Government bids are a result of UK procurement regulations, which require all contracts over a certain value to be subject to the tender process. This also ensures the award process is open and transparent and the most suitable supplier is selected in accordance with the evaluation criteria.
Read more below on why government bids are an excellent way of winning contracts, how to source suitable contracts for your business and what is required to submit a winning bid.
Why government bids are a good option for suppliers
For nearly a decade, the central government has stated their targets to engage more small- and medium-sized businesses as part of their supply chain. Stated targets pledge that £1 of every £3 spent in procurement should be with SMEs – with current spend currently at around 20–25%, there is significant incentive to engage with suppliers and make government bids as easy as possible.
Consequently, the government is attempting to make the tender process easier for suppliers. The Procurement Act 2023, currently due to come into force this October, has introduced measures to ‘remove bureaucratic barriers and level the playing field for smaller businesses’ so they can be more competitive in the tender process.
Furthermore, government bodies are obliged to adhere to the UK Prompt Payment Code, which states that all non-disputed invoices must be settled in 30 days or less. Supply chains across many industries and sectors have difficulty securing prompt payment – with the public sector as a client, this will not be an issue.
How to find government bids
There are two free-to-use government websites where you can find contracts released every day – Find a Tender and Contracts Finder. Both sites allow you to search by date, location and industry sector, allowing you to tailor your search to relevant contract notices and framework agreements.
Once you have found a suitable contract, you should undertake a ‘bid/no-bid’ decision, asking the following questions:
- Do you have the right kind of experience on contracts of a similar size and scope to use, both as wider experience and for contract examples?
- Can you realistically resource and deliver all elements of the contract?
- Are there any minimum requirements, such as turnover thresholds or mandatory accreditations, and can you satisfy these?
Establishing a strong bid pipeline and making a quick ‘bid/no-bid’ decision is important if you are frequently tendering for government bids. The majority of public sector tenders have a four- to six-week window in order to submit a valid tender. Consequently, it is important to identify and review a bid opportunity as early as possible, to make the best use of time you have available.
What is typically required for a government bid
Government bids can vary in the number of documents required for a compliant submission. The size and scope of the contract will often inform the amount included in the tender pack.
Although many authorities will have a bid pack template, the works or services being tendered may also affect what documents must be returned. For example, a construction tender may require a detailed programme of works, whilst a health and social care bid could include a response formatted in Easy Read for service users to review.
Selection questionnaire (SQ) or pre-qualification questionnaire (PQQ)
If the tender is operating under an ‘open’ procedure, you will complete the SQ or PQQ at the same time as the tender. The selection questionnaire is split into three parts:
- Part 1: Standard company information, including the name of your business, registered address, trading status and persons of significant control
- Part 2: Mandatory and discretionary exclusion lists, which are typically yes/no confirmation responses
- Part 3: Financial information (usually requesting copies of accounts) and technical and professional ability, which contain the most narrative elements – including contract examples, data protection and health and safety questions.
If you are bidding as part of a consortium, you will approach the SQ/PQQ in a different manner.
Pricing schedule
Usually issued in a spreadsheet format, the pricing schedule requires you to enter your rates for completing the works and services. Given the competitive nature of government bids, you will need to price keenly, but also consider that you will be held to these rates for the duration of the contract or framework agreement.
Quality questions
The second part of the evaluation requires bidders to respond to a number of quality questions. These can vary from as little as 1,000 words to more than 20,000 words, particularly for large-value contracts or those split into different lots.
Responding to the quality portion of the submission is often the most time-intensive and specialist element of government bids. Common themes and topics include:
- Mobilisation and implementation: requiring you to explain what preparations you will make prior to the contract ‘go-live’ date, ensuring a smooth transition into service delivery
- Quality assurance: detailing how you will ensure quality in delivery and a ‘right-first-time’ approach to works and services, by appointing suitably skilled and experienced staff and audits/checks performed by supervisors or managers
- Social value: introduced by the Public Services (Social Value) Act 2012, the question normally asks what social value initiatives you will provide outside the contractual scope, ensuring the wider community benefits from your appointment to the contract.
Quality questions may also require attachments or appendices, such as organisational charts, CVs of key personnel and internal policies.
‘Sign and return’ documents
Typically comprising a form of tender document and certificates of non-collusion and non-canvassing. These documents ensure your tender offer has been reviewed by a suitably senior member of your organisation – such as a managing director – and provide assurance that you have not liaised improperly with the buyer’s representatives or other suppliers to ‘fix’ the tender process.
Supporting you to win government bids
98% of the tenders we support clients with are government bids, and we have worked on thousands of public sector tenders since our inception in 2009. The depth and breadth of our experience means we have helped clients to bid into nearly every central and local government authority in the company – giving valuable insight into each buyer’s priorities and preferences.
If you would like to find out more about the bid and tender services we offer to help you win government bids, contact our sales and marketing for an informal discussion or free, no-obligation quote for support at info@executivecompass.co.uk or via telephone 0800 612 5563.