Posted by Jill Watson on June 30, 2010
A
re you going for lots of tender opportunities but finding that you just can’t seem to get a look in? Could you be guilty of bidding “blind”?
I sometimes get the sense that businesses new to public sector tenders (or sometimes even those with years of experience) think that on submitting a PQQ or a Bid, as long as they’ve made some sort of submission, they’re in with as much chance as anyone at getting into the next round or winning the contract outright. A bit like hoping your lottery numbers come up on a Saturday night or sending out reams of speculative CV’s on the hunt for a new job.
This approach doesn’t give any regard to the rigour with which the public sector evaluate PQQ’s and Tenders. While you might find the odd employer interested in speculative applications, winning bids does not work on a “luck of the draw” basis where you might eventually win something if you just keep firing out submissions left right and centre. If this isn’t working for you now, it’s not likely to start working any time soon. It’s time to change tack. Especially as the public sector faces an even tighter monetary squeeze.
If your bid is one of 10 on the conveyor belt, the evaluators are unlikely to come over all inclusive. They are more likely to be brutal in separating the wheat from the chafe. There can only be ONE winner. They are only looking for ONE winner. And they are likely to choose the bid which speaks to them with a real understanding of their needs and how to address them.
Don’t forget the adjective COMPETITIVE before the word tendering! Take a long hard look at this fella on the right – does he look like he’s going to conduct a lovely, fluffy, points for anything evaluation? Or does he look like he wants to whittle the number of bids down as quickly as possible and find that one outstanding proposal that really meets his needs? (Or is he in fact asleep?!) The point is, evaluators are under time pressure and are not stupid. Lack of planning, experience and substance in a bid will be easily spotted.
What is this business of bidding “blind” then? In simple terms, it’s submitting bids without being prepared with all the information you need. But blind to what exactly? I’m going to pick out a few key things which some suppliers are guilty of being blind to:
1) The context of the organisation that you are bidding to. Politics, geography, demographics, budgets – think about how these might subtlety impact on the agenda the buyer sets when purchasing. Whether they are related to procurement or not, central and regional government initiatives and NHS specific ones can all have differing impacts on priorities for different contracting authorities. If you are a cleaning company bidding for a £1m contract with a local authority, what has it got to do with you that the authority wants to bring the long-term unemployed back into work? Nothing you might think. But your client might place an awful lot of value on meeting these kind of sideline objectives through procurement. Sustainability, equality and diversity and environmental concerns are likely to feature highly as well, so it’s worthwhile keeping abreast of what is going on at a strategic level for your potential clients.
2) The evaluation criteria and process. How are your PQQ’s evaluated? What company policies are required and how will these be evaluated? What is the percentage price/quality split at tender stage and the exact breakdown of quality elements? If you don’t know the answers to some or any of these questions you need to prepare to address them before you even think about bidding. If the award criteria are 70% price and 30% quality, is your high-end offering going to win this time?
3) Your competitors, their strengths and weaknesses. Ideally, you should always know who you are going to be up against in a competitive bidding situation. On our Successful Tendering course this month there was about a 50/50 split in the room on awareness of competitors when bidding. You can find out who is winning contracts through Contract Award Notices which publish details of successful bidders, you could also pick up the phone and ask the contracting authority who the incumbent is. Hell you could even ask the client about the current supplier’s performance if you manage to get your hands on them at a meet the buyer event or something similar.
4) The opportunities out there. Are you really keeping an eye on all the high and low value contracts out there that are available? Do you understand the differences between OJEU and low-value contracts, framework agreements etc and how they might represent different types opportunities for you?
5) The benefits (rather than features) of your product or service to the client. Sure, you all know how great your company is and could talk about it until the cows come home. But are you linking the features of your offering to the specific benefits to the client (building on your understanding of the context and the client needs as per item 1)? This is something which is notoriously lacking in most proposals. A good tip is to apply the “So What?” test to the answers you provide in your documents… or the “So what does this mean to them?”, then write it in your bid – that way you will build more client focus into your tenders.
If your business development team can start to get a handle on these things before launching themselves at every opportunity, then you will be more likely to go for the right opportunities AND win them.
Go after public sector contracts with your eyes wide open.
