Selling to the Public Sector

1
Selling to the Public Sector

• Glynis McEwing
• Roger Holloway
• Procurement Lincolnshire

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Agenda

• Introduction
• Procurement Lincolnshire
• Lincolnshire the story so far
• Introduction to Procurement
• The Procurement Process
• Pre Qualification Questionnaire (PQQ)
• PQQ Evaluation
• Break
• Invitation to Tender (ITT)
• ITT evaluation process
• Contract Award
• Any questions

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Procurement Lincolnshire

• Who are members of Procurement Lincolnshire?
• Services delivered by Procurement Lincolnshire to
  member authorities
• Procurement Lincolnshire website
  www.procurementlincolnshire.co.uk
• Strategic focus of category management and how
  that will help the supplier, specialists in their
  field, better support for SMEs
• Better information on contract opportunities,
  Lincolnshire wide contract register
• Procurement Lincolnshire working more closely
  with supporting organisations to achieve best
  value
• Small value work

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The Lincolnshire story so far

• Series of cross county events held twice yearly
  from Spring 07 onwards with over 700 attendees.
  Feedback from all of the events has been
  extremely positive
• Suppliers made request for further training in
  more specific areas of procurement via feedback
  form circulated at the events
• October training sessions have attracted a
  further 70 attendees
• Proposed to run sessions in Spring and Autumn
  2010 on the tender process
• 3rd June 2010 University of Lincoln, Riseholme
  Campus, Meet the Buyer event. Same format as the
  event we ran on 4th June 2009. Morning session
  will be opened by Bishop John Saxbee of the
  Lincolnshire Assembly

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Introduction to Procurement

• What is procurement?
• The public sector in the UK spends 450 billion
  p.a. on the acquisition of all goods, services
  and works
• Employs more than 25 of the UK workforce and
  includes Local Authorities, Central Government
  departments, schools, colleges, NHS, police, fire
  rescue
• Demonstration of economy, efficiency
  effectiveness of service delivery i.e. Best Value
  
• Encourages competition
• Has to be a transparent and open process

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Facts and Figures
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Local Purchasing
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The Procurement Process

• In any procurement process key decisions need to
  be made
• Which procedure to use?
• Where to place the advertisement?
• Expressions of interest, Pre Qualification
  Questionnaire (PQQ) or Invitation To Tender (ITT)
  or
• Invitation To Tender (ITT) only depending on the
  procedure used
• Evaluation at both PQQ ITT stages
• Contract Award

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The Procurement Process

• Local Authority tender thresholds
• EU thresholds as at 1/1/08 -
• Supplies Services - 139,893
• Works - 3,497,313
• If you are a supplier to the NHS or Central
  Government the EU thresholds differ as they are
  classed as a schedule 1 entity. The Threshold is
  90,319.
• EU procedures used i.e. mainly open or restricted

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The Procurement Process

• Open Procedure allows any supplier to submit a
  tender following publication of the contact
  notice. If contract advertised via OJEU, it may
  be advertised in UK press, but not before the
  OJEU advert.
• Process used where market is limited
• Restricted Procedure has 2 stages, Pre
  Qualification prior to supplier being invited to
  tender
• Process used to manage number of tenders received
  where there is potentially numerous suppliers in
  the market

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Timescales for OJEU process

• Timescales from despatch to Official Journal of
  the European Union (OJEU) for electronic
  tendering
• Open procedure
• 45 days to submission of tender
• Restricted procedure
• 30 days to register interest
• 35 days from despatch of tender to submission of
  tender

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Stages of Open Procedure

• Advertise contract in OJEU
• Request Invitation to Tender (ITT)
• Submit Tender
• Evaluation
• Award

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Stages of Restricted Procedure

• Advertise contract in OJEU
• Expression of interest
• Pre Qualification Questionnaire (PQQ)
• Invitation to tender (ITT)
• Submit tender
• Evaluation
• Award

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Advertising

• Advertising see contract opportunities handout
  for useful websites
• Advertising for contracts at all levels must be
  transparent, allow for sufficient competition,
  fair and impartial, demonstrate appropriate means
  of communication

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Completion of a Pre Qualification Questionnaire

