winning government business workshop
DESCRIPTION
Resources from Business Victoria's workshop that will help you to understand the process of supplying goods and services to Government.TRANSCRIPT
At the completion of the workshop participants willunderstand:
How government purchases goods and services
How to engage with government, both within and across departments
How to market unique capabilities to government
How to maximise opportunities for success when responding to government offer documents
Workshop Objective
Agenda
Part A:
How government purchases
Contacting and marketing to Government
Part B:
Tips on responding to government offer documents
How government evaluates your response, and
Value for Money
Part A
Engaging with Government
How Government Purchases
Request for Quotation
Request for TenderOpen or closed tenders
Expression of Interest
From existing contractsOne off purchaseSingle Entity Purchase ContractsState Purchase Contracts
Page 2
Request for Quotation (RFQ)
60% of Government procurement activity
Minimum requirements to encourage competition and ensure value for money:
Request for Quotation (RFQ)
Key parts of a RFQ:Specification or requirementsEvaluation criteriaContract terms (usually short form)Submission details
RFQ template:www.procurement.vic.gov.au
DBI eQuotation systemwww.evalua.com.au
Page 3
Introduction to a Request for Tender
RFT for a good/service >$150,000 (incl GST) to the open market
Advertised on a Wednesday:The Herald Sunwww.tenders.vic.gov.au
Always respond where you can fulfil the tender requirements
Page 4
Purpose of a Tender
Tenderers must use a tender todifferentiate themselves from
competitors, not just to demonstratethat they can do the job.
Key Parts of a RFT
Part A: Conditions of Tender:Tender conditionsBriefing sessionsEvaluation criteriaSubmission requirements, closing time and dateOther key tender requirements
Part B: Specifications:Mandatory, Highly Desirable and Desirable requirements
Part C: Conditions of Contract:Core contract requirementsInsurance requirementsService level requirements Page 4-5
Key Parts of a RFT (continued)
Part D: Tenderer’s Response Schedules:Questions to be answered by tenderersPlace for answersPlace for any pertinent, Additional Information
Part E: Ethical Employment Statement:Policy requirements and timings for completionNB: this is to be completed following the shortlist stage
Part F: Victorian Industry Participation Policy Statement:Policy requirements and timings for completionNB: this is to be completed following the shortlist stage.
Exercise 1 – RFT Structure
1. Where do I find evaluation criteria?2. Where do I provide my response?3. How do I know what information I have to provide?4. Can I ask questions about the tender?5. What insurances do I need to provide?6. How much information should I provide in my
response?7. When is the RFT submission due?
Page 6
One-off Contracts
Can be established via RFQ or RFT
Fixed contract value
Fixed term
For a predetermined good or service
One-off purchase
Single customer
www.contracts.vic.gov.au
Page 7
Single Entity Purchase Contracts
Established via a RFT
Generally no expenditure limit
Extended term, up to 3 years
For a frequently used good or service
Ongoing purchases
Enables purchasing within a department
www.contracts.vic.gov.au
Page 7
State Purchase Contracts
State Purchase Contracts eg:Stationery and Office SupplieseServices PanelMarketing Services Panel
Established through open tender
Generally no expenditure limit
Panel or sole supplier arrangement
Extended contract term
Enables purchasing across the government
Page 7-8
Prequalification Arrangements
Two main prequalification schemes withinVictoria:
Construction Supplier Register
VicRoads Prequalification Register
Page 9
Government Entry Points
Contracts Registerwww.contracts.vic.gov.au
State Purchase Contractswww.procurement.vic.gov.au
Contact points for State Purchase Contracts
Contact points for Departmental procurement officers
Timeframes for retendering
Contract Value
Reasons to Contact a Contract Manager
Understand the need for the product or service
Understand the nature of the product or service
Introduce your company and service offering
Understand timings for contract expiry and retender (if applicable)
Get information on any related procurements, and
Get placed on the Contract Manager’s list of supplier contacts
Victorian Government Business Opportunities
Victorian Government Tenders website
www.tender.vic.gov.au
DBI eQuotation System
www.evalua.com.au
Construction Supplier Register
www.transport.vic.gov.au
Health Purchasing Victoria (HPV)
www.hpv.org.au
VicRoads
www.vicroads.vic.gov.auPage 13-14
