How tenders work - a look into how councils run tenders

Summary

This video explains the public sector tendering process, highlighting how buyers approach tenders to ensure the effective use of taxpayer money. It outlines key steps, including creating a business case, determining procurement routes, drafting tender documents, and the scoring process. It emphasizes the importance of transparency and competition in awarding contracts and encourages suppliers to engage in public meetings, register on procurement portals, and seek feedback to improve future bids. By understanding this process, potential bidders can enhance their chances of success in securing contracts.

Takeaways

• 😀 Understanding how public sector tenders work can enhance your bidding strategy.
• 📄 A business case outlines the need for a contract and requests budget approval from relevant authorities.
• 🔍 Public sector contracts must be awarded through open, fair, and transparent processes.
• ⚙️ Framework agreements allow for quicker procurement by using pre-qualified suppliers.
• 💰 Lower-value contracts may utilize a Request for Quote (RFQ) focusing on price rather than quality.
• 📑 Tender documents specify requirements and are crucial for bid preparation.
• 🌐 Tenders are published electronically on procurement portals; registration is essential to participate.
• ❓ Suppliers can ask questions during the tender period, and all clarifications are made public.
• 📊 Scoring involves compliance checks and evaluations by a panel to determine the best bid.
• 🏆 Post-award, feedback should be requested to improve future tender submissions.

Q & A

What is the primary purpose of understanding how public sector tenders are run?

Understanding how public sector tenders are run helps bidders target the motivations and priorities of buyers, maximizing their tender scores and increasing their chances of securing contracts.

What is a business case in the context of public sector procurement?

A business case is an internal report that details what the council plans to purchase and why. It outlines the need for a new contract, the budget required, and the approval process from elected officials.

What are the three principles governing the procurement route?

The three principles are that the process must be open to all businesses, fair in scoring without advantages to specific suppliers, and transparent regarding how tenders will be scored.

What are procurement frameworks, and why are they preferred?

Procurement frameworks are pre-established agreements that allow buyers to award contracts quickly without running a tender process. They are preferred because they save time and confirm that suppliers are qualified.

What types of documents are included in tender submissions?

Tender submissions include a specification or statement of requirements, quality and price scoring criteria, and guidance for suppliers.

How are tender opportunities published to suppliers?

Tender opportunities are published electronically through procurement portals, and notices are often posted on free websites like Contracts Finder or Finder Tender.

What is the process for asking clarifications during the tendering stage?

Suppliers can register their interest to access tender documents and ask questions by a specified deadline. All clarification responses are published to ensure all bidders receive the same information.

Who scores the tender submissions, and how is scoring moderated?

A panel of key stakeholders scores the tender submissions based on predefined criteria. They meet after scoring to discuss and agree on final scores to ensure fairness.

What happens after a contract is awarded?

After a contract is awarded, due diligence checks are performed on the winning bidder, including financial checks and collecting necessary documentation before the contract is finalized.

What should bidders do if they do not win a tender?

Bidders should always ask for feedback to understand why they lost marks and use this information to improve future submissions.