Procurement Workshop

Juan LiuProcurement Strategy Manager

Leicester City Council

Suppliers Spend

Leicestershire County Council

•Our spend with suppliers is £350m per annum (approximately)•52% of this is with SMEs

Leicester City Council

•Our spend with suppliers is £360m per annum (approximately)•70% of this is with SMEs

What we buyCategories

Books, Journals & Multimedia

Building & Civil Engineering

Consultancy & Professional Services

Design, Printing & Marketing Services

Educational Services Food & Catering Equipment/Services

Furniture & Furnishings Healthcare (Public Health) Services

Housing Services(City Only)

Human Resources ICT & Telecommunications

Social Care (Adults & Children)

Stationery and Office Supplies

Transport Utilities

Utilities Vehicles & Plant Waste Collection (City Only)

Waste Disposal Miscellaneous

Accessibility

Source Leicestershirehttp://www.sourceleicestershire.co.uk/

Contracts Finderhttps://www.gov.uk/contracts-finder

Regional eTendering Procurement Portalhttps://www.eastmidstenders.org/

Regulatory Framework

European

National

EU Procurement Directives

Public Contracts Regulations 2015

Financial RegulationsContract Procedure Rules

Local

Procurement Process Overview

Procure Contract Notice EOI

Tender

EvaluateManageReview

Commissioning

PQQ

Award

To bid or not to bid?• Is the tender a good fit in relation to your company’s

activities?• Can you meet the eligibility criteria (technical qualifications,

policy compliance e.g. Quality Assurance, Insurance) ?• Do you have a good track record in relation to the

opportunity?• Do you have the trading history (e.g. 2 years Accounts)?• Do you have the capability and capacity to deliver the

contract if successful?• Can you make sense of the budget and can you deliver the

contract on time?

Preparing the Tender

• Managing the preparation of your bid• Get your team together, appoint a bid manager and conduct

detailed review and interpretation of tender requirements.• Determine whether you require clarification of any aspect of

the tender and ask the question(s) allowing enough time for a response.

• Check regularly to see if any questions/answers have been submitted by competitors. Be aware that any question you ask will be notified to other suppliers)

• Prepare work plan & allocation of roles/tasks/milestones with reference to tender & submission deadline.

• NB: Build in time to review, refine and style bid

Understand the rules and timelines…

• Understand the process for each tender• Word limit• Presentation

– Font size– Use of colour– Hard copy, soft copy or both

• Adhere to the timelines given

Social value

• Social value at Knightstone Housing: Ryan's story https://www.youtube.com/watch?v=pt0XnlR5gis

• Example Question-What social value aspects would you provide during service delivery e.g use of local labour?

Procurement plan/pipeline

• Google-Leicester City Council Procurement Plan 2015

• EastMidsTenders – Contract Register – Leicestershire County Council Procurement Plan

2015

Sample Upcoming Opportunities

What else we do for you….

For further information and help for businesses including funding options, visit:http://www.leics.gov.uk/index/business/supportingbusinesses/supportingbusinessesinvesting.htmhttp://www.leics.gov.uk/index/community/community_grants.htm

Loans to small business and starts ups available from the Leicestershire Local Enterprise Fund

•The County Council has set up a £1 million programme with Funding Circle, the UK's leading online marketplace for business loans, to support firms looking to expand and grow and help create employment opportunities in Leicestershire.

•To be eligible, firms must have a minimum turnover of £100,000 and have been trading for at least two years. Businesses can borrow between £5,000 and £1 million and investors receive an average net return of 5.8 per cent.

•For further details of how to apply, see www.fundingcircle.com or contact leicsloans@fundingcircle.com

Frequent Procedures - CityProcess Description

Quotation Four written quotes with at least two (where reasonably practicable) shall be from a local supplier.

Open Single stage process. All bidders submit a priced tender.

Restricted Two stage process: (1) Pre-qualification questionnaire (PQQ) to select tender shortlist(2) Invitation to Tender (ITT) to shortlist bidders – priced tender required.

Use of framework Further competition from the ‘panel’ of suppliers

Frequent Procedures - County

Estimated Contract Value Minimum Procurement Process Minimum Public Notice

£0 to £1,000 Obtain one oral / written quotation None required (optional: Source Leicestershire)

£1,000 to £20,000 Obtain three written quotations None required (optional: Source Leicestershire). Local Suppliers invited where appropriate &

relevant to the contract.

£20,000 to £100,000 Seek three written quotations(to be based on a Request for Quotation document

where practical)For exceptions see Rule 6

Source Leicestershire and Contracts Finder

£100,000 to EU Threshold Formal Tender Process Source Leicestershire and Contracts Finder

EU Threshold or over Formal Tender Process OJEU, Contracts Finder and Source Leicestershire

Evaluation Criteria can cover...

• Financials• Previous trading and experience• Health & Safety• Quality Assurance• Bidding Model• Environmental considerations• Equality and Diversity• Safeguarding

Marking

• The total score from all officers involved will be averaged and applied to the weighting given to each question.

• For the guidance you should note that, each question is given a relative ‘importance weighting’, to reflect its significance within the overall evaluation. This weighting is shown alongside each question.

Weighting

For the guidance you should note that, each question is given a relative ‘importance weighting’, to reflect its significance within the overall evaluation. This weighting is shown alongside each question.

Case Studies: Example Structure

• Client Name & Contract Title• Work of same/similar nature, scope and scale• What, When and How you did it• Client Benefit (Outputs & Outcomes)• Innovation & Added Value• Contract Value/Price• Reference confirming work was performed to

client satisfaction and to schedule

Standing Out from the Crowd• Have you articulated ‘Why choose us?’• Have you fully defined the key features, quality and benefits

of your approach?• Have you used and made the most of recent and relevant

case studies to illustrate your track record?• Have you gone the extra mile in manifesting your

understanding of the brief and the design of your solution?• Conduct a mock assessment against the evaluation criteria

and relative weighting • Presentation• Read - Doing business with government: guide for SMEs

Avoid…

• Making hollow statements– We offer you the very best service– We have competitive prices– We want long term relationships with our clients– We are the best in the market

• These statements are either obvious or subjective soleave them out!

Price Evaluation

Vital to understand scoring: is it 100% or mix ofquality and price 60% vs 40%?!• Where in that value chain will you reduce

costs?• What price level will ensure you hit your

objectives?• By what margin do you need to come down?• What part of their requirements is the most

important to reduce costs on?

Whole Life Costs

• Over the duration of the contract including:

• Capital, Maintenance, Management, Operating and Disposal costs etc

• Continuing to add value beyond the life of the contract

Local suppliers

Being local on its own is not an advantage. But stress the potential benefits:• Less distance to travel (carbon impact?)• Quicker response time (better service offering?)• More flexible (change your order....)• Lower overheads• Understand local issues/communities• Local supply chains

Request feedback

Even if you won the tender there may still be room for improvement;

– If you didn’t win, make sure you learn why. Incorporate any learnings from the feedback into your tender response process

Local suppliers

Being local on its own is not an advantage. But stress the potential

benefits: Less distance to travel (carbon impact?) Quicker response time (better service

offering?) More flexible (change your order....) Lower overheads Understand local issues/communities Local supply chains

Contact Details   

Leicester City Council Leicestershire County Council

procurement@leocester.gov.uk commissioning.support@leics.gov.uk

www.leicester.gov.uk http://www.leics.gov.uk/

Juan Liu Satish Parekh

Procurement Strategy Manager Commercial Specialist

juan.liu@leicester.gov.uk Satish.parekh@leics.gov.uk