Last month’s ‘Bidding for Beginners’ webinar was our most successful yet, with hundreds of you joining Bidding Consultant and Trainer Jim Cheetham Potts, alongside Chris Williamson, Sales Director at BidStats, as they walked through a step-by-step guide to securing your first public sector contract.
With such a large audience, we couldn’t address all your questions during the live session… but don’t worry, we’ve got you covered!
We followed up with Jim and Chris, sharing the unanswered questions, and here’s what they had to say.
New entrants to bidding
Q: What are the eligibility and requirements for a low value contract?
A: You must be a registered company or sole trader to be apply to apply for and win work in the public sector.
The regulations for bidding on low value contracts differ to those ‘above threshold’ and local authorities often have differing approaches to how they procure goods and services at certain value thresholds so it’s always worth checking on the website of your target council on what their process is. They will usually have a section dedicated to “selling to the council”, as an example here’s Bath and North East Somerset council’s information.
Not all below threshold opportunities are published on portals so it’s definitely worth the time to find out how your local councils will go to market to buy goods and services at the value that you trade and make sure you’re either on their registered suppliers list or are monitoring the portal(s) where they publish opportunities to.
Q: What if you’re a brand-new firm or are looking for your to win your first public sector contract? How do you approach it then?
A: Start small and build up.
Often sub-contracting to larger organisations who are already working within the public sector is a great way to gain experience and build relationships within the public sector ecosystem. It also gives you experience that you can reference when you do come to bid on your first tender.
When you do come to bid on your first opportunity, find tenders which have been earmarked as “suitable for SMEs” as these are typically designed to be more SME friendly and have reduced requirements in the tender and a less onerous tender process.
Getting onto frameworks is also a great way to start your journey as they often have lower entry requirements and are great to use as references in future tenders. Be warned, getting onto a framework is no guarantee of work so don’t expect to be awarded onto a framework and have work instantly fall into your inbox.
Finally, make sure to check all the requirements for the bid, paying particular attention to things like TUPE, insurance and accreditation requirements and whether you have or can meet these requirements if you win the contract.
Q: Do we need to have a history of public sector work, or it does it not matter?
A: It’s best to check the requirements of each individual tender but most tenders require experience to be provided. You can use examples of indirect work, e.g. working as a sub-contractor on a public project or use a private sector example but making explicit reference to how the project was similar and why the experience is relevant.
If you’ve worked indirectly on a public sector project, make sure to clearly state the name of the main contractor but also mention the name of the public sector organisation referring to them as the ultimate client (e.g. Acme Contractor for Fulchester Council’). That way they’ll bend the rules if they want to include you. And, if your input was significant, make sure you really make that clear.
Q: How long does it take to write a tender?
A: How long is a piece of string? Each bid is different and should be treated as such. I’ve seen bids with near exact requirements differ from a 5-page submission, to a 30+ page submission. You need to review the time and effort required to complete a bid vs potential reward of winning. Would you drive from London to Manchester to quote a £1m job? Or would you drive 10 times across London quoting £100k jobs? Only you can make that call depending on the risk / reward for your business.
The thing to remember is that if you decide to do it yourself, you need to make it a priority. Half-hearted bidding will only waste your time and money. Don’t imagine you can just ‘get it across the line’ because nobody knows where that line is. You either need to be prepared to knock it out of the ballpark, or else walk away.
There’s a reason why tender periods are usually 4-8 weeks… it’s because it will take all that time. Don’t be fooled into thinking that’s plenty of time. It’s not. Most procuring organisations are notoriously stingy when it comes to allowing enough time.
If you decide to get a Bid Writer involved, make sure you choose someone who can support you through the whole process. Some writers only finesse your content. Others go further and can help with your bid strategy and managing the entire writing process. There’s a big difference.
And, for the first couple of times, don’t be afraid to spend time and money experimenting on bidding something that you’d be happy to win (and could actually deliver) but that’s not business critical. The worst that can happen is you win! The best thing is you’re entitled to detailed feedback on where you went wrong and how the winner won. It’s a great investment.
Bid Process
Q: How does a bid process work?
A: In its simplest form, a buyer defines a set of requirements which are published as a Tenders Notice for suppliers to bid on. On average you get 14-21 days from the date of publishing to submit your bid before the submission deadline, which is typically at 5pm.
Once the deadline has passed the buyer will mark all the submissions and appoint a winning bidder which typically takes 2-4 weeks.
