Winning Public Sector Contracts For SMEs by Basil Jackson

The Business Growth Service A UK Government initiative Helping businesses with potential to grow. We can help you to achieve your potential by identifying barriers to growth. You will work with a dedicated Business Growth Manager who really understands business challenges. We will discuss your needs and identify appropriate support.

Support includes: business development coaching building leadership and management skills developing new ideas and products growth through innovation accessing finance accessing and building supply chains breaking into new markets (public sector, exporting etc) planning and strategy development improving processes

Why win public sector contracts? Several benefits: better payment terms (usually 10 working days) long-term agreements (3 or 4 years) public sector is safe funding budgeted year-on-year improved financial stability for your company

1. Help SMEs understand the potential 2. Help SMEs understand the environment 3. Show SMEs where to find opportunities 4. Help SMEs understand the procedures 5. Help SMEs identify their strategy 6. The SME’s next steps What I Will Cover Today EducatingDe-mystifying Showing SMEs to be Strategic

Let’s Talk Potential #1 during 2013/14 the public sector spent £720 billion public procurement is estimated at 16% of UK GDP the number of SME securing public sector contracts is low Government set a target of awarding 25% of public sector contracts by value to SMEs by 2015 target has been missed (15% looks more realistic) tender websites & supplier portals organisational / sector websites procurement teams / category managers 1.Understand the potential

Let’s Talk Potential #2 Trade Press Partners / sub contractors Meet the buyer events / briefings Second / Third Tier Contractors / Supply chains Organisations: 433 local authorities in the UK: 27 county councils, 55 unitary authorities, 32 London boroughs, 36 Metropolitan boroughs, 201 districts, 32 Scottish unitary authorities, 22 Welsh unitary authorities 168 NHS Trusts England 1700 registered Housing Associations providing 2.5 million homes for more than 5 million people The Emergency Services 43 Police forces in England and Wales 136 Prisons in England and Wales This too large an opportunity for any business to ignore. Rewards are rich 1.Understand the potential

Let’s Talk Potential #3 Government is trying to make it easier for SMEs to access PS contracts All public sector contract tenders worth more than £10,000 are now advertised on: Contract Finder Tenders Electronic Daily. leaner procurement processes: reducing the number of hurdles that contractors must clear in order to qualify to bid eSourcing and Dynamic Marketplace greater use of templates and standardised documents new procurement process for the smallest contracts by value WHY? The public sector is looking to the private sector to deliver its austerity agenda 1.Understand the potential

The Procurement Environment Policy/LegalEconomic/Financial EU Competition Policy (Procurement) Govt. / Local Govt. (Transparency – LAs must publish details of all Invoices of £500+) contract tenders worth more than £10,000 have to be advertised Govt’s aspiration to award 25% of contracts to SMEs Price & Value for Money (VFM) & M.E.A.T. Comprehensive Spending Review Framework Agreements Contract Bundling (Economy of Supply) Ability to deliver economies and efficiency savings SocialTechnological Corporate Social Responsibility Sustainability, Equality & Diversity Innovation & non contractual outcomes E-Portals E-tendering & E-auctions Real time reporting 2. Understand the environment

Finding Opportunities PUBLISHEDUNPUBLISHED SOURCES Contracts FinderNetworking / relationship building Tenders Electronic Daily (TED)Procurement Teams / Category Managers Organisational / Sector websitesOperational departments and units Local / National press / Press releasesMarket analysis / competitor intelligence Trade PressPartners / sub contractors Meet the buyer events / briefingsSecond / Third Tier Contractors / Supply chains 3. Know where to find opportunities

ProcedureCharacteristicsWhen the procedure is adopted OpenAll qualified applicants must be given the opportunity to bid For lower risk procurement where supplier capability is less important or where the focus is on price RestrictedTwo stage process with facility to shortlist (PQQ + Tender) Where capability of supplier is key determining factor in the delivery of the contract, market response likely to be huge to allow short-listing NegotiatedTwo stage process with facility to negotiate at second stage Specification is not clear or some creative, artistic or expert input is required. Competitive DialogueTwo stage process with facility to enter into a dialogue with potential suppliers to consider potential solutions and refine specification before invitation to tender Complex procurement where suppliers expertise has significant impact on the development of the specification Framework AgreementStage One: Suppliers selected through open/restricted procedure to a panel of suppliers for given period Stage Two: Call-Off or Mini competition will be held when services/goods required Capability and Capacity is important and is generally a recurring/constant requirement (max 4 years; including extension options) 4. Understand the procedures

Procurement Process Overview Procure Contract Notice EOI Tender EvaluateManage Review Commission PQQ Award 4. Understand the procedures

Pre-Qualification Questionnaires The First Hurdle Evaluation of your organisation – The aim of the PQQ is to check that your company is (for the contract term) Technically competent Financially sound Legally compliant – Gives the buyer a means of short-listing – Based on fair and objective criteria 4. Understand the procedures

PQQ: Example Scoring Framework SectionScore Weighting 1Organisation DetailsN/A 2Financial InformationN/A or Risk Based Assessment Pass/Fail 3InsurancePass/Fail 4Business Activities15% 5Business Practices30% (Total)  Health & Safety5-10%  Quality Assurance5-10%  Environmental Management5-10%  Equality5-10% 6Requirement - specific40% 7Experience & References15% 8Professional & Business StandingPass/Fail 4. Understand the procedures Strategy Work With QMS Intensity Document Creation With QMS Int

Invitation To Tender (ITT) #1 The Second Hurdle Evaluation of your detailed proposal – What are you going to do – How are you going to do it – Who is going to do it – How much will it cost – What is your track record / prior experience – Compliance – References 4. Understand the procedures Strategy Work, Document Creation & Training With QMS Intensity

Your Strategy 5. Establish your company’s strategy & policy We will help you develop your thinking around: Your company’s strengths Your company’s weaknesses Your USP Your current and required resources Understand your client’s requirements Understand your risks and any mitigations

Your Strategy In support of your strategy we will help you: ensure relevant policies are in place be compliant with tender requirements train/mentor staff in the use of QMS create policies and plans in accordance with ISO standards secure funding towards costs WHY? Company better able to apply for PS contracts Meet the buyer events only cover a small part of the process Your policies need to align with the PS procurement process Better able to compete internationally 5. Establish your company’s strategy & policy

Next Steps If you see the public sector as a growth area for your business, then: Give us your details Make an appointment with us: – sign you up for Growth Accelerator funding; and – Sign up for Sign up to Contracts Finder or TED Start to think STRATEGICALLY 6. Your next steps