Is Public Sector Procurement for You?

Understanding the Public Sector Marketplace

Regulatory Mechanisms WTO Government Procurement Agreement 1994 EU Treaty of Amsterdam 1997 EU Directives 2004/18/EC and 2004/17/EC Public Contracts (Scotland) Regulations 2012 Public Contracts Regulations 2006 –Remedies Directive 2007 and Public Contracts (Amendment) Regulations 2009 –Public Procurement (Miscellaneous Amendments)Regulations 2011 The Defence and Security Public Contracts Regulations 2011 Case Law

Scottish Procurement Category A Category B Category C1 National Procurement Items common to all public bodies e.g. IT, Telecoms, Stationery Sector Specific SPCD APUC; Scotland Excel; NHS National Procurement Regional Collaboration at local level e.g. Tayside Consortium Where there are items common to a sector e.g. Wheelie bins, Medical Equipment Category C Items common to a geographic area SPCD Local 185 Major procuring organisations; in excess of 900 in total

Key Procurement Issues

Non-OJEU Procurement Transparency applies to: –Low value (under the EC Directive thresholds) –Service Concession contracts –Contracts for Annex II B Services Every contract not covered by OJEU publication requirements OJEU allows for non-OJEU contracts to be advertised through the Official Journal.

OJEU Thresholds £ Supplies & Part A Services - Central Govt/NHS 113, ,323 - Local Govt, bgpl* 173, ,442 - Defence and Security 347,868 N/A Part B Services 173, ,442 Works 4,348,3503,927,260 * Bodies governed by public law

£ Prior Information Notices - Supplies/Services 652, ,935 - Works 4,348,3503,927,260 Small Lots Provision - Supplies & Services 69,574 64,846 - Works 869, ,580

Open (any undertaking may tender) Restricted (any undertaking can apply to be selected to be invited to tender) Negotiated with or without a call for competition and Competitive Dialogue (any undertaking can apply to be selected to participate) Accelerated restricted/negotiated (for use only in exceptional circumstances of urgency not of the contracting authority’s making) EU Procurement Procedures

Timescales ProcedureProcessMin Timescale OpenTender52 days (36 with PIN) RestrictedExpression of Interest37 days Tender40 days (36 with PIN) Restricted AcceleratedExpression of Interest15 days Tender10 days NegotiatedExpression of Interest37 days Negotiated AcceleratedExpression of Interest15 days Competitive DialogueExpression of Interest37 days

Selection Criteria Mandatory Exclusions Optional Exclusions Economic and Financial Standing Technical and Professional Ability Comparable Contracts Quality Assurance Environmental Standards Policies Contract Specific Questions

Award Criteria Lowest Price or Most Economically Advantageous Tender (MEAT) MEAT Criteria Quality, price, technical merit, aesthetic and functional characteristics, environmental characteristics, running costs, cost-effectiveness, after sales service, technical assistance, delivery date/delivery period/period of completion.

Assessment of Tenders

Tender Evaluation The appraisal of tenders will cover a variety of aspects including: Priorities of the requirement (e.g. Is quality of service more important than innovation) Technical assessment Commercial assessment Critical success factors High-level criteria for both quantifiable and non-quantifiable items

Debriefing It is government policy that unsuccessful tenderers for all public contracts should be informed of the position without delay. Contracting authorities are also recommended to release related general information to unsuccessful tenderers on request. Suppliers may be informed if they failed on price grounds. However, they are not entitled to have details of other tenders (including prices) disclosed to them as a matter of routine.

Standstill Notice 10 day timescale for notification by electronic means ( or fax), 15 for other means (non electronic) Authority must provide “award decision notice” to bidders at start of standstill A “summary of reasons” must be provided

Contents of Notice Criteria for award Reasons for the decision (including the characteristics and relative advantages of the successful tender) Scores of recipient and winner Name of winner Precise statement of end of standstill/date before which contract will not be entered into

Improving Your Chances Of Success

BASIC TIP #1 Know that public sector is a regulated market Stay alert Read OJEU Visit websites Know the CPV codes relevant to you and use them Express your interest In time In the way required

BASIC TIPS #2 When you receive PQQ or ITT documents: –First thing to do: Read the instructions –Second thing: Read them again –Third: Get someone else to read them –Finally: Before returning tenders, read instructions one more time and make sure you have complied with them

BASIC TIPS #3 Ask about the markings and weightings –If weighting is not revealed, ask about order of priority Ask about budget Ask about disqualifying criteria – Especially turnover Be sure to provide all submissions and answer all questions Quantify your questionnaire answers as far as possible

BASIC TIPS #4 Verify acceptability of variations Do not do the most important work close to the deadline Remember to identify ‘Added Value’ issues Do not be late in delivering Give early thought to Terms and Conditions of contract

BASIC TIPS #5 If offered a tender meeting: –Take only key personnel – not sales team or window dressing –Arrive on time – but expect to run late and stick strictly to the given timetable –If using presentation tools – know how to operate them –Ensure your presentation team know the tender and each other –Don’t interrupt own team members –Don’t make rash promises

BASIC TIPS #6 After contract award Always ask for a debrief, whether you win or lose Ask about range of scores and where your bid came within that range Similarly, ask for the range of prices Note when procurement will be due for re-tender If you have difficulty getting information, consider using FoISA

Final Pointers Don’t believe the PQQ/ITT is correct – ASK questions if in any doubt Identify any problems early and discuss Always show how and why your tender provides good VfM Be positive and professional

Q&A