Before You Start Compiling Your Tender

Compiling your tender

Before you start compiling your tender

·  Read the specification carefully and through a couple of times.

·  Make sure your proposal is for what the commissioner wants, not just what you want to deliver, or have provided previously.

·  Ask yourself whether the service being delivered fits the aims and objectives of your organisation.

·  Ensure the service is deliverable within the terms of the contract.

·  Get to know the scoring criteria.

·  Plan your response so you spend most time on the sections where you can score most marks.

·  Know your competition.

·  Apply full cost recovery rules to contracts – including the costs of preparing tenders.

·  Check out the tax and VAT implications.

·  Be aware of liabilities of taking on contracts – e.g. employment law(TUPE)if new work involves taking on staff from another employer.

·  Ask and submit questions.

·  Allow plenty of time - it often takes longer than you think.

Building a case: Putting the bid together

The task of putting the bid together needs to be planned for. Time needs to be set aside to plan the bid’s structure and content, ensure that all points are answered and that the case made is a convincing one. Time is needed to develop and refine your case, gather evidence and get constructive feedback.

Here are some tips to managing a tender submission:

·  Designate someone to take overall responsibility for compilation of the tender.

·  Read all of the documentation carefully and note the key points.

·  Check your organisation can meet the principal requirements and that it will have the necessary resources to fulfil the contract, if successful.

·  Note the duration of the contract.

·  Compile a checklist of all items to be provided in, or with, the bid.

·  Use the checklist before finalising any bid and submitting it.

·  Bind bids together so that they are easy to read.

Costing your bid

There are two distinct stages to costing your tender.

Stage 1: understand the full costs of service delivery

First, you need to be clear about the full costs of delivering your service. It is essential that you include all relevant overheads in your calculations and do not just count the direct or marginal costs involved.

Stage 2: decide how to price your service for the bid

You may decide to subsidise a service initially to be more competitive (known as a 'loss leader’) or you may decide to go for a higher profit margin so you can put money into your reserves.

Alternatively, you may decide to price your tender on a full cost recovery basis. Whatever you decide to do, you should know why you are doing it and should make an assessment of the competition and the commissioner’s priorities. For example, you may feel the higher quality and added value you are offering justifies a higher price

Both the Treasury and the Office of the Third Sector support the idea of full cost recovery and it is enshrined inThe Compact but you still need to take account of the realities of the market in which you are competing.

Tips for writing your tender

·  Focus on the needs which the service is intended to address and are clear about the outcomes you plan to deliver.

·  If necessary, ask for the scoring mechanism that is going to be used and make sure you focus your answers to maximise the points you receive.

·  Remember that the contract commissioner can only go on what you have put in your bid. They cannot take account of any other information about you. You should not take anything for granted.

·  If a format has been given for bids, make sure you stick to it. If there is a word limit, don’t exceed it - they will do a word count!

·  Make sure the document is easy to read and well presented in a logical format. It will then be easier for them to see how you meet the specification, and therefore allocate the points you deserve.

http://knowhownonprofit.org/funding/service/procurement-and-contracting/procurement-and-contracting/compiling-your-tender