• Procurement Lincolnshire standard documentation
  used by all partner authorities
• Typically what we look for
• Legal standing
• Financial stability
• Technical skills and ability
• Health and Safety/Environmental policies
• Experience
• References
• PQQ can apply both above and below EU thresholds
  

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PQQ Note for Suppliers

• Introduction gives details of the tender
  opportunity is and which authorities require it
• Overview of the Process PQQ to shortlist and
  giving number of organisations brought through to
  ITT stage
• Indicative Procurement Timetable gives details
  of stages and dates of the process
• Evaluation scoring criteria and weightings
  attached for information
• Requirement of the tender opportunity gives
  details of the opportunity and contract length
  and start date
• Completion of the PQQ no supporting
  documentation unless asked to provide at this
  stage. Will be an electronic submission
• Confidentiality and FOI
• Questions about the PQQ who to ask
• Submitting the PQQ who to send it to

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Section 1 -Organisation identity and information

• Any significant change to information after
  completion please inform the contracting
  authorities
• General info about the Company so we know who we
  are entering into a contract with
• Make sure contact person available and able to
  answer any questions
• Type of organisation
• Constructionline

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Section 2 Financial Information

• Use this information to assess financial position
  and stability
• Information in this section is more in depth than
  in Low Value/Low Risk PQQ
• Your accountant will know this information if you
  are unsure
• Do not provide extra information unless
  specifically asked to do so

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Section 3 - Insurance

• This section is used to ensure that the
  organisation can meet its responsibilities in
  respect of liabilities that may arise
• If you do not currently have the required cover
  explain how you will put this right
• Where you are asked questions make sure you put
  in an answer, do not leave any blanks!!

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Section 4 Experience, resources References

• Main business activity would expect it to be
  relevant to the opportunity
• Number of staff that will be involved in the
  contract
• 3 relevant contracts for reference purposes
• If unable to provide 3 please state why

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Section 5 Contract Performance

• Used to assess previous contract performance
• Contract termination earlier than intended,
  penalties, damages etc
• Withdrawal after award
• Make sure you give explanation where you have
  given a yes answer

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Section 6 7 Quality Procedures
Accreditation, Health Safety

• Registered with a recognised body?
• Recognised quality certificate
• Section 6.3 not so detailed in Low Value/Low Risk
  PQQ
• Written H S policy?
• H S at work system?
• Any prosecutions?
• Competent person for Quality?
• Any external H S accreditations?
• Competent person for H S?

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Section 8 Equality Diversity

• Fair and equal treatment
• Written E D policy?
• 8.2 not in Low Value/Low Risk PQQ
• Any unlawful discrimination findings, formal
  investigations or outstanding tribunals?
• Please give explanation if answer yes to anything
  

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Section 9 Environmental Sustainability
Management

• Written policies?
• Documented systems?
• Approach to managing the environment?
• 9.3, 9.4, 9.11 9.12 not in Low Value/Low Risk
  PQQ
• Environmental performance of suppliers
• Membership of accredited body, participation in
  schemes etc
• Any legal action?

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Section 10 Business Continuity/Risk
Management/Disaster Recovery

• Used to access procedures in place to ensure
  continuity of service in emergency situations
• Business Continuity/Risk Management/Disaster
  Recovery plan?
• Business disruption
• Responsible person
• 10.3 10.4 not mentioned in Low Value/ Low Risk
  PQQ

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Section 11 Professional Business Standing

• Any convictions?
• Bankruptcy, insolvency etc
• Responses to these questions will be pass/fail
• If you answer yes to anything please explain

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Sections 12 14 Appendices

• Section 12 - Contract Specific Questions listed
  here
• Section 13 Declaration, please read before
  signing
• Section 14 ensure all areas completed
• Banking consent form
• Appendices will include evaluation scoring
  criteria and weightings, names addresses of
  partners within partnership

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PQQ Evaluation

• What were looking for
• Indications of
• Financial Health
• Relevant business activities
• Technical skills, ability, relevant experience
• Health Safety and Environmental policies
• Adequate insurance provision
• Quality controls in place
• References

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PQQ Evaluation Typical Model

• 1. Organisation Details
• 2. Financial Information
• 3. Business Activities
• 4. References
• 5. Insurance
• 6. Quality Assurance
• 7. Health and Safety
• 8. Equal Opportunities
• 9. Environmental Management
• 10. Professional and Business Standing
• 11. Requirement-specific Questions
• 12. Declaration

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• Break

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Guidance for Completion of Invitation to Tender
documents

• Tender document used today is for Internal Audit
  Services
• Covering key points only
• Why this template?

