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Competitive Tendering for Better Outcomes

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Title: Competitive Tendering for Better Outcomes


1
Competitive Tenderingfor Better Outcomes
2
General purchasing principles
  • Under Local Council policy, purchasing/procurement
    departments are responsible for
  • Achieving value for money, usually through
    competition.
  • Ensuring that they comply with their legal
    obligations and standing orders.
  • Ensuring that the roles and responsibilities of
    staff are clearly defined and that there is
    adequate separation of duties.
  • Ensuring that processes are transparent and
    proportionate.
  • The approach to purchasing local services will be
    based upon the agency's purchasing/procurement
    strategy and the local standing orders.

3
EU procurement regime
  • The EU Treaty principles of non-discrimination on
    ground of nationality equal treatment
    transparency proportionality and free movement
    of goods and services apply to all public sector
    contracts.
  • The regulations have 2 levels a full regime for
    priority services (Part A) and a lighter regime
    for other services (Part B).
  • Health and social care services are Part B
    services.
  • The regulations only apply if the contract is
    over a threshold amount (updated every 2 years).
    Currently threshold are
  • 99,695 for Part A services
  • 153,376 for Part B services
  • 129,462 for RD services

4
EU procurement regime (cont/)
  • The main requirements of the regulations are
  • Non discriminatory specifications (Parts A B).
  • Competition through a tender advertised in the
    Official Journal of the EU (Part A).
  • Compliance with minimum timescales for providers
    to respond to adverts, pre-qualification checks
    and tenders (Part A).
  • Prescribed criteria for the selection of
    tenderers and contract award (Part A).
  • Provision of feedback to unsuccessful suppliers
    and issue of contract award notice within 30 days
    of award (Parts A B). http//simap.eu.int or
    www.ogc.gov.uk

5
Competitive tendering
  • It is, however, good practice to adhere to the
    principles
  • of EU tendering and ensure that the process is
  • transparent and proportionate, namely
  • The decision to tender accords with the
    commissioning strategy.
  • The process complies with local financial
    instructions/regulations and standing orders.
  • The market is tested if new services are involved
    or little information is available on the likely
    response from providers.
  • Contract opportunities are publicised, especially
    to small and voluntary organisations, with good
    notice.
  • That full information is provided to all
    tenderers.
  • User or carer involvement in the process is
    agreed.

6
Remember - even where the detailed EU procurement
rules do not apply
  • Basic principles apply to all public sector
    contracts and tendering processes
  • Openness
  • Transparency
  • Equality
  • Probity
  • Must not distort competition
  • If you are complying with your own rules for high
    value contracts then you are probably 90 of
    the way to EU compliance
  • Commissions web pages on policy/legislation
    http//europa.eu.int/comm/internal_market/publicpr
    ocurement/index_en.htm

7
Test The Market
  • Before you decide to tender
  • Find out as much as you can about what is out
    there
  • Consult with users about current services
  • Speak to you neighbours
  • Find out the going market prices
  • Speak with providers
  • Know why you are tendering
  • Know your options
  • Will it be a TUPE situation?

8
Main Changes in the 2006 TUPE Regulations
  • The 2006 Regulations introduced
  • a widening of the scope of the Regulations to
    cover cases where services are outsourced,
    insourced or assigned by a client to a new
    contractor (described as service provision
    changes)
  • - a new duty on the old transferor employer to
    supply information about the transferring
    employees to the new transferee employer (by
    providing what is described
  • as employee liability information)
  • special provisions making it easier for insolvent
    businesses to be transferred to new employers
  • provisions which clarify the ability of employers
    and employees to agree to vary contracts of
    employment in circumstances where a relevant
    transfer occurs
  • provisions which clarify the circumstances under
    which it is unfair for employers to dismiss
    employees for reasons connected with a relevant
    transfer.
  • The rights and obligations in the 1981
    Regulations remain in place, though the 2006
    Regulations contain revised wording at some
    points to make their meaning clearer, as well as
    reflecting developments in case law since 1981

