It’s a good idea, entering the public sector procurement market. There are plenty of opportunities, if you know where to find them and how to take advantage of them and turn them into success.
We’re going to explore bidding for tenders, from finding tenders to bid writing and tender submission. By the end, you should understand more about the tender writing process in public procurement, why SMEs should jump at the chance to bid on low-value contracts, and exactly how to go about it.
What Is Public Sector Tendering?
As with most things in life, understanding something makes it less scary or intimidating. So, let’s dive into some of the key terms you’ll encounter in the tender process.
Tender: A tender is an invitation to bid. Tenders are published on government and independent procurement platforms. You can register on these platforms and choose the types of tenders that are relevant to your business. They are then delivered to your inbox.
Bid: A bid is a proposal in response to a tender. It’s where suppliers ‘apply’ for the job, supplying relevant evidence and supporting documents that demonstrate their skill, knowledge, and value.
Contract notice: A contract notice is also a tender notice. It’s the official announcement of a tender opportunity. It contains all the relevant details so suppliers can decide if it’s worth developing a bid submission.
Procurement: Procurement is the official term for purchasing goods, services, or works – typically on a large scale.
Buyer: Buyer refers to the contracting authority or government buyer who publishes contract notices to meet their specific needs.
Getting involved
Public sector procurement is carried out under public scrutiny. The process must be transparent to assure the public that everything is above board – there’s no undue favour, unethical practices, fraud, or corruption.
With all the details published publicly, interested parties have access to the same information. They can submit bids that are comparable on all relevant points, which makes it easier for contracting authorities to identify who provides the best value for money.
Many SMEs and charities have the idea that public procurement isn’t for them. That it’s only for larger organisations or enterprises.
Nothing could be further from the truth. Contracts range from small local council projects to national exercises that require several suppliers to bring their skills to the party. SMEs and charities are more than capable of managing small, low-value projects on their own.
They can also partner with other suppliers to bid on larger contracts as a consortium, or they can subcontract to larger businesses. They enjoy the benefits of working on big government contracts without the risk, often bringing a fresh pair of eyes to the projects .
Why SMEs Shouldn’t Be Afraid to Bid on Tenders
The government has recognised the value SMEs have for public procurement and is actively encouraging small businesses to enter the market. Mind you, 78% of low-value contracts (<£100,000) already go to smes. so, now is the time cast apprehension aside and get your company tender-ready.
The Procurement Act 2023 levels the playing field for all suppliers, giving everyone an equal chance to win tenders that match their skills. This also applies to businesses just starting out because there’s more leeway for those with no public procurement experience to enter the market. All they need is relevant or comparable experience with private sector contracts that they can weave into case studies.
One of the biggest challenges for SMEs is finding suitable contracts. There are a lot of eTendering or eProcurement platforms around, but which is best? Which is the most comprehensive?
Supply2Gov has the largest database of contracts in the UK and the Republic of Ireland. Registration for local alerts is free, with options to scale up as your business grows.
Step-by-Step: How the Tendering Process Works
Take a look at the tips below if you’re a beginner or are unsure about how procurement processes work.
Step 1: Opportunity is Published
We’ve just mentioned that S2G has the largest database in the UK, but you needn’t discount other platforms. For instance, the government’s Contracts Finder publishes low(ish)-value contracts worth more than £12,000 that you can search through . Its Find a Tender platform publishes high-value contracts worth more than £139,688.
It’s worth noting that it’s not mandatory for tenders valued below £12,000 to be published on Contracts Finder. However, they are often published on independent platforms, like Supply2Gov, or on local council websites.
Don’t miss out on contract opportunities. Register on your chosen platform(s) and set up relevant real-time notifications that are delivered to your inbox almost the minute they’re published.
Step 2: Review Specification
You have to do one very important thing if you receive an alert for a tender that you think is promising.
Understand it.
What might be promising at face value, might actually be completely unsuitable, so read through the requirements carefully and if you have questions, contact the contracting authority for clarification.
You must also take note of two things: formatting requirements (it makes buyers’ lives easier when everyone uses the same format) and the deadline. The deadline is really important because missing the deadline is one of the most common mistakes suppliers make when bidding on tenders.
If you decide to submit a bid, ensure you download all the documents in the tender, including the PQQ (Pre-Qualification Questionnaire), ITT (Invitation to Tender), and all the specs (criteria, terms, conditions, compliance requirements).
