UNDERSTANDING PUBLIC PROCUREMENT

All public procurement activity is based on (EU / UK) directives as described

in the diagram above.
Why small companies have trouble securing public sector
contracts
A recent Parliamentary report shows that small businesses are still finding difficult
to bid for public sector contracts, despite Government policies and attempts to
intervene.

A major problem is not the fact that public sector agencies are preparing the
pathways so that SME's find the process of tendering a lot easier – a recent
survey conducted in the London area by Business Junction concluded that most
SME’s do not tender for public sector contracts,

Their perception is that they will be unsuccessful and their time and resources
would be better spent on pursuing activities which are less demanding and whose
outcome is more within their grasp.

Read more here: SME Procurement Report

Small businesses provide a valuable contribution to the needs of the public sector
through innovation, responsiveness and quality in the provision of goods

From the Glover report, government was now required to have a free-to-use portal
by the end of next year for every wider public sector contract above £20,000
Read more here: Glover Report

Collaborative procurement proposals will result in a shake-up of procurement

across all UK public sector organizations.
Read more here: Savings in Collaborative Procurement

A recent (2009) report advises that the public sector is still prone to overly complex
tendering process for government contracts.
Read more here: SME Tendering Report
The Public Contracts Regulations of (2006) followed the (EU) directive issued in
2004, this states that a competitive dialogue should be used when requesting
tenders for complex projects. Read more here: Competitive Dialogue
All public procurement will involve the completion of pre-qualification questionnaire,
It is essential that would be suppliers to the public sector familiarise themselves with
the normal processes, i.e.: completing documents correctly and delivering all
Required documents on time.

Firms who are interested in obtaining contracts from the public sector are advised to
view the accompanying “Understanding Pre-Qualification Questionnaires”
document. A brief introduction is included on the following pages.
This brief overview consists of a standard generic terms that enable companies to
understand the importance prequalification. The Official (PQQ) form is normally
completed and certified as being accurate by one of the company's directors.

NOTE:
Completion of an (Official PQQ Form) does not commit the Issuing Authority in any
way nor is it intended to circumvent any legal requirements required under EU /UK
Procurement Directives or Competition rules.

The form only requests company information, levels of competence to perform the
required task, financial viability, staff, environment, policy documents and other
relevant company and personnel information.
The completed document may be provided either in hard copy or electronic format.
All requests for clarification or further information in respect of a PQQ should be
addressed to the named contact point. No approach of any kind in connection
with the PQQ should be made to any other person within, or associated with the
Issuing Authority.

The PQQ forms the first part of the procurement process. Respondents must
adhere to the format of the PQQ when answering all questions. Where questions
cannot be fully answered, relevant explanation including details should be provided.

Respondents are required to sign a declaration as follows: [I, the undersigned,

confirm that the information contained in this PQQ response is correct at the time
of completion.
 WHY THE NEED FOR A PROCUREMENT? – COULD I BE SUCCESSFUL?
Create New Improve Your B
Revenue Channels rand Value
Provide Customer
Satisfaction

Provide Reliable
Develop a Profitable WHY NOT TRY TO TENDER Goods & Services
Relationship

Develop Good Quality Management

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How big is the Public Sector?

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 Who are these
people?

Who are these people?

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Copyright © Tendering for Contracts Training Ltd 1997 – 2009
 Contracts Management Team

Contracts Management / Director

Contract Manager

Web Based
Email
Clients Contracts Management Administration
Telephone
Personal Contact

Member of our Contracts Fulfilment Team

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Generic Guidance Notes:
Develop tendering expertise - nominate and train someone to coordinate everything
centrally.

Plan ahead - identify what is required to get the best possible chance of winning
the contract.
Planning ahead is a good way of finding scope for efficiencies. It gives time to
question and assess, if alternative solutions are available (e.g.. forming a
consortium or partnership), and if the timing is right.

Your trained employee gives a great boost to efficiencies and acknowledge the
importance of the 'license to tender' role held by the nominated person. They
help build on this persons existing knowledge and expertise and provide an
excellent 're-focus' opportunity.
It is recommended that contracts are linked to the business development plan.

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Know your own and your company’s strengths - how much can you invest, are there
limits?

You will not need an 'in-depth' knowledge of the legal requirements surrounding
procurement set by European and UK government. You need an awareness of
appropriate conduct in dealing with the Public Sector, any conflicts of interest and
awareness of the limits when it comes to tendering.

