A Guide to Bidding for Public Sector Contracts

1. A Guide to Bidding for Public Sector Contracts Gareth White MCIPS 3rd Sector Procurement Officer Lancashire County Developments Ltd

2. Introduction The public sector spends a huge amount each year and is always looking for new suppliers. However small your business, there are always opportunities to supply this market. Even if you are already supplying one part of the public sector, it is worth looking for opportunities in other areas.

3. What is the Public Sector The public sector employs more than 25% of the UK workforce and includes: central civil government departments and agencies; the NHS and its local trusts; the Ministry of Defence; the Northern Ireland Assembly, the National Assembly for Wales and the Scottish Executive; Local authorities; Universities; and Colleges In the North West in 2002/03 the total identifiable public sector expenditure on services was �40.9bn (NWDA).

4. The Public Sector 467 Local Authorities in England & Wales 131 Higher Education Institutions 162 Further Education Colleges 24,000 State & Independent Primary Schools 3,500 Secondary Schools 303 NHS Trusts 42 Police Services 39 Ambulance Services 25 Government Departments Agencies attached: MOD 28

5. What are the benefits to you? Usually long standing, stable customers Huge Public Sector spend Good payers & proper arrangements Keen to work with a broad range of suppliers Chance to get involved in exciting projects that you will not find elsewhere Subject to public procurement legislation You may also find that trading successfully with the public sector can give added credibility with private-sector customers

6. What are the possible pitfalls? Can be a lengthy and expensive process to winning work Different formats and forms to private sector tenders Decision-making processes can take longer than in commercial organisations Pre qualifying criteria can be strict

7. How does Public Sector Procurement Work? Public sector procurement must comply with UK law, EU Directives (International laws) and internal rules such as SO�s (standing orders) and SFI�s (standing financial instructions). If the total value of the contract (value is usually based on 3 year period) is above certain EU procurement limits then the public sector body must advertise the business throughout Europe in the Official Journal of European Union.

8. EU Procurement The current EU procurement limits as 31st January 2006 are: Supply and Service contracts �144,371. However, central government bodies which are subject to WTO GPA (World Trade Organisation Government Procurement Agreement) have a limit of �93,738. Works contracts �3,611.319. Utilities contracts �288,741. Please note that these threshold limits are net of VAT.

9. EU Tender Procedures Under the EU regulations there are three types of tender procedure available to procurement officers: Open Procedure. Under this, all potential suppliers who express an interest in tendering must be invited to tender. This particular procedure allows companies to apply without prior selection. The timescale for the open procedure is that companies have 52 days to return tenders.

10. EU Tender Procures Continued Restricted Procedure. Under this the number of interested suppliers to whom invitations to tender are sent may be restricted, but there must be no discrimination between suppliers on grounds of nationality or Member State. This is usually a two/three stage process in which companies will be shortlisted to receive tenders once they have passed certain pre selection criteria. The timescales for this procedure are 37 days for the companies to register an interest and 40 days from despatch of tender to return.

11. EU Tender Procures Continued Negotiated Procedure. There are two types of Negotiated Procedure: with the publication of a notice, and without the publication of a notice. There are strict rules concerning the use of the Negotiated Procedure and very few contracts qualify. One of the rules is that it may be used "when, for reasons of extreme urgency brought about by unforeseeable events, the time limits for the Restricted or Open Procedures cannot be met". Only chosen suppliers are invited to negotiate contracts.

12. Where are Opportunities Advertised? Public sector opportunities may be advertised in a wide variety of places. Contracts below the EU limit are often advertised in trade journals, increasingly on websites, and occasionally in national or regional newspapers. However, although encouraged to do so, some public-sector organisations do not advertise low-value contracts at all. You may benefit from identifying the appropriate individual in an organisation, and giving them information about your business.

13. Where are Opportunities Advertised? Official Journal of the European Union (OJEU � formerly called OJEC) Almost all public procurement contracts for business worth more than an EU limit, which is roughly �144,371, must be published in the daily supplement to the Official Journal of the European Union (OJEU). This provides information on the current requirements and invites suppliers to express an interest, or to tender directly in some cases, depending on the contract procedure. It also sets out information about contracts that have been awarded.