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Section 1 - Preamble

• Objective of the preamble is to set the scene of
  the tender opportunity
• What is a framework agreement?
• Freedom of Information

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Section 2 -Conditions of Tender

• Details the general requirements
• These conditions are vital to the tender process
• Always states
• Time
• Date
• Further information and queries how to ask the
  questions
• Incomplete tenders not acceptable
• Evaluation Allows you to prioritise the key
  areas of the tender. Timetable of dates for
  process, evaluation criteria weightings
• MEAT

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Section 3 Conditions of Contract

• Pages 12 41 inclusive
• Makes sure you read them thoroughly and
  understand what you are agreeing to, if not seek
  legal advice!!

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Section 4 - Specification

• Introduction will state if broken down into
  lots, period of time service is required for plus
  any extensions etc
• Any TUPE implications will be listed
• Think about Council priorities
• Details the organisations concerned in the tender
  opportunity
• Council policies
• How the service will be delivered
• Regulatory matters and Performance Standards
• Fundamental and other systems (additional
  information)

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Section 5 Method Statements

• List questions that will provide information on
  suppliers capability to perform under this tender
  opportunity
• Expand the sections provided to list responses
• Submit responses in single word document so they
  can be printed off together

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Section 6 Pricing Schedule

• Only complete sections of the schedule relevant
  to your bid
• If bidding for more than one lot give details of
  economies of scale to be deducted from your
  proposed price in the Additional Pricing Options
  section
• Remember this is your best and final offer price
• Look to see if the price is fixed for the full
  term or subject to a set price change formula

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Sections 7 - 9

• Payment details read thoroughly. You will only
  get paid on time if you send invoice to address
  listed in the ITT. Payment by BACS
• Collusive tendering certificate read thoroughly
  before you sign. It is illegal, you will be found
  out and prosecuted
• Form of tender read thoroughly and sign

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Tender Opening and the Evaluation Process

• Rigid tender opening process
• Who evaluates the tender?
• What do they look for
• Technical merit
• Quality of delivery service support
• Health safety, environmental characteristics
  relating to the contract
• Price and cost effectiveness
• Equality diversity
• Evaluation matrix explained
• What happens next?

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Contract award notice

• Completes the procurement
• Contains info on successful tenderer
• Name address
• Value of contract/FA (Framework Agreement)
• Subcontracting
• Feedback to unsuccessful suppliers
• Example of award notice
• Any Questions?

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Top tips to winning business with the Public
Sector

• Research your market know where to look for
  contract opportunities. Use handouts from today
  for information
• Which opportunities will I go for? experience,
  business size, skills level. Pitch at the correct
  level and then you wont be disappointed
• Correct policies and procedures in place? If not
  there is help available you just need to know
  where to look
• Framework agreements what are they and how can
  a smaller supplier be part of them?
• Collaborative bidding and how that can help a
  smaller supplier overcome capacity issues
• eProcurement what is it?

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Top tips to winning business with the Public
Sector

• Know the essentials for tendering? Use your
  handouts from today
• Where do I look for opportunities? Use your
  handouts from today
• How can I help the tender process?
• Read advert tender documents again and again so
  that you fully understand the requirements
• Contact nominated person in tender documents if
  you have any questions.
• Do not include publicity material with tender
  documents unless specifically asked to do so
• Respond quickly to any requests for further
  information
• Return tenders within stated timescales to be
  considered
• Where relevant, cross reference your answers to
  the questions in the ITT. This will aid the
  evaluation process

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Top tips to winning business with the Public
Sector

• Be clear on your pricing model and state any
  factors taken into account in the price you have
  submitted
• i.e. timetables of work to be carried out
• Dont make assumptions about the councils
  knowledge of your business so provide all
  evidence requested to help the tender evaluation
  process
• The council will normally award on the most
  economically advantageous tender (MEAT) to get
  best value, not just lowest price
• Ask for a debrief if you are unsuccessful, this
  will help you in future tender opportunities

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• Any questions?