Title: Selling to Local Government Bromsgrove BC
1Selling to Local GovernmentBromsgrove BC
2Facilitators
-
- Peter Howarth FCIPS MBA
- MD. SBV LTD / CEO. SOPO
-
- Alex Haslam MCIPS
- Procurement Adviser
- Bromsgrove Redditch Councils
3Outline
Introduction Peter Howarth
Rules and regulations
Business Opportunities in the Public Sector
Accessing useful information
Selling to Local Councils In Worcestershire Alex
Haslam
How to maximise your chances of winning
Peter Turvey Worcestershire Opportunities
Coordinator 2012 Games
Lunch -Networking
4Business opportunities in the public sector
5The public sector landscape
- Local Government
- Emergency Services
- National Health Service
- Universities and Colleges
- Regional non governmental bodies
- e.g. Business Link
- Central government offices
- MOD Armed forces
- Others e.g. Olympic 2012
6Local Government
- Local government is made up of over 400 councils
- County councils
- Metropolitan councils
- Unitary Councils
- London Boroughs
- District / Borough
- Not to mention 1000s of Parish councils
- Covering services from
- archaeology to zoology
7Local Government
- The main services provided include
- Adult Services
- Children Services
- Transport
- Housing/ Benefits
- Leisure /Museums /Libraries
- Economic Development
- Trading Standards /Environmental Health
- A host of other activities including Procurement
8Local government expenditure on procurement
Local Government
45bn Procurement Spend
Plus 4.5 billion cost of procurement
9Policy Drivers in government Procurement
Sustainability Agenda
CSR2007
Best Value LAA/CAA
DCLG
E-procurement
National Procurement Strategies
Varney report
RIEPS
The Efficiency Agenda
EU Directives
Audit Commission
Local Government Acts /White Papers
Glover report
10 Operational Drivers to improve procurement
- VFM/ Best Value
- Continuous improvement of service delivery
- Public Demands as taxpayer and customer
- Budgetary constraints
- Inspection Regimes e.g. (CAA)
- Collaboration
- Rising costs
- Competition for suppliers
- Political will
11Socially Responsible Procurement
Relates to your Corporate Social Responsibility
Policy
12Benefits of selling to the local public sector
- Consistent levels of expenditure
- Common requirements across the market
- Accounts paid on time
- Risk is low (they dont go bankrupt)
- The network opens other opportunities
- Relationships tend to be long term
13Consideration
- Do you understand how these policies impact on
your chances of winning business? - Can you add value to the local authority or
public sector goals? -
- If so How ? Do you need to change?
14Selling to Local Councils
15Alex Haslam MCIPS
- Retired Civil Servant Ex Cabinet Office (TBA),
- Office of Government Commerce (OGCbs)
- HM Treasury
- Formerly Contracts Consultant within NHS CfH,
- NHSIA and NHS Trusts (Birmingham)
- Adviser to French Ministry of Finance on
- Procurement Cards
- Currently Procurement Adviser to Bromsgrove
District - Council, Redditch Borough Council
- Member of SOPO Executive Committee
40 Years International experience in Private
Public Sector Procurement
16Councils in Worcestershire
- Worcestershire County Council
- Redditch District Council
- Bromsgrove District Council
- Worcester City Council
- Malvern Hills
- Wychavon District Council
- Wyre Forest
17Where to find Council Opportunities locally
- For example
- Bromsgrove DC Website - http//www.bromsgrove.gov.
uk/cms/business. - Look under Business
- Then Tenders and Contracts
18Procurement organisations in local government
- Individual councils e.g. Redditch /
Worcestershire CC (400) - Consortia
- YPO, ESPO,WMS PRO 5
- CBC, NEPO
- LCSG, Black Country Consortium
- Worcester Partnership
- In Addition organisations such as
- REIPs (West Midlands)
- E Marketplaces- IDeA Marketplace, Zanzibar
- Other public sector organisations e.g. OGC Buying
Solutions - Private sector groups The Consortia, Nottingham
ES - Third Sector organisations providing public
services
19ConsiderationNeed to know
- You need to understand how they go about their
business, their processes - What their business is,
- What do they buy, How do they buy
- Importance of the supply chain. What is your best
route to market ? How do they go to market?
