Tag: tendering

Tender Forecasting

deadline-stopwatch-2636259_1920A little heads up can go a long way in the world of public sector tendering. Suppliers usually rely on Prior Information Notices (PINs) to give them a heads up that a contract was soon to be out there to bid on.

PINs are a great way to prepare for a bid response, but the time a supplier has to prepare their bid off the back of a PIN can vary: some PINs can be live for as little as a month before the contract notice comes out.

The longer the supplier has, the better position they are in to make a successful bid. That’s why Tenders Direct has launched Advance Tender Alerts.

Advance Tender Alerts provide suppliers with notifications of tenders, related to their business, up to six months before they expire – covering both above and below threshold opportunities.

Continue reading “Tender Forecasting”

Public Procurement Thresholds 2017 – update

update-1672363_1920

Just before the beginning of last year I wrote this blog introducing the new financial thresholds for mandatory publication of opportunities in the Official Journal of the European Union (OJEU). Since then we’ve received quite a number of queries on the subject. Although the current thresholds haven’t changed I thought I’d write an updated blog to include these discussion points.

When procuring goods or services over the financial threshold a public authority must do so under the Public Contracts Regulations 2015 in England, Wales and Northern Ireland and the Public Contracts (Scotland) Regulations 2015  in Scotland.

The current thresholds are as follows:

PUBLIC CONTRACTS

Supply, Services and Design Contracts Works Contracts Social and other specific services
Central Government £106,047

€135,000

£4,104,394

€5,225,000

£589,148             €750,000
Other contracting authorities £164,176

€209,000

£4,104,394

€5,225,000

£589,148            €750,000
Small lots £62,842

€84,000

£785,530

€1,000,000

n/a

 

Social and other specific services are subject to the new ‘light touch regime’ as described in a previous blog.

UTILITY CONTRACTS

Supply, Services and Design Contracts Works Contracts Social and other specific services
Utility authorities  

£328,352

€418,000

£4,104,394

€5,225,000

£785,530              €1,000,000

 

DEFENCE AND SECURITY CONTRACTS

Supply, Services and Design Contracts Works Contracts Social and other specific services
Defence and Security authorities £328,352

€418,000

£4,104,394

€5,225,000

 n/a

 

CONCESSION CONTRACTS

For the first time Concession Contracts are covered in EU Law under a separate directive and therefore separate regulations in the UK.

The EU Directive is found here: http://eur-lex.europa.eu/legal-content/GA/TXT/?uri=celex:32014L0023

The UK regulations here: http://www.legislation.gov.uk/uksi/2016/273/contents/made

The UK Directive gives instruction on how the value of a concession contract should be calculated: http://www.legislation.gov.uk/uksi/2016/273/regulation/9/made

The thresholds for publication in the OJEU refers to Article 8 (1) of the EU Directive which is:

  1. This Directive shall apply to concessions the value of which is equal to or greater than EUR 5 186 000.

The Sterling equivalent is £4,104,394.

CALCULATING ESTIMATED VALUE

The calculation of the estimated value of a procurement exercise shall be based on the total amount payable, net of VAT, as estimated by the contracting authority, including any form of option and any renewals of the contracts as explicitly set out in the procurement documents.

CONTRACTS SUBSIDISED BY PUBLIC FUNDS

All applicable contracts which are subsidised by 50% or more of public funds must be advertised in the OJEU. From time to time a public body may part fund a project and request that the recipient of funding must advertise the procurement in line with public contracts regulations even if their contribution is less than 50% of the overall value. As such any recipient of public funding on a project should verify with the funding body what is expected of them in procuring for the project.

WHAT ARE SMALL LOTS?

My colleague Line recently wrote a blog to clarify this question: https://blog.tendersdirect.co.uk/2017/01/06/procurement-terminology-what-are-small-lots/

HOW DO I KNOW IF A CONTRACT IS CLASSED AS WORKS?

