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Tenders Blog
A blog covering tenders and advice on tender opportunities.
Monday 09th August 2010
Public Sector Cuts and Tender Opportunities
There is no doubt that the reduction in public expenditure will affect the world of tendering but is it all bad news? You may be concerned that the proposed cuts will see public sector tender opportunities dry up, but this may not be the case.
 
The proposed cuts may actually provide companies who have been greatly affected by the recession with a much needed lifeline, as reducing public sector spending will also cut the scale of public sector requirements. It may be the case that companies who are able to maintain lower overheads due to perhaps having a reduced workforce or premises and so on, will be in a fairly good position to compete. Also, the coalition agreement to give small firms 25% of government contracts still stands so companies won’t be disproportionately affected by the reduction in spending.
 
Try not to panic if the cuts will affect your business; instead come up with as many contingency plans as possible such as looking at how the private sector can provide new opportunities for your business or it may even be worth considering branching into overseas markets. 
 
 
Tips on how to procure public sector contracts:
  • Don’t compromise on quality in your tender proposal but DO outline how your business will ensure that costs are kept low.
  • As public sector projects often use a point-scoring system to offer contracts to traders it is safe to say that more weight will now be placed on suppliers who outline how their business will provide measures to cut costs.
  • Bear in mind that the buyer will not necessarily accept the lowest quoted tender and will look closely at issues such as sustainability and overall value for money.
  • Include examples in your proposal of how your company has managed to successfully cut costs in previous contracts.
  • If you are asked to complete a Pre-qualification Questionnaire (PQQ) which requires you to provide financial information, previous experience and references don’t be afraid to approach the buyer if you are unsure about what to provide in the PQQ. Most tender notices will provide contact information.
  • Smaller companies should not be deterred from tendering for OJEU contracts as subcontracting opportunities can arise from larger companies that win public sector contracts. Take advantage of government spending transparency and approach larger companies that have recently won public sector contracts.
  • Smaller companies could also consider joining forces with another business in order to procure big contracts. 
  • Ensure that your business is financially secure enough and prepared for the time it takes to tender public sector contracts. There are a lot of bureaucratic hoops to jump through and even if your tender is successful the timescale will probably be longer than private sector work 

 



Posted by: Admin, on August 09th 2010 on 09:26am
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Labels: public sector cuts
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