Simple Strategies for Success: Be Pragmatic

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One of the most common pieces of feedback we receive from subscribers trying to win their first public contract is that they are tired of being knocked back from promising opportunities, with many minded to give up entirely and focus their efforts exclusively on the private sector.

This is entirely understandable when time and resources are minimal and the workload involved in bidding so substantial, but companies in any industry need diverse revenue streams in order to prosper and grow. Winning your first tender is not so much about the here and now, but about the future: once you have your foot in the door, many more opportunities will open up to you.

In our experience, it pays to be pragmatic when selecting your target. Larger contracts are unlikely to be awarded to a supplier with no previous public sector experience, so below-threshold procurements should be your focus; they may not be worth millions, but winning just one can prove to be a vital stepping stone for any company aspiring to win large government contracts.

In other words, don’t try to run before you can walk. Be selective about your bids and focus on winning one of the more modest contracts in order to give yourself the best chance of success. Your first win allows you to demonstrate your capabilities and gain vital references, which will be invaluable when making your pitch for a larger and more lucrative contract.

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Take control of your tendering activities – create a strategy that works for you.

The majority of companies we work with are stuck in the trap of reactive tendering. By reactive tendering I mean that you simply wait to see what contract notices come out day to day and then tender for the ones you want to win.

What’s the problem with that? The problem is that your competitors may well have been engaging with the buyer for months beforehand, showcasing their product or service, influencing the specification and moving themselves into a favourable position to win the bid. Continue reading “Take control of your tendering activities – create a strategy that works for you.”

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SMEs to miss out on £33.5bn worth of government contracts by 2020

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Small businesses could miss out on over £33 billion worth of UK Government contracts in the ten years to 2022, according to procurement specialists Millstream.

The Government has set itself a target of spending £1 in every £3 ‎on SMEs by 2022 through both direct and indirect spending as part of a drive to re-balance the economy. It procures around £50 billion worth of products and services a year.

However, according to Millstream analysis*, in the last five years direct government spending on SMEs has only grown by one percentage point from 10% to 11%.

The firm estimates that, if spending on SMEs increases at its current rate, the SME community is likely to have missed out on £33.5 billion worth of government contracts in the ten years to 2022 – at precisely the time that the government is hoping to attract more tenders from them.

‎Penny Godfrey, General Manager of Millstream, said: “This could be a real missed opportunity for the SME community. Despite a major push to redistribute spending amongst a larger number of smaller firms, current trends suggest that not enough SMEs are tendering for and winning government business.

“This is not itself a criticism of government: the target is there to encourage smaller businesses to apply for contracts. Doing so would spread risk for the government and improve its access to specialist businesses. Of course, it should also redistribute investment around the UK.”

According to Millstream, it’s not all doom and gloom, the UK government is on track to double the proportion of funds it spends directly on SMEs by 2022. In 2009, just 6.5 per cent of total government expenditure went to SMEs, but Millstream predicts it will hit 13% by 2022.

However, the government’s target is not exclusively based on the direct contracts it offers to SMEs, but on the total overall benefit to SMEs, which includes indirect contributions to the SME supply chain. By this definition, government spending on SMEs is actually decelerating.

Penny Godfrey added: “More must be done to encourage tender submissions from SMEs. Businesses must appreciate that the process needn’t be arduous. Buyers really want to see more small businesses getting involved. It is vital that we stimulate tendering for government work – SMEs must understand that the opportunities outweigh the risks.”

 


* UK government official data on SME spending available here (2009-14) and here (2014-16). 2016/17 data not yet available.

Millstream made the following presumptions in its calculations:

  • YoY increase of 3% on total procurement spending by the UK government 2016-2022
  • Improvement in the % of total (direct & indirect) SME spending follows the direct spending trend of the UK government from 2011-2015 onwards (=growth of 1% every four years)
  • To make the most conservative estimate possible, we used the highest % spent on SMEs available as starting point for projected spend from 2016 to 2022

Comment on De La Rue taking steps to appeal against passport decision

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With the recent news* that British company De La Rue are looking to initiate appeal proceedings against the government’s decision to award the contract to make UK passports to French-Dutch company Gemalto, Penny Godfrey, General Manager of Millstream, comments:

 

“There are great benefits to British companies that have the opportunity to bid for European contracts and our public sector has to reserve the right to invite bids from outside the UK – these principles could shape how competitive our economy will be after Brexit. In this instance we must be aware that this display of political or domestic preference could be riding roughshod over fair market principles.

 

“De La Rue has the right to appeal the Government’s decision, but will have to base that appeal on a breach of wider procurement rules. There is no clear definition of what constitutes an abnormally low tender offer, but the risks to the contracting authority of an unsustainably cheap offer are clear: poor performance, the potential for hidden costs, and, ultimately, incurring the additional cost of re-tendering if things go awry.”

 

*Related article: http://www.bbc.co.uk/news/business-43623750

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Join our webinar on Wednesday 18 April from 1.00pm to 1.45pm where you’ll find out:

• What the ESPD is and why is has been created
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The use of frameworks and dynamic purchasing systems (DPS) in the public sector is on the rise. They reduce the amount of work for procurement teams and simplify the tendering process for suppliers.

Make sure you’re prepared to bid for this type of work – join our free webinar to find out what a framework or DPS is, how they operate and what work needs to be done once you are on them.

Date: Thursday 22 March
Time: 1.00pm to 1.45pm

During the webinar we’ll cover:

  • A description of what a framework is and how it operates
  • A description of a DPS and how it differs from a framework
  • An explanation of how to find these opportunities
  • Examples of ‘call-off’ mini competitions from frameworks and DPSs
  • An overview of how to write great bid responses

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Free Webinar: Finding and Winning Low Value Tenders

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Low value tenders can prove to be a great business development tool for public sector suppliers.

However, as low value tenders do not have to adhere to the full raft of procurement regulations, the challenge is knowing where to find them and how to win them.

Join our Head of Training and Consultancy, Gemma Waring BA (Hons), for this free 45 minute webinar where we’ll outline what rules and regulations govern low value tenders, advise how to win these tenders, plus lots more.

Date: Wednesday 21 March
Time: 1.00pm – 1.45pm

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Free Webinar: Social Value in Procurement

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Calling all buyers! Social Value has been part of procurement legislation since 2013, but what is it? And, more importantly, how should these types of questions appear in your procurement documents?

If you would like a firmer understanding of the topic then join our Head of Training and Consultancy, Gemma Waring BA (Hons), for this FREE webinar.

Wednesday 28 February, 1.00pm til 1.45pm

The webinar will cover:

• A high level overview of the Social Value Act 2012

• An explanation of how it can be implemented in procurement documents

• Examples of Social Value questions

• Advice on how to evaluate them objectively

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Free Webinar: Social Value in Tenders

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Social Value has been part of procurement legislation since 2013 yet it is just starting to filter down into tender documents on a regular basis – sometimes accounting for up to 20% of the total evaluation.

But what is it? And, more importantly, how can you prepare for it?

If you would like a firmer understanding of the topic then join our Head of Training and Consultancy, Gemma Waring BA (Hons), for this FREE webinar.

Tuesday 27 February, 1.00pm til 1.45pm

The webinar will cover:

• A high level overview of the Social Value Act 2012
• An explanation of how it is being implemented in the public sector
• Examples of Social Value questions that have been seen in recent tenders
• Advice on how to prepare for answering social value questions in tenders

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