Sandra SewellCorporate Account Manager

How to find, compete for and win Public Contracts– 5 November 2015:

ESPO supporting Suppliers/SMEs

Eastern Shires Purchasing Organisation

One of the UK’s largest public sector consortia, self-funded and ‘not for profit’ with national buying power

Bringing demand and supply markets together offering more than 150 framework options to the wider public sector

www.espo.org

Catalogue - £40m products sold through our distribution centre

Direct Delivery - £20m products supplied direct to customers

Frameworks – £1 bn of goods and services to the wider public sector

How we supply

90,000 products picked from our warehouse for delivery to customers every week

120,000 square foot of warehouse space holding over 10,000 separate product lines

6,000 customers delivered to every week

Did you know…?

So what is a public contract/framework?

In simple form:

an ‘umbrella agreement’ setting out terms, such as price, quality and quantity, under which individual contracts can be created directly between customer and supplier

How does a framework… erm… work?

All frameworks are constructed under strict EU guidelines so customers and suppliers know they are operating within a fully compliant and fair arena

Customers order from a range of goods and services provided by one or more suppliers, which they can select via call-off or further competition…

Terminology

• Call–offs or Direct Awards (orders): can be placed by customers throughout the period of the agreement - normally a maximum of 4 years

• Further Competitions (sometimes known as Mini-Competitions): used where there is a more specific need with a further invitation to suppliers undertaken – still adhering to EU procurement guidelines

Engaging the market

• ESPO buyers undertake research into their markets, as part of their ongoing procurement role

• Buyers meet with suppliers to understand more about a wide variety of matters e.g. market changes or developments, new product or services available, changes amongst the key market players (e.g. mergers, acquisitions)

Engaging the market• Pre-market engagement:

• Informal: the buyer meets with or has discussions with a range of suppliers he/she knows operate in the marketplace

• Formal: the buyer may place an advertisement or a Prior Information Notice and seek suppliers’ expression of interest in tendering, from which they can then invite them to participate in a meeting, or to respond to a series of consultation questions using a Request for Information process.

Bidders’ meetings• There are many ways of conducting bidders’

days and these may be held at ESPO, or at a client location.

• This could take place after the Invitation to Tender document is issued, to give bidders the opportunity to ask questions.

• In the interest of equal treatment, where questions are raised and answers given, these will be shared with all those responding to the advert (whether they attend the meeting or not).

Engagement during the procurement process• ESPO’s role as a Central Purchasing Body is to put in

place formal tendered contracts on products and services identified by our wider public sector customers

• It is not ESPO’s role to ‘vet’ or ‘approve’ organisations outside of an advertised tender requirement, nor do we keep ‘lists’.

• You need to monitor the OJEU/other media and apply on each and every relevant occasion (we do not take responsibility for proactively sending tenderers copies of PQQ or ITT documentation).

Engagement during the procurement process• Since Contracts Finder is the UK Government-

sponsored site – and all ESPO notices, both those above and below EU Threshold are published on this site, we recommend you view.

• If you have a clarification question regarding an Invitation to Tender (ITT) or a Further Competition exercise, you should direct your questions through the relevant eProcurement portal.

How do we help SMEs to access frameworks?• Key point: we WANT you to bid so we

ensure our procurement activity is SME-friendly to enable participation

• Monitoring of SME engagement through ITT business questionnaire

• “National” does not mean you cannot or should not apply. The framework may offer customers national coverage but not necessarily using a single supplier, and…

How do we help SMEs to access frameworks?• Frameworks can be created by splitting into

regional and sub-regional lots

• We can offer help and advice because here’s that key point again: we WANT you to bid and will do what we can to assist you within the boundaries of compliance

• Events such as today and ESPO website pages dedicated to suppliers

• Lean documentation

And now for the stats…

In the last two financial years ESPO accepted 1,276 tenders.

In 2013-14 72.1% classed themselves as SMEIn 2014-15 73%

To put this in perspective, in 2012-13 this was 55% and it was in this year ESPO decided to monitor SME statistics. We made a conscious decision to engage and you can see the results.

Collaboration • Greater opportunities for economies of scale

and aggregated volume exist when organisations work together

• Whilst local authorities, blue light, NHS, do

all operate as separate entities, we also collaborate on pan-organisation/regional and national level to create framework solutions

• ESPO works with both corporate and education customers, including universities, FE Colleges, Academy Trusts, independent and local authority schools

Federation of Small Businesses

• ESPO has been a member of the Federation of Small Businesses (FSB) since 2013.

• This is the UK’s leading not-for-profit organisation representing small and medium-sized businesses

Benefits of being an ESPO Supplier

• Access to a vast customer base• Low risk customers – 30 day payment • Transparency• Creating lot structures• Tenders not just scored on price• Incumbent suppliers do not have advantage• Marketing

So where do you look for those business opportunities?

Contract opportunities are advertised in:

• TED (Tenders Electronic Daily): http://ted.europa.eu/TED/main/home page.do)

• Contracts Finder: www.gov.uk/contracts-finder

• Source East Midlands: www.sourceeastmidlands.co.uk/contracts

And…

So where do you look for those business opportunities?

• ESPO’s e-procurement partnership portal (East Midlands authorities): www.eastmidstenders.org

By registering suppliers are automatically notified of forthcoming tender opportunities

Some Current Opportunities:

• Sandwiches and Filled Bread Products (121)

• ESPO Own Brand Paper Towels (189)

• Self Drive Vehicle Hire (271)

• Cash Collection and Cash and Valuables in Transit (324F)

How are suppliers awarded? • Respond to an Invitation to Tender by the

stated deadline – no exceptions!

• Supplier tender evaluated by ESPO according to EU procedures and rules

• Bids must satisfy the selection criteria (variable by ITT)

• New suppliers cannot be added once framework has been established

And if you’re unsuccessful?• You put a lot of effort into your bid, you ticked

all the boxes, dotted your ‘i’s and crossed your ‘t’s but still didn’t win the business.

• ESPO will write to you and advise you of the outcome.

• Once a decision has been made there is a Standstill Period of 10 days during which suppliers can challenge the decision.

• You can request feedback which can be written, verbal by phone or face to face.

Due Diligence and ongoing contract management• Documents, certificates, and/or supporting

information – confirm held and able to supply within 5 days

• No need to provide at the time of submission

• We stay in touch with you to listen to your feedback

Thank you for listening.

Any questions?

Sandra Sewell ESPO Corporate Account Manager

m: 07824 824 643