The process of bidding for public sector contracts can be complex, with various stages and considerations to take into account. Whether you are a small-to-medium-sized enterprise (SME) or a larger company, it is important to have a clear understanding of the different processes and requirements. This article provides an overview of the public sector tender process and guidance on where to find opportunities.
Overview of public sector tenders
The public sector is required to have an open and transparent procurement process covered by legislation, regulation, and guidance. A full public tender is required for specific threshold contract values. Generally, these threshold values are significantly lower in Scotland in comparison to the rest of the UK (about half the value when compared to the rest of the UK). This is to help avoid corruption and to ensure that more contracts are procured publicly where all businesses have a level playing field to potentially win the contract.
While public sector tenders are publicly and openly advertised, they also have stated minimum criteria that all bidders must comply with (e.g. a minimum turnover, financial standing, professional/trade memberships etc.). These measures help buyers ensure they receive the level and quality of services/products they require.
Public sector tenders are typically assessed on a Most Economically Advantageous Tender (MEAT) basis, with a mixed weighting on pricing and quality. Should there be any doubt, the public sector is legally required to provide debrief feedback on the rank, scores, and detailed outcome of tenders.
Whilst this may be the case for the public sector, this is not necessarily the same within the private sector. The private sector generally functions on working relationships. Private sector opportunities tend to be invitation-only, with limited potential providers compiled from existing suppliers, recommendations, referrals, known market leaders, and emerging challenging brands. After quality/technical satisfaction, the private sector will often make the final selection based on price. Private sector decision-making is less transparent, and feedback is often difficult to obtain for unsuccessful bidders.
This is an advantage when bidding for public sector opportunities, allowing bidders to analyse feedback and continually improve for their next bid.
Why you should go for public sector opportunities
Winning public sector contracts is not always difficult and may be easier to win than private sector contracts – provided you know how. The public sector tender process tends to have patterns, meaning the process can be quite similar across different public sector opportunities. This makes it easier for bidders to familiarise themselves with the whole tender process.
It is important to understand that public sector contracts will not always go to the incumbent provider (i.e. the current contractor). In fact, a very well-written bid proposal can often win over the incumbent! This is because the public sector typically uses the MEAT approach, which means all tenders will be marked against a transparent mix of price and quality criteria. This greatly reduces the chances of corruption as all tenders will be evaluated on a level playing field with specific evaluation criteria.
Furthermore, public sector clients are often prompt payers (which was not always the case before), with the majority paying within 30 days or even earlier. This is attractive for many businesses that may have cash flow issues or concerns.
Whilst public sector opportunities might not appear to be advertised clearly, it is often just unfamiliarity with the process and places to find them. As bidders become more familiar with public sector bidding, even SMEs can have a great chance of winning public sector contracts – especially since the public sector tends to award 25-30% of contracts to SMEs.
Summary
Public sector bidding can be quite complex for those who are unfamiliar with the process, which often discourages many bidders (particularly SMEs) from participating. However, there are many advantages to getting involved with the public sector.
- It is a transparent process, actively helping encourage a level playing field for bidders of all sizes (not the same for the private sector).
- A Most Economically Advantageous Tender (MEAT) approach will ensure all tenders are marked against both quality and pricing elements, meaning the lowest-priced bid won’t always be the winner!
- Public sector bodies are prompt payers, typically paying within 30 days or earlier.
- SMEs are not disadvantaged, as the public sector tends to aim to give 25-30% of contracts to SMEs.
- If unsuccessful, bidders can request feedback to identify areas needing improvement and help improve their chances of winning in the future.
More information on this subject is available through Ultimate Tender Coach, our unique online bid training programme designed to provide you with the building blocks to win public sector contracts. For more information visit Bid and Tender Writing Training Course | UK | Ultimate Tender Coach.