quotations, contracts and tenders
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Quotations, Contracts and Tenders. Presentation by Simon Gresham. About Me. 30 years working in contracting environment Started in catering Worked on first local authority compulsory competitive tendering Moved on to market testing of central government services - PowerPoint PPT PresentationTRANSCRIPT
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Quotations, Contracts and Tenders
Presentation bySimon Gresham
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About Me• 30 years working in contracting environment• Started in catering• Worked on first local authority compulsory
competitive tendering• Moved on to market testing of central government
services• Worked on major accommodation PFIs• Advisor to a range of clients and contractors• Now advise on small and large procurements mainly
covering facilities management• Live in Norfolk
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Current Agenda?
• Drive for savings• Local services passed down to Town/Parish
Councils• More outsourcing of non core/back office
services to save money• Debate – in house or private sector – which is
best?
Are there alternatives?
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Current Agenda?
• Joined up services• Linking with other Authorities• Joint Ventures• Greater use of the voluntary sector (The Big
Society?)• More resident involvement/views• More reporting – greater visibility and
accountability
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Current Issues• Standing orders being reviewed• Updates in contracting procedures• Difficulties finding contractors• Too many contractors?• Deciding who to invite – shortlisting• OJEU• TUPE• Specifications and documents• Evaluation of bids
Do you have any current issues?
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Ground Rules
• Be clear about the process you are adopting• Be clear about Standing Orders and internal Council processes• Involve the right people in the Council• Examine the feasibility• Gather the user’s requirements so that you get want you
want• Make sure you get something back from the supplier that
shows they can deliver and for what price• Evaluate the proposals on a like for like basis• Manage the arrangement once you have agreed it
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Definition: Quotations
• Used for smaller procurements – check Standing Orders regarding de-minimis levels
• Follows same processes as tendering:– Prepare a brief (Specification)– Invite a number (3 or more) to put in quotations/proposals– Evaluate the proposals objectively– Decide who to appoint– Notify successful proposer and those who were
unsuccessful– Letter of appointment
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Definition: Tendering
• Used for larger scale procurements where Standing Orders would suggest that Quotations are insufficient
• A more comprehensive process involving creating a specification and tender, going out to tender, evaluating the tender and then awarding a contract
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Definition: Contracts• The document that underpins the award of
service/supply• Made up of a number of essential conditions:
– Contract period– Parties– Change– Pricing– Payments– Personnel– Disputes– Termination
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The Overall Process
Before you seek quotations or tenders
Feasibilitystudy
CompetitionStrategy
ProjectPlan
What could we do?
How could we do it?
What is our plan?
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The Overall Process
Seeking quotations/tenders
Procurement Strategy
Specification or Brief
The Competition
*External Bids*In-house Bids
Evaluation
How do we go about it?
What do we want?
Let us see what is on offer?
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The Overall Process
After you have selected a provider
The Client Side Contract Management
Implementing the partnership
Are we set up to manage it?
Let us now manage it?
Let us see how well we did?
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The Feasibility Study
Corporate Factors
Future Demand
Best Practice
MarketResearch
Evaluation
Option Design
Implementation
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Feasibility Study Options
• Close down• Re-structure/re-organise• Make internal efficiency improvements• Partnering with neighbouring council - SLA• Benchmark• Test the market• Outsource• Privatise• Joint venture
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The Project Plan
Determine Service
Requirements
ProduceSpecification/
Brief
Advertise theService/Supply
ReceiveExpressions ofInterest (PQQ)
ShortlistProviders
Issue Invitationto Tender/
Quote
Receive proposals
Evaluateproposals
Clarificationwith first
choice
Award theContract
Start theContract
Managethe
Contract
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Procurement Principles
• Competition is invited • Advertisement• EU Directive application – use of OJEU (Official Journal of the
European Union)• Canvass the market• Seek quotations
• Suppliers are shortlisted against stated criteria• Pre Qualification Questionnaire (PQQ)• Capability and track record• Financial health
• Contract packaging• Contract period
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Other Key Questions
• Does TUPE (Transfer of Undertakings Protection of Employment Regulations) apply?
• If it does, how does it apply?• How are pensions to be dealt with?• How will you deal with change (e.g. technology
refresh)?• Do you share savings?• What is Quality and how to be dealt with?
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Specifications
•Input versus Output
•Can you ever achieve a totally output based approach?
•What do contractors think?
•What are your ‘Imperatives’?
•If you go for an output approach, do you accept the risks?
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Specification Contents
1. Introduction / Background
2. Service Requirements
3. Service Standards
4. Supporting Appendices/Data/Fact Sheets
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The Invitation to Tender/Provide Quotations
• Letter of invitation with instructions• Draft Contract Conditions• Specification/Brief• Tender/Quotation Response document• Evaluation criteria and weighting for quality
and price
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Evaluation
The Principles
• Fair and even - select the right team• Compare like with like - develop the right process• Look at quality as well as cost• Develop a model• Develop a risk register
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Example Evaluation Criteria
M.E.A.T. - Most Economically Advantageous Tender
A: Full Economic CostB: Service Delivery qualityC: Service Management qualityD: Approach to people issuesE: Implementation approachF: Flexibility for the futureG: Synergy with clientH: Commercial/contract terms
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Mobilisation Activities
• Staffing and communications (TUPE)• Recruitment and training• Pricing and payments• Contractual and relationship (reporting)• Assets and infrastructure• Implementation (may be over time rather than
immediately)
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Managing the Contract
What do you need to make it work?
• A clear specification• Sensible hand-over arrangements• Effective communications• Recognition of teething problems
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Managing the Contract
• Clairvoyant contractors do not exist• Ill informed clients tend to get annoyed• Avoid the ‘them’ and ‘us’ mentality• Be consistent• Avoid personality clashes• Develop the relationship
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Quotations, Contracts and Tenders
Clinic – Your Questions Answered?
Jargon – is there any jargon still unclear?
For further information about Quotations, Contracts and Tenders please feel free to contact Simon Gresham on [email protected] or 07798 623750