As part of general good practice, before going ahead with a tender, check whether
another supplier wants to form a partnership with you so there is an opportunity for
some collaborative selling. A contractor can choose to work with a consortium
when giving out new contracts.

Don't spend hours saving a pound - consider the total cost of tendering,
there really is no point spending 3 hours time to save £1. - this can sometimes be
forgotten in the need to win more business.

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The person with the 'license to tender' role can make a real difference in
spotting the inefficiencies within any tender.

They can also make sure that any specification going out to contract providers will be
designed to address the issues involved.

Identify and adapt simple and straightforward selling strategies that can be benefit
all the stakeholders.

Spend time & effort sharing and listening to real problems the public sector faces.

Present innovative business solutions with confidence by understanding the rules

that apply.

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Develop the skills needed to successfully manage the contract. And have the
confidence to challenge a negative decision by the purchaser.

Keep a close eye on contracts which have short notice periods for termination.

Good contract management helps to meet deadlines, maintain quality standards

and avoid un-necessary risks, increasing the scope to build confidence in future
business relationships.

A project plan should be drawn up, setting out all the strands of work that is
required, how the strands will be taken forward and note of the completion
timescales.
The most important aspect of any tender timetable is to have plenty of space to
conduct the process. The more complicated / important the contract the more
time that will be needed.

Copyright © Tendering for Contracts Training Ltd 1997 - 2009

Do's and Don'ts in The Sales Process:
It is really tempting when selling something to try to be the 'best brand'. People tend
to feel comfortable with a brand recognized from marketing campaigns.
Their familiarity with best brands doesn't necessarily mean they are willing to pay
more money for best value..
There are very many good products on the market that offer quality and reliability
equal to or in excess of the branded product - and at a competitive price.

E.g. show that your cheaper paper will not jam the printer and cost more in staff time
but that it works just as fine as the more expensive branded paper

Every time a brand item is asked for it is worth answering the question - "why that
particular brand?". The alternative brands on the market often match up and at a
much more competitive price.

Copyright © Tendering for Contracts Training Ltd 1997 - 2009

Improve your selling power:
Form a (local) consortium to give a better deal - A consortium is simply an
association or group of businesses who join together to minimize costs, to maximize
selling power and provide better value.
The higher the volume of business going through these agreements the better the
quality and price you can offer.

The main benefits are:

Sharing the administrative workload, increases selling power, greater volumes of
business may create better deals for the group, reduced costs
Ability to provide goods/services as a consortium would provide the necessary size
and influence, larger deals means that small businesses can make better use of
their expertise
Greater negotiating power - the public sector may be tempted to take advantage of
smaller businesses; however, the threat of losing products and services from a
consortium will have an impact.

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 HOW WELL DO YOU UNDERSTAND THE PROCUREMENT PROCESS?
PUBLIC PROCUREMENT IS BASED ON (2) FUNDAMENTAL PRINCIPLES.

ON THE FOLLOWING PAGE ARE A NUMBER OF DIFFERENT SHAPED

OBJECTCTS THAT REPRESENTS ALL TYPES OF PUBLIC PROCUREMENT.

IF YOU ARE THOROUGHLY FAMILIAR WITH THE PRINCIPLES OF

PROCUREMENT – YOU SHOULD BE ABLE TO;

1) LINE UP ALL THE OBJECTS ON THE PAGE - (HORIZONTALLY &

VERTICALLY) SO THAT THERE IS NO GAP BETWEEN THE OBJECTS.

2) WHAT IS HIS RELATIONSHIP TO THE PROCUREMENT PROCESS?

3) IF YOU HAVE SUCCEEDED IN LINING UP THE OBJECTS CORRECTLY –

4) YOU WILL UNDERSTAND THE RELEVANCE OF NO GAPS BETWEEN THE OBJECTS

5) WHO THIS MAN IS AND WHY THIS SIMPLY TASK AND THE KNOWLEDGE
IT PROVIDES – AND THIS MAN IS EXTREMELY RELEVANT TO YOUR
BUSINESS

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CAN YOU SORT THE PROCUREMENT NIGHTMARE

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HOW WELL DID YOU DO IN ANSWERING THE QUESTIONS AND LINING UP
THE OBJECTS?
IF YOU GOT (<1 OUT OF 3) CORRECT – YOU DEFINITELY NEED OUR HELP
IF YOU GOT (2 OUT OF 3) – YOU CAN CARRY ON AS IS – BUT MAY STILL
NEED OUR HELP
IF YOU GOT (3 OUT OF 3) – CONGRATULATIONS – YOU DO NOT NEED OUR
HELP!

