Bidding for success: top tips for winning public sector contracts

30 June 2009

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Small businesses have long faced an uphill struggle to win public sector contracts, but the situation is magnified in the current economic climate, where companies are keen to replace flagging orders from the private sector with new public sector deals. At last, change is on the way that should make the process easier, but in the meantime small firms can do a lot to help themselves.

In response to the problems faced by members, the FPB has long campaigned to improve the public sector tendering process and open up more contracts to small and medium-sized businesses. Most recently, it has been pressing the Government to fast-track measures outlined in the Glover Review, at present scheduled for implementation in 2010.

"It's important that the Glover measures move in the right direction as quickly and as effectively as possible," says the FPB's policy representative Matt Goodman. "That would help to save more small firms from closure and provide a catalyst for economic recovery."

In the meantime, there is much that small businesses can do to help themselves to a share of the £175bn of public sector business that is put out for tender every year.

Tim Williams, Managing Director of Millstream Associates and the FPB's adviser on public sector tendering, says now is the time to bid. "Public spending levels are staying constant at the moment and some spending is being brought forward to boost the economy," he says. "There'll be cuts in future years though, so make hay while the sun shines."

Another procurement and tender specialist Wendy Wills, Managing Director of Ways2Win, says that preparing for tenders should be a key marketing strategy for UK businesses, but many suffer from lack of confidence and inadequate planning. "All too often small companies shy away from tendering," she says. "It's true that they need to prepare themselves, but done properly this can reap real rewards."

Top tips on getting 'tender fit'

Get reliable and timely information on available contracts. At present there are disparate information sources, some free and some subscription-based. An online search will identify a range of providers, including the Government's website, supply2.gov.uk, and Millstream's TendersDirect.co.uk.
Ensure your business is prepared. You will be asked about your standards and policies on issues ranging from HR and the environment to quality assurance and full financial disclosure. Producing all this information may be tedious, but once in place there should be a large number of contracts you can bid for.
Fill in the pre-qualification questionnaire correctly. This is critical if you are to progress, so take it as seriously as if it is the final stage. Click here to see a sample pre-qualification questionnaire.
Avoid surprises. Find out as much as you can about each specific tender process and expectations. If you are given the opportunity to ask questions, do so. If there is a phone number or email address, use it.
Try to build a relationship with the buyer. This can often be difficult, but it is the most powerful tool in winning contracts. It may help to aim for smaller contracts, at first, to build contacts and a track record.
Put yourself in the shoes of the person who will be reading the tender document. Keep it short, neat and relevant and include relevant images. Consider what will make you stand out and get you into the ‘yes' pile?

This article was taken from the summer issue of our quarterly member magazine Business Insight. You can read the issue in full here, with more on positive steps you can take to help you boost your business during the downturn.

Bidding for success: top tips for winning public sector contracts

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