9
Decide to Tender
  • Set up a Tender Team
  • Involve front line staff from budget holder
  • Involve service users or advocates
  • Finance set a budget
  • Involve Members Committee Reports
  • Agree a timetable
  • Draw up a Plan
  • Prepare Documentation Spec, Contract, Adverts,
    letters
  • Evaluation criteria

10
Tender Documentation
  • Service Specification and Contracts
  • Describe the service
  • Typical Cases
  • Scope
  • Statutory Requirements
  • Service User input
  • Other Agencies
  • Outcomes
  • LA Responsibilities
  • Monitoring and review

11
Tender Documentation
  • Price Document (do in a different colour, use
    Spreadsheet)
  • Your Questionnaire
  • Ask how they have used their quality policy,
    health and safety policy
  • Accounts management accounts are more useful
  • Accounts that pertain the relevant part of the
    business
  • Forecast of accounts
  • Signed by a qualified accountant

12
PRIVATE AND CONFIDENTIAL
13
  • 1. THE AGENCY
  • 1.1 Name of Agency
  •      
  • 1.2 Head Office Address
  •      
  • 1.3 Tel No./Fax No.
  •            
  • 1.4 E-mail address
  •      
  • 1.5 Name and designation of person responsible
    for completing this application
  •      
  • 1.6 Tel No./Fax No.
  •            
  • E-mail address
  •      
  • 1.8 Name of registered provider
  •      
  • 1.9 Website address (if applicable)


14
2. THE AGENCY TYPE 2.1 Please (?) as
appropriate Voluntary Agency Private Limited
Company Sole Trader Public Limited
Company Partnership Other (please
specify)
  • Registered Charity
  • Date of formation or registration of Agency
  •      
  • 2.3 Registration No. (where Limited Company or
    limited by guarantee)
  •      
  • 2.4 Registration No. (where Registered Charity)
  •      
  • 2.5 Are you registered under the Data Protection
    Act, 1998
  • Yes No
  • 2.5.1 For what systems are you registered
  •      
  • 2.5.2 Date of registration
  •      
  • 2.5.3 Registration No.
  •      
  • 2.6 Has the Agency or any other run by the
    owners/parent organisation ever had
    registration/licence/approval
  • refused or cancelled?
  • Yes No
  • If yes, please give details

15
3. THE AGENCY PROFILE
  • 3.1 Give a brief overview of the Agencys
    business
  • 3.2 If the agency is a member of a group of
    companies or part of a chain of franchise
    offices, give the names and address of the
    ultimate Holding Company and all the other
    subsidiary companies involved.
  • 3.3 Would the group or the ultimate holding
    company guarantee your contract performance and
    be prepared to enter into an agreement to this
    effect?
  • 3.4 Give full names and addresses of all Owners,
    Managers, Directors or Partners, and of the
    Company
  • 3.5 Have you, or in the case of an Agency, Owner,
    Director, Partner, Associate or other senior
    member of staff, been adjudged bankrupt or
    involved in any firm which has been liquidated,
    gone into receivership or been the subject of a
    winding-up order during the last 10 years?
  • YES NO If yes, please give details
  • 3.6 Have you, or in the case of an Agency, Owner
    Director, Partner, Associate or other senior
    member of staff, been convicted of any offences.
  • YES NO If yes, please give details
  • 3.7 Has the Agency been served notices or being
    convicted of an offence under any of the
    following or been the subject of any formal
    investigation in relation to
  • Care Standards Act 2000Health and Safety at Work
    Act 1974Race Relations Act 1976Sex Discrimination
    Act 1975Human Rights Act 1998Disability
    Discrimination Act

16
  • If yes to any of the above please provide
    details and the action taken to prevent any
    re-occurrence
  • 3.8 Have there been any County Court judgements
    against you, or in the case of an Agency, the
    Owners, Directors, Partners or Associates or
    other senior member of staff in the last five
    years.
  • 3.9 Have you/the Agency or any other Agency under
    the direction of the Owners, Directors, Partners
    or Associates ever had a contract terminated
    because of failure to perform to the terms of the
    contract or in the process of having a contract
    terminated?
  • 3.10 Are there any outstanding claims or
    litigation against you/the Agency

