Contracts and Tendering: Essential Steps for Successful Procurement

Understanding Tendering in the Public Sector

Public sector tendering involves a structured process for buying goods and services. It aims to ensure fairness, transparency, and value for money in government spending. The UK has specific systems and rules for public procurement that organisations need to know about. These apply to all organisations who receive more than 50% of their funding from the public purse - therefore not just central government and schools, but also most Universities, Housing Associations and some charities.

Key Principles of Public Sector Procurement

Public sector procurement follows strict guidelines. These rules make sure taxpayer money is spent wisely. The main principles are:

• Transparency: All details of tenders are public
• Equal treatment: Every bidder gets the same chance
• Non-discrimination: No unfair advantages for any supplier
• Proportionality: Requirements match the contract's size

Buyers must follow these rules for all contracts above certain values. This helps small businesses compete with larger ones. It also stops favouritism and ensures the best deal for the public.

Role of Find a Tender Service and Contracts Finder

Find a Tender Service (FTS) is the main place for UK public sector tenders. It replaced the EU's system after Brexit. FTS lists all high-value public contracts.

Contracts Finder is for lower-value opportunities. It's aimed at small businesses. You can:

• Search for contracts by sector or location
• Set up alerts for new tenders
• See who won past contracts

Both systems make it easier for you to find and bid on public work. They help create a fair playing field for all businesses.

Overview of Public Contracts Scotland and Sell2Wales

Public Contracts Scotland is the main site for Scottish public sector tenders. It works like FTS but is just for Scotland. You can:

• Register as a supplier
• Get email alerts for new contracts
• Submit bids online

Sell2Wales does the same job for Welsh public contracts. It helps Welsh businesses find opportunities. Both sites aim to boost local economies by making public contracts more accessible.

These platforms simplify the tendering process. They help you find relevant opportunities in specific parts of the UK. Using them can increase your chances of winning public sector work.

The Procurement Process

The procurement process involves several key stages, from initial planning to final contract award.

Stages of the Tender Process

The tender process typically begins with identifying the need for a product or service. Next, you'll create detailed specifications and requirements. After that, you'll publish the tender notice to invite bids.

Once bids are received, you'll evaluate them based on set criteria. This may include price, quality, and ability to deliver. You might also conduct interviews or request samples.

The final stage is awarding the contract to the winning bidder. You'll need to notify all bidders of the outcome and provide feedback if requested.

Throughout the process, it's crucial to maintain fairness and transparency and work to the defined timescales. Keeping detailed records of all decisions and communication.

Understanding the Open Procedure

The open procedure is a common method in public procurement. It allows any interested supplier to submit a bid in response to the tender notice.

This approach promotes competition and gives new suppliers a chance to win contracts. However, it can lead to a high number of bids, which takes more time to evaluate.

In an open procedure, you must provide all tender documents upfront. This includes specifications, evaluation criteria, and contract terms. You can't negotiate with bidders or change the requirements after publishing the notice.

The open procedure works well for straightforward purchases where the requirements are clear. It's less suitable for complex projects that might need discussion with suppliers.

Preparing for Evaluation Stage

The evaluation stage is critical in selecting the right supplier. To prepare, you need to set clear evaluation criteria before publishing the tender. These should align with your project goals and be easy to measure.

Common criteria include:

• Price
• Quality of proposed solution
• Experience and qualifications
• Financial stability
• Delivery timelines

It's helpful to use a scoring system to compare bids objectively. Decide on the weighting for each criterion based on its importance to your project.

You should also form an evaluation team with relevant expertise. Brief them on the process and ensure they understand the criteria. This helps ensure a fair and consistent assessment of all bids. Often this evaluation team consistent of a specific department who has a specific need, however, they should be trained and supported by a procurement team, or consultancy like Thornton & Lowe, who will also provide moderation to minimise the risk of challenge.

Identifying and Responding to Contract Opportunities

Finding and winning contracts is of course important if you are a supplier and want to win public sector contracts. You'll need to locate promising opportunities, analyse past tenders, and write compelling responses. Here's how to tackle each step of the process effectively.

Finding High Value Contracts

Start by searching government websites like Contracts Finder for public sector opportunities. These often have higher values and longer terms. For private sector tenders, check industry-specific platforms and directories.

Network at trade shows and join professional associations to hear about upcoming projects. Build relationships with potential clients and partners who might share leads.

Set up email alerts for relevant keywords to stay informed of new tenders. Consider using specialised tender tracking services to save time and avoid missing out.

Focus on contracts that match your expertise and capacity. Don't waste resources bidding on projects you're unlikely to win or deliver successfully.

Analysis of Previous Tenders

Study past tenders in your target sectors to understand buyer priorities. Look at winning bids if available to see what made them successful. Pay attention to:

• Evaluation criteria and weightings
• Required qualifications and experience
• Pricing structures and budget ranges
• Scope of work and deliverables

Identify common themes and requirements across similar tenders. This helps you prepare standard content for future bids.

Keep a database of previous tender documents and your own submissions. Note feedback received on unsuccessful bids to improve future responses.

Effective Response to Contract Notices

Read the contract notice carefully. Highlight key requirements and deadlines. Ask questions early if anything is unclear.

Create a bid/no-bid checklist to evaluate each opportunity objectively. Consider factors like:

• Alignment with your business strategy
• Probability of winning
• Potential profitability
• Resource availability

Plan your response, assigning tasks and setting internal deadlines. Gather supporting documents and case studies in advance.

Tailor your proposal to address specific buyer needs. Use clear, concise language and follow formatting guidelines strictly. Proofread thoroughly before submitting.

Regulations and Compliance

Public sector contracts and tendering in the UK follow strict rules.