There’s then a mandatory standstill period before the contract starts in case there are any challenges to the award of the contract.
From point of publishing to commencement of the contract it’s typically a 6 month process so you’re not going to find a tender today, and start work tomorrow.
However, contracts are typically several years long, with extensions, so once you’ve been awarded work it’s often for a longer period of time and is stable, dependable work which is paid in 30 days (less if you sign up for a Council’s Early Payment programme when it can be as little as 7 days) for your business which is why it’s so beneficial to SME’s.
Q: How do we find tenders to bid on?
A: There are many portals, or websites, where public sector tenders are published for you to bid on. Every buying organisation should have information on their website where they list the portals they use to publish opportunities. You have to go to these portals and search for the type of tenders that you’re looking to bid on, however some portals allow you to setup alerts but they are often inaccurate.
BidStats is a great tool that aggregates portals into a one stop shop where you can setup keyword and CPV code specific email alerts to make sure you’re alerted to any opportunities for you to bid on.
Q: Is it a good idea, providing extra documentation that is not asked for, especially in a very structured ITT? Won’t it annoy the reader who has enough to do having to read all the bids?
A: It is always a good idea to provide any documentation as evidence to support information within your bid submission. However, some processes don’t allow the use of attachments or additional information and rely solely on limited wordcounts within the bid process. It’s up to you to make sure that you’re fully aware of the limitations of the tender that you’re applying to and to adhere to them. Otherwise, your bid may be deemed non-compliant and rejected, or you won’t score top marks as you haven’t provided evidence to support your claims. Check, and double check.
A handy tip is to work your evidence into your proposals. Consider the following example:
We will deploy our process for quality control that ensures everyone is aware of the standards required by the client. We will conduct morning briefings that run through the programme of work for the day and highlight any issues.
On our project for Fulchester council our daily briefings highlighted the fact that one supplier was having to carry out excessive snagging and this was delaying other trades. We picked up on this and were able to put measures in place to recover the programme.
Working the evidence into the proposal would result in fewer words with the same impact:
Our quality control includes daily briefings that ensure everyone is aware of the standards required by the client and can highlight any issues. On a recent Fulchester council project our briefings found that one supplier’s excessive snagging was delaying other trades, prompting us to put programme recovery measures in place.
Bid Feedback
Q: Would we get feedback if we don’t get to interview stage?
A: Yes, if you submit a bid which isn’t successful at any stage you are able to ask for feedback on why your submission wasn’t successful from the buying authority. It’s the least the buying authority can do, given you’ve spent serious time and money on trying to offer the best value and providing them with a benchmark against which to select the winner.
Don’t be afraid to demand a high level of detail. Under the EU procurement directives (still valid), a public-sector organisation has to provide feedback to you, within 15 days, if you have asked for this information. The level of feedback should include:
- Your overall ranking relative to the other bidders, further split down into your price, quality and social value rankings.
- Your weighted scores for evaluated elements of the bid (price/quality/social value) AND the scores of the winning bidder
- Detailed feedback on the relative strengths and weaknesses of each individually scored element of your bid AND the relative strengths/weaknesses of the winning bidder – Don’t allow the buying authority to fob you off with a simple reiteration of the evaluation criteria that your bid met. They need to be able to be specific about what elements of your proposal led to them applying those criteria.
If the buying authority cannot provide you with this level of detail, their decision may be open to a legal challenge, so if they reject your initial request, push harder using this argument for leverage.
Q: How do I go about getting a bid reviewed?
A: The simplest way to have a bid reviewed is to get someone that wasn’t involved in the creation of the bid to review it as having a fresh set of eyes is vitally important. Most bid consultants will also offer a bid review / improvement service which is always a good idea, especially if you’re inexperienced at bidding as it’s a much more cost-effective way to improve a bid.
A good bid consultant will be brutally honest, so prepare to be a bit offended! If you’ve not answered a question correctly, or you’ve missed out on vital evidence, the buying authority’s evaluator will be just as harsh, and it will be too late to add information by then.
Bid Specifics
Q: Are we able to bid if we don’t hold the right level of accreditation?
A: This is specific to each bid, and I’d recommend you read thoroughly the requirements in the tender documentation as to whether it’s required to bid, acceptable upon award of contract, or within a reasonable time period. It’s easy enough to increase insurance levels but attaining ISO accreditation or industry certification can take much longer.