Posted in Tender Tips | Tagged: Competitive Tenders, Contracts, Evaluation Criteira, OJEU, PQQ, Public contracts, tenders, Win, Winning Tenders | Leave a Comment »
Posted by Diane Callaghan on May 27, 2010
What is a framework agreement?
A framework agreement is an ‘umbrella agreement’ that sets out the terms (particularly relating to price, quality and quantity) under which individual contracts (call-offs) can be made throughout the period of the agreement (normally a maximum of 4 years).
Do framework agreements need to be advertised in OJEU?
If the procurement is being paid for out of the public purse and the value of all the potential call-offs is estimated to exceed the EU thresholds (and it is not excluded by part B of the regulations) then yes, the framework agreement should be advertised in the Official Journal of the European Union (OJEU). However, the individual call-offs do not then need to be re-advertised.
What is commonly procured using framework agreements?
Framework agreements are typically used where the authority knows they are likely to have a need for particular products or services, but are unsure of the extent or schedule. So framework agreements are commonly set up to cover things like office supplies, IT equipment, consultancy services, repair and maintenance services etc.
Who can use a framework agreement?
Many framework agreements can be utilised by more than one authority. If this is the case, the purchasing authorities need to be identified in the relevant OJEU notice. An example of frameworks available to a wide range of purchasing authorities are those formed by Buying Solutions (an Executive Agency of the Office of Government Commerce), a central purchasing body who create framework agreements for use across the whole of the UK public sector.
How can I get onto a framework agreement?
If the framework agreement has been advertised in OJEU, you can only be considered for inclusion on the framework agreement if you respond to the OJEU notice by the stated deadline. The procurement process for awarding the framework agreement will then follow all the usual EU procedures and rules and be awarded according to how well suppliers satisfy the selection criteria.
How are call-offs awarded under a framework agreement?
If the framework agreement is awarded to one provider, then the purchasing authority can simply call-off the requirement from the successful supplier as and when it is needed. Where the framework is awarded to several suppliers, there are two ways in which call-offs might be made:
1) Where the terms laid out in the framework agreement are detailed enough for the purchasing authority to be able to identify the best supplier for that particular requirement, then the authority can award the contract without re-opening competition.
2) If the terms laid out in the framework agreement are not specific enough for the purchasing authority to be able to identify which supplier could offer them best value for money for that particular requirement, a further mini-competition would be held between all the suppliers on the framework agreement who are capable of meeting the need.
What are the advantages of framework agreements?
The main advantage to a purchasing authority of using a framework agreement is that they do not have to go through the full OJEU process every time the requirements arise. Having to go through the tender procedure once rather than several times, will obviously reduce tendering costs. It also means there is less downtime between identifying the need and fulfilling it, which considering how lengthy the OJEU process can be, could be a considerable benefit. There are also further potential savings to the purchasing body because of economies of scale, which may prompt suppliers to offer more competitive prices.
The reduction to tendering costs will also apply to suppliers, as going through the tender procedure is costly and time-consuming for suppliers too. Obviously, the main advantage to suppliers of being on a framework agreement is the chance of being awarded valuable business opportunities.
What are the disadvantages of framework agreements?
A disadvantage of a framework agreement for a purchasing authority is that they are relatively unresponsive to change – there may be new suppliers and/or new solutions within the market that were not included when the framework agreement was initially set up. Furthermore, framework agreements tend to apply a ‘one size fits all’ approach, which might make it difficult for authorities to satisfy their own procurement objectives. However, most framework agreements do not place any obligation on the purchasers to actually buy anything. Therefore, if the requirement doesn’t fit into the framework agreement or they think they can achieve better value for money not using it, then they can go elsewhere.
This in turn is a disadvantage for suppliers under the framework agreement; most frameworks do not guarantee that suppliers will get any business from them. Therefore, you may spend a lot of time, effort, and resources getting included on a framework agreement and never get any business as a result. However, you are still in with a chance, whereas suppliers not included on the framework (whether they were unsuccessful or were not aware of it when it was tendered) are likely to find it more difficult to secure business for the requirements covered by the framework agreement. It is therefore a good idea for suppliers to investigate what framework agreements already exist and when they might be up for retender. And for those suppliers included on frameworks, don’t take the business for granted – continue to market your products or services to the purchasing authorities !
