2 Different tendering procedures or arrangements • Open • Restricted • Negotiated• Competitive Dialogue• Dynamic Purchasing SystemDon’t forget your standing orders and financial regs may make it more restrictive
3 The Open Procedure Format • One tendering activity open to all • Minimum 52 day timescale (reduced by 5 days for full electronic access)• First port of call for EU (or any tendering)Advantages• Bids made against EU OJEU advert• Highest level of transparencyDisadvantages• May generate a large number of tenders• Under Remedies Directive could generate admin• May reduce opportunity for innovationWell that’s it then – what other method would you use?
4 Competitive Dialogue Format • Can be approached via several options • Strong project management approach required• Procedure one or procedure twoAdvantages• Allows dialogue with the bidders to develop one or more suitable alternative• solutions capable of meeting the requirements• Used when contracting authority seeks to award a particularly complex contract• Used when the use of the open or restricted procedure will not allow the award of thatcontract.• Complexity is defined as “technical” (not able to specify), “legal” or “financial”Disadvantages• Can prove restricting and cumbersome• Can prove to be a lengthy processWell we can forget this then!
5 Dynamic Purchasing System Format• Like a framework agreement except during its life other economic operators(suppliers) may submit indicative bids and if they meet the published criteria, jointhe system.• Must use the open procedure and should be limited to a maximum duration of 4years duration period.• It is a completely electronic provisioning process aimed at the supply ofstandardised and widely used goods and services.• Any provider which satisfies the selection criteria and submits an indicativetender may join at any point in its duration period.
6 The Restricted Procedure Format• Two stage process; requests to participate / tendering• 37 days PQQ / participate and 40 days receipt of tender• Heavily used by NHS, complex projects and construction• Selection and award criteria separatedAdvantages• Utilises a Pre-qualification process for early de-selection• Assessment of financial, technical and economic elements• Can allow for specification development (transparent)Disadvantages• A longer two stage process• Can be misused when open procedure is acceptable• Now holds a Remedies Directive requirementStanding ListsNow SSD’s love this route and why? It prevents new entries, if you are contracting with a provider how can you exc;lude them on quality grounds
7 Dynamic Purchasing System Disadvantages• Still a new and highly experimental procedure• May generate a large number of tenders (like an open procedure)• Under the Remedies Directive could generate admin• May reduce opportunity for innovation at meeting a criteria• DPS is entirely electronic and commissioning organisations may need to undertake extensive development work with the provider sector to ensure that itis able to respondAdvantages• The DPS provides a list of registered suppliers that develops and grows• It is an entirely digitalized process• Provider offers may be improved in successive stages of the process• Supports transparency, flexibility and competitiveness of the procedureWhat is this all about – can you see small enterprises being able to cope with this?
8 INVITATION TO TENDER (ITT) Tender DocumentInstructions for TenderingTender StatementList of Contract DocumentsFinancial ReferencesStatement of InsuranceTender EvaluationTenderers Proposals / Method StatementsTender Pricing SummaryMilestonesMid Tender InterviewsNot evaluatedInformation shared
9 Tendering Evaluation• Evaluation criteria should be published in contract noticesand the invitation to tender. They must not be changedduring the procurement process.• Contracts should not be awarded on the basis of lowestinitial price alone. There must always be an assessment ofquality and costs• A tender evaluation model including objective criteria forthe assessment of cost and quality should be prepared inadvance of procurement
10 Tendering Evaluation Quality / Price Split - ?% / ?% Quality • Tender Document• Interviews• Presentations• Site VisitsPrice• Elements
12 Selection and award criteria Selection Criteria• Assessment of provider capability• Assesses their economic or financial ability to deliver contract• Assesses technical or professional ability – relevant expertise and experienceAward Criteria• This considers the merits of “eligible” tenders• To assess which tender is “most economically advantageous• Using only using criteria linked to the “subject matter” of the contract
13 PRE-CONTRACT AWARD • Risk Analysis Heads of Service Operational managers• Notification to unsuccessful tendersAlcatel Case (EU case law)Standstill periodBreach of contract
14 The Remedies Directive Came into force December 2009 giving more power to the supplier to challenge any perceived weaknesses within a public tendering exercise, as follows;Top six mistakes(1) Mixing up the selection and award criteria(2) Award criteria and weightings(3) End stages of competitive dialogue(4) Frameworks (illegal access)(5) Moving goalposts (re-negotiating)(6) Negotiating in restricted procedureBidders will generally feel more able to challenge due to the recession,greater knowledge of their rights, more feeling of “formality” with less fear of“rocking the boat”