How to bid for contracts

The tendering procedures

When looking to bid for contracts above the OJEU threshold, at the beginning of the process the awarding authority will specify which tendering procedure is to be used in each tender exercise. This will appear in the Contract Notice.

The tendering process can take different structured forms, but essentially they set out the different steps you must follow in order to bid for and win the contract.

There are  five procedures most usually used to award contracts. They are:

Restricted Procedure – This procedure has two stages. The first stage is often referred to as the Selection Stage (SQ) but is identical to the selection stage in the Open Procedure. Once the SQs have been evaluated, the buyer will invite a minimum of five contractors to respond to the Invitation to Tender (ITT) by a set deadline. The buying authority will evaluate the responses and the contract will be awarded to the successful bidder.

Competitive Procedure with Negotiation – This procedure mirrors the Restricted procedure in its structure but is intended to be used for the procurement of innovative solutions, or where customisation may be required, or where a detailed specification cannot be easily produced or there is a need for negotiation with bidders. Where negotiation is required, this will take place after the return and evaluation of tenders and before an award decision is made. Bidders engaged in the negotiation stage can be required to submit revised or new tenders following the conclusion of negotiations.

Competitive Dialogue – This procedure is also a two stage process like the Restricted procedure and is used in the same fashion as the Competitive Procedure with Negotiation, but the process is somewhat different. Following the SQ stage there is a stage titled ‘Invitation to Participate in Dialogue’ (ITPD). At the ITPD stage, buyers will discuss with those successful at SQ the outline of the solutions they are proposing and may undertake mini bidding rounds to narrow down the number of bidders to take to the next stage. Following conclusion of the ITPD stage, the buying authority will move to the full Dialogue stage of the procedure and will work closely with those invited to this stage, to test and assess the solutions being put forward. Only once the authority determines that they have exhausted the dialogue and can proceed to tender will they issue the ITT, evaluate responses and award the contract.

Innovation Partnership – This is a totally new procedure for the procurement of goods, works or services which cannot be met by any solution currently available in the market. It is designed to encourage genuine innovation and it is unlikely to be used by most authorities or contractors. However, if your organisation offers cutting-edge innovative solutions, you could well encounter it. It mirrors the Competitive Procedure with Negotiation in its structure and allows the buyer to undertake research and development with the aim to delivering an outcome. The buyer may contract with a single partner or with a number of partners.

Here’s a breakdown of the main procedures and the different steps towards awarding a contract:

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Remember a recent change to the MOD pre-qualification process is the requirement to be Cyber Essentials certified

How to make the most of the tender documentation

– Read the documentation carefully, and read it more than once!

– Pay attention to the evaluation criteria and weightings that will be used to score responses. This information tells you which elements are most important to the buyer, and what they will be assessing.

– Make sure your proposal is for what the buyer wants, not just what you want to deliver, or have provided previously.

Once you have the documents necessary, you can start building your response.

A PQQ will ask for all of your organisational information – name, type of company, VAT number, registered addresses and so on – which paints a clear picture of who you are, what you have done before and how you did it.

The PQQ will ask questions about the financial and technical experience of your company and will seek evidence relating to issues such as Health and Safety, Equalities, Quality Control (eg ISO)and Qualifications, as well as requiring references from past clients and perhaps your bankers.

Are you a Living Wage employer? This is becoming a crucial question your business must answer if you’re to be successful in public procurement. Recently in Scotland, being a Living Wage employer became  a requirement for all firms looking to win business with the Scottish public sector.

These are all questions covered by the PQQ and you should be able to answer them in full.

Your PQQ checklist

To help you, we’ve developed a quick checklist of information you will be asked to provide at the PQQ stage. The following points should help you to put together a good quality PQQ:

	Give yourself plenty of time. You need to answer the questions carefully, make sure you have all the necessary paperwork to hand, and that this is up to date. This can take time, so factor this in from the beginning.
	Make sure everything is up to date. This is especially important for any policies that you submit, which must be up to date and in accordance with all current legislation, or they may be considered invalid.
	Pay attention and be thorough. Read the PQQ carefully and, if you are unclear about any of the requirements, contact the person named within the documents you received.
	Follow the instructions to the letter. Inaccurate or incomplete forms, or the failure to follow the instructions is likely to result in your application scoring badly or even being rejected.
	Remember what you already know about the contract. Although at this stage you are supplying information about your organisation, if you tailor this information and make sure it’s relevant to the advertised work, and you demonstrate an understanding of what will be required, your PQQ will score more highly.
	Brag. Don’t be afraid to use the PQQ to promote your organisation and provide details of experiences, achievements and why you think your company not only has the ability to deliver, but is the best to deliver the project.
	Make it look good. Presentation is important. The overall presentation of your PQQ and supporting information will not only create a good impression, it will make it a lot easier for a buyer to evaluate. Good presentation can come down to small things such as clear type face, line spacing and use of bullet points.
	Be clear. Clearly index or reference any supporting information to the question it relates to. A PQQ that is easy to understand will be easier to score highly.
	Include an executive summary. Everyone likes an executive summary. It’s a clear and simple way to get the main information across quickly and create a good first impression. Include an Executive Summary which briefly introduces your organisation and shows that you understand what you are bidding for and why.
	Proofread. Mistakes look unprofessional. Remember, this is your CV, and typos in a CV are a major no-no.

To make sure you have all of the correct documentation in place before submitting a bid, download this handy checklist to keep you on the right track.

The ITT will include a full specification for the contract requirements, the pricing schedule, instructions for submitting the tender, the terms and conditions which will govern the contract once it is active and any other relevant documentation.

Once submitted, your tender will be scored and, if you’re the best fit to provide the goods, works or services required, you’ll reach the final stage of the process: the Contract.

And that’s it! You’ve done it!

Just kidding. We wouldn’t just skip over the most important part of the process!

Writing and submitting your full tender response is the single most important part of winning work with the public sector. It’s literally where the contract is won or lost.

Now that you know how to bid…

It’s time to find out how to win.

Writing a tender response is a skill. It takes time, practice and perseverance. But if done well, it can be your key to winning your next big business opportunity.

We’re going to show you how to write a tender response that wins.

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