SMEs requiring to grown their businesses rapidly must of necessity sell to governments and institutions. Bids and Tenders represent avenues to achieve this

1. Gbolagade O. Adebisi, 01 November 2016.Gbolagade O. Adebisi, 01 November 2016.11/01/2016 1
Preparing Winning Bids
& Tenders

2. Preparing Winning Bids &Preparing Winning Bids &
TendersTenders
• The Procurement Context & Process
• Identifying tendering opportunities in
the local economy
• Developing a Strategic Approach
• Preparing effective Pre – Qualification
Questionnaires (PQQs) and Tenders
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3. The Procurement Context: RegulatoryThe Procurement Context: Regulatory
FrameworkFramework
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World Bank Procurement Directives
(Competition Policy)
Statutory Requirements
Procedures,
Statutory Requirements
Local Agreements

4. The Procurement EnvironmentThe Procurement Environment
 The Public Procurement Act 2007 (PPA 2007)
covers all public sector procurement –
Ministries, Departments and Agencies (MDAs)
of the Federal Government of Nigeria (FGN)
 Donors/Development Partners – also keyed in
to PPA 2007 and to some extent EU
Procurement Guidelines (similar in spirit to PPA
2007)
 State Governments have domesticated the PPA
2007 with their own versions of Procurement
process – State Bureau of Public Procurement
(BPP).
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5. Procurement Procedure
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Procedure Characteristics When the procedure is adopted
Open All qualified applicants must be given
the opportunity to bid
For lower risk procurement where supplier
capability is less important or where the
focus is on price
Restricted Two stage process with facility to
shortlist (PQQ + Tender)
Where capability of supplier is key
determining factor in the delivery of the
contract, market response likely to be huge
to allow short-listing
Negotiated Two stage process with facility to
negotiate at second stage
Specification is not clear or some creative,
artistic or expert input is required.
Competitive
Dialogue
Two stage process with facility to
enter into a dialogue with potential
suppliers to consider potential
solutions and refine specification
before invitation to tender
Complex procurement where suppliers
expertise has significant impact on the
development of the specification
Framework
Agreement
Stage One: Suppliers selected through
open/restricted procedure to a panel
of suppliers for given period
Stage Two: Call-Off or Mini
competition will be held when
services/goods required
Capability and Capacity is important and is
generally a recurring/constant requirement
(max 4 years; including extension options)

6. Procurement Process OverviewProcurement Process Overview
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Procure
Contract
Notice
EOI
Tender
EvaluateManageReview
Commission
PQQ
Award

7. Identifying Opportunities:

8. Opportunities: Public and Private SectorsOpportunities: Public and Private Sectors
 The Federal Government Budget 2016 =N=3.077
trn
 Capital Budget – 30%
 Recurrent – 70% less personnel costs
 MDAs
 Question is how much of it is coming to your
Company/Business
 State Governments – 30 plus FCT
 Universities – TETFUND
 Private Sector – Oil and Gas, Healthcare
 Donors/Development Partners/UN Agencies –
World Bank, UNICEF, WHO, USAID, DFID, JICA
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9. Opportunities: Sector Capital VotesOpportunities: Sector Capital Votes
 Works, Power and Housing – 433.4 Billion
 Transport – 202.0 Billion
 Interior – 53.1 Billion
 Special Intervention Programmes – 300
Billion
 Education – 369.6 Billion
 Defence – 294.5 Billion
 Health – 221.7 Billion
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10. Where are the Opportunities?Where are the Opportunities?
 FG releases 50% of funds for capital expenditure
 About =N=720 billion from the MDAs’ budget of =N=1.4
trillion as of the end of September 2016
 FG Social Investment Programme - =N=150 billion has been
approved.
 =N=25 billion has been released
 =N=40 billion is in the process of being released
 Home-grown School feeding programme, arm of the Social
Investment Programme (SIP) has commenced
 FG will fund primary 1 -3, State Governments will fund
primary 4 – 6
 Eggs, Chicken, Meat as well as those to cook them will be
required.
 Opportunities abound – for MSME operators
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11. Where will the Public SectorWhere will the Public Sector
Opportunities be in 2017Opportunities be in 2017
Let us look at the 2017 Budget Proposals
=N=6.866 trillion proposed 2017 budget
The government would spend N1.765
trillion as capital expenditure
N2.563 recurrent (non-debt
expenditure)
N1.639 trillion for debt service
N350 billion for recurrent social
intervention programme
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13. Finding OpportunitiesFinding Opportunities
• Where should you look / who should you know?
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PUBLISHED UNPUBLISHED SOURCES
Tender websites & Supplier portals Networking / relationship building
Organisational / Sector websites Procurement Teams / Category Managers
Tenders Electronic Daily (TED) Operational departments and units
Local / National press / Press
releases
Market analysis / competitor intelligence
Trade Press Partners / sub contractors
Meet the buyer events / briefings Second / Third Tier Contractors / Supply
chains

