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New Public Procurement Thresholds for 2018

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2018 EU / OJEU Procurement Thresholds

Procurement thresholds for public sector tenders are updated for 2018. Associate Consultant, Carl Rogers, is an expert on public procurement. In this post he explains the changes, the importance of contract values and the effects of Brexit.

Public Sector Procurement Thresholds for 2018

Timings

The new procurement thresholds affect new tenders from 1st January 2018 to 31st December 2019.

Why are Procurement Thresholds Important?

Public sector buyers must be aware of these thresholds. These are the values above which a European (OJEU) advert must be placed to ensure competition. Failure to do so can result in legal action being taken against the contracting body.

The procurement thresholds are applicable to public purchasing. This includes government departments, local authorities, NHS Trusts, utilities, housing associations etc. They cover the following:

What has changed

The actual thresholds have increased slightly. This might be due to the fluctuating exchange rates compared to the last threshold renewal. The new thresholds are net of VAT and are as follows: Continue reading →

Beginners Guide to Pricing Tenders

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As part of our tender consultancy service, I often discuss tender pricing strategies with clients. This beginners guide to pricing tenders covers the most common topics we talk about when aiming for the winning bid.

You know your business, its costs, competitive pricing and your competition – if you don’t, act now! I cannot tell you what will be the winning price. But this guide to pricing tenders explains some the most important issues when bidding to win a tender.

Beginners Guide to Pricing Tenders

Beginners Guide to Pricing Tenders

General Pricing Strategy

Tenders almost always have price as part of their evaluation (see MEAT below). So, you must ensure that your company’s pricing is competitive in your market sector.

When undertaking a sales and marketing review with a client, pricing strategies are always on the agenda (part of the Marketing Mix). This is a much bigger topic than pricing tenders and is too broad to cover properly in this post but let’s look at some of the basics:

There are three elements to a price:

  1. Direct Costs are the specific costs incurred to provide the product or service e.g. staff, materials / sub-contractors and supervision
  2. Indirect Costs include premises, management, professional fees, administration etc.
  3. Profit is the difference between the selling price and (1) & (2)

Continue reading →

How to Write Positive Tender Responses

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Writing positive tender responses will help you maximise the impact of your bids. A positive tone will shine through – as will any negativity. Therefore, you want to ensure that you avoid sounding negative and always be positive. You will appear confident and so encourage the markers to read your tender in an affirmative way. Hopefully leading to higher scores and therefore a win! This article explains 3 simple techniques that will help you achieve the right tone.

How to Write Positive Tender Responses

 

Answering Tender Questions to Score High Marks explains how to use the right language and style when answering tender questions. This includes:

  • Using benefits
  • Correct, complete and succinct writing
  • Writing in terms of ‘them’
  • Using the second or third person
  • Supporting evidence
  • Differentiating from the competition

We are now going to add some more subtle aspects to this ‘to do’ list by showing you how to write positive tender responses. Continue reading →

5 Things To Avoid When Preparing Tender Submissions

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One of the very first posts that I wrote was on the 10 most common tendering mistakes. It shows the main errors made when preparing tender submissions or PQQs. Many of these are pretty fundamental mistakes such as missing information, which will quickly lose you marks.5 Things to Avoid When Preparing Tender Submissions or PQQsIn this post I want to explore some more potential tendering pitfalls. These are less about omissions but more about mindsets or your approach. Make sure that you avoid them when next preparing tender submissions or PQQs.

When Preparing Tender Submissions or PQQs Don’t Make These Mistakes

1. Get ‘Tender Rage’

This usually applies to people who are new to tendering. They feel annoyed by having to tender for a contract in such a complicated manner. But most of us have got angry about the whole tendering process. I call this ‘Tender Rage’. Or ‘Getting the Grey Mist’ (there’s too much paperwork involved to get the full Red Mist!).

I can completely understand why people get it. Tenders involve a lot of effort. You have to deal with numerous complex questions and pricing schedules as well as long contracts and specifications. And let’s face it, some tenders are really badly written.

I’ve seen people compile a list of 30+ clarification questions! Not just because there are that many aspects on which they are unclear, but because they want to hit back at the tender panel.

I always try and remain calm and explain to clients why organisations tender. I also explain the tendering process. Then I recommend taking a break and starting afresh the next day. But also to make sure that the tender opportunity is for you (see next point No. 2). Continue reading →

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