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How to do business with the Council James Trotter Senior Procurement Manager Leicestershire County Council.

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Presentation on theme: "How to do business with the Council James Trotter Senior Procurement Manager Leicestershire County Council."— Presentation transcript:

1 How to do business with the Council James Trotter Senior Procurement Manager Leicestershire County Council

2 Structure The Opportunity The Tendering Process Further Information Questions

3 The Opportunity Public Sector spends over £175 billion Councils in England spend over £62 billion + £21 billion on capital projects

4 LCCs Expenditure by Category Groups (2010-11) £343m

5 Benefits of Public Sector Business Stable Good payers Local delivery Fair and transparent processes Useful referee, especially when looking to gain further public sector business

6 How the Public Sector Buys Accountable - Value for money Legal obligations (EC Treaty / EU Directive) Principles No discrimination Equal treatment Fair competition Proportionality Transparency Advertising Formal tender processes Consortia (e.g. ESPO)

7 What LCC Is Doing (1) National Concordat for SMEs Sustainable Commissioning & Procurement Strategy - % spend with SMEs - Number of local SMEs submitting Pre-Qualification Questionnaires to ESPO when expressing an interest in Council requirements - CO2 (tonnes) emitted by Statutory Service suppliers with whom the Council spends £100k+ p.a. Contract Procedure Rules Advertise contracts Standardising documents and processes (PQQ-lite, RFQ) Proportionate evaluation criteria Financial Vetting Guidance (sound business judgement, rather than just mechanistic application of financial formulae)

8 What LCC Is Doing (2) Contract conditions, requiring prime contractors: - to pay sub-contractors on time - to advertise sub-contracting opportunities Bidders Conferences Meaningful feedback Complaints procedure What it means to be an LCC supplier – our expectations Publish list of prime contractors Single points of contact for all categories purchased Guidance for Procuring Officers, e.g. Break framework into lots How to do business events / Selling to the Public Sector / Website

9 The Tendering Process Identify the right opportunity Complete pre-qualification process Submit your tender Evaluation of tenders carried out Contract awarded

10 Identify the right opportunity Read the guidance for applicants/tenderers Consider the requirement, procurement process, evaluation criteria and weightings Check deadlines for applications/tenders and asking clarification questions Identify who is best placed to complete the application/tender Ensure you have the supplementary documents required e.g. policies, accounts, insurance certificates Remember to get sign-off from your senior management/management committee/Trustee Board Fit with your organisations aims, objectives and plans? Do your governing documents allow you to do the work? Will it enhance or detract from your other areas of work? Do you have the capacity and infrastructure to deliver? Is there an opportunity to submit a collaborative/consortia bid? What do you know about the buyer/commissioner? Are you qualified (staff and track record)? Are you tender-ready? Have you capacity to submit a tender? What are the risks and benefits of applying/tendering?

11 LCC Procurement Processes Estimated valueProcurement ProcessException £0 to £1,000Obtain one oral / written quotation £1,000 to £20,000Obtain three written quotations Keep written record of why three quotations were not obtained, where sought Chief Officer approval, where not sought £20,000 to £100,000Request for QuotationChief Officer approval Over £100,000Formal Tender ProcessExecutive approval

12 Estimated valueAdvertising £0 to £10,000None required (optional) £10,000 to £20,000Source Leicestershire (where practical and appropriate) £20,000 to EU Threshold Source Leicestershire Over EU ThresholdOJEU and Source Leicestershire LCC Minimum Advertising Requirements

13 Advertising Direct contact - websites Consortia (e.g. ESPO – Advertisements (higher value contracts) Source sites - e.g. Contracts Finder - Contrax Online - Local / trade press Official Journal of the EU (large tenders above EU thresholds) – Tenders Electronic Daily (TED) -

14 Source Leicestershire

15 Complete the pre-qualification process Selection Criteria / Evaluate Organisation Restricted Procedure – Pre-Qualification Stage Open Procedure – Part of the Invitation to Tender Part of Request for Quotation Economic & Financial Standing - Financial Vetting Guidance (Credit checks, last 2 years audited accounts, opportunity to allay any remaining concerns) Technical Capability - Experience incl. references - Company policies (e.g. Equalities) and accreditations Pass or fail questions Scored against pre-agreed criteria

16 Submit your tender Award Criteria / Evaluate tender Lowest Price, or Most Economically Advantageous Tender (M.E.A.T) - % Weighted Evaluation Criteria Method statements Price Scored against pre-agreed criteria Check your tender before sending Label and address tender documents correctly Keep to the deadlines!

17 How will your tender be evaluated? Tenders opened at pre-agreed date and time Evaluated against agreed criteria by panel Process may include site visits, presentations as set out in the tender documents Clarifications - Respond quickly and professionally if asked for more information

18 Contract awarded Contract awarded to the supplier who best meets award criteria Intention to award letter - score - winners score - characteristics and relative advantages 15 day standstill period Full debrief available Ask for feedback

19 Further Information Council Websites e.g. - Selling to the Public Sector workshop slides Source sites - e.g. Contracts Finder - Contrax Online - Consortia websites - e.g. ESPOs Buyer profile - Society of Procurement Officers - The Directory of Local Government -

20 Any Questions?

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