Posted in General Procurement, Tender Tips | Tagged: business opportunity, Framework Agreement, Office of Government Commerce, OGC, OJEC, OJEU, procurement, Public Procurement directives, public sector, purchasing consortium, resources, tender, thresholds | Leave a Comment »
Posted by Tim Williams on May 5, 2010
Despite the three election debates, none of us are any the wiser precisely how the next Government will cut expenditure in order to pay off the financial deficit. We know that change is (hopefully) coming that will reduce the size of ‘Big Government’ and while change often brings threats, it also brings opportunities.

UK Party Leaders
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Posted in Politics of Procurement | Tagged: Big Government, business opportunity, General Election, procurement, Public contracts, public sector | Leave a Comment »
Posted by Diane Callaghan on April 16, 2010
Is it your job to find that golden opportunity hidden amongst hundreds of vaguely related tender notices? How many tenders do you dismiss on title alone? Well, you might just be missing some valuable business opportunities.
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Posted in General Procurement, Tender Tips | Tagged: Common Procurement Vocabulary, CPV Codes, OJEU, procurement, Public contracts, Tender titles | 2 Comments »
Posted by Neil Thompson on April 9, 2010
If you’re looking for new markets and have stumbled upon the public sector option – do not be misled into thinking it will be exactly the same as selling to a private sector client.
The private sector purchaser can largely suit themselves when it comes to what they buy, who they buy from and how much they pay. But the public sector purchaser has a lot of different factors to take into consideration, not least that they are spending public money and have to comply with set processes and legislation.
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Posted in General Procurement | Tagged: procurement, Public contracts, public sector, suppliers, tender | Leave a Comment »
Posted by Neil Thompson on March 31, 2010
Posted in General Procurement | Tagged: business opportunity, Glover Report, Office of Government Commerce, OGC, procurement, Procurement Best Practice, Public contracts, suppliers, tender, Tenders Direct | Leave a Comment »
Posted by Hailey Thomson on January 26, 2010
Information technology and business are becoming inextricably interwoven. I don’t think anybody can talk meaningfully about one without talking about the other.
Bill Gates
Today’s technology is high-speed and merciless; if you miss even one of the latest trends, you’ve practically fallen off the face of the earth. As purchasers move more and more into eProcurement and eTendering, are the suppliers, particularly SME’s feeling left behind?
Do not let eTendering pass you by! Keep reading and have a quick look at my checklist to help you with future eTenders… MORE
Posted in Tender Tips | Tagged: eProcurement, eTendering, eTenders, Future of Procurement, procurement, Public contracts, public sector, tender, Tenders Direct | Leave a Comment »
Posted by Diane Callaghan on January 20, 2010
PQQs (Pre-Qualification Questionnaires) are issued by awarding authorities, as part of a restricted procedure, in order to short-list suitable suppliers before inviting them to tender. Suppliers are assessed according to pre-set criteria based around financial position, ability to deliver, quality standards, and the company’s policies on health and safety, sustainability and equal opportunities.
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Posted in General Procurement, Tender Tips | Tagged: business opportunity, Office of Government Commerce, OGC, PQQ, Pre-Qualification Questionnaire, procurement, Public contracts, public sector, suppliers | 1 Comment »
Posted by Tim Williams on January 19, 2010

Gordon Brown & Herman van Rompuy
In yet another sign of the growing political significance of public procurement the UK Government today published a compact designed to reinvigorate EU economies and build “strong, sustainable and balanced” growth. Gordon Brown met EU President Herman van Rompuy at Downing Street this morning to discuss the economic strategy, as well as climate change, security and the situation in Haiti.
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Posted in Politics of Procurement | Leave a Comment »
Posted by Tim Williams on January 8, 2010
I’m a bit late with this blog post, what with Christmas and New Year and then all the snow, but better late than never.
On January 1st 2010 new financial thresholds, which govern whether or not a contract must be published in the Official Journal of the European Union (OJEU), came into force. There’s often a lot of confusion about these thresholds, so I’ll try and explain a bit of the background as well as the actual values of the new thresholds.
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Posted in General Procurement, Procurement Law | Tagged: Government Procurement Agreement, GPA, IMF, International Monetary Fund, OJEC, OJEU, procurement, Public contracts, Public Procurement directives, public sector, SDR, Special Drawing Rights, Tenders Direct, thresholds, Utilities, WETP | Leave a Comment »