Step 3: Submit Clarification Questions
It’s perfectly ok to ask the buyer questions. In fact, some questions can demonstrate the seriousness of your bid. Just don’t waste time with information that is very clearly in the notice, like the deadline.
It’s important to strike the right tone when submitting queries: Professional and concise. This is the tone you need to use throughout your proposal to make a good impression.
Step 4: Prepare and Submit Your Bid
There is information that must be included in all bids.
- Company credentials: What you have to offer, why it’s better than anything other bidders provide. Don’t be shy to toot your own horn, but don’t sound like you’re bragging either. Professional and concise, remember.
- Case studies or past performance: Compelling case studies that document the effectiveness of your product or service. Buyers usually ask for three relevant case studies, but don’t panic if you don’t have three. You can also use examples of past performance backed by testimonials from happy customers.
- Pricing and value: Determine pricing that is fair and competitive in your market. You don’t want to go too low because your quality comes into question. You don’t want to go too high either because you’ll probably be dismissed as a matter of course. Conduct market research to see what your competitors are charging and compare your value to theirs. You might provide far more overall value, not to mention social value that enables you to set your price higher.
- Social value and compliance: Social value is now mandatory in public sector tendering. It must be either social, economic, or environmental and should have positive long-term effects on local communities. Compliance is non-negotiable. There are compliance requirements in each contract, as well as business industries, local government, and central government policies, like the Procurement Act 2023 and the Social Value Act 2015.
Step 5: Evaluation and Award
It’s important to note that tenders aren’t awarded on price alone. It’s the whole package that adds up to the overall value. The better overall value (even if the price is higher than other bids) stands a better chance of winning contracts than lower prices with lesser value.
One of the new requirements in the Procurement Act 2023 is that contracting authorities must provide feedback to all suppliers who submitted bid proposals. This helps you to see where you went wrong so you can learn from your mistakes and improve your bidding process for the next round.
What Documents and Info You’ll Need
Before you can consider yourself tender-ready, you need to have the following necessary information:
Company details: This includes contact details, but also goes into your products and services, and any sustainability or social value initiatives you’re already involved in.
Financial statements: You’ll need statements going back about three years to prove your company’s financial stability.
Policies: Some policies are mandatory, and some are strongly recommended. For example, you’ll need a Diversity & Inclusion (D&I) policy that details your commitment to include people from diverse backgrounds in your workforce – and to ensure they are respected, valued, and treated fairly.
Certifications: Regardless of industry, all companies that want to do business with government bodies must have Cyber Essentials certification. It’s a basic cybersecurity certification and is the minimum that the government will accept. Other certifications include ISO (International Organisation of Standards) for things like occupational health and safety, environmental management, and quality management systems.
Top Tips for New Bidders
Here are five top tips to start your journey into public procurement.
1) It’s ok to start small.
Look for contracts with your local council, agencies, or lower-value contracts slighter further afield.
2) Avoid jargon.
You might think it makes you sound smart, but generally, the people in procurement aren’t familiar with the technical aspects of the contract. Keep it simple. Use plain language and limit your answers to the questions asked. No tangents or fluff.
3) Reuse bid templates.
Templates are a godsend, but they are only a foundation or a guideline for more detailed information. Tailor templates to the tender’s specific requirements.
4) Focus on outcomes.
Buyers don’t need details about the features your product or service has. They want to know what the features do. It’s about what they can achieve rather than how they achieve it.
5) Highlight your local presence.
What impact have you had in your community? Have you contributed to its economy, worked to clean up the environment, or had some other positive impact? If you haven’t established a presence yet, best get started because it’s one of the primary elements buyers want to see.
How Supply2Gov Helps You Succeed
We’ve said that we have the biggest database of active contracts in the UK and the Republic of Ireland, but that’s not the sum total of our service.
To start off with, you can register and receive free alerts based on the postcode of the area where you want to work (it needn’t be your local city or even neighbouring cities) and the industry in which you work.
As you grow, you can upgrade your package to include national and global procurement opportunities. Upgrading your package enables you to access more sophisticated features, for example, tender breakdowns, sector filtering, and contract tracking.
Download Your Free Beginner’s Tendering Toolkit
Begin your public sector procurement journey now. Simply download your free ‘Tendering for Beginners’ Guide and get customisable templates and a tender-ready checklist to ensure your response meets all the requirements.
The Tendering Process Made Easy
The public procurement market is open to all businesses, regardless of size or experience. All you need is some research, some prep based on this guide, and the strength of your convictions.
Register for free alerts today to receive tenders in your area, and we’ll get you off on the right foot.