Have you always been interested in how to write a tender, but didn’t know where to start? That’s understandable. The tendering process can be quite daunting….even navigating through all the documentation can be very unclear and overwhelming. The result of this is that tendering can be a stressful process and the quality of your submission won’t be as strong as you would ideally like if you are not used to compiling tenders or proposal documents.
This page is intended to give you a brief overview of what tendering is about, introduce some of the terms and stages, and help you to feel more informed and comfortable with the whole process.
If, after reading this and the other pages within the Resources section, you require any further support or information with tender writing, please do not hesitate to call us, we’re here to help!
Overview
There are 4 types of tender process within the EU Procurement Directives (2009), these are:
- Open – all interested parties are able to submit full tenders.
- Restricted – a selection is made of interested parties and the strongest are invited to go forward to the full tendering stage.
- Competitive Dialogue – following a selection process, the buyer enters into dialogue with potential bidders, to develop one or more suitable solutions for its requirements and on this basis chooses which bidders will be invited to submit full tenders
- Negotiated – a buyer may purposefully select one or more bidders with whom to directly negotiate contract terms. This procedure is rare and only used where there are specific technical or artistic reasons why more open procedures would not work. An example would be where a supplier owns the intellectual property on a specific service or product that the supplier requires.
How to complete a Selection Questionnaire
The selection questionnaire (SQ) is the first stage within the Restricted Process of tendering and it serves the purpose of screening companies to find those providers that have the right track-record and experience, that are right size, and that are conducting their business in an appropriate manner. The SQ is used to find the right providers that the commissioners feel comfortable to invite through to the next stage. Typically, most submissions will be screened out at this stage and only a handful will be invited through to submit a full tender.
Increasing your chances of success at the SQ stage:
Your task in the SQ is to show the commissioners that you have the right experience:
• Are you financially viable? As part of the SQ, buyers make assessments to ensure that the potential supplier (i.e. you) has the financial backing and necessary liquidity to deliver a contract of that scale. They will assess your company credit status by undertaking a credit search, they will assess your level of turnover via your accounts and they will assess your liquidity and ‘money at bank’. All of this is done to make sure you have the financial ability to deliver that scale of contract and particularly that you can withstand the start up investment ahead of any contract income.
• Are you managing the company well? Buyers want to make ensure that you are managing the company appropriately, that you are operating in accordance with all legal and regulatory requirements and that you have effective internal management systems in place. They do this by assessing your internal policies and asking you to describe how you implement these policies. Within a SQ, you are likely to be asked to attach policies such as Health and Safety, Staff Recruitment and Training, Quality Assurance and Environmental Management and to describe how you operate in these areas. You need to give strong reassurance that everything is in order in terms of statutory compliance, that you have the correct policies and that they are implemented and monitored effectively.
• Do you have the right track-record? You will be asked about previous experience or about the nature of your business. You need to highlight as far as possible that you have a credible track-record in this field and experience that is directly relevant to the contract for which you are applying. Don’t describe your business in broad terms, rather, show the skills, transferrable skills and experiences you have that reinforce and support your ability to deliver the contract.
• Will others vouch for you? You will be asked to provide a number of references at the SQ stage. These are important so that the buyer can corroborate the claims you make about your company and about your experience. The references should be from previous buyers to which you have delivered the same or very similar services/products. In terms of external validation, it is also useful at SQ stage to reference and industry accreditations you hold, such as quality marks, guilds, memberships etc. Any ISO accreditations you hold are important too (for example 9001, 14001 etc). Accreditations are a good indicator of your company’s standing and help to reassure the buyer of your credibility and trustworthiness.
SQs response documents are arranged in sections, typically comprising:
Company Profile
• Full contact details
• Legal Status of the company, including when you formed/incorporated.
• Nature of your business (be sure to be specific and targeted, as discussed above)
• Financials and insurances. Company accounts, usually the last 2 years, and insurance details for Public
• Liability and Employers’ Liability.
• Mandatory exclusion criteria for Public Sector Contracts – you will be asked to declare any financial, regulatory or legal problems.
• References. Usually 3 references.
Internal Procedures
• Health and Safety. You are likely to be asked for details about your health and safety procedures to assess that you are compliant with the legal requirements
• Quality Assurance. Most SQs ask for an account of your QA procedures. If you have any external QA accreditation, be sure to reference this, and make the account clear and strong, with good lines of accountability and feedback from clients/customers/service users.
• Recruitment and Staff Training /Development. You may be asked how you recruit staff, to ascertain you are compliant with Equality and Employment Legislation and how you train your staff, what development opportunities they have, and whether you are fair and equitable in the way you implement staff development.
• Leadership / Governance. You may be asked about the management and leader capability and arrangements within your company.
Your Policies.
• As described above, you will need to enclose several policies with the SQ submission
The Invitation to Tender
Assuming you’re successful at the SQ stage, you’ll be invited submit a full tender.
The objective of the Invitation to Tender is to identify the:
• The best proposition. Tenders will be assessed to establish whether they deliver what is being requested, whether what is being offered is feasible and attractive, and whether it represents good value for money. In order to score highly, your tender will need to reassure the evaluators that you can deliver exactly what is being asked for, that you have the credibility, the experience and the technical ability to deliver your proposition and that what you are proposing represents the best technical solution to their requirement. Moreover, in order to score maximum points, you will have to have elements within your proposition that ‘add value’ and which make you stand out from the other bidders. Make sure you critically assess your completed written document before you submit it, to ensure it addresses all of these requirements. In addition, ensure that the quality of the bid writing reflects the quality of your proposition – if you require support from expert tender writing consultants, contact us for a chat.
• Typically, the quality of the proposition accounts for around 60% of the overall mark, but this varies and can be as low as 30 or even 20%.
• The best price. Value for money is an important factor, as Public Sector Organisations have to demonstrate they are achieving good value when they spend taxpayers’ money. Buyers won’t always buy the cheapest proposition, but they will always buy at the best price in terms of the value it represents.
• Price usually accounts for around 40% of the overall mark, but as suggested above, can be as high as 70 or 80%.
Other useful resources available on our site:
Tender Writing | Tender Evaluation | Case Studies
If you need help with tender writing for an important business opportunity, or perhaps you have written a tender and would like an expert to evaluate it, we can help.
Our Tender Writing Case Studies page offers a flavour of how we get our successful results across a broad range of sectors.
If you prefer to speak to somebody on the phone, our friendly and experienced team are ready to speak with you on 0115 784 3306.
