Procurement Landscape

The VFM Agenda

Gary Amos
Head of Procurement
Salford City Council
 The Northwest
3 COUNTY
4 UNITARY
15 METROPOLITAN
24 DISTRICT
1 NATIONAL PARK
 Annual revenue spend: £17 billion +
% Of Spend With North West Suppliers: 70%

• 25% of spend with suppliers who supply more than 1

council

• 25% of spend within Local Authority boundary

Construction
Social Care
Local Authorities aren’t . . .
 Three Aspects:
1. Finance

2. Drivers

3. Modernisation
 Finance
• Emergency Budget
– Restricted spend
– Tighter controls
– Whole life costing

• Collaboration between authorities

• Joint service delivery

• Drive towards aggregation vs. ‘small is beautiful’

 Drivers

• Local economy
• Community benefit
• Environmental issues
• Sustainability
• EFFICIENCY
 Modernisation
• The big ‘e’

• The Chest (
https://www.thechest.nwce.gov.uk/cms/cms.ns
f/vHomePage/fSection?OpenDocument
)

• Supplier development

• Co-ordination
 Summary
• Reduced costs
• More controlled, co-ordinated approach to
procurement
• Easier routes to information
• Easier contact with the buyers
• Co-operation, not confrontation
• Work with suppliers
An appeal from Buyers everywhere:
• Be on time

• Read the specification

• Provide the information as requested

• Complete the tender / quotation document!

• Be on time!
HOW TO BID AND TENDER

Linda Mickleburgh
Managing Business Opportunities Ltd
07771 734107
WHY WORK WITH THE PUBLIC
SECTOR

• Spend budgets set in advance

• Good payers
• Agreed requirements
• Huge spend = huge potential
market
 PUBLIC SECTOR SPENDING

• Europe - €1500 billion pa

• UK - £175 billion pa
• Local Government £27 billion
• Estimated 800,000 suppliers
– high % SME’s
 NORTH WEST LOCAL
AUTHORITY SPENDING

£6 – 6.5 BILLION ish

 WHATS THE PUBLIC
SECTOR
• Bodies Governed by public law & procurement rules
• EU Institutions
• Central Government Departments and Agencies
• Armed Forces
• Police Service & Prisons
• Local Authorities
• Universities and Colleges
• NHS
• Certain Utility Companies - Water, Energy, Transport &
Telecommunications Sectors
• Other Quangos……
 REGIONAL/LOCAL PUBLIC
AUTHORITIES

• Regional Development Agency

• Over 40 Local Authorities
• Local Education Authorities
• Universities
• Schools
 WHAT PUBLIC SECTOR
BUYS
• Works:
– Buildings - Roads
– Infrastructure
• Supplies
– Stationery - Furniture
– Clothing - Surgical Equipment
– Computers
• Services
– Cleaning - Chauffeurs
– Catering - Insurance
– Legal - Professional Advice/Consultancy
– Recruitment - Gardening
 WHAT CAN SMALL FIRMS
OFFER
• Greater competition
• Lower Costs
• New Ideas
• Responsiveness
• Flexibility
• Quality of Service
• Specialisation
 FIRST STEPS - DECIDE
• What you deliver?
• Who to?
• Size of contract?
• Geography of delivery?
• Know your supply chain? (how extensive is it? Its
limitations?)
• What are your Unique Selling Points?
• IF YOU HAVE NOT DECIDED, HOW CAN YOU
SELL?
WHERE TO FIND OPPORTUNITIES

• Local, Regional, National Newspapers & Trade

Magazines

• Networking events

• Join Central & Local Government supplier

lists/catalogue

• Local Authority/other agency websites

• Register on e-portals
NEWSPAPERS AND MAGAZINES

• Your not just looking for tenders

advertised

• What is on the horizon

• What is about to happen

• Changes to buying organisation

structures
 NETWORKING EVENTS

• Do I need to cover this – your all here

• People buy people first

• Keep your company in peoples minds

• Find out what’s about to happen

• Pick up contacts
APPROVED SUPPLIER LISTS

• Some Authorities utilise lists of

potential suppliers
• No cost to register
• Often a Pre-qualification process
• Rotating lists often utilised
• No guarantee of work
• Once on list, keep on selling
 NORTH WEST AUTHORITIES
CHEST

www.thechest.nwce.gov.uk

• Online Business Portal

• Single point of contact for NW councils contract
opportunities (50% councils post opportunities on this
site)
• Automatic notification of tender opportunities
• Buyers can see prospective supplier details
• E-procurement process
• Available 24/7
• COMPLETELY FREE
 NATIONAL, REGIONAL & LOCAL
OPPORTUNITIES
www.supply2.gov.uk

• Free to register for a quick and easy way to access lower-value

public sector contract opportunities in your local area e.g.
Greater Manchester
• Lists Procurement events
• Provides online searching service
• 24/7 access to contract opportunities
• Daily alert service to your e mail
• Buyers can identify your services
• Guides to selling to various Government Departments
• Upgrades to opportunities Regionally, Nationally, and higher-
value contracts on a set fee basis
 2012 OLYMPICS
OPPORTUNITIES

www.competefor.com

• Business opportunity information

• Business events
• Online registration of details
• Access to tier 1, tier 2 and below
supply opportunities
 TENDERS ELECTRONIC DAILY

Scan The European Union Tender website

• Official Journal European Union (OJEU)

– Tenders Electronic Daily (http://ted.europa.eu )