20Rules and Regulations
21Internal rules and regulations
- The Procurement Strategy
- Standing Order 46 (SO46)
- Procurement Code of Practice
- Thresholds How they affect the Procurement
Route - The Tender Process
- PQQs (Pre-Qualifications Questionnaires)
- ITTs (Invitation to Tender)
22EU tenders
- EU Treaty purpose to move barriers to
- free trade
- Principles Non Discrimination
- Transparency, Equal
treatment, - Mutual recognition,
Proportionality - Public Contract Regulations 2006
- ( EU Directive 2004/18/EC)
- Case Law
23Thresholds (net VAT)
Current EU Basis
Supplies Part A Services Central Govt/NHS Local Govt, bgpl Part B Services Supplies/Services PINs Works and Works PINs Small Lots for Supplies Services Small Lots for Works 90319 139893 139893 509317 3,497313 54327 679090 130,000 206,000 206,000 750,000 5,150000 80,000 1,000,000
NB these figures may change from Jan 1st 2010 NB these figures may change from Jan 1st 2010 NB these figures may change from Jan 1st 2010 NB these figures may change from Jan 1st 2010
24Underlying arrangements
- Open any undertaking who applies may tender
- Restricted any undertaking can apply to be
selected to be invited to tender - Negotiated with a call for competition and
competitive dialogue any undertaking can apply to
be selected to participate - Accelerated restricted/negotiated
- for use only in exceptional circumstances of
urgency not of the contracting authoritys making
25Below Threshold
- Even below these thresholds European law requires
that a Contracting Authority must ensure a degree
of advertising sufficient to ensure competition, - The precise scope and form of the advertising
required depends on the nature of the services in
question - Covers all contracts under threshold levels and
Schedule IIB - There is not a de minimus level suggested at the
moment - Authorities need to demonstrate value for money
is being obtained.
26Sub OJEU Tenders
- For contracts below the EU threshold but above a
figure agreed by each Authority local financial
regulations apply. - Advertised on the Authoritys website, locally
and in trade journals - May use e portals e.g. Supply2Gov
- OJEU principles of non discrimination etc still
apply but not full processes - Refer to councils own procedures for governing
- rules
27Quotations
- Quotes are used for values under the tender limit
set by each Authority - Usually minimum of three suppliers
- Usually less rigid, Invites maybe to known
suppliers - Can be sealed but more normally open offers with
short return time. - Key area for SMEs
- Overall the market is segmented by value and
commodity - May still be caught by EU Treaty requirements
28Procurement Techniques
- Different procurement techniques may be used to
establish a contract. - One off contract
- Framework agreements
- Dynamic purchasing system
- Electronic auctions
- The competitive dialogue procedure
- N.B. Central purchasing bodies
29Timescales
- Different timescales apply to different
procedures e.g. open ,restricted - Make sure you are aware of those that apply to
you on each occasion - Keep to them you will be disqualified if you do
not - The timescales referred to in legislation are
minimum requirements
30London 2012 Olympic Paralympics Games
- Business Opportunities
- Peter Turvey
- Worcestershire Opportunities Coordinator 2012
Games
31Wimbledon Tennis
North Greenwich Arena 1 Basketball (Finals),
Gymnastics
London 2012
- Olympic Delivery Authority (ODA)
- Building infrastructure and permanent venues
- Publicly funded
- London Organising Committee for the Olympic and
Paralympics Games (LOCOG) - Staging the event
- Temporary venues
- Commercially funded through-
- sponsorship
- ticket sales
- licensing programme
- broadcasting rights
Lords Cricket Ground Archery
Horse Guards Parade Volleyball (Beach)
Wembley Football
32-
- Facts
- Suppliers are spread across the UK, with 46
based outside of London. - Small firms have won 68 per cent of the
contracts advertised so far by the ODA - (Small Business News (_at_ 26th September 2009)
- The vast majority of business opportunities
remain to be let
33Supply Chains
- Some Key Contractors
- Sir Robert McAlpine (Olympic Stadium)
- Balfour Beatty (Aquatics Centre)
- ISG InteriorExterior (Velodrome)
- Carillion (Main Press Centre)
