Becoming Tender Ready

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1 Becoming Tender Ready

2 Difference Between Procurement & Tendering Procurement is the process of acquiring goods, works and services, covering both acquisition from third parties and from in-house providers. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset. It involves options appraisal and the critical make or buy decision. Tendering is the business of putting in a bid or proposal or tender to do the job (the bidder, tenderer, provider or supplier). The tendering process and documentation is decided, in the main, by the procuring body, under the auspices of European and national legislation and local policy.

3 What you need to understand.and when It s not simple!!! There are a wide range of factors and considerations involved in the tendering process:- Detailed knowledge of the information to complete an application for tender General understanding of the tendering process including options available Alternatives Potential barriers to tendering Awareness of the changeable nature of legislation Local policy and procedures

4 Getting Ready! What you need to decide: good knowledge and understanding of Local Authority timescales and links to particular Local Authority websites. Do you want to bid for this business? Does it fit in with your overall strategy? What you need to find out: before becoming involved in the process of bidding for tenders it is a good idea to find out what you will need and by what time. What you need to have : The checklist includes a detailed information on structures, management and operational processes and relevant documentation you will need to have before submitting a tender.

5 A Rough Guide to Tendering Process Restricted Open Accelerated Competitive Dialogue

6 Submit OJEU Award Notice within 48 days Award contract allowing for 10 day Standstill Period Evaluate Tenders against Award Criteria Receipt of Tenders 40 Days 22 Days Issue Invitation to Tender 10 Days Submitted Expressions of Interest Shortlist against qualification criteria (minimum of 5 bidders) Conclude dialogue and invite sufficient tenders to ensure competition Conduct dialogue (in successive stages if necessary) Invite shortlist to participate in dialogue Receive tenders and negotiate (in successive stages if necessary) to identify best tender by applying the Award Criteria Issue ITT to shortlist Submitted Expressions of Interest Shortlist against qualification criteria (minimum of 3 bidders) Issue PQQs OJEU Process Chart 52 (45) Days Normal (Electronic) Prepare Specification Open 36 (29) Days PIN (Electronic) 37 (30) Days Normal (Electronic) 37 (30) Days PIN (Electronic) Restricted 15 (10) Days Urgent (Electronic) 37 Days Normal Competitive Dialogue 30 Days Electronic Normal (Electronic) 37(30) Days Negotiated with OJEU advert 15 (10) Days Urgent (Electronic) Can be used when an Open or Restricted procedure has been discontinued because of irregular or unacceptable tenders. All original bidders (that were not excluded) must be invited to participate. Negotiated Without OJEU advert

7 Submit OJEU Award Notice within 48 days Award contract allowing for 10 day Standstill Period Evaluate Tenders against Award Criteria Receipt of Tenders OJEU Process Chart Issue Invitation to Tender Normal 52 Days* 45 Days* Electronic Prepare Specification Open 36 Days* PIN 29 Days* (within 6 days of request received in reasonable time before closing date) PIN & Electronic * Times indicated with an asterisk can be reduced by 5 days where unrestricted and full access by electronic means to contract documents To Start

8 OJEU Process Chart Submit OJEU Award Notice within 48 days Award contract allowing for 10 day Standstill Period Evaluate Tenders against Award Criteria Receipt of Tenders 40 Days* Issue Invitation to Tender Shortlist Submitted Expressions of Interest against qualification criteria (minimum of 5 bidders) 37 Days Issue PQQs Normal 30 Days Electronic Prepare Specification 37 Days PIN 22 Days* Restricted 30 Days PIN Electronic 15 Days Urgent 10 Days 10 Days Urgent Electronic * Times indicated with an asterisk can be reduced by 5 days where unrestricted and full access by electronic means to contract documents To Start