Many contractual requirements are a mixture of works and services. Whichever element is the highest in value should be taken as the contract nature when determining what threshold to apply. If you are unsure whether a specific element is classed as works or services then you can refer to Schedule 2 of the regulations which lists all activities which constitute works by CPV code:

http://www.legislation.gov.uk/uksi/2015/102/schedule/2/made

If the CPV code which fits your requirement is not in that list then it is not classed as a Works contract.

I hope you find this blog useful. If you want more help with understanding thresholds and other public sector tendering procedures, Millstream’s Training and Consultancy team are available to answer any of your questions. Or, leave us a comment below.

 

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Public Sector Construction – Getting better all the time

The Public Sector is providing more and more contracts for Construction sector suppliers. Although times were tough for the industry following the recession, things have rebounded and opportunities have never looked better for suppliers and contractors working with the Public Sector. The future looks brighter still with this sector having a projected average growth of 2.6% from 2015-18.

Certain sub-sectors of construction have had significant increases over the past year. A 12% increase in road related tenders, 8% increase in new build tenders, 25% increase in architecture/design team tenders and the biggest increase is in the renewable energy sector (areas like solar power, wind power and geothermal) of around 35%.

With the High Speed 2 project, floods defence work, major road schemes across the UK, along with affordable housing and other projects it’s no surprise that things have rebounded in this sector.

Millstream has created an infographic on this to highlight the key facts and you can view this here: Construction Infographic

More than 4,000 private sector companies use Tenders Direct to find new business opportunities, of those over 950 are construction businesses, accounting for around 22% of the customer base. Tenders Direct work with thousands of public sector organisations in the UK, Ireland and Norway to publicise their contracts, allowing direct access to contracts that many are unaware of. The dedicated research team solely identify contracts and include them within the Tenders Direct database – many of these are smaller contracts that would not be published by the Official Journal (OJEU) or on any other central resource.

The Tenders Direct team, also manually categorise all tenders to ensure that only highly relevant opportunities are provided and therefore personalised to individual preferences and areas of specialism and are sent to subscribers every day.

To find out how Millstream can help you find opportunities in public sector construction, call 0800 270 0249 or visit www.millstream.eu

 

Pet Hates of Suppliers (What not to do if you are a buyer)

A few months ago my colleague Cindy published a blog on the Pet Hates of Buyers which went through some of the main issues that buyers have had when dealing with suppliers. This blog will consider the other side of the coin and cover some of the pet hates that suppliers have when bidding for tenders.

Through my experience working in the Tenders Direct support team I have put together this blog from feedback that we have received from our customers and other external companies that are involved in public sector tendering.

The issues can be broken down into two main areas. Firstly all issues relating to the tendering process (planning, identifying the needs, market analysis and tendering) and secondly all issues that relate to the post tender activities (contract management, supplier relationship management and the actual performance of the contract). Continue reading “Pet Hates of Suppliers (What not to do if you are a buyer)”

Remember Remember Your Tenders in November!

Alone with his thoughts in the dank cellar below the House of Lords, Guy Fawkes imagined the display of pageantry that would occur above him when King James I arrived later that day for the State Opening of Parliament. This war veteran from Yorkshire, however, had a very different spectacle in mind: the detonation of 36 barrels of gunpowder directly beneath the King’s feet. With James dead, Fawkes and his fellow conspirators hoped to instigate a popular uprising and restore a Catholic monarch to the throne. He just had to remain undiscovered for a few more hours…

A noise… his heart skipped a beat. Footsteps!

It’s fascinating to think that the actions of a few individuals in the distant past can continue to influence our lives centuries later. In his moments of introspection in the cellar, Guy Fawkes probably didn’t imagine that his effigy would be burned as part of a widely recognised annual cultural event over four hundred years after his death; he surely wouldn’t have had the remotest idea that an extensive publicly funded supply chain would be required to make it happen!

Continue reading “Remember Remember Your Tenders in November!”

Your Rights as a Supplier

The most common question that we get from Tenders Direct customers is: ‘What rights do we have once we put in a bid?’