14. Useful Websites Supply2.gov.uk Supply2.gov.uk is a dynamic new government-backed service designed specifically to give companies easy access to lower-value contract opportunities (typically worth under �100,000) offered by the public sector. This portal brings buyers and suppliers together for the first time and is the first portal of call for lower-value business opportunities. Nearbuyou Nearbuyou is a national trading network for social enterprises and those that wish to trade with them. Find tenders, offers and requests or�search for social enterprises near you.

15. Useful Websites Tenders Direct Tenders Direct is a tender tracking system that automatically sends you relevant contract opportunities directly by email. Tenders Tenders is a searchable database of European public sector contracts. Ted Publications Tenders electronic daily � the on-line version of the supplement to the Official Journal of the European Union. SIMAP Provides information on public sector electronic procurement

16. Useful Websites BiP Solutions BiP Solutions is today Europe's leading provider of public sector contract information, offering suppliers and buyers access to what is probably the world's largest database of current open contract opportunities, which includes the OJEC/TED. Over 300 UK government organisations use BiP Solution's internet solutions to create and manage their contract information. BiP Solutions is a member of the EU's taskforce for standardising the way in which tender information is created, submitted and disseminated.

17. Responding to Advertised Contracts The contract advertisement/notice will invite companies to submit an expression of interest for a contract. Once expressions of interest have been received, companies may be required to submit supporting information either via a pre qualification questionnaire or within the ITT (invitation to tender) package.

18. Responding to Advertised Contracts It is important that suppliers provide all the information requested and respond by the due date otherwise they may be rejected from the process. The type of information required may include all or some of the following: Company details Financial information Management and business structure Resources and staff training Quality assurance Environmental matters Insurance cover Equality and diversity policies Health and safety practices References

19. The Tendering Process The next stage, after a company has replied to an OJEU notice or advertisement, is the supplier will either be sent a tender (If the open tender procedure has been used) or sent a pre-tender questionnaire. The responses from the completed pre-tender questionnaire will be used to assess whether the company can meet the public sector bodies requirements for that particular contract. If the company can meet the relevant requirements they will be shortlisted and will receive an invitation to tender package or ITT.

20. ITT � Invitation to Tender Within the invitation to tender package there should be as a minimum: A letter of invitation outlining details of all the documents in the invitation to tender package and the closing date for return of tenders. Standard public sector body terms and conditions Supplementary terms and conditions specific to the particular goods, works and services being tendered for. Specification. Pricing schedule.

21. Tenders It is essential tenders are returned on time and to the address detailed in the tender package. Any tenders received after the closing date and time will be disqualified. The returned tenders should all be opened at the same time and evaluated against the criteria detailed in the tender documentation.

22. Debriefs Both the successful and unsuccessful suppliers should be notified in writing or by official electronic communication. All suppliers should be offered the opportunity to have a contract debrief meeting. The contract debrief is an opportunity for companies to find out why they were unsuccessful and where they need to improve to help make their bid more successful next time. Please note each contract is dealt with on an individual basis. Both successful and unsuccessful companies are not automatically considered for any other contract.

23. Conclusion You may already be conscious of business opportunities that are out there. But you may not have felt that the processes of bidding to win service contracts, or the pitfalls of entering the contract culture, are for you. One message is clear from those who have followed this path before: the best course of action is to take one careful step into the field and to seek experience through a modest contract or sub-contract.

24. Thanks����. �for your time and for listening. Any questions?

25. Website Addresses www.ogcbuyingsolutions.co.uk www.pasa.doh.gov.uk www.dh.gov.uk www.bipcontracts.com www.supplyinggovernment.gov.uk www.supply2.gov.uk www.tendermatch.com www.contraxweekly.co.uk www.contracts.mod.uk www.dcicontracts.com www.constructionline.co.uk www.cips.org www.nearbuyou.co.uk www.sea-online.net www.simap.eu.int http://ted.publications.eu.int www.tenders.co.uk www.tendersdirect.co.uk

26. My details Gareth White - MCIPS 3rd Sector Procurement Officer Lancashire County Developments Ltd Robert House Starkie Street Preston PR1 3LU Tel: 01772 551888 E-mail: gwhite@lcdl.co.uk