatives, regional strategy, local plan etc?

     

What are your Unique Selling Points?      

What is your customer willing to pay? I.e. is there a known budget allocation or advertised tender value?

     

No. Evidence of? Yes No

1 Equal Opportunities Policy/Statement and Record

2 Environmental Policy

3 Health and Safety Policy – inclusion on CHAS database? (Contractors’ Health and Safety Assessment Scheme)

4 Details of Race Relations Act compliance

5 Employment Law legislation

6 Accident book records

No. Evidence of? Yes No

7 Membership of professional bodies

8 References from other similar public sector bodies

9 Any reports in last 5 years under RIDDOR?

10 Quality management system

11 CVs of directors and managers

12 Technical qualifications – appropriate certificates

13 Quality control systems and certificates

No. Evidence of? Yes No

14 Current Business Plan and overall organisational strategy

15 Bank references

16 3 years’ accounts

17 3 years financial projections inc Income and Expenditure, Profit and Loss, and Balance Sheet

18 Breakdown of costs

19 Company’s Annual Report

20 Insurance – public liability

21 Insurance – employers liability

22 Insurance of any infrastructure equipment in tender

No. Evidence of? Yes No

23 Risk Assessment protocol

24 Risk Management System

25 DUNS number. (if using NHS-sid)

26 Evidence of Company Legal Entity