- BAM Nuttall (Groundworks and Bridges)
- Morrisson (Eton Dorney)
- Barhale (Sewerage System)
- CLM Consortium (Project Management)
34Example of an ODA Supply Chain
ODA/DP
Olympic Park
Aquatics Centre MC
Tier 1 contractors
Tier 2 contractors
Swimming Pool MC
Tier 3 contractors
Bricklaying Subcontractor
Tier 4 contractors
Brick Merchant
Distribution Company
Tier 5 contractors
Brick Manufacturer
Tier 6 contractors
Quarry
Tier 7 contractors
CompeteFor is targeting around 20 of the
contracts in the London 2012 supply chain Not to
mention those flowing from the five host Boroughs
and others
35Direct Contracts
36LOCOG opportunities will be broadly split over
eight categories, each the responsibility of a
procurement manager in the LOCOG procurement team
- Soft Facilities Management and Catering
- Catering Food Services
- Cleaning Waste
- Clothing Uniforms
- Technology
- Reprographics Imaging
- Location and Navigation Systems Components
- Application Development Services
- Transport and Logistics
- Fleet Operations
- Storage
- Mail and Cargo Transport
- Venues and Hard Facilities
- Commodities, Power Electrical
- Town Planning
- Fittings Equipment
- Artists, Performance and Events
- Photographic Video Services
- Professional Artists Performers
- Medal Design
- Sports
- Field of Play / Sports Flooring
- Medical Laboratory Services Equipment
- Motor Boats
- Security
- Security Contractors
- Security Equipment
- Transport Security (CCTV)
- Services
- Public Relations
- Training Delivery Materials
- Volunteer Recruitment
37Just to give you an idea of the scale of the
opportunity LOCOG will require over 1m pieces
of sports equipment
- As well as sports equipment LOCOG will also need
a wide range of goods and services to support the
venues and ensure the Games run smoothly - 17,000 beds in the Olympic village
- Weather forecasting services
- Over 400 temporary generators
- Language translation services.
- From the obvious
- over 1,000 shuttlecocks
- 1,200 hockey balls
- 65,000 towels
- 44 Paralympic table tennis tables
- To those slightly more obscure items
- 92 ball pumps
- 3 metal detectors
38Not all of LOCOGs opportunities will be met
through direct procurement. Many will be met
through both existing and new sponsorship deals,
and these deals in turn may generate supply chain
opportunities for a large number of SMEs
39Sponsors
- TOP Sponsors
- Coca Cola, Atos Origin, GE, McDonalds, Omega,
Samsung, Visa, Panasonic, Acer - Domestic Sponsors
- T1 Adidas, BP, British Airways, BT, EDF Energy,
Lloyds TSB, - T2 Adecco, Cadbury, Deloitte, Cisco, UPS, Thomas
Cook - T3 Airwave, Atkins, Boston Consulting, Crystal,
Freshfields, Holiday Inn, McCann Worldgroup,
Nielsen, Populous, Ticketmaster, Trident
40Advance Training Camps
- Pre-Games Training Camp Guide Sent to all
National Olympic and Paralympic Committees - Over 600 Venues across UK 33 West Midlands
Venues - Paralympic Training Camp Guide 170 Venues - 14
in West Midlands - Test events in advance of 2012
- World Half-Marathon Championships 2009
- European Gymnastics Championship 2010
- World Wheelchair Basketball Championships, NIA,
2010
41 Pre Games Training Camps in Worcestershire
Herefordshire Worcester Warriors Rugby Club
Archery University of Worcester Olympic Sports
Basketball, Fencing, Table Tennis, Indoor
Volleyball Paralympic Sports Boccia, Goalball,
Table Tennis, Volleyball sitting and Wheelchair
Basketball Bromyard Equestrian Centre
Equestrian Dressage, Equestrian Jumping,
Paralympic Equestrian Bromyard Bowmen
Archery Royal National College for the Blind
Boccia, Goalball, Paralympic Athletics,
Paralympic Five-a-side Football, Paralympic Judo,
Paralympic Power lifting, Paralympic Seven-a-side
Football, Paralympic Table Tennis, Paralympic
Volleyball (sitting), Wheelchair Basketball,
Wheelchair Fencing, Wheelchair Rugby
Preliminary meetings have been held to create a
Worcestershire and Herefordshire Consortium bid
to attract a high profile Olympic/Paralympic Team
to the two counties
42Tourism Hospitality
- Impact of the Games estimated 2 billion in UK
- London 2012 Tourism Strategy www.VisitBritain.org
- Domestic as well as overseas visitors
- After, as well as before and during the Games
- West Midlands attractions shopping
- Much Wenlock, Shrops. Wenlock Olympian Games
- Torch Relays?
