public sector procurement for smes

‘Navigating your way through Public Procurement’–

A presentation for small businesses, July 2011

Rob Weaver, Development Director,

Agenda

• What is Procurement?

• The Scale of Public Sector Procurement.

• Public Sector Procurement Processes

• Barriers to SMEs

• Recent Changes

• Next Steps & Getting Started in Birmingham

What is Procurement?

Procurement is...

• The process of acquisition of goods, services and works…

• From pens and pencils through to major services.

The Scale of Public Sector Procurement

The Scale of the Opportunity

• The public sector employs 25% of the British workforce, and spends more than £175billion annually

• £27billion on the purchase of goods and services by local authorities

• NHS spend in each English region of at least £10billion.

• up to 600 new contract opportunities are published every week

Public Sector Procurement Processes

Why is Public Sector Procurement different?

• Subject to EU legislation – aimed to remove barriers in the EU single market

• Subject to UK legislation – competition law, Best Value etc

• Subject to audit• Accountable to government and the electorate• Many services are sensitive or high profile

Public Sector Procurement Processes

• Rules and Regulationso Contract Procedure rules

Tender Thresholdso EU Procurement Regulations

European Thresholds• Tender Process (Open or Restricted)

o 2 stages: Pre-qualification – Restricted Only Invitation to Tender -ITT

• Evaluations based on ‘MEAT’• Contract Award

Public Sector Procurement Processes – Capacity Issues

• Financial Health (contracts over certain threshold – c.£75,000)• Insurance• References• Staff Turnover • Equal Opportunities• Freedom of Information Disclosure• Environmental Policy/Sustainability• Health & Safety• Non-Collusive Tendering• Tender-Specific Questionnaire

Barriers to SMEs

Public Sector Procurement – Barriers to SMEs (1)

• Insufficient information about the tender• Lack of clarity in the invitation to tender• Insufficient opportunity to ask questions about the

tender prior to tendering• Insufficient time to prepare a tender• The large contract value relative to the size of

your company• Technical qualification criteria too high

Public Sector Procurement – Barriers to SMEs (2)

• Financial requirements such as bank guarantees too onerous

• Paper work’ requirements of tenders too onerous

• Over-emphasis on price in selection of contractors

• awarding authorities’ over-emphasis on price

Public Sector Procurement – Recent Changes

Public Sector Procurement – Recent Changes (1)

• The government expects to award 25% of government contracts (by volume) to small and medium-sized enterprises.

• The introduction of a standardised core pre-qualification questionnaire (PQQ) across central government.

• The investigation of options to enable suppliers to submit standard PQQ data just once to further simplify the process for suppliers

• A “Lean Review” to uncover the causes of delay in the procurement process and to suggest actions to rectify them.

Public Sector Procurement – Recent Changes (2)

• The launch of a “Contracts Finder system” in March 2011. http://www.contractsfinder.businesslink.gov.uk

• A focus on targeting action in those markets “where it is known small businesses are prevalent and can offer value for money” A Government gateway password is required in order to access all features on the site

Public Sector Procurement – Award Criteria

• Lowest Price or • ‘Most Economically Advantageous Tender’

(MEAT)• MEAT Criteria

o Quality; Price; technical merit; running costs; environmental characteristics; after sales.

• Triple Bottom Line – economic, social and environmental factors – comprises ‘Sustainable Procurement’

• Sustainable Procurement is a requirement NOT an optiono Economic can include whole life value; sustainability

and wider community benefits; o supply chain benefits – Bombardier issue.

Public Sector Procurement – Next Steps and Getting

Started

Basic Tips

• Maintain a database of basic information likely to be requested in tender exercises (once only exercise)

• Deploy a tender team• Prepare a bid strategy – competition; chance of

winning; resource and cost implications.• Be compliant• Ask questions!

Sources of Opportunities

• http://www.contractsfinder.businesslink.gov.uk • https://www.competefor.com/• https://wmcoe.bravosolution.co.uk/• http://www.finditinbirmingham.com• https://in-tendhost.co.uk/blackcountry

Help Needed?

• National SME Engagement Programme – www.supplygov.co.uk

• Capacity, Tender Writing and Appraisalo Model Policieso One-to-one assistance/surgerieso Bid Writing

Rob WeaverDevelopment Director C3 Connected Consulting [email protected] 422 5300 / 07792 244614

http://uk.linkedin.com/in/robweaver70

http://twitter.com/robweaverwm

http://robweaverregen.wordpress.com

public sector procurement for smes

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