Other Government Opportunities
Local Governmentwww.evalua.com.au/viclg-infohub/bin/view/Main/
Municipal Association of Victoria (MAV)
www.mav.asn.auProcurement Australia
www.procurementaustralia.com.au
Federal Governmentwww.tenders.gov.au (AusTender)
Page 15
Key Government Engagement Strategies
Build a targeted engagement strategy
Demonstrate how your goods or services can benefit a department
Tailor information to suit the needs of the department
Discover business opportunities using the links on “Government Business Opportunities’
Page 19
Key Government Engagement Strategies (cont)
Build relationships
Respond to tenders and quotations to build brand awareness within Government
Attend debriefs
Attend government sponsored events
Belong to an industry association
Peak Industry Bodies
Chartered Institute of Purchasing and Supply Australasia (CIPSA)
Australasian Procurement and Construction Council (APCC)
Australian Institute of Project Managers (AIPM)
Australian Information Industry Association (AIIA)
All are excellent networking opportunities with government representatives (particularly government buyers)
Page 19
Exercise 2 – Contacting Government
Using a scenario of a supplier of traditional and electronic white boardsidentify up to 10 steps that supplier should take to contact and market togovernment.
Refer to page 20 of your Workbook.
Step 1: Review websites under ‘Government Business Opportunities’ for any upcoming tenders or quotes
Step 2: Review SPC for Stationery for contact officer details (i.e. staff responsible for buying stationery and/or related items)
Step 3: Develop a targeted message to email to those identified contact officers within departments
Page 20
Exercise 2 (continued)
Step 4: Request a meeting to understand department need and timings for any procurement activities for white boards
Step 5: Provide short, sharp material to leave with the contact officer
Step 6: Follow up after 4 -6 weeks
Step 7: Respond to every tender or quote that is relevant
Step 8: Attend debriefs
Step 9: Join an industry association, for example CIPSA
Step 10: Attend networking events sponsored by that industry association
Part B
Responding to Government Offers
10 Tips for Winning Government Business
Tip #1 Read the Question
Successful tenderers almost always answer all parts of the question correctly
TipsHighlight the core requirementUnderline each sub requirement(s) (or hints)Don’t read Part D in isolation:
Review the Specifications (Part B), and
Review the Evaluation Criteria (Part A)
Page 21
Example
Briefly detail recent experience of similar work. The Department is looking for succinct and relevant information. Information is only required in relation to the three most relevant activities. The reason why each activity is relevant is required.
Specifications - Sample
Engage key stakeholders in the implementation of the new procurement framework and development of documentation.
Determine whether, and how, the existing tools and templates, processes, protocols, procedures, policies, guidelines and training/induction programs will adequately support the new procurement framework and procurement principles.
Develop all tools, templates, processes, protocols, policies, guidelines and training/induction to assist with the transition into the new procurement framework, and align these with the Department of Treasury and Finance documents under development.
Evaluation Criteria
EVALUATION CRITERIA - SAMPLE
1.2 Capability and past performance Extensive knowledge of the current and future legislative environment of Victorian State Government Knowledge of Victorian Government procurement policies and associated processes Demonstrated experience implementing significant procurement reform An appropriate staffing structure to support the Project availability of experienced staff Demonstrated experience in the industry from a referee’s view
1.3 Client engagement focus
Demonstrated experience in change management methodology and procurement methodology through a strongclient engagement focus Demonstrated policies and practices to:
engage clients systems to measure customer satisfaction backup and advice
Tip # 2 Respond Fully to the Question
Evaluators can only evaluate the content of the tender response
Evidence is important
Be honest
Demonstrate you understand the product or service government wants
Demonstrate how you are in a unique position to provide the service
Differentiate your service offeringPage 21
Example
“Please state your compliance to the Specifications and where your company does not comply or partially complies please provide details
of this non-compliance or partial compliance”.