43London 2012 Business Network
- Information
- Events
- Opportunities
44 45Registering on CompeteFor
46Policies and Business Link
47- Ensure you have
- Case studies
- References
- Health Safety policy
- Equal Opportunities Policy
- Quality Management Statement
If a company does not meet minimum standards
then the company is automatically referred to
tailored business support
48 Once a companys profile is successfully
published on CompeteFor they are automatically
matched to opportunities and invited by email to
fill out a short tailored application form
Before you submit your application for a
contract, double check the information you are
about to submit. Tailor the information in
your Business Profile to the contract in question
49If you submitted a response and are successful in
being shortlisted, you will receive an e-mail
with "next steps" instructions from the Buyer.
This may include an Invitation to Tender,
Invitation to Quote, or alternative process.
50Searching for Opportunities
51Summary
- Dating Agency
- Like a PQQ
- Business Tool
- Marketing Opportunity
52Businesses in Herefordshire and Worcestershire
registered on CompeteFor _at_ 16th Nov 2009.
(Registered 485)
53Forming a Consortium
www.ready-for-business.co.uk Site that provides
support to companies, access to tenders and help
re finding partners for collaborative working
54 Coming Soon! 2012 Procurement Training
Workshops
Procurement Training
Next Workshop 18th February 2010 Abbey
Hotel, Malvern
Contact Peter Turvey Worcestershire Opportunities
Coordinator 2012 Games petert_at_hwchamber.co.uk Mobi
le 07795 332508
55Sector Reports
Free 2012 Sector Reports Uniquely in the West
Midlands we are producing monthly 2012 Sector
Reports to brief businesses in more depth about
the London 2012 Games. These Business Briefings
are updated monthly and available, FREE at
www.advantagewm.co.uk www.hwchamber.co.uk/2012
Sectors Construction, Environmental
Services, Food Drink, ICT, Interiors
Lifestyles, Medical, Manufacturing, Professional
Services, Screen Image Sound, Tourism, and
Transport.
56Key point With the vast majority of Olympic
contracts still to be awarded and with many
contracts and business opportunities available
outside of London it is vital that Worcestershire
and Herefordshire companies, at very least,
position themselves to have a fighting chance of
winning a contract
57Information Sources
- www.competefor.com
- COMPETE FOR Business Opportunity website from
the Olympic organisers providing direct
opportunities and tender work in the supply
chains of major contractors - www.villagesupplychain.com
- Lend Lease operate this private sector led
development of the athletes village in Stratford
City, east London - www.businesslinkwm.co.uk
- Business Link West Midlands Running 2012
business opportunity and tendering workshops for
West Midlands Businesses. Tel 0845 113 1234 - www.advantagewm.co.uk
- Advantage West Midlands 2012 Webpage (navigate
from Home page). Monthly sector-focussed
business reports for the West Midlands - www.wmfor2012.com
- West Midlands for 2012 Focussed on all
2012-related opportunities for the
West Midlands
58Contact details Peter Turvey Worcestershire
Opportunities Coordinator 2012 Games petert_at_hwcham
ber.co.uk pturvey_at_worcestershire.gov.uk Mobile
07795 332508
59Comfort Break
60Selection of Tenderers and Award Criteria
61Selection of Tenderers
- Advertisement will appear on the OJEU contract
website and in hard copy it is worth subscribing
to magazines such as Contrax Weekly and joining
Supply 2 Gov for below the threshold - Open procedure is open to all ,other procedures
the buyer can reduce the number of participants -
- Minimum number in ITT is 5 for the restricted
procedure and 3 for the negotiated (with
publication of a contract notice) and competitive
dialogue procedures although any number can apply
to be selected - Minimum number must be stated in the contract
notice and must be sufficient to ensure genuine
competition
62Selection of Tenderers
- The first stage of process is request for
expression of interest and then a PQQ - It is the first opportunity to fail and where
most of us do - Purpose of this stage is to provide the
contracting authority with information which will
allow it to reduce the number of participants
identify those companies that are best placed to
deliver the need identified and those who are not - Issues such as economic and financial standing ,
technical capabilities and the candidates
experience are all part of the selection
criteria.