14. Tender Notices -Tender Notices - Key WebsitesKey Websites
S/N CATEGORY SOURCE WEBSITE
1 FGN Federal Tenders’
Journal
www.bpp.gov.ng
2 General Confabee www.confabee.com
http://tenders.nigeriang.com/
3 General Hellotrade www.tenders.hellotrade.com
4 General www.bizwatchnigeria.com.ng
5 EU EU Delegation in
Nigeria
www.eeas.europa.eu
6 Maritime Nigerian Ports
Authority
www.nigerianports.org
7 Construction www.cwctenders.com
8 IT www.ittenders.com
9 Electrical www.electricaltenders.com
10 Medical www.medicaltenders.com11/01/2016 14

15. Be Systematic & Get OrganisedBe Systematic & Get Organised
• What is your target market?
• In your target market who are the key buyers - Personnel at
Department level and Procurement Officers (important for
low value contracts that are not formally advertised)?
• Engage procurement personnel - make sure they know you
exist, seed ideas
 Find out about approved (accredited) supplier lists however
note that authorities are moving towards framework
agreements
 Register your details on tender e-portals and set up for
Alerts service, newsletters etc
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16. Be Systematic & Get OrganisedBe Systematic & Get Organised
 Set up internal processes and individual(s) to monitor tender
portals, alerts, sources and review feedback
 Network (buyers/commissioners, meet the buyer events)
 Competitor analysis
 Search for potential business partners / collaborators /
subcontractors
 Develop / improve your key policies so that you comply with
public sector tender competition requirements
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17. To bid or not to bid?To bid or not to bid?
Developing a Strategic Approach

18. Strategic DecisionStrategic Decision
MakingMaking
 Is the tender a good fit in relation to your company’s
activities?
 Can you meet the eligibility criteria (technical qualifications,
policy compliance e.g. Quality Assurance, Insurance) ?
 Do you have a good track record in relation to the
opportunity?
 Do you have the trading history (e.g. 3 years Audited
Accounts)?
 Do you have the capability and capacity to deliver the
contract if successful?
 Can you make sense of the budget and can you deliver the
contract on time?
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19. Strategic Decision MakingStrategic Decision Making
 What are the risks?
 Who are your competitors?
 What percentage of your turnover does
the contract represent?
 Do you need a partner(s) or will you use
subcontractors?
 What is the percentage chance of
success?
 Do you have the time and resources to
devote to preparing a good bid?
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20. Strategic DecisionStrategic Decision
MakingMaking
Solo or Collaborative Bidding?
• Form a consortium if:
– You don’t have the capability or capacity
– You can’t meet the 20% rule
• Options:
– Consortium
• Joint Bidding
• Lead Contractor & Subcontractor
• Legal basics – will you be jointly and severally liable?
• Memorandum of understanding (MoU) / Partnership agreement / (Non
Disclosure agreement (NDA); Agreement not to compete in other
tender)
• Service level agreement (SLA)/contract
• NB. consortium should be properly led, constructed and managed
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21. Partnerships and ConsortiaPartnerships and Consortia
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Benefits: Risks:
Increase capacity and scope to bid e.g.
Overcome PQQ impediments
Partner selection and getting Agreement /
legal document
Shared trade history (combined
capability and capacity)
Trust relationship (how well do you know
your partner – can you be confident they can
and will deliver)
Business Development: Access new
clients and markets
Complex decision-making, loss of autonomy,
compromises and concessions
Spread risk Sharing sensitive information
Mutual learning and innovative
approaches
Logistics (Co-ordinating bid)
Delivered additional added value (the
whole is greater than the sum of the
parts)
Logistics (Contract delivery)
Improve chance of success