How to Respond Fully with Limited Government Experience
Demonstrate how commercial experience is relevant to government requirements
Demonstrate your understanding of government requirements
Demonstrate roadmap for building capability
Demonstrate resources and opportunities to increase resource base
Tip # 3 Don’t Assume Everyone Knows You
“We can do this because we are [company] xyz”
Government evaluators cannot consider any information outside the submitted tender documents and tender process.
Do not risk assumed knowledge of your company’s capabilities and projects.
Page 21
How to Respond
Address each question as if your capabilities, strengths and people are unknown.
Describe reference projects or sites in detail and state how this is relevant.
Describe how your resources are appropriate for the job.
Describe your methodologies and approaches in detail.
Exercise 3 – Project Management Methodology
“Please provide details of the methodology and implementation approach you propose to use in providing the Services. The methodology must
include an approach to governance, management, implementation and be appropriate for the Service
tendered for.”
Page 23
Tip # 4 Target Your References
Purpose:Confirm stated company capabilitiesConfirm tenderer experience
Common mistakes:Haven’t demonstrated the delivery of competencies during previous projectsHaven’t related to the tender requirementsScatter gun approach
Page 21
Target Your Reference Projects
Highlight the key requirements in the tender for a written reference
Provide directly relevant reference projects
Provide no more than 3 reference projects
Address each of the Evaluation Criteria and the Specifications
Provide recent references (up to 3 years old)
Example: Specifications
Strategy Development includes the provision of strategic vision and documentation associated with information and communications technology supporting eGovernment. This includes, but is not limited to:
Strategy and plan development and evaluation
Forecasting or analysis of future trends
Strategic research and analysis
Development of and advice on management frameworks (e.g. risk, service delivery management and portfolio management)
Example: Written Reference
Relevance to the tender
Strategy and plan development and evaluation
Forecasting and analysis of future demand/trends
Market research and analysis
Development of and advice on management frameworks (e.g. risk, procurement and service delivery management)
Tip # 5 Embrace Duplication
Answer each question fully
Tailor each response - do not cut and paste
Embrace duplication to reinforce your company’s skills and abilities
Be aware of how government evaluates tenders
Consistency scores well
Page 22
Example
Specific experience and expertise:
Briefly detail your organisation’s recent experience providingmarketing services within a multi-organisational environmentincluding experience in:
Managing a number of contracts simultaneously within the one organisation, where the contracts may require differing skills and focus
ANDCapacity to handle work
Briefly detail the ability and capacity for your organisation to handle simultaneous projects and also handle projects of a complex nature
Tip # 6 Customer Service Counts
Customer service proposals are effective in differentiating your tender response
Can generate large variations in scoring
Many tenderers share the same capabilities but not all put effort into their customer service proposals
Page 22
Tips for Responding to Customer Service
Regular meetingsRegisters Regular reporting on end user feedback3 to 5 performance measuresPresentations summarising the results of your engagementEasy to read, informative client reports Analysis of project results with trending or forecast informationLessons learned and knowledge transferDon’t confuse customer services with value add
Exercise 4 – Customer Service Proposals
In your workbook prepare a response to the following question:
“What customer service orientated proposals do you have which will enhance your bid?”
