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Tendering Yuck!.

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Presentation on theme: "Tendering Yuck!."— Presentation transcript:

1 Tendering Yuck!

2 Different tendering procedures or arrangements • Open • Restricted
• Negotiated • Competitive Dialogue • Dynamic Purchasing System Don’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 transparency Disadvantages • May generate a large number of tenders • Under Remedies Directive could generate admin • May reduce opportunity for innovation Well 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 two Advantages • 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 that contract. • Complexity is defined as “technical” (not able to specify), “legal” or “financial” Disadvantages • Can prove restricting and cumbersome • Can prove to be a lengthy process Well 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, join the system. • Must use the open procedure and should be limited to a maximum duration of 4 years duration period. • It is a completely electronic provisioning process aimed at the supply of standardised and widely used goods and services. • Any provider which satisfies the selection criteria and submits an indicative tender 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 separated Advantages • 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 requirement Standing Lists Now 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 it is able to respond Advantages • 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 procedure What is this all about – can you see small enterprises being able to cope with this?

Tender Document Instructions for Tendering Tender Statement List of Contract Documents Financial References Statement of Insurance Tender Evaluation Tenderers Proposals / Method Statements Tender Pricing Summary Milestones Mid Tender Interviews Not evaluated Information shared

9 Tendering Evaluation • Evaluation criteria should be published in contract notices and the invitation to tender. They must not be changed during the procurement process. • Contracts should not be awarded on the basis of lowest initial price alone. There must always be an assessment of quality and costs • A tender evaluation model including objective criteria for the assessment of cost and quality should be prepared in advance of procurement

10 Tendering Evaluation Quality / Price Split - ?% / ?% Quality
• Tender Document • Interviews • Presentations • Site Visits Price • Elements

11 SCORING OF TENDERS Weighted Scores Tender - 50% Site Visit - 25%
Presentation - 10% Interviews - 15% Quality Assessment Highest weighted score = 100% Price Assessment Lowest weighted score = 100% Overall Assessment Total of Quality & Price

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 experience Award 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 tenders Alcatel Case (EU case law) Standstill period Breach 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 procedure Bidders 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”


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