Small to Medium Sized Public Sector Contracts
The Government and public sector organisations encourage small and medium sized enterprises (SMEs) to tender for public sector contracts because SMEs are acknowledged to be more flexible, quicker to react to changing circumstances and often offer better pricing. However, the procurement process is regulated and to win a contract paid for by public funds, an organisation must be able to evidence they are providing the best value for money when supplying this service or goods.
Often public sector organisations, particularly local authorities, have approved lists of potential suppliers for contracts below set limits. They must review these regularly to include new suppliers and check current suppliers are still providing value for money. Contact your local authority or public sector organisation to find out how to become an approved supplier.
For all public sector contracts in England and with non-devolved bodies worth over £10,000 use Contracts Finder
Larger Public Sector Contracts
Since the UK left the European Union a new system has been implemented. From 01 January 2021 contracts above the thresholds below can be found on Find a Tender.
· £122,976 for Central Government
· £378,660 for Defence and Security
· £189,330 for other contracting authorities
· £70,778 for small lots
For all contracts below these values you can still use Contracts Finder
The process of preparing and submitting a tender can be daunting and very time consuming. If this is your first experience or you just need some extra help and resource in your team then contact me for an initial discussion.
Central Government Crown Commercial Service
Small Business Research Initiative (SBRI) – compete for government backed funding for research / development / innovations & collaborations
UK Department for Environment, Food & Rural Affairs (DEFRA) eSourcing portal
Digital services (G-cloud & Digital Services framework) Digital Marketplace
Local authorities in England are organised by region:
London Universities Purchasing Consortium
Opportunities linked to capital projects in England (e.g. Transport for London, Crossrail Metropolitan Police) CompeteFor.
Police, Fire and Emergency Services in England and Wales - Bluelight
Public sector tenders provide full instructions and usually a comprehensive set of bid documents with all the detailed requirements that the buyer needs to be fulfilled. The buyer will be looking for evidence that you can meet all their needs. It will not be enough to simply state you ‘can’ do something; you will be expected to explain ‘how’ and what measurements will be used to ‘prove’ you can.
Most small to medium sized public sector bids now only require one submission of a tender which combines the Pre Qualifying Questionnaire (PQQ) and Invitation to Tender (ITT). All have precise deadlines which must be met and are usually conducted through a relevant portal (website). Most have strict word limits or even character limits within which you must compose your response and explain why you are the best option. A successful bid submission tells a concise but compelling story.
On occasions the final part of the bid process involves an invitation to attend an interview / presentation for a small number of short-listed submissions. This provides the buyers an opportunity to ask about your answers in more detail and provides you with the best chance of demonstrating your credibility and capability.
Price Your Bid
Most contracts are awarded on a balance of price and quality. It is important for all public sector contracts to be able to demonstrate value for money but buyers are also looking for ways you can ‘add value’ to their contract. For example will your organisation provide new training opportunities, work placements or create new jobs? So although the price is important, it is not always the only deciding factor.
However it is binding. The price you offer will be the price you agree to charge for the length contract; so it is vital that you can deliver at the price you state, for the time you agreed in the bid.
The process of putting together a successful bid submission is time consuming and needs the right amount of resourcing. Therefore the logical first step is to decide why you are interested in the contract. Is it to make a profit? Is it just to break-even but to add to your portfolio? Before you go to the time and trouble of putting a bid together, make sure you can deliver what the contract is asking for, at a price you can afford, which is competitive and within the contract financial envelope. Do your maths before you decide to bid.
Deadlines
Once you have decided to bid, you will be expected to meet the deadlines as set out in the tender process. On occasions the buyers may extend the deadlines in response to reasonable requests or owing to changes in conditions, but you can’t rely on this.
If you don’t meet the deadline you will not be considered for the contract. Therefore it is prudent to submit your tender well before the published deadline. Most tenders can only be submitted through agreed website portals and ‘downtime’ of your internet connection will not be accepted as a justifiable reason for late submission. It will also not reflect well on your ability to deliver a reliable product or service. Remove as much uncertainty as you can by submitting your final answers as soon as you are able, ideally a few working days before the deadline.
Feedback and Contract Award
All bidders will be advised of the outcome and all are entitled to feedback. Win or lose you can request feedback on your submission which will help you to learn from the experience and improve future bid tenders.
All public sector bids are also subject to the Freedom of Information Act. It is in the public domain who has won the contract, details on the bidding process and who else was bidding. Commercially confidential information (e.g. Trade Secrets) are exempt – therefore if this applies to you, it may be beneficial to include non-disclosure agreements as part of your submission.