Open Procurement: A Comprehensive Guide for Bidders
Open procurement, also known as open tendering or open procedure, is a method of public sector procurement that allows any interested supplier to bid for a contract. This approach promotes transparency, competition, and value for money in the procurement process. In this article, we will provide a detailed overview of open procurement, its advantages and disadvantages, and how bidders can prepare for the changes introduced by the Procurement Act 2023.
What is Open Procurement?
Open procurement is a single-stage process where suppliers respond directly to an advertised contract notice. All interested suppliers can request and download the procurement documents and submit their tenders. The submitted tenders are then evaluated based on the criteria outlined in the procurement documents. Open Procedure is where the procurement exercise is open to all suppliers, allowing any interested supplier to bid within the tender timescales.
Advantages of Open Procurement
- High competition: Open procurement potentially attracts a high volume of responses, encouraging innovative solutions.
- Accessibility: It technically allows organisations of all sizes to participate.
- Transparency: Full documentation is provided upfront, helping suppliers decide if they can meet the requirements.
- Shorter timescale: The absence of a pre-qualification stage reduces the overall timescale.
Disadvantages of Open Procurement
- Resource intensive: Evaluating a high volume of responses can be time-consuming.
- Risk of low-quality bids: There is a higher chance of receiving poor-quality submissions due to the open nature of the process.
- Wasting bidders' time: For those new to tendering for public sector contracts, it may lead to future disengagement in the procurement process.
Changes Introduced by the Procurement Act 2023
The Procurement Act 2023, which comes into force on 28th October 2024, aims to reform and simplify the public procurement rules in the UK following its exit from the European Union. The Act will introduce significant changes to the open tendering process, affecting both government buyers and suppliers. Some of the key changes include:
- Introduction of three main procurement procedures: open, competitive flexible, and limited tendering (direct awards) via frameworks.
- Competitive flexible tendering will allow post-tender negotiations and enable buyers to tailor the tender process to their specific needs.
- Limited tendering will allow buyers to award contracts directly to a single supplier in certain circumstances, such as urgency, crisis, or innovation.
Preparing for Open Procurement
To succeed in open procurement under the new Procurement Act 2023, bidders should:
- Register on Find a Tender, which will be the single platform for public sector procurement opportunities. Tender Pipeline our free platform also includes opportunities from Find a Tender, Contracts Finder, Sell2Wales and many more collates in a way which is useful for suppliers.
- Review their bid strategy, focusing on bid qualification and assessing the feasibility, suitability, and attractiveness of each contract.
- Allocate sufficient time and resources for preparing and submitting bids, ensuring they meet the deadlines and specifications of the buyer.
- Understand the changes introduced by the Procurement Act 2023 and adapt their approach accordingly.
Thornton & Lowe, a specialist SME bid writing consultancy, can help bidders win more public sector tenders through understanding procurement and how to effectively bid within open tendering.
Tender Questions in Open Procurement
In an open tender procedure, or open procurement, you may encounter various questions related to your company's experience, capabilities, and proposed solution. Here are some common tender questions you might be asked:
- Company Information
- Please provide an overview of your company, including its history, structure, and key personnel.
- What is your company's financial stability? Please provide audited financial statements for the past three years.
- What is your company's experience in delivering similar projects or services?
- Technical Capability
- Please describe your company's technical expertise and resources relevant to this tender.
- What is your company's approach to quality assurance and quality control?
- How will you ensure that the project or service is delivered on time and within budget?
- Proposed Solution
- Please provide a detailed description of your proposed solution, including its features, benefits, and how it meets the tender requirements.
- What is your project plan, including milestones, deliverables, and timelines?
- How will you manage risks and issues throughout the project or service delivery?
- Staffing and Resources
- Please provide the CVs of key personnel who will be involved in the project or service delivery.
- How will you ensure that you have sufficient staffing and resources to deliver the project or service?
- What is your approach to staff training and development?
- Innovation and Value-Added Services
- How does your proposed solution innovate or improve upon existing approaches?
- What value-added services can you offer to enhance the project or service delivery?
- How will you ensure continuous improvement throughout the project or service delivery?
- What Social Value commitments can you make related to this project? Detail ant prior Social Value examples you have delivered.
- Pricing and Commercial Terms
- Please provide a detailed breakdown of your pricing, including any assumptions or exclusions.
- What is your proposed payment schedule?
- Please confirm your acceptance of the tender's commercial terms and conditions.
- References and Case Studies
- Please provide references from previous clients who can attest to your company's performance and capabilities.
- Please provide case studies or examples of similar projects or services you have delivered successfully.
These are just a few examples of the types of questions you may encounter in an open tender procedure. The specific questions will vary depending on the nature of the project or service being procured and the requirements of the buying organisation. It's essential to carefully review the tender documents and respond to all questions thoroughly and accurately to maximise your chances of success.
Tender clarification questions can be related to the tender response process itself, pricing and budgets, quality performance requirements, and more.
