[Carbon Neutral Copy]

As someone with experience of the public sector tender process, I thought it would be useful to share some of what I know, in case it can help other small businesses through the maze that is public sector tendering.

The Government recently professed its intention to do more business with SMEs, encouraging more small business owners to tender for public sector contracts and making the process more accessible. Whether this has actually happened or not is a moot point, but there are opportunities out there if you know where to look and how to navigate your way around the red tape and bureaucracy!

Why should I bother pitching for public sector contracts?

By and large, public sector contracts are recession-proof. Regardless of the state of the economy, public services must still be provided. Having a public sector client (or two!) can offer your business a certain amount of financial stability through an economic downturn.

There are many other benefits of public sector contracts:

• Often long term
• Can result in repeat business
• Guaranteed revenue
• Can open the door to other opportunities
• Regular payment
• Great for securing references / business credibility

Small businesses can offer both innovation and flexibility, which are great plus points in public sector procurement.

Where can I find public sector tender opportunities?

There are various different ways in which you can find out about public sector tenders. Some public bodies have a dedicated area of their website (usually under the heading ‘procurement’) with notices of contract opportunities.

So once you have decided which public sector organisations you would like to work with (for example, the NHS, local government, police authorities), you can trawl their websites for opportunities.

This can be quite labour intensive, so if you simply don’t have the time to do this, you can register with one of the many procurement portals to find relevant opportunities. Some of these charge, some offer free trials and some offer limited access for free with full access available at a cost.

A good place to start is www.supply2.gov.uk, which is a great resource for lower value public sector contracts (typically worth under £100,000). You can register for free, although you have to choose a geographical area to receive contract opportunities for. If you would like information on additional areas or the whole country, you will need to upgrade your membership.

Other sources of information on public sector tender opportunities include:

• Trade magazines
• Local and national press
• ‘Meet the buyer’ events

Can small businesses really win public sector contracts?

Large businesses account for around 90% of all public sector contracts at the moment. But if the Government is true to its word in making the process easier and more accessible to the small business owner, this is likely to change.

There are opportunities out there for small businesses to tender for – and win – public sector contracts. You just have to know where to look and how to negotiate your way through the process without getting tied up in red tape.

And I am not just saying this. I am living proof that small businesses do win public sector contracts!

Vicky

FOOTNOTE: What the OJEU ‘eck is a PQQ?

Many businesses are put off from tendering for public sector contracts because of the bureaucracy and red tape involved (a necessary evil, to a large extent, for reasons of transparency and accountability). Others, however, give up on trying to decipher and decode the jargon and acronyms.

I won’t cover them all for fear of putting you to sleep, but below are a few of the important terms and phrases to know about:

OJEU – Official Journal of the European Union – public sector procurement is subject to stringent rules and legislation. Low-level contracts can be procured for at a local level but for contracts with a value exceeding c£90,000, European Union rules come into play and the tender must be published in the OJEU. It can then be seen across the EU and not just advertised locally.

ITT – invitation to tender – a document sent out to interested parties, containing information about the contract and details of what needs to be included in any tender documents submitted.

RTT – response to tender – the documentation that you complete and submit as part of the tendering process.

PQQ – pre-qualification questionnaire - used by public sector organisations to identify businesses with the technical capability to fulfil a given contract. It forms part of what is often referred to as a ‘restricted tender’ and only those passing the PQQ will receive an invitation to tender.

Framework agreement ­– these allow public sector organisations to use the services of companies on the agreement without having to go through the lengthy procurement process. A framework contract is developed, for which businesses can compete to win. Successful companies are added to a framework database and are called upon to supply goods/services when needed without having to produce a formal tender.

Preferred supplier list – some public sector organisations hold a preferred supplier list. The normal procurement rules apply so you are not guaranteed work from being on a list, but as some organisations limit their ITTs to businesses on the list, there will be more opportunities to tender if you can get yourself on a preferred supplier list. These lists are renewed every few years, so even if you can’t get on straight away, there may be opportunities in the future.

[admagic]

Originally Posted by Carbon Neutral Copy

As someone with experience of the public sector tender process, I thought it would be useful to share some of what I know, in case it can help other small businesses through the maze that is public sector tendering.

The Government recently professed its intention to do more business with SMEs, encouraging more small business owners to tender for public sector contracts and making the process more accessible. Whether this has actually happened or not is a moot point, but there are opportunities out there if you know where to look and how to navigate your way around the red tape and bureaucracy!