The answer to that is dependent on what stage of the process the supplier is at and the rights for both stages are listed below:

For the PQQ:

Questions should only be asked of your company and not your potential solution (It should be about selection of suppliers and not an evaluation of your product).

Buyers have a legal requirement to notify candidates eliminated at the PQQ stage “as soon as reasonably practicable”.

Continue reading “Your Rights as a Supplier”

The Mystery Shopper Service

Bidding can be both pressurised and also rewarding for suppliers to the public sector. There are many concerns for suppliers during this time such as completing all the relevant documents to meet the deadline, getting adequate responses from the buyers on the Q&A or that the process is being run fairly.  Poor procurement practice by the buyers may go unnoticed under these circumstances and many suppliers are reticent to raise a challenge and risk future contract opportunities. So what happens when you realise there are potential issues? The Mystery Shopper Service offers a solution to this problem.

A Brief Overview

The Mystery Shopper Service aims to tackle any concerns suppliers (particularly SMEs) may have regarding poorly conducted procurement processes which they have been part of on behalf of the suppliers. The service welcomes questions at any stage of the Continue reading “The Mystery Shopper Service”

Little fish in a bid pond? How SMEs can break into public sector procurement.

A lot of potential suppliers to the public sector are put off by the amount of work it takes to become tender ready and what seems to be a chicken and egg situation where you need references to pass the PQQ (selection) stage but can’t get references until you win a contract!

The changes to the procurement regulations this year have made in roads to this situation with the abolition of PQQs for below threshold contracts and the removal of the burden of proof for above threshold contracts but there are a number of steps SMEs (and all organisations new to public sector tendering) can take to get a foot in the door and start supplying to the public sector. Continue reading “Little fish in a bid pond? How SMEs can break into public sector procurement.”

2015 Procurement Regulations – Changes to the ITT stage – What Suppliers Need to Know.

Following on from our recent blog regarding the changes to the PQQ stage in the new 2015 Procurement Regulations we are going to look at what has changed at the ITT stage and what suppliers need to be aware of when tendering to the public sector.

The most important changes to the ITT stage for suppliers are:

1) There is now greater clarity regarding the rules on social and environmental aspects being taken into account in tenders meaning that:

  • social aspects can now also be taken into account in certain circumstances (in addition to environmental aspects which have previously been allowed);
  • contracting authorities can require certification/labels or other equivalent evidence of social/environmental characteristics, further facilitating procurement of contracts with social/environmental objectives;
  • contracting authorities can refer to factors directly linked to the production process.

The caveat to this is that any factors taken into account must be reasonably achievable for all suppliers so as not to favour larger companies or specific methodologies. We would encourage suppliers to keep a check on your key buyers to see what policies they have in these areas and how they are likely to implement these new rules. For example do they have a big drive on apprenticeships or carbon emissions you could support them on? In general it would be a good idea to start gathering data, case studies and evidence of your company’s positive social and environmental impacts to use in your responses going forward as the level of detail asked for in these questions is only going to increase.

2) Full life-cycle costing can be taken into account when awarding contracts; this could encourage more sustainable and/or better value procurement which will hopefully save money for tax payers in the long term. Continue reading “2015 Procurement Regulations – Changes to the ITT stage – What Suppliers Need to Know.”

Solar Power Tenders – Summer Must be on It’s Way!

Did you know: 1 University, 2 Housing Associations and 3 Councils are installing up to 15k Solar Panels over the next 3 years. And that is just the tenders for one week! Someone out there must be predicting a scorcher this summer!

It is so nice to see the Public Sector looking for alternative means of energy, after all it was in 1997 (Kyoto Protocol) the UK Government promised to reduce greenhouse gases by 12.5% by 2008 to 2012. Last year the UK Government vowed its ‘greenest year ever’ and promised central government would reduce its carbon emissions by 10% within 12 months  60.5 million tonnes of greenhouse gases are created by the UK each year and the Public Sector is only responsible for 3%. That is any easy enough target to reduce, only 5.7 million tonnes!

See tips for suppliers after the jump…..>

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