evaluation criteria

Common Proposal Mistakes: 4 of 10 – Not relating your response to the evaluation criteria

A simple enough mistake to fix going forward. You’re answering the questions but are you making sure you’re notching up points against each of the evaluation criteria?

Buyers don’t have to include the evaluation criteria or their weightings but often they do.

While you’re putting your responses together, repeatedly test them against the evaluation criteria. See that each response to each tender question is in some way proving that you are meeting and exceeding the criteria.

For example (see previous article for context) “Understanding of our organisation” may be a heavily weighted evaluation criterion. Wherever you can, include information that shows that you know the buying organisation. This can be done by spending time doing extensive research on their company website.

One Final Check Against Evaluation Criteria…

Once you’re done, go through the evaluation criteria again and reconcile your responses to them. Make sure that you have addressed all of them.

 

Extract from the eBook HOW TO PREPARE A WINNING TENDER… From the Procurement Marker’s Perspective

 

Other posts in this series:

additional-value

Common Proposal Mistakes: 2 of 10 – Not including clear additional value

When the numbers person (financial reviewer) is adding up the cost of each offer, there’s a good chance that they’ll include any responses to “value-add” questions.

Responding to the Value-Add Questions

Value-add questions tend to be open ended and the best way to respond is with as many suggestions as you can think of and, importantly, equate them to a monetary value.

For example, you might have offices with additional space that could be used for training and you could equate this to the cost of them having to rent this space elsewhere to give a dollar figure. Spend some time thinking about things you can offer over and above your direct response to their requirements – even if there’s a chance that they won’t take you up on them.

Extract from the eBook HOW TO PREPARE A WINNING TENDER… From the Procurement Marker’s Perspective

 

 

how to win a tender

Common Proposal Mistakes: 1 of 10 – Responding with a “No”

An example: an RFT asks whether the supplier has in place any sort of benefits tracking reporting for other clients. Rather than a flat-out no, a supplier could quickly integrate some sort of benefits tracking in an existing client’s report and then ask at the next reporting meeting whether they find it useful. Whether or not they do, you as a supplier can answer “yes”.

Industry Bodies

Another very frequently seen example of this is the response to “does your organisation have any relevant memberships to industry bodies?” with the response just being “no” from the tenderer. Know how to get maximum points for your answer instead? Just do a Google search for memberships and subscriptions and some words about your industry. There are so many out there and membership might be $100 or less (and may even be useful to you in future). Sign up and you can now answer “yes” to this question and potentially get full marks, and then get into the shortlist, and then charm them in the presentations and then… win the big contract.

Extract from the eBook HOW TO PREPARE A WINNING TENDER… From the Procurement Marker’s Perspective

 

 

How a Good Request for Tender (RFT) Process is Run

To win tenders you should understand what goes on behind the scenes from the buyer’s side. This post follows on from our previous one entitled How a good Request for Tender (RFT) Document is Designed

Once the RFT has been approved by internal parties it can either be released publicly (e.g. on a government tender site or newspaper announcement) or specific organisations are invited to participate which is also known as a select tender. There may be a process of elimination before the RFT is released where suppliers are requested to submit a subset of information to ascertain their suitability to take part in the RFT process. To suppliers who’ve made it past that process (refer to blog article on “getting in the door”) the RFT documents are sent out. Confirmation of suppliers’ intention to participate is usually requested within a number of days of the documents being released.

A supplier briefing is not an uncommon next step when the requirements are large and complex. This gives suppliers an initial chance to review the RFT documents and to come armed with their questions (see blog article on “how to behave at the briefing”) and gives the buying organisation the chance to clearly explain their requirements.

Whether or not there’s a briefing, suppliers will then have a set amount of time to ask their questions. Questions are compiled and those whose answers aren’t specific to the asking supplier are anonymised and the responses sent to all. This is so that no suppliers are unfairly disadvantaged as a result of not having pertinent information.