22. Pre-QualificationPre-Qualification
QuestionnairesQuestionnaires
The First Hurdle
• Evaluation of your organisation
– The aim of the PQQ is to check that your
company is (for the contract term)
• Technically competent
• Financially sound
• Legally compliant
– Gives the buyer a means of short-listing
interested organisations on the basis of fair and
objective criteria
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23. PQQ: Example Scoring FrameworkPQQ: Example Scoring Framework
Section Score Weighting
1 Organisation Details N/A
2 Financial Information N/A or Risk Based Assessment
Pass/Fail
3 Insurance Pass/Fail
4 Business Activities 15%
5 Business Practices 30% (Total)
Health & Safety 5-10%
Quality Assurance 5-10%
Environmental Management 5-10%
Equality 5-10%
6 Requirement - specific 40%
7 Experience & References 15%
8 Professional & Business Standing Pass/Fail
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24. Example ‘Scoring’ CriteriaExample ‘Scoring’ Criteria
Score Response Type Reason indicated for Score
0 Non-compliant response No relevant information / solution provided in response to
contract requirements.
1 Unacceptable response Partially compliant response but with serious deficiencies in
solution offered, indicating serious difficulties / inability to
deliver contract requirements.
2 Unsatisfactory response Partially compliant response with shortfalls in solution
offered, indicating not all contract requirements could be
met and thus difficulty in delivery of the contract.
3 Acceptable response Compliant response, indicating basic contract requirements
are met but not exceeded. Contract could be delivered.
4 Good response Compliant response, clearly indicating entire delivery can be
met and solution offers some limited benefits beyond stated
requirements.
5 Excellent response Compliant response, bidder illustrated comprehensive
understanding of contract reqs. Proposed solution provides
significant additional benefits beyond stated reqs.
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25. PQQ InformationPQQ Information
General Business Information
• Business Details
• Status (Sole contractor / consortium)
• Ownership
• Business Probity
• Professional Conduct
Documentation required may include:
 Company History
 HR Information
 Administrative Information (Company Registration/VAT Number)
 Quality Standards Accreditation / Certificates
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26. PQQPQQ
InformationInformationFinancial & Insurance Information:
 Turnover
 Accounts
 Insurance
Documentation Required may include:
 Audited accounts, Management accounts, Parent company accounts
 Bankers statements & accountants’ references
 Financial projections, including cashflow forecasts
 Details of previous contracts and values
 Capital availability
 Certification of Incorporation, Certificate of Name Change
 Insurance Certificates
NB financial vetting is based on sound business judgement and not just the application of
financial formulae
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27. PQQ InformationPQQ Information
General Business Activities
 Overview of Existing Business Activities
 Overview of Main Areas of Expertise & Accreditation
 What percentage of your business is concerned with providing services
similar to the contract requirement
 HR Information (Number of Staff, Staff Profiles)
Contract Specification
• Explain and demonstrate your Capability and Capacity to fulfil the
contract requirement
 Case Studies (relevant to contract specification and demonstrating your
ability to fulfil the size, scope and complexity of this contract)
 Subcontractors
 Relevant References (norm = 3 recent referees) & contact details
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28. PQQ InformationPQQ Information
Essential Policies:
•Quality Management
•Equality & Diversity
•Health & Safety
•Environment Management & Sustainability
Why are they necessary?
 They are a legal requirement
 They are a purchaser requirement
 They help articulate the company’s values and principles for both staff
and clients
 They bring business benefits and are relevant to contract delivery
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29. Accentuate the PositiveAccentuate the Positive
Do you have a Health & Safety Policy?
Weak Answer:
– “Yes, see Appendix 1”
Good Answer:
– “The Health & Safety of our staff and customers is a vital part of
the company’s quality process. We operate a comprehensive
Health & Safety Policy (see Appendix 1) covering all aspects
of our products (services) and operations and it is reviewed
biannually.”
– For an SME employing less than 5 people: “Although we are
not required legally to have a Health & Safety Policy, we take
this matter very seriously and have adopted a Health &
Safety Policy in the interests of our staff and clients (see
Appendix 1)”
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30. Accentuate the PositiveAccentuate the Positive
What Quality Assurance arrangements does your company operate? If
no accreditation is held please explain why not and what alternative
steps you take to ensure quality at work?
Weak Answer:
– “We operate our own quality system. We have determined that