Why should I bother pitching for public sector contracts?

By and large, public sector contracts are recession-proof. Regardless of the state of the economy, public services must still be provided. Having a public sector client (or two!) can offer your business a certain amount of financial stability through an economic downturn.

There are many other benefits of public sector contracts:

• Often long term
• Can result in repeat business
• Guaranteed revenue
• Can open the door to other opportunities
• Regular payment
• Great for securing references / business credibility

Small businesses can offer both innovation and flexibility, which are great plus points in public sector procurement.

Where can I find public sector tender opportunities?

There are various different ways in which you can find out about public sector tenders. Some public bodies have a dedicated area of their website (usually under the heading ‘procurement’) with notices of contract opportunities.

So once you have decided which public sector organisations you would like to work with (for example, the NHS, local government, police authorities), you can trawl their websites for opportunities.

This can be quite labour intensive, so if you simply don’t have the time to do this, you can register with one of the many procurement portals to find relevant opportunities. Some of these charge, some offer free trials and some offer limited access for free with full access available at a cost.

A good place to start is www.supply2.gov.uk, which is a great resource for lower value public sector contracts (typically worth under £100,000). You can register for free, although you have to choose a geographical area to receive contract opportunities for. If you would like information on additional areas or the whole country, you will need to upgrade your membership.

Other sources of information on public sector tender opportunities include:

• Trade magazines
• Local and national press
• ‘Meet the buyer’ events

Can small businesses really win public sector contracts?

Large businesses account for around 90% of all public sector contracts at the moment. But if the Government is true to its word in making the process easier and more accessible to the small business owner, this is likely to change.

There are opportunities out there for small businesses to tender for – and win – public sector contracts. You just have to know where to look and how to negotiate your way through the process without getting tied up in red tape.

And I am not just saying this. I am living proof that small businesses do win public sector contracts!

Vicky

FOOTNOTE: What the OJEU ‘eck is a PQQ?

Many businesses are put off from tendering for public sector contracts because of the bureaucracy and red tape involved (a necessary evil, to a large extent, for reasons of transparency and accountability). Others, however, give up on trying to decipher and decode the jargon and acronyms.

I won’t cover them all for fear of putting you to sleep, but below are a few of the important terms and phrases to know about:

OJEU – Official Journal of the European Union – public sector procurement is subject to stringent rules and legislation. Low-level contracts can be procured for at a local level but for contracts with a value exceeding c£90,000, European Union rules come into play and the tender must be published in the OJEU. It can then be seen across the EU and not just advertised locally.

ITT – invitation to tender – a document sent out to interested parties, containing information about the contract and details of what needs to be included in any tender documents submitted.

RTT – response to tender – the documentation that you complete and submit as part of the tendering process.

PQQ – pre-qualification questionnaire - used by public sector organisations to identify businesses with the technical capability to fulfil a given contract. It forms part of what is often referred to as a ‘restricted tender’ and only those passing the PQQ will receive an invitation to tender.

Framework agreement ­– these allow public sector organisations to use the services of companies on the agreement without having to go through the lengthy procurement process. A framework contract is developed, for which businesses can compete to win. Successful companies are added to a framework database and are called upon to supply goods/services when needed without having to produce a formal tender.

Preferred supplier list – some public sector organisations hold a preferred supplier list. The normal procurement rules apply so you are not guaranteed work from being on a list, but as some organisations limit their ITTs to businesses on the list, there will be more opportunities to tender if you can get yourself on a preferred supplier list. These lists are renewed every few years, so even if you can’t get on straight away, there may be opportunities in the future.

Useful post!!!

Another couple of thoughts...

When I was in public contracts (big time)
( several big councils, colleges, hospitals)



I found tendersdirect though pricey was useful.

Next...

Comply with all their whims!

You will find to tender, as often as not they want to see all sort of stuff like

Health and Safety policy
Risk assessments (if ever you go on their sites)
Equal opportunities policy
Environmental policy


Ignore them at your peril......

And follow precisely the instructions for tendering!!

When they say, it must go in an unmarked envelope of a specific design
DO IT, or they will kick you out!!

These ARE JOBSWORTHS !!! Accept it.

[Alvin]

Er May be relevant.

http://news.bbc.co.uk/1/hi/business/7351867.stm

Alvin