Proposals are then received and opened after the submission deadline. Often the pricing section is removed and the remainder distributed to the evaluation team. The rationale behind doing this is that often opinions are influenced by proposed cost and it is a very real temptation for procurement folks to just flick right to the pricing section to see what sort of savings they could achieve as a result of the proposals given that their performance is in part measured by savings.

Using an evaluation template, each of the evaluators scores the responses to each of the questions numerically (on a scale of 1 to 5 for example where 1 is terrible and 5 is excellent. Most RFTs include some minimum criteria which, if a supplier fails to meet, their response is discarded. Some examples are financial stability, adherence to certain quality standards or agreement to our proposed contract.

These scores are then tallied up to show each supplier’s total score against each of the weighted evaluation criteria. The weightings are important – here’s an illustrative example to show why:

Evaluation Criteria Weighting (Scenario 1) Weighting (Scenario 2)
Experience in providing the goods/services 10% 40%
Understanding of our organisation 10% 40%
Geographic coverage 20% 1%
Implementation planning 5% 1%
Value add 5% 8%
Cost effectiveness of the offer 50% 10%
Total 100% 100%

Scenarios

Scenario 1 might be something like office supplies – we care about cost the most because the products are pretty standard across the big suppliers.

Scenario 2 could be for a marketing contract where it is really about their understanding of our organisation and their relevant experience.

So the same type of responses wouldn’t achieve similar scores in these two RFTs because if, for example, you had really good geographic coverage, it would matter a lot to your score in scenario 1 but hardly at all in scenario 2.

During evaluation of responses, often evaluators will compile a list of questions for each participating supplier where clarification is required on your responses. With the answers to these questions evaluators will then assign an aggregate score to each supplier and then rank them. They may choose to then short-list which is when suppliers with a lower total ranking are eliminated from the process and discussions continue with a few high-scoring participants. The simplest continuation of this discussion is a request for a final pricing offer but negotiations can be more holistic whereby, across the table the buying and selling parties discuss options for give-and-take to arrive at a contract and solution which suits both parties best.

The successful supplier(s) then sign the contract and that is where the competitive bidding process ends, normally until the contract ends.

Extract from the eBook HOW TO PREPARE A WINNING TENDER… From the Procurement Marker’s Perspective

Next up: How best to respond to a tender

 

rft-document

How a good Request for Tender (RFT) Document is Designed

Best practice RFT design starts with a meeting of representative stakeholders in the buying organisation to determine what they want. Typically, their requirements will include some goods and/or services which they’ll get the experts within their organisations involved in to put the specifications together. For example, if they’re buying food it may need to be cut to certain dimensions, frozen, have a specific country of origin etc. With input from their colleagues, they’ll also get a list of things that are important to them which might look something like:

• Experience in providing the goods/services
• Understanding of our organisation
• Geographic coverage
• Implementation planning
• Value add
• Cost effectiveness of the offer

These will form the evaluation criteria which will be the basis of the RFT and against which suppliers’ responses will be measured. The stakeholders will then decide how these criteria should be weighted based on what is most important to the organisation. How they are weighted really depends on the buying organisation and whether they let suppliers know what the weightings are is typically at their discretion. It’s a great help if they do publish the weightings in the RFT as it gives suppliers an idea of where to really focus their efforts.

The Sections

Most RFTs I’ve seen start with some RFT terms and conditions which are informational. The terms and conditions serve to protect the buying organisation (e.g. clauses to say that they don’t need to appoint any one supplier, that costs of putting together responses are solely to be borne by the participating suppliers etc.) and to inform the suppliers (e.g. when the responses are due, the process for asking questions).

Next, typically comes a bunch of questions which suppliers are to respond to. These questions are linked to the evaluation criteria. Relating to our above example criteria they may ask you to provide examples of similar clients that you’ve got or had. The marks assigned to this question would likely be attributed to the “Experience in providing the goods/services” criterion.
Usually at the end there’ll be a place for you to enter your pricing (may be spreadsheet if there’s a list of commodities/services) along with some attachments which may or not include the buying organisation’s standard contract.

Extract from the eBook HOW TO PREPARE A WINNING TENDER… From the Procurement Marker’s Perspective

Next up… How a good RFT process is run