17
  • 3.11 Are you, or in the case of an Agency, any
    Owners, Directors, Partners, Associates, Senior
    Members of staff or relatives
  • i) Employed by your Council? YES NO
  • ii) A Councillor within the County of ? YES NO
  • iii) Connected with a County Councillor? YES NO
  • If yes, please give details

18
  • 4. FINANCIAL AND INSURANCE PROFILE
  • 4.1 Who is responsible for dealing with the
    Agencys financial matters?
  • 4.2 Please provide details of your bank so that
    we can obtain a bankers reference. If you have
    accounts with more than one bank please provide
    similar details for each one on a separate sheet.
    Please complete the authorisation to obtain
    Bankers reference. (Attached Form A1)
  • 4.6 Give details of insurances held
  • Public Liability
  • Employers Liability
  • Prof Indemnity
  • Motor Insurance

19
  • Current Contracts
  • Referees prior to award
  • Lead time following award
  • Staff Training and qualifications
  • Agency Staff
  • Staff Turnover
  • QA
  • Tick Box List of all relevant Policies
  • Declarations and Permissions

20
Tender Delivery
  • Date and time
  • No Exceptions
  • Acceptable methods
  • Keep Anonymous
  • Feedback and Timescales
  • Clarification
  • Opening
  • FOIA - In the absence of special circumstances,
    this invitation to tender, contract conditions,
    specification and any other part of the
    invitation to tender documentation, will be
    regarded as not subject to any exemptions, and
    therefore capable of being disclosed under the
    FOIA

21
Evaluation
  • How is the tender to be evaluated?
  • The basis on how you do this should be spelt out
    in your tender letter e.g.
  • 50 on Price
  • 25 on Outcomes/QA Evaluation
  • 25 on your CSCI report
  • Record everything Transparency!
  • Explain who will be doing the evaluation and
    feedback will be offered

22
  • Tendering Case Study
  • This case study has two phases. Phase 1 concerns
    the overall process of tendering and Phase 2 a
    particular aspect of the process.
  • Phase 1. Tender Timetable
  • You have been asked to tender a service for
    children and young people, or a community meals
    service for older adults on behalf of the local
    authority and PCT. Identify all the steps you
    will need to take, in delivering a quality
    tendering process. It should cover all aspects
    of the process to the award of contract. When
    you have identified all of the elements, you must
    then develop a realistic timetable for delivery
    as from today, to be attached to the tender
    letter.
  • Phase 2. Tender Checklist
  • Prepare a tender checklist, which will enable
    your tender panel to analyse the tenders in a
    consistent way. Each panel member will be
    required to analyse all of the tenders and to
    complete the tender checklist. It will
    therefore, be necessary to identify all of the
    key elements of the specification and
    accompanying letter that you wish the panel to
    consider and determine a way in which the panel
    can record the quality of the tenderers
    responses. On completion of the analysis, panel
    members will then be able to discuss tenders and
    come to a decision.

23
Competitive tendering (cont/...)
  • The documentation strikes a balance between
    enabling tenders to be objectively evaluated and
    making too many demands on providers.
  • The decision making process is transparent using
    key criteria of financial stability, technical
    competence and evidence of internal quality
    control.
  • Tenders are evaluated on an equal footing.
  • Feedback is given to unsuccessful tenderers.
  • That, when post-tender negotiations are necessary
    with a chosen provider, parameters are set before
    negotiations commence about affordability and how
    far the specification can be altered before it
    needs to be opened up again to other providers.

24
Standard tendering approaches
  • Open tendering
  • Invitation to tender (ITT) is advertised and the
    interested parties can submit their bids.
  • Limited tendering
  • A short list of providers who have been
    pre-vetted, usually using a pre-tender/qualificati
    on questionnaire or PQQ, are invited to tender.
  • Negotiated tendering
  • Direct negotiation with a single or a few select
    providers.