9 Submit OJEU Award Notice within 48 days Award contract allowing for 10 day Standstill Period Evaluate Tenders against Award Criteria Receipt of Tenders Conclude dialogue and invite sufficient tenders to ensure competition Conduct dialogue (in successive stages if necessary) Invite shortlist to participate in dialogue Shortlist Submitted Expressions of Interest against qualification criteria (minimum of 3 bidders) OJEU Process Chart 37 Days Normal Prepare Specification Competitive Dialogue 30 Days Electronic To Start

10 Submit OJEU Award Notice within 48 days Award contract allowing for 10 day Standstill Period Receive tenders and negotiate (in successive stages if necessary) to identify best tender by applying the Award Criteria Issue ITT to shortlist OJEU Process Chart Submitted Expressions of Interest Shortlist against qualification criteria (minimum of 3 bidders) 37 Days Normal 30 Days Electronic Negotiated with OJEU advert 15 Days Urgent 10 Days Urgent Electronic Can be used when an Open or Restricted procedure has been discontinued because of irregular or unacceptable tenders. All original bidders (that were not excluded) must be invited to participate. Negotiated Without OJEU advert To Start

11 Types of Documents. PINS Prior Information Notices - are published normally annually as an indication of the possible contracts which may be awarded in the coming year. ITT Invitation to Tender are the pack of documents made public in order to attract expressions of interest and generate bids. PQQ Pre-qualifying questionnaires - are required for some tenders in order to create a shortlist of bidders Contract Notices are aimed at specific contracts and invite suppliers to make an application to be placed on the tender list or to be provided with information. Contract Awards contain details of which contracts have been awarded, the awarding criteria and the successful bidder.

12 European Legislation & Regulation The Treaty of European Union (The Treaty of Maastricht) applies to all public sector contracts. If you trade with another organisation, (i.e. they pay you to provide goods or services), the word contract applies. This means that contract law applies. Contract law requires buyers to behave in ways which are non-discriminatory, fair, transparent and even handed with their suppliers or potential suppliers. This means they must: Not limit the breadth of any market to local suppliers Advertise their requirements in accessible forms, where full EU rules apply. This will be in the Office Journal of the European Union (OJEU). Where full rules don t apply, the advertising must be adequate e.g. Source Nottinghamshire, press etc.

13 EU Thresholds Summary of Threshold Levels from January 2012 The Public Contracts Regulations Supplies & Part A Services (except R & D, and certain telecom services) Schedule 1 bodies - 113, 057 Others - 173, 934 Part B Services & R & D, and certain telecom services and subsidised services (regulation 34) All bodies - 173, 934 Works All bodies - 4, 348, 350

14 Where to find relevant Tenders opportunities Tenders will be advertised in a number of places: For those over a certain threshold EU regulations require that the tenders be advertised in the Official Journal of European Union (OJEU) Tenders Electronic Daily (TED) an online version of the OJEU (can register for specific services) Source Nottinghamshire advertises lower value contracts. Due North - https://www.eastmidstenders.org/index.html

15 Shades of Green - Procurement Process Benefits realised Strategy Kick Off Prepare Strategy Deliver Strategy Implement/ Improve Activity Initiate/ Prepare Baseline Sourcing Purchase Contract Implement & SRM Stage Gate Stage Gate Stage Gate Outputs Source Plan Project Sourcing Strategy Project Recommen dation Project Contract in place

16 Service Dynamic Procurement Specification User Commercial Operational Commissioner Provider

17 Scoring of Tenders Scoring of Tenders is usually done on the basis of two methods: Lowest Price Most Economically Advantageous Tender (MEAT) Each individual criterion needs to be specified. These must be linked solely to the scope of the specific contract and may refer to the following: Price Quality Aesthetic & functional features Efficiency After sales service Technical Assistance

18 MEAT Individual criteria do not have fixed percentages in terms of scoring. The percentages and weightings will differ for each tender. Tenders are generally evaluated based on a technical score and price The Authority will set out specific criteria related to the tender and will set its own scoring weightings of the criteria A technical score will be awarded based upon these weightings of the criteria A score for price will typically be based on the percentage difference to the lowest priced tender The Authority will also set a relative weight between technical and pricing score, and the final score will be calculated using this weighting.