formal accreditation is inappropriate to our company’s needs.
Complaints are the responsibility of the Managing Director.”
Good Answer:
“We regard quality as a vitally important part of our business activity
and we operate a comprehensive and strict internal quality assurance
process covering all aspects of our business activity (details can be
found in Appendix 2). We are committed to a process of continuous
improvement and we are in the process of applying for ISO 9001 (we
expect to be assessed in May of this year)”
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31. Business ContinuityBusiness Continuity
• What is your Approach to Risk Management in terms
of Business Continuity?
• Do you have a formal Business Continuity
Management Programme? If YES, enclose a copy of
your plan/programme document
• Within the last 3 years have there been any
occasions when you business operation has been
disrupted?
– If YES what were the circumstances and what was the
effect upon your customers?
• Do you have a strategy for ensuring continuity of
supply from your critical suppliers?
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32. Avoiding a Poor ScoreAvoiding a Poor Score
Common reasons for a poor score:
1. Failure to follow the instructions
2. Writing by committee, no narrative flow and lack of
control/ownership
3. Incomplete or missing answers/sections
4. Supporting documentation incomplete
5. Repeating answers or referring to ‘see above’ (questions are rarely
repeated)
6. Over emphasising what you sell, rather than what they are looking to
buy
7. Recycling old PQQs & Tenders: Beware ‘Cutting & pasting’!
8. Generic PQQ/Tender response
9. Providing response on general capability instead as opposed to
specific contract requirements
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33. Invitation To Tender (ITT)Invitation To Tender (ITT)
The Second Hurdle
• Evaluation of your detailed proposal
– What are you going to do
– How are you going to do it
– Who is going to do it
– How much will it cost
– What is your track record / prior experience
– Compliance
– References
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34. ITTITT
InformationInformation
Invitation to Tender (ITT) pack will include:
• Instructions to Tenderers
• Introduction from buyer who will set out the vision
• The Specification
• The Evaluation Criteria & Relative Weighting
• Form of Tender
• Draft Contract Terms and Conditions
• Declarations / Bona Fide
• Pricing Schedule
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35. Preparing the TenderPreparing the Tender
Managing the preparation of your bid
• Get your team together, appoint a bid manager and conduct
detailed review and interpretation of tender requirements.
• Determine whether you require clarification of any aspect of the
tender and ask the question(s) allowing enough time for a response.
• Check regularly to see if any questions/answers have been
submitted by competitors. Be aware that any question you ask will
be notified to other suppliers)
• Prepare work plan & allocation of roles/tasks/milestones with
reference to tender & submission deadline.
o NB: Build in time to review, refine and style bid
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36. Preparing the TenderPreparing the Tender
Tender Design: What is the Buyer looking for?
• Design a clearly structured tender response aligned against each
tender requirement and criteria (e.g. core, gateway and specific).
Ensure compliance!
• Demonstrate a clear understanding of the brief (i.e. the challenges are
understood and addressed)
• Methodology: clearly show who (CVs) does what, why, when, how
and benefits from buyer’s perspective – illustrate with diagram (Gantt)
• Identify and demonstrate clearly your capability and the innovation of
your offer (USP) - can your offer exceed the contract requirements
and provide additional benefits, outcomes?
• Contract management and communication (i.e. how you interface with
the client to monitor project)
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37. Preparing the TenderPreparing the Tender
Standing Out from the Crowd
• Have you articulated ‘Why choose us?’
• Have you fully defined the key features, quality and benefits
of your approach?
• Have you used and made the most of recent and relevant
case studies to illustrate your track record?
• Have you gone the extra mile in manifesting your
understanding of the brief and the design of your solution?
• Conduct a mock assessment against the evaluation criteria
and relative weighting
• Presentation
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38. Case Studies: Example StructureCase Studies: Example Structure
• Client Name & Contract Title
• Work of same/similar nature, scope and scale
• What, When and How you did it
• Client Benefit (Outputs & Outcomes)
• Innovation & Added Value
• Contract Value/Price
• Reference confirming work was performed to client
satisfaction and to schedule
NB Be concise and relevant
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39. Preparing the Tender: Costing Your ProposalPreparing the Tender: Costing Your Proposal
• Follow Instructions in Tender re presentation of costs/fees/prices
– For services: Charging Rate(s) (Daily/Hourly) & Time & Personnel