If you are operating to those levels but haven’t achieved the accreditation, make sure that you’re able to evidence this and support it if required, otherwise you’re at risk of having your contract terminated and being disbarred from future bidding.
Don’t make statements like, ‘We are working towards achieving [the accreditation]’. Evaluators see straight through it. Instead, provide detail about where you are in the process, when you started, what timescales you anticipate and any audits that you’ve booked with the accrediting body. That’s far more likely to win favour.
Q: How do we get security clearance such as the counter terrorism clearance?
A: There is guidance available on the varying levels of security clearance in the UK and ways to achieve it on the gov.uk website, including advice on vetting clearance levels and personnel security standards.
Pre-bid engagement
Q: You mention talking to buyer, in my experience you’re not able to speak to the buyer as it would compromise their position? Any tips for talking to them, getting through to right person?
A: It’s all about when you try to talk to them. Once the tender has been released and is live then the buyer is legally not allowed to talk to you and all dialogue must be via the e-procurement portal to maintain fairness and transparency or the process.
However, you’re permitted to engage with and speak to buyers before the procurement exercise formally starts, if fact most buyers have market engagement embedded in their sourcing process and encourage dialogue with suppliers. We previously ran a webinar with a Chief Procurement Officer of a council where he gave his advice and best practices which you can watch here.
We’ve also run a webinar on pre-bid engagement with a leading bid consultant who gave his best practices and examples of what’s worked for him in his career, which you can also watch here.
During the tender period you can still reasonably ask ‘commercial in confidence’ questions relating to specific concepts (unique to your bid, that carry competitive advantage) or ideas that you might wish to test the buyer’s appetite for. They can only say no. But often, if it’s a value offer, the buyer is permitted to reply privately.
And, if a buyer offers the chance of a site visit, take it. Often such visits are accompanied by a member of the buyer’s team, providing golden opportunities to talk to them face to face. Usually, they are prepared to reveal far more in conversation than if they have to respond to a written query.
In one instance, I asked for a meeting with a buyer’s key external stakeholder to explore potential ideas (commercial in confidence). The buyer agreed, offered to host the meeting and brought along most of the evaluating panel. My client was able to gain a better understanding of the requirements and test ideas in a closed room. We won a £90m contract as a result!
As best practice I’d always recommend doing your homework, approach buyers from the perspective of being a helpful advisor and treat them as you’d like to be treated. It may not be their priority now but may be in the future so play the long game.
Frameworks
Q: What are the differences between a Dynamic Purchasing System and a Neutral Vendor Framework?
A: In their simplest forms Frameworks are closed approved supplier lists which typically open for applications every 4 years – think of a private members club, they infrequently open to new members and only members are allowed in.
DPS’ typically last longer, often 7 years, and are open for suppliers to join throughout their lifetime – think of a gym, most people join in January (or when the DPS is released) but a gym will accept new joiners anytime of the year just like a DPS.
Q: You mentioned a “level playing field” at the start of this webinar. Surely, the increasing use of Frameworks just means the process is inequitable and the award will only go the those in the club of suppliers. Do you have a view on this?
A: Frameworks are a great marketplace for SMEs as getting onto them enables you build experience within the public sector. Their increasing usage does mean potentially that you have more bids to complete which is time-consuming, but also potentially gives more opportunities for winning work.
The field is as level as you make it. By asking the right clarification questions at tender and remaining silent on some ambiguities (where you may have better knowledge than the other bidders) you can create the right environment whereby your bid is stronger in the first place. But to get to that position takes preparation, which is where starting early (way before the other bidders) gains you the advantage. A good Bid Writer will help you with that strategy, built on the foundation of market intelligence that BidStats and Oxygen Insights can provide.
Sub-contracting
Q: As a specialist consultant our services are often supplied to companies which have won bids with local authorities, can using BidStats provide me with information on those companies which have won bids so we can approach them to support their work on the bid.
A: Absolutely. Search for the types of contracts that would be won by the companies that you sub-contract to and change the type filter from “Live Tenders” to “Award” and you’ll see what’s been won recently, e.g. new school construction contracts if you are an ecology company who would do pre-construction surveying before ground is broken.
Alternatively, look for these types of opportunities when they are live to bid on and reach out to those companies whilst they’re bidding so that if / when they win you’ve already got the relationship.
As a main contractor you can also use BidStats to find local businesses who have already won work in the public sector directly to bolster your supply chain.