25
Tendering process flow
Identification of service need
Write service specification
Invite potential providers to tender
Issue tender documents
  • Define the tender evaluation and selection
    criteria
  • Prepare tender pack

Include providers and users
Negotiate with selected provider(s)
Approval
Receive bids
Evaluate bids
Cabinet/Board approval needed?
Rules govern receipt and opening of bids
  • Use evaluation and selection criteria and
    evidence decisions
  • Best value MEAT - VFM?

Standing orders
26
Alternative tendering approaches
  • Design contests
  • On-line auctions E -Tendering
  • Framework agreements
  • Framework terms and conditions are agreed are
    contracts are called off when needed
  • Limited to 4 years unless an exception justified
  • Framework can cover 1 or more providers
  • A further mini-competition between agreed
    providers can be used
  • Competitive dialogue
  • Use for complex contracts where a dialogue
    between providers and purchasers is necessary to
    identify the solution(s) to best meet needs.

27
Tendering process
  • Tendering for the provision of the service
    accords with the Commissioning Strategy.
  • Budget allocation and length of contract / SLA
    authorised. Outline contract / SLA agreed with
    procurement and legal departments.
  • TUPE implications have been considered and
    appropriate advice sought.
  • Specification for service agreed by all
    stakeholders and achieves balance between
    enabling objective evaluation and making too many
    demands on tenderers.
  • Type of tendering process considered and agreed.
  • Market is tested for interest and
    capacity/capability of providers.
  • Tender timetable is established, including date
    for the opening of tenders. Preparatory actions
    on timetable taken including in-house
    arrangements for the opening of tenders, tender
    evaluation panel organised etc.

28
Tendering process
  • Assessment criteria developed.
  • Tender documentation is made ready to be sent to
    potential service providers and conforms with
    procurement regulations.
  • Advertisement is placed for Expression of
    interest
  • Long list down to a short list keep records
  • Arrangements made to respond equally and fairly
    to all tender enquiries. Help line and seminars
    for tenderers.
  • Tenders opened
  • Tender panel evaluates all tenders and
    short-lists or selects provider
  • All tenderers informed of outcome of
    short-listing/selection process. Short-listed
    tenderers invited to interview/presentation,
    non-short-listed candidates given feedback
  • Interview/presentation of short-listed
    candidates, and provider selected
  • Post-tender negotiations held to fine tune
    arrangements
  • Contract awarded

29
E-Tendering
  • Why should I use e-tendering?
  • Business benefits
  • ? Reduced tender cycle-time
  • ? Fast and accurate pre-qualification and
    evaluation, which enables the automatic rejection
    of
  • suppliers that fail to meet the tender
    specification
  • ? Faster response to questions and points of
    clarification during the tender period
  • ? Reduction in the labour intensive tasks of
    receipt, recording and distribution of tender
  • submissions
  • ? Reduction of the paper trail on tendering
    exercises, reducing costs to both councils and
  • suppliers
  • ? Improved audit trail increasing integrity and
    transparency of the tendering process
  • ? Improved quality of tender specification and
    supplier response
  • ? Provision of quality management information
  • ? Compliance with OJEU is made easier (Electronic
    Notice)

30
Kent Experience on E-Tendering
  • E-tendering

Purchase of social care provision is via the
e-tendering website on a quarterly
basis. Providers register their details on line,
log on to the e-tendering website and access the
tender documents relevant to the service they
wish to tender for. Providers submit completed
tenders electronically to a secure database. Once
submitted, providers cannot retrieve their tender
and KCC cannot access submitted tenders until the
opening date.
31
Benefits to KCC
  • Evaluations and awards process are carried out
    online.
  • Award and non award letters automatically
    generated.
  • Reports allow comparisons to be made of similar
    sized homes.
  • E-tendering process saves a huge amount of
    resources.
  • Achieves significant cost efficiencies (based on
    costs including staff time, postage and
    printing).

32
Benefits to Providers
  • Eradicates the necessity for paper-based tender
    documents.
  • View Specification and Terms and Conditions
    online.
  • Quick and easy tender process.
  • A helpline and email box are set up for the
    period that the tender is open to answer queries
    from providers.
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