Neil Hulme, director at Tender Rocket talks through everything you need to know to grow your company turnover through successful public sector tendering.
In the Covid-19 world of stay at home, work from home, learn from home challenges public and private sector organisations are turning to technology to keep the wheels turning. UK Trade and Investment, estimate that public sector ICT expenditure in this country is worth £18 billion, one of the largest in Europe and this looks certain to increase with a likely investment in flagship infrastructure projects
The current administration has been seeking to increase the number of government tenders and contracts advertised, as well as encourage smaller companies to bid for a bigger slice in the public sector marketplace.
Why do Business with the Government and its agencies?
Government procures goods and services from tens of thousands of suppliers, ranging from FTSE 100 listed multinational companies to small businesses and local charities. Government procured work is a fairly stable market that is less likely to be periodically switched on and off and during these turbulent times can offer a reliable source of business.
Payment terms can be extremely good, as Central Government bodies are obligated to pay within 10 days to 30 days easing cashflow concerns and providing a sense of stability.
The Government are encouraging more and more SMEs into the public sector marketplace so why not make time to evaluate the opportunities for your organisation?
Breaking into The Tendering Marketplace
Some of the largest companies in the world find tendering to be extremely lucrative, but this is an open marketplace with room for well organised and supported small/ medium organisations to benefit from the opportunities afforded. Tender award summaries confirm that more small/medium enterprises are successful through tendering than ever before. Over the last decade, there has been a concerted attempt to introduce more and more suppliers to the public sector.
In 2018, there were 4 Government departments which spent more than half of their entire budgets with external suppliers with the money is spent on a wide range of goods and services such as stationery, medicine, the construction of schools and roads, and most notably IT.
Finding Tenders That Match your Needs
You can source Government Tenders through the www.tenderrocket.com for free and you will presently find opportunities such as:
- Doncaster MBC, Website Design (circa £80k) – closing date 20/11/2020
- KCS, Email Order Automation (circa £35k) – closing date 26/11/2020
- University of East Anglia, 3D Printers (circa £120k) – closing date 4/12/2020
- Dorset Council, Digital Platform and CRM (circa £232k) closing date 30/11/2020
- Kent County Council, Data Centre Service (circa £600k) – closing date 14/01/2021
A Typical Tendering Process?
Whether you’re a small company operating on a local basis or a larger corporation operating across the UK, there are likely to be tender opportunities which meet your organisations strategic needs.
The bidding process is different for different types of business. Higher value opportunities will generally require the completion of a detailed questionnaire, supported by financial and other documentation required to satisfy the due diligence needs of the tendering organisation.
There’s a widely held perception that to win a tender contract you must submit the lowest price, but this is not the case. There are a range of criteria which the tendering authority may consider including price, quality, risk, social value and other factors. The lowest price bid doesn’t always win and during the evaluation process may be adjudged to represent poor value.
All organisations and company’s need to assess their strengths to maximise their chances of success. Be clear about your objectives and your ability to compete. Tenders can be time consuming to complete so make sure you bid for the opportunities that truly play to your strengths.
Keep Up with The Times
In a world which is seeing a noticeable drift toward digital and electronic business-2-business, if you don’t embrace the opportunities presented through electronic tendering, you may fall behind. The modernisation of Government and the desire to ‘open up’ contract opportunities are resulting in year on year growth in the number of tenders announced and in the values of goods and services procured by way of tender.
Not wishing to scare-monger, but we all know what happened to the once dominant Blockbuster when they ‘chose’ not to evolve with the times. Whilst streaming services grew in popularity; Blockbuster couldn’t keep up with changes in consumer needs. They effectively refused to go digital. Surprisingly, in 2000, the CEO of Blockbuster, John Antioco, sat down with Reed Hastings, the founder of Netflix, where they presented a partnership deal that would lead to Blockbuster’s shift in their business model, launching subscription-based on-demand video online. Antioco couldn’t see the value in innovating, sticking to the status quo, and turned down the deal. Ten years later, the company filed for bankruptcy. We don’t really need to tell you how it turned out for Netflix.
Preparing to Submit a Tender
Once you’re convinced that growing your organisation through tendering is the right strategy, there’s a lot you can be doing to help yourself prepare for your first submission, even before you have identified a tender opportunity to pitch for. Often, you will only have a few weeks from identification of the opportunity to the submission deadline, we cannot stress enough the importance of being organised and anticipatory.
Many tenders will require you to submit a range of policies and procedures and it would be well worth your while making sure that you have up to date information ready and available to submit.
The documentation required may well include:
- Financial Statements (typically for between the last 1 – 3 years),
- Health and Safety Policy,
- Environmental and Sustainability Policy,
- Equal Opportunities Policy,
- Insurance Certificates,
- Data Protection and Freedom of Information Policies
So, make time, take time and let us know how you get on at tenderrocket.com
For Further Information Please Contact: Neil Hulme
Tel: 07702 555800