63Selection of Tenderers
- Selection criteria
- If you respond to an advert in OJEU under the
restricted procedure and declare an expression of
interest the first thing you are likely to
receive is the PQQ (Pre Qualification
Questionnaire) - This is an important document ,if you respond
erroneously you are likely to be excluded - For example do not ignore mandatory questions if
you do you will be excluded - Do not answer negatively to mandatory questions
- you will be excluded
- Always qualify your respond if in doubt you will
then get a chance to explain - Do not lie you will be excluded
64Selection of Tenderers
- The type of information required
- Basic Company information e.g. status- plc
- Financial Accounts
- HR Policies
- CVs of Managers ,Professional qualification
- Quality Standards and Awards
- Corporate social responsibility policy (CSR)
- Past Experience and References
- Insurance Policies held
- Health Safety Policy
- Make sure you have it readily available it will
save time
65Potential disqualification
- You can be excluded if you are/or have
- Of unsound economic and financial standing
- A criminal organisation, guilty of corruption,
fraud or money laundering - A bankrupt or in process of winding up?
- Guilty of grave professional misconduct
- Unpaid social security requirements
- Unfulfilled obligations relating to taxes
- No longer suitable to pursue professional
activity - Not technically and professional able
- Seriously misrepresented information
66ITT
- The invitation to tender should include as a
minimum - Covering letter
- information and Instructions to bidders
- Contract terms and conditions
- The specification
- Price schedule
- Details of the procedures to follow
67ITT Preparation
- Before you start assess your chances of winning
,bidding can be costly - Do not assume that the ITT is always correct
check it - Check if criteria weightings or level of
importance are listed, Can you meet them ?? - Prepare a tender strategy ,do not leave it to
chance - Create a team to respond to the tender do not
leave it to one individual - Attend any tender briefing sessions offered
- Be prepared to challenge and ask questions of the
contracting organisation - If it is not electronic copy documentation and
store the originals safely to respond on
68ITT Response
- Allow enough time
- Work to and regularly review the tender strategy.
- Keep track of and respond to tender amendments
issued - Check and respond to commercial and contractual
aspects e.g. guarantees, performance indicators,
service level plans, - Ensure you respond to the specification outlined
- Be innovative and offer variants if appropriate
but also offer a compliant bid if possible - Check financial schedules and consider cash
- flow issues.
69ITT Response
- Provide all information requested but be clear,
accurate and brief at the same time - Ensure all risks have been addressed
- Format the response in line with instructions
- Ensure third party requirements e.g. references,
parent guarantees have been agreed. - Check your response get an independent check.
- Ensure it is returned on time and carries no mark
as to your identity on the envelope Make sure
carriers are aware of this.
70Award Criteria
- Contracts can be awarded on the basis of lowest
price or most economically advantageous tender
(MEAT) -
- Contract notices or contract documents must
provide the relative weighting given to each
criteria used to judge the most economically
advantageous tender. -
- Where this is not feasible, award criteria must
be stated in descending order of importance - Award criteria may include Quality ,price
delivery etc but may also include environmental
and social characteristics provided these are
linked to the subject matter of the contract
71Award Criteria
- Award criteria is used to assess the actual
candidates proposed solution against the
contracting authorities requirement, in terms of
the specification and contract terms and
conditions - Contracting Authorities cannot include criteria
used at the selection stage in the award stage - After publication of the criteria a new criteria
cannot be added on. - Bids however can be clarified
72Evaluation Criteria
- You need to understand how they are scoring to
maximise your chances - Everything is not always as it seems
- Challenge it if you are not happy
- You should receive the weightings at the start of
the process If the odds are stacked against you
pull out but inform the contracting authority why
you have .They may reconsider it, if not now ,in
the future
73The force of the law
- There are a number of routes to challenge
decisions - European Court of Justice
- (Remedies and the new Remedies Directive)
- UK Courts
- Arbitration
- FOI
- OGC Feedback Service
- The Contracting Authority
- Work upwards from here
- If you do not challenge nothing will ever
change - Fortune favours the brave
74Not all is lost
75Consideration
- Do you understand the rules and regulations which
control your customers and the processes they
use? - Can you make them work for you rather than
against you? - Are you aware of and do you approach the market
through the right channels? - Are you adding to them achieving Best Value?