OTHER E – PORTALS/SITES
• Salford City Council www.salford.gov.uk
• NWDA www.in-tendhost.com/nwda/asp/home.asp
• GM Fire www.manchesterfire.gov.uk
• GM Police www.gmp.police.uk
• Fire Service www.bluelight.gov.uk
• Charities www.charitiesbuyinggroup.com
• NHS Northwest Procurement Hub
www.nwcca.nhs.uk & www.nwcph.nhs.uk
• MOD www.contracts.mod.uk
• Etc………………………….
SOURCING OPPORTUNITIES
Tips:

– Plan your approach, time is costly

– Don’t be shy of making enquiries to public-sector
bodies about available contracts
– Get registered on supplier listings
– Look out for news and events in papers &
publications for your sector
– Explore the internet for ‘selling to’ sites
– Feel free to market your services to the public sector
just as you would to the private sector – (Don’t forget
to have your profile ready – USP’s)
 PROCUREMENT RULES
• EU Threshold - OJEU

• National ‘Best Value’ Rules (Fair, Honest,

Professional, Best Value)

• Local Authority Thresholds & Contract

Procedure Rules
 E-PROCUREMENT
‘Ability to trade with all suppliers using e-
mail and web technology.

Removes paper processes and reduces

costs for both buyer and supplier, making
trading simpler and more cost effective.’

National e-Procurement Project

 E-PROCUREMENT
• Increasingly used by public sector
• Electronic methods in every stage of
purchasing process
• Boosts efficiency
• Reduces tendering timescales
• Also benefits to suppliers
 TENDERING PROCESS
Types:

• Quotes – lower value contracts

• Open – all suppliers allowed to bid
• Restricted – 2 stage process, PQQ for all and
then shortlist of suppliers to tender
• Negotiated – buyer is allowed to negotiate with
one or more suppliers prior to awarding contract
 TENDERING PROCESS

Types:

• Competitive Dialogue – buyer and potential

suppliers discuss potential solutions prior to
tendering
• Framework Agreements - Agreements between
one or more contracting authorities and one or
more buyers, used by buyers to establish
potential delivery panels, beware no work
guaranteed until a contract issued
 EVALUATION AND SELECTION

• Published by Buyers in advert

– Price, delivery date, quality, technical merit,
after sales service, technical backup,
aesthetic or functional characteristics
• Guidelines to ensure a fair and objective
process
• Buyers checking suppliers; financial
standing, experience and capability
 PASSING PRE-QUALIFICATION
• Experience and capability
– References
• Able to demonstrate financial standing
– 3 years of audited accounts
– Turnover 3-4 times the contract value
• Demonstrate Business Probity
• All appropriate policies, procedures,
insurances in place
 DOCUMENTS REQUIRED
• Certificate of Incorporation

• Group/Company Structure Chart

• Audited Accounts (3 Years)

• Evidence to Support Technical Capability

• Evidence to Support Capacity

 POLICIES REQUIRED
• Health & Safety
• Quality (ISO9001, CHAS, etc)
– Compliments, Comments, Complaints Handling
– Continuous Service Improvement
– Client Relationship Management
– Resource Allocation
– Management Information
– Data Protection
– Confidentiality
• Equal Opportunities
– Recruitment
– Training & Development (including CPD)
• Financial Management
• Environmental Management (EMS, ISO14001, etc)
– Sustainable Procurement Policy/Plan
– Green Travel Plans
 INSURANCES REQUIRED

• Employers Liability

• Public Liability

• Professional Indemnity
 AVOID WASTING TIME –SELECT
THE BEST OPPORTUNITY
• Timescales
• Buyer
• Location
• Technical/Specific requirements
• Investment
• Value
IS IT RIGHT FOR YOU
 MAKING THE DECISION TO BID

Tips:

• Analyse the bid documents

• Make sure the client is serious
• Do you have the time and resources to bid?
• Can you meet the technical, skill and experience
requirements?
• How much will it cost to prepare your bid?
• Do you have the capacity to deliver the bid? (expansion?
consortium? timescales?)
• Would the work fit in with your strategy and positioning of the
business?
• Estimate the costs of fulfilling the contract and whether or not
you’d make enough money to justify it
• Can you resource and manage the delivery of the bid?
WRITING A WINNING TENDER

Key Stages:

• Management of the Process

• Planning & Preparation
• Collection of Relevant Information/Material
• Drafting the tender
• Evaluating & Editing the tender
• Re-editing the tender
• Final draft submitted on time, correct format
WRITING A WINNING TENDER

BE PREPARED

BEFOREHAND
WRITING A WINNING TENDER

• Read all the documentation thoroughly

• What does the client want?
• How is the response being evaluated? – points
make contracts
• What do you need to do next?
• What barriers are there to you responding?
• Answer the clients questions
• Respond in the format the client asks you to
• Sell yourself appropriately
• Unique selling points, added value, innovation
 MISTAKES BIDDERS MAKE

• Fail to understand service/specification

• Lack of capacity, failure to judge extent of service/supply chain
• Don’t comply with specification
• Don’t answer the question asked
• Financial stability raises concerns
• ‘Padding out’ the bid with documents to make it look good/or fail to
provide sufficient information
• Fail to show experience of similar work
• Lack the time to complete tender and/or miss the deadline
• Tender doesn’t hang together
• Not turning up to supplier meetings
• Expect buyer to significantly alter their contract terms
 TENDER PRESENTATIONS
• Start with conclusions and then go into detail
• Audience may not be listening they need to be
stimulated
• More information is absorbed through vision than any of
the other senses
• As early as possible tell them what’s in it for them
• Present benefits, not just features
• Utilise lists
• Keep the language simple
QUESTIONS