Jean Roberts

Managers whose responsibilities include Tendering and/or Outsourcing – whether in business or nonprofits – may find these three mini-checklists useful.

Mini-Checklist No. 1:      For managers involved in outsourcing, ie inviting tenders, the process requires a tender brief that is written for the tenderer.  This means that the tender brief:

1. is easy for tenderers to follow,
2. uses language that is appropriate to the work, service, product or product component required,
3. features clear specifications and requirements, together with the nature and extent of risk expected to be borne by the successful tenderer,
4. details the tender assessment criteria, ranking and weighting,
5. clearly specifies the contract period - with an outline of the contract negotiation process, 
6. allows sufficient time for tenderers to prepare an adequate and appropriately professional tender,
7. gives tenderers confidence that their tender will be assessed fairly, objectively and professionally, and
8. gives tenderers confidence that yours is a professional organisation in its outsourcing procedures, knows what it needs and why – and has a genuine commitment to the work, service, product or product component required.

Mini-Checklist No. 2:   For managers involved in tendering, ie responding to a tender brief, the aim must be to continually improve your in-house tendering procedure:

•  if you are winning 40% of your tenders, you are losing 60%;
• if you are winning 40% of your tenders, it is costing you 100% of your total effort – which includes the effort involved in the 60% you aren’t winning;
•  if your current strike rate is considered adequate, you need to reduce the amount of time and resources spent on unsuccessful tenders in order to increase your strike or success rate: and the best way to do this is to overhaul and improve your current in-house tendering procedure.

Mini-Checklist No. 3:   Points for managers to consider before deciding to prepare and submit a tender:

1. your ‘need to tender’ vs ‘option to tender’,
2. your ability to undertake this contract whilst satisfactorily fulfilling existing contracts and commitments,
3. your ability and willingness to meet the specifications and requirements (as outlined in the tender brief) to the tender caller’s satisfaction and in compliance with relevant  standards, regulations or  requirements,
4. compare the cost of tendering for a project that may not proceed, with the benefit of having your tender in the tender caller’s hands,
5. the value of the opportunity to tender as a marketing or promotional opportunity for your business or organisation,
6. the costs of preparing and submitting the tender in relation to the likely benefit and profit in winning the contract, and
7. the risks you’ll be expected to bear should you win the contract.

 More detailed checklists are available by contacting Jean.