• Fixed Cost / Variable Cost
• Expenses & Disbursements
• Contingency
• VAT
• Innovative Cost Proposals
– Discounted Cost e.g. 5% early payment, economies of scale and efficiency
savings linked to contract term and/or number of contracts (Lots) awarded
– Buyer comfort: Offer 10% Contract Price Withheld until completion
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40. Value for Money and Best Value (VfM)Value for Money and Best Value (VfM)
• VfM is the optimum combination of cost,
quality and fitness for purpose to meet the
buyer’s requirements (it is not about the
lowest price)
• Local authorities are subject to the Best
Value guidelines
• Embraces the concept of the ‘price-quality’
relationship
• Selection usually will be made on the most
economically advantageous tender (MEAT)
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41. Risk: What is your ApproachRisk: What is your Approach
Risk
identified for:
Mitigation
(i.e. what will
you do)
Impact
(High,
Medium,
Low)
Classification
of risk:
Reputation
(R),
Operation
(O), Finance
(F)
Client
Delivery
Supplier
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42. ExerciseExercise
• As a local company, how might
you emphasise that you have a
number of advantages?
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43. Exercise: Example AnswersExercise: Example Answers
Wrong Answer:
 The Government should give contracts to local companies as a
matter of course, because it retains profit in the area and improves
local employment levels.
Right answers:
 Lower Cost Base
 Close proximity to client : Allows customers to change their
requirements at short notice
 Local knowledge: Specialised knowledge of local issues or local
communities
 Fast response time, leading to better and more flexible service
 Improved environmental impact of shorter travel distance; potential
economies of expenses
 Commitment to sustainable procurement (Investing in Local Supply
Chain)
 Corporate Social Responsibility (Community Investment &
Involvement)
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44. Preparing the Tender: Bid WritingPreparing the Tender: Bid Writing
Language & Style:
– Write in plain English: short sentences and
paragraphs;
– Avoid jargon and unexplained abbreviations
– Use ‘active’ verbs, refer to ‘we’ and ‘you’
– In your response try to reflect key wording as found
in the tender specification
– Punctuation and spelling really matter
– Lay-out: Use clear headings aligned to tender
specification; standardise fonts, illustrate where
possible
Aim for clarity, brevity, readability and persuasion
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45. Buyer PreferencesBuyer Preferences
LIKE Don’t like
Concise and precise language Wordy tenders, Inconsistencies and errors,
poor use of grammar
Clear structure (esp. Methodology) Poor methodology (failure to define who does
what, where, when, why and how)
Challenges have been understood and properly
addressed
Deviation from defined requirements, lack of
understanding of client requirements and
failure to answer questions
Relevant background information Lack of detail/explanation or ‘data dump’
Properly defined & appropriate resources Unclear who will be involved in delivery
Systems & procedures Exaggerated and unsubstantiated claims
Innovation – or the opposite (tradition) Poor evidence of reliability
Risk assessment (mitigations) No risk assessment
Case studies & references Irrelevant case studies
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46. Do’s & Don’tsDo’s & Don’ts
• Do not attempt to find an “inside track”
(canvassing)
• Respond by the correct date + time (electronic,
electronic + post, post?) avoid last minute
submissions
• Ensure the submission is complete AND signed
including copies of requested documentation, e.g.
insurance certificates, policies, audited accounts etc
• Use tender envelope/label if provided and check if
there is a tender reference
• Look carefully at the evaluation criteria, scores and
“weighting”. This should influence time and effort
in preparation of answers
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47. Concluding RemarksConcluding Remarks
• Make note of instructions, word limits and submission format
Be compliant!
• Try to understand what each question is asking and why they are being
asked. Answer the Question
• Note the scoring / weighting of criteria. Spend time / effort on your
response accordingly
• Anything you are not sure of, contact the buyer (but be aware that any
question you ask will be notified to other suppliers)
• Answer all questions honestly and be keen and positive in your responses
(emphasise your USP).
• Double check your response / second pair of eyes
• Ensure you complete and submit all the documents required
• Make careful note of the deadline and make sure you submit well in advance
of the deadline (Avoid last minute submissions)
• If unsuccessful (or successful) ask for a debrief
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48. Be...Be...
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49. For one to one support contact:
Email:
geniusassociates2015@gmail.co
m
Tel: 0806 092 9393 or 0701 2222
556
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