76Accessing useful information
77Information
- You have rights to information
- Freedom of information
- Pre tender
- Post tender and Debriefing
- Alcatel (Standstill period)
- Buyers profile Selling to the Council
- E Portals - _at_UK ,Supply 2 Gov
78Pre Tender Information
- PINS (Prior information Notice)
- Buyers Profile /Selling to
- Advertising
- OJEU Above threshold
- Appropriate below threshold
- e.g. Supply2 Gov, Trade Journal, Redditch
Advertiser. Birmingham Mail - Remember to check on Chamber of Commerce ,FSB
information sites - Also look out for meet the buyers events ,network
meetings -
79Information Requirements Post Tender award
- Contracting authorities are required to
- Notify Tenderers ASAP of decision
- Allow mandatory standstill period (10days)
- Alcatel Ruling
- Debrief on request( within 15 days)
- Contracts Award Notice (48 Days)
80Buyer Profiles
- Public sector purchasers websites providing
procurement information to suppliers
encompassing, for example - PIN notices (provided the European Commission is
informed prior to publication on the buyer
profile) Reduces minimum timescales - Copies of all other notices required by the
directive - Tender specifications and additional documents
- Future procurement requirements
- The purchasers procurement process
- Contact details
- Known as Selling to Councils in LG
- It is also worth having a look at the rest of
the authorities site - It will help you understand the culture and
objectives of the potential customer and what is
important to them This knowledge will give you
some competitive advantage
81Sources of Local Public Sector Information
- WMIEP www.westmidlandsiep.gov.uk
- SOPO www.sopo.org
- CIPS www.cips.org
- OGC www.ogc.gov.uk
- IDEA www.idea.gov.uk
- Firebuy www.firebuy.gov.uk
- Police www.bluelight.gov.uk
82Olympics 2012
- Numerous opportunities still left to get involved
7500 contracts - 75000 subcontract opportunities
- From construction to retail
- Look at the website and go to the
- Compete for page
- www.competefor.com/business
- www.london2012.com/get-involved/business-network/
83Giving information
- Make yourself known
- Supply 2 Gov www.supply2.gov.uk
- Accredit / Constructionline /BiP Select
- Supplier Portals - National / Local
- Conferences /Exhibitions/Sponsorship
- Press - Government Opportunities, Supply
Management, Local Gov Chronicle etc
84Consideration
- Information is key to winning
- Are you aware of your rights to information?
- Do you request debriefs ,prepare for them and
turn them to your competitive advantage ?
85If you really want to win maximise your
chances of winning
86Remember
- The first stage of selection is rejection
87Remember
- People purchase things not organisations
- People make mistakes so
- Check the documentation you receive
- Challenge the content Do not assume it is
right. - Attend supplier briefings
- Try to understand the culture
- Increasingly buyers are looking for overall VfM
not just lowest price
88Remember
- Respond as requested e.g. avoid hand-written
answers if requested in typeset - Provide answers in the same sequence asthe
questions have been asked - Check if additional supportive information is
permissible - Ensure compliance with all requirements
- Check, recheck and recheck tender
89Remember
- Winning tenders are
- Focused on Customer needs
- Provide best value
- Show why your tender does this
- Suggest innovative solutions
- Identify continuous improvement opportunities
- Recognise and mitigate risks
- Address whole life costs and demonstrate why they
are the most economically advantageous tender
90What does it all mean for you
- New Market Opportunities and Access
- Partnering Opportunities
- Greater Transparency
- Better Contract relationships and management
- E commerce benefits/ efficiency savings
- Continuous improvement for you as well as your
client - Opportunity to be innovative
- Keeping abreast of changes -if you do not you
will fail - Share of some efficiency gains
- Better Information provision and access
91Remember
- When you win
- DELIVER
- The contract only starts when it is awarded
- Buyers sometimes let and forget,
- follow through and continue dialogue
-
92The End
-
- Thank you and good luck
- You can Win