The Recycler Issue 317

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FEATURE LOVE ME TENDER: Government tenders, what they are, and how your company can take advantage With issues like the EU’s Green Public Procurement criteria, and the continuing concern over the future of the environment, beginning to dominate the headlines, The Recycler’s Owen Collins takes a look at the thorny issue of government tenders, how to make the most of them, and both the problems and opportunities that they present. What is a government tender? It may sound like an obvious question, but to make sure you and your company are taking full advantage of the opportunities of government tenders, you need to make sure you know what exactly they are, and what they constitute. Governments – whether at a national level, local level, or somewhere in between – regularly put the supply of goods or services out to tender; i.e. inviting private companies or businesses to bid for the supply contract. The goods or services put out to tender by governments can vary extensively, ranging from massive tenders like major construction projects, to smaller tenders such as office supplies – including, crucially, printer consumables. The first step, as a business bidding for such a government tender, is to conduct research in order to find out who the relevant purchasing agency is. Once you have done this, you can begin to register your interest with them. As well as being a statement of intent from your business, it will also offer the dual advantage of helping you keep up to date with any further information that is released on the tender (or indeed, other tenders in the future). It’s not unusual for a public body to run certain tender information sessions, at which point the purchasing agency will reveal more details about the tender in question. It’s a great idea to attend as many tender information sessions as possible, as they represent a worthwhile opportunity to make further contact with the agency itself and ask any burning questions. Sessions like this also provide a chance to meet with other parties interested in the tenders, and therefore a chance to network with potential partners in a consortium – even if not, they can be a useful exercise in knowing who you are competing against. It’s also worth remembering that many governments and their respective agencies are not obliged to make any information or presentations featured at these sessions available elsewhere, so they are worth attending wherever possible, if your company is serious about securing government tenders. The next key step for a business bidding on government tenders is to develop a tender response strategy inhouse. It’s crucial to carefully consider the requirements of the tender, and the expenditure of resources involved in winning it. There are perhaps seven primary questions to ask of yourself as you prepare to submit a response to the tender: How much will it cost to prepare (making sure you can afford this is important, for obvious reasons); what information is it necessary to gather in preparation (this is where attending information sessions can prove helpful); what resources will be needed to fulfil the contract, if won; what staff will manage and oversee the tender project; how the workload will be handled, in terms of planning, scheduling, and assignment; who else is competing for the same tender, and by extension, what are your chances of being successful; and what plan do you have to market your products or services, and ensure a successful pitch. With the answers to these questions in mind, you can begin writing your response. Additionally, it’s good to bear in mind some other fundamental rules – foremost, do not bid if you conclude that you can’t deliver. It would be disastrous for your company, both in the short term, and in regaining trust in the long term. Similarly, good advice is to not bid for too many tender opportunities at once, as it could dilute the strength of your bids, and leave 4 THE RECYCLER • ISSUE 317 • APRIL 2019
FEATURE you potentially overworked and unable to deliver to the highest standard should you end up being awarded all possible tenders. Focus your attentions and efforts on tenders that you have the greatest chance of winning. Keep in mind, too, that taking on a government tender could – if not done right – put a strain on your existing business and clients. Be absolutely certain that the award of a tender would not affect delivery of existing contracts or commitments before you decide to bid. It can be helpful to review other contracts awarded by the same purchasing agency in the recent period, both to aid your understanding and preparation, and to give you a chance to decide if the tender you are bidding on is definitely right for your business. It’s a worthwhile exercise also considering the nature of the companies that were awarded these contracts, as it can give a morerounded idea of the sort of company the agency is looking for, and their general expectations. With this knowledge in mind, you may either choose to attempt to replicate that strategy, or carve a completely different path, in the hope of receiving the tender. When it comes to writing your tender proposal, take as much time as is necessary to plan, draft, redraft, and finalise your bid. Use any forms provided and ensure to answer all questions asked by the purchasing agency. Be mindful, too, or word or page limits, and try to be consistent in details like font, font size, and numbering. The best tender proposals will also be clearly-structured and offer clarity in terms of the details of a company’s key propositions. It’s important to decide what these propositions are, because they are ultimately what will set your tender apart from rival companies. Base your response around the evaluation criteria available, to make sure that your offer ticks the boxes that the purchasing agency is looking for in particular, and which it will be analysing your offer against. If necessary, engage the services of a professional bid writer to ensure that your proposal is professional, detailed, and attractive. In addition, be sure that you understand the payment schedule THE RECYCLER • ISSUE 317 • APRIL 2019 Bidding for Government Tenders - the ten-point checklist: 1 Have you researched to find the right government agency? 2 Have you registered your interest with them? 3 Have you attended tender information sessions? 4 Do you understand the payment schedule? 5 Can you afford to provide the tender if you win? 6 Do you have enough resources/staff? 7 Who else is competing for the tender? 8 How likely is your success? 9 Will it affect your other clients? 10 Remember: If you can’t deliver – don’t bid! specified by the tender offer – even if you are used to bidding for public tenders – as the payment arrangements can often differ substantially from agency to agency, and even from tender to tender within the same agency. Furthermore, if references are required, be sure to find some with an intimate knowledge of your company and business, and who can honestly recommend the strength of your work. There’s nothing wrong in helping referees in writing their references, and it’s particularly useful to share details of the tender request with referees, so that they know what particular points to emphasise in the reference they give you. Once your bid is written, be forensic in checking it through to make sure it fits all the requirements of the purchasing agency, as well as being, clear, concise, and backed up with sufficient evidence. When it comes to submitting your bid, the procedure varies from government to government, and from agency to agency, but for some contracts, a formal presentation to an evaluation panel may be required. As with the bid itself, preparation is the key to success, so make sure your presentation is carefully researched and rehearsed, and you know exactly what you plan on saying. If you are not used to such presentations, it may be worth considering investing in some professional coaching, to ensure your presentation is as faultless as can be. After the tender process has been completed, it is always worth requesting feedback, in the form of a debriefing – particularly if your bid has been unsuccessful, as you can use the feedback to improve your offer for next time you submit for a government tender. Be mindful, however, that any feedback tends to be one way – it’s not an opportunity to criticise the purchasing agency, nor to gain any insight on any other company submitting bids. The advantages of tenders So why are opportunities like government tenders so significant, and so beneficial? For starters, they can provide a fixed contract (the length of which varies, but which is typically a few years) and therefore guaranteed fixed income for the duration of that contract. As well as the obvious upside of this steady revenue, it can also be a great catalyst for growth, as you can budget more easily around the 5
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