19 Consortia Tenders Consortia Tendering is where two or more organisations work together to deliver a particular service whilst at the same time retaining their own individual Identities Becoming more popular as authorities try to reduce the number of service provider they deal with. Satisfies the more broader service requirements as authorities bring common or similar services together under one contract A way for smaller companies to gain a share in more contracts.

20 TUPE Regulations TUPE stands for the Transfer of Undertakings (Protection of Employment) Regulations Main piece of legislation governing the transfer of an undertaking, or part of one, from one organisation to another. Designed to protect the rights of employees in a transfer situation ensuring they enjoy the same terms and conditions, in the continuity of their employment. Key areas of focus A more comprehensive application of regulations in situations where services are outsourced, insourced or assigned to a new contractor in order to achieve greater assurance that TUPE applies to labour intensive services; Make transferees more aware of employee rights, obligations and liabilities upon transfer;

21 TUPE contd Where certain legislation known as ETO Defence can be applied to change the terms and conditions of employment and in which employers can lawfully make transfer related dismissals. That the transferor and transferee are jointly and severally liable for any failure to inform and consult with transferring employees. This may be applicable if the contract for which you are bidding is currently being delivered by another service provider. The contracting authority will not always specify whether or not you need to include TUPE costs when drawing up your budget. If you are unsure the best course of action is to contact a TUPE specialist and they can advise.

22 Tips on writing tenders Make sure that you answer every question which is in the form, as everything which is listed in the document is a point which will be considered by the contracting authority. Make sure that you answer each question fully in order to gain maximum amount of points for each section. You can enlist help and support from people who are more experienced in completing tenders. (This is where consortia approach can be helpful) Make sure you stick to the word limits which are specified. If you go over the word count then the information may be ignored and you tender may even be disqualified. Make sure that you proof read your work as tender forms are lengthy. Clear, concise, and error free tenders submitted will give an excellent impression of your organisation when coupled with competent and relevant answers

23 Tips on writing tenders If you are not sure of any issue, contact and ask the buyer in good time before the deadline (there is usually a question period when all bidders can ask questions and have answers which are shared with all bidders. If there is something within your bid that the buyer does not understand they will ask you to explain and you must give your explanation. Be Commercially astute i.e. sharpen your pencil!

24 Typical Questions Technical The contracting authority will want to know what skills and qualifications the supplier has to enable them to meet the contract; Does the supplier have sufficient resources available for the contract? What similar work has the supplier undertaken in the last X number of years? References from recent clients. What are the employers skills and qualifications that enable them to meet the contract? Details of staffing and management structure including key named people in relation to management and operations. Evidence of delivering public service contracts on time; capacity in the organisation to deliver and manage the project; commitment to continuous improvement and evidence of risk management

25 Strategies to adopt. Involving a range of players (stakeholders) at different levels across the Local Authority can ensure that a broad support network is built up. Having a political plan will help be prepared for a potential tender. This could include a clear relationship management plan with resources, roles and responsibilities for key players involved Be aware of YOUR organisations unique selling points. In other words what does your organisation offer that others do not. Strategic planning for the future in an inclusive, realistic and pragmatic way including issues around sustainability. Planning skills in order to effectively plan, implement, monitor and review. Implementing ways to ensure relevant policies are up to date, developed and carried through Weigh up the benefits and costs of preparing and submitting particular bids in terms of: capacity, expertise, timescales, local knowledge and resources Identify complementary organisations and build relationships in readiness for potential consortia bids.

26 Nottinghamshire County Council Main Website: Follow the link to business & the economy then doing business with us you will see:- A guide on how to do business with NCC A list of what we buy A list of NCC Tender Opportunities https://www.eastmidstenders.org/index.html

27 A Useful Checklist Tender Ready Checklist

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