THE BASIC PRINCIPLES OF PROCURENT ARE?

(P******* & P**********) THIS MAN IS CALLED (THE A******)

HE IS THE MAIN REASON THAT PUBLIC PROCUREMENT IS SUCH A PAIN
ALL PUBLIC AGENCIES HAVE TO DEAL WITH THIS MAN ON A REGUALR
BASIS – THEY ARE PERSONALLY LIABLE FOR ANY GAP - MUST BE NO
GAPS - HENCE THE QUIZ!
ON THE FOLLOWING PAGE YOU WILL FIND THE CORRECT RESPONSE TO
THE QUIZ Copyright © Tendering for Contracts Training Ltd 1997 - 2009
 VARIOUS TYPES OF CONTRACTS - EU - STANDARDIZED P&P
P
O
L
I
C
I
E
S

PROCEEDURES
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 SO YOU CAN SEE THAT IT DOES NOT MATTER WHAT TYPE OF PUBLIC
PROCUREMENT IS INVOLVED THERE ARE ALWAYS

POLICIES

PROCEEDURES

AUDITORS

MOST SME’S WHO CONSIDER PUBLIC PROCUREMENT - ARE CONFUSED

BETWEEN PROCUREMENT POLICIES AND PROCUREMENT PROCEEDURES.

HENCE THEY COMPLAIN – BUT THEIR COMPLAINT IS OFTEN TO

THE WRONG PERSON OR GROUP.
WE EXIST TO ASSIST SME’S UNDERSTAND & BENEFIT FROM
PUBLIC PROCUREMENT.

Copyright © Tendering for Contracts Training Ltd 1997 - 2009

 O V I DE
W E P R
P P O R T
N E S U
E 2 O
ON
4
SME’s
in TENDERING
4
PUBLIC & PRIVATE SECTOR
CONTRACTS
FREE & UNLIMITED SUPPORT WHEN YOU SIGN UP TO OUR COURSE OR FOR ANY CONSULTANCY

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Tendering for Contracts Training:
Tendering for Contracts Training provides online tendering and procurement training
that enables firms identify and benefit from new business opportunities in the public
and private sectors.

Training Objectives:
Our training has been specifically developed to assist small firms bid for contracts
both in the public or private sector, respond to invitation to tender notices, respond
to request for proposals, prepare and submit tender documents, implement quality
management systems, effectively market products and services to contract
providers and efficiently manage contract projects.

Testimonial:
As a procurement specialist for over 20 years, I believe this to be an excellent on-
line training programme, suitable for both managers / owners of firms and
individuals, it prepares them to tender for contracts with confidence, and develop
new business through effective training that enables profitable engagement in the
tendering and procurement process. (Former Chief Procurement Officer, Centrica Plc)

Copyright © Tendering for Contracts Training Ltd 1997 - 2009

 Example of additional procurement information available when learners
signup:

 Pre-Qualification Questionnaire – Guidance Notes

http://www.tfc-training.com/flh/tfct_pre.exe

 Top Ten Procurement Tips

http://www.tfc-training.com/top_ten_procurement_tips.htm

 Procurement - Spend Management

http://www.tfc-training.com/spend_management.htm

 Other useful information designed to improve your knowledge of procurement

 Please note you will have to register to gain access to these pages

 Request for Proposal - Best Practice

Copyright © Tendering for Contracts Training Ltd 1997 - 2009

YOU MAY CONTACT US AT ANY TIME – WE DO NOT CHARGE FOR INITIAL
CONSULTATIONS.

Contact details:
Lloyd Sewell - Director
Tendering for Contracts Training Ltd
23 Elmbridge Road
Cranleigh
Surrey GU6 8NH
Tel : 845 438 1663 - Mob: 07866 607197

Email: enquiries@tfc-training.com
Url: www.tfc-training.com

To listen an audio presentation – http://www.tfc-training.com/tfct_pre.htm

To sign up to out training click here – http://www.tfc-training.com/sales.htm

END

Copyright © Tendering for Contracts Training Ltd 1997 - 2009