Adherence to UK Public Sector Standards

The UK public sector has clear standards for contracts. You must follow the Public Contracts Regulations 2015 when bidding. These rules make sure the process is fair for everyone.

Key points:

• Contracts over certain values must be advertised openly
• You can't be unfairly favoured or left out
• The process must be clear and easy to understand
• See our guide on the Procurement Act

If a contract is worth less, simpler rules may apply depending your procurement policy. But you still need to show value for money and follow good practices.

Understanding OJEU and Its Implications

OJEU stands for the Official Journal of the European Union. Even after Brexit, some of its rules still matter for big UK contracts.

What you need to know:

• OJEU rules apply to large public contracts

• They set out how to advertise and run tenders

• Time limits for bids are set

These rules aim to open up competition across Europe. They make sure companies from different countries can bid fairly on big projects.

You must check if your contract falls under OJEU rules. If it does, you'll need to follow extra steps in the tender process.

Communications and Updates

Staying informed about contract opportunities and responding promptly to notices is vital. Effective communication helps you stay ahead in the tendering process and increases your chances of success.

Staying Informed via Email Updates

Sign up for email alerts on Find a Tender to get the latest contract opportunities. These updates keep you in the loop about new tenders in your field. You can customise your preferences to receive notices that match your business interests. This saves you time and ensures you don't miss out on relevant opportunities.

Many tender platforms offer daily email updates. These emails highlight new contracts, changes to existing ones, and important deadlines. By checking these regularly, you can plan your bids more effectively. Some services also send reminders about upcoming closing dates for tenders you've shown interest in.

Responding to Notices and Updates

When you receive a notice or update, act quickly. Read the information carefully and note any changes or new requirements. If you have questions, contact the contracting authority promptly. This shows your interest and helps you clarify any uncertainties.

Keep track of deadlines for submitting questions or expressions of interest. Mark these dates in your calendar to avoid missing out. If there are changes to the tender, review your bid to ensure it still meets all criteria. Update your proposal as needed to align with any new information or requirements.

Be prepared to adjust your plans based on updates. Sometimes, tender timelines may shift or specifications may change. Stay flexible and ready to adapt your approach to fit new circumstances.

Tender Submission Strategies

From a suppliers perspective, writing a winning tender submission requires careful planning. A well-structured answer and strong supplier relationships are key to success.

Developing an Answer Structure

Start by carefully reading the tender documents. Identify all the questions and requirements. Create a clear outline that addresses each point. Use headings and subheadings to organise your response logically.

Break down complex answers into bullet points or numbered lists. This makes your submission easier to read and score. Include relevant facts, figures, and case studies to support your claims.

Use tables to present data clearly. Bold key points to draw attention. Keep your language simple and avoid jargon. Proofread thoroughly to catch any errors before submitting.

Buyers Perspective - Engaging with Suppliers

For public sector procurement teams, it is important to engage with your suppliers well before tendering. This is a growing requirement as part of the Procurement Act and PME expectations - for us, this just makes sense and something we have encouraged or supported our public sector clients to do for 10 years or more. It gives you a better understanding of their capabilities and pricing. Ask suppliers for input on innovative solutions that could give you an edge.

Consider holding supplier briefings to discuss the tender. This can help clarify any questions and ensure alignment.

By doing the prep you can be clear about your requirements and timelines, while also reducing the number of clarifications questions during the tender process.

Be open to feedback from suppliers on how to improve your approach.

Frequently Asked Questions

Tendering for contracts involves several key steps and considerations. Public and private sector opportunities have different processes and platforms. Legal and procedural aspects are crucial to understand.

What is the process involved in tendering for contracts?

The tendering process starts with finding suitable opportunities. You then need to express interest and request tender documents.

Next, you'll prepare your bid response. This includes answering questions and providing supporting evidence.

Submit your completed tender before the deadline. The buyer will evaluate all bids and choose a winner.

How do I find available public sector contracts for tender in the UK?

There are several websites that list public sector tenders in the UK. Contracts Finder is the main site for central government contracts over £12,000.

Find a Tender lists high-value contracts. It replaced the EU's Tenders Electronic Daily in 2021.

For Scottish opportunities, check Public Contracts Scotland. Local councils often have their own procurement portals too.

What are the various methods of tendering available to businesses?

Open tendering allows any qualified supplier to submit a bid. It's common for simpler, lower-value contracts.

Restricted tendering has a pre-qualification stage. Only shortlisted suppliers can submit full bids.

Negotiated procedures involve discussions with selected suppliers before final bids. They're used for complex projects.

Framework agreements set terms for future contracts. Suppliers bid to join the framework, then compete for specific jobs.

Could you explain the purpose of using tendering in the procurement process?

Tendering helps buyers get the best value for money. It creates fair competition between suppliers.

The process allows buyers to compare different solutions and prices. This helps them make informed decisions.

Tendering also promotes transparency in public spending. It reduces the risk of favouritism or corruption.

What legal considerations should be taken into account when tendering for a contract?

You must comply with procurement laws and regulations. These ensure fair competition and prevent discrimination.

Check if the contract is covered by specific rules, like the Public Contracts Regulations 2015.

Be honest in your bid. False statements can lead to legal trouble or contract termination.

Respect confidentiality. Don't share tender details with competitors or use them unfairly.

How does the tender submission process work in the context of UK private sector contracts?

Private sector tenders are less regulated than public ones. Each company sets its own rules and processes.

You might need to register as a supplier before bidding. Some firms use online portals for submissions.

Read the instructions carefully. Private buyers may have specific formatting or document requirements.

Submit on time and follow up if needed. Unlike public tenders, there's often more room for negotiation.