Page 24
Tip # 7 Offer Value Added Initiatives
Value add initiatives are almost a free kick to differentiate your tender from others
Doesn’t always mean for free:
Related to the requirements of the tenderAdditional to the requirementsSomething only your company can provideIs valued by government, andShould be genuine and affordable to the tenderer
Page 22
Examples
Effectiveness review of implemented strategies
Training
Supporting documentation
On the floor support
Consider how your value add initiative can turn into follow on business
Exercise 5 – Identify Value-Add Initiatives
Using your workbook identify 4 value add initiatives yourbusiness could offer the government, and consider:
The additional value this delivers to government
How the initiative could foster new business opportunities with that government client
The cost to your business of providing that value add initiative
Page 28
Tip # 8 Understand Key Policy Requirements
Transparency, equity, accountability and competition
Do not tender if you can’t comply with the key policy requirementswww.procurement.vic.gov.au
Conditions of Tender and Specifications
Page 22
Relevant Policies
Conduct of Commercial Engagements (probity)
Ethical Purchasing Policy (EPP)
Victorian Industry Participation Policy (VIPP)
Disclosure of Contracts Policy www.contracts.vic.gov.au
Tender Complaints Policy
Tip # 9 Submit a Complete Response
Examples of a complete response:
A tender with pricing
A tender with a complete contract compliance statement
A tender with references
Material information is all provided
Page 22
Checklist for Tender Completion
List each schedule in Part D:Schedule 1: Tender FormSchedule 2: Conflict of InterestUp to 20 schedules
Match the evaluation criteria to the response schedules
Match the mandatory specifications to the response schedules
Page 30
Checklist for Tender Completion
Full pricing details
Completed compliance statements to contract and specifications
Completed insurance details
List of 3 referees
Signed physical copies of schedules 1 and 2 (where requested)
Correct number of copies of the tender document or CDs
Completed “additional information’
Any drawings/designs etc. requested for in the tender document
Electronic Response
Before submitting an electronic response please insert your CD / USB into 3 different PCs to ensure the content is there and that it can be read.
Tip # 10 Get Your Response in on Time!
Late tenders will not be accepted, unless there isconclusive evidence that the late lodgement ofthe Tender:
Resulted from the mishandling of the Tender by the DepartmentWas hindered by a major incident and the integrity of the Tendering Process will not be compromised by accepting a Tender after the closing time.
Page 22
Further Tendering Advice
Minimum insurance requirementsRisk adjusted insurance amounts
LiabilityRisk adjusted liability amounts
Financial and performance guarantees
Service level management
How to Differentiate Your Response
Offer value add initiatives
Offer customer service proposals
Offer environmentally friendly initiatives
Differentiate your response:Quality systemsInnovationResearch and DevelopmentKnowledge management
Page 25
Exercise 6 – Quality Systems
“If you are not in the process of achieving certification, please provide details of how you intend to assure that the deliverables meet the Department’s requirements for quality?”
Page 29
Evaluation Process
Duration and stages of evaluation
Evaluation criteria
Weightings
Evaluation scoring
Value for money
Exercise 7 - Matrix Evaluation Model
EVALUATION CRITERIA SUPPLIER “A” SUPPLIER “B” SUPPLIER “C”Professional Competence Weight Score Wt*Sc Score Wt*Sc Score Wt*ScCompliance to Specification 5 3
15 5
25 4
20
Plan and approach 5 5 25
4 20 5
25
Quality Systems for Deliverables
4 5 20 7 28 5 20
Capability 4 5 20
6
24
7
28
Past Performance 4 6 24 8 32 7 28Innovation 4 5 20 5 20 5 20Total Score 124 149 141Costs $61,000 $69,500 $123,480VFM 124 / $61,000 * 100 = 0.20 149 / $69,500 * 100 = 0.22 141 / $123,480* 100 = 0.12
Page 36
Calculation of Value for Money
A balanced benefit measure reflecting the non-financial score versus cost including:
CapabilityPast performanceQualityCustomer serviceFinancial viabilityContract mattersFit for purpose
VFM = Non Financial Score / Cost
Page 33
Value for Money
High tender score 100 20 100 80 32 60 24 40 16 20 4 20 Low tender score 0 10 5 2.5 1
High cost
Low cost
Closing Statement
Contact government
Target your marketing
Develop a competitive advantage
Maximise your chance of winning government businesswww.business.vic.gov.au/tenders
Questions?
Thank you for attending
Check outbusiness.vic.gov.au/workshops
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