The public sector is funded by taxpayers – you and me – and we’d quite like to know that our hard earned dosh does some good. Transparency in public sector procurement enables interested citizens to keep tabs on government spending.
The upshot is that contracting authorities must select their suppliers judiciously and public procurement suppliers must always bring their A-game to the table.
Choosing suppliers is so important that public sector organisations and government departments usually have dedicated staff responsible for making the decision. They are the decision-makers. The ones holding the purse strings. The ones that suppliers need to impress if they want to win public sector contracts.
We’re going to look at some of the qualities that key decision-makers look for when evaluating public services suppliers and awarding contracts.
Characteristics Suppliers Must Embrace if They Want to Impress
People are unique, their tastes, values, and preferences are different. So, it’s impossible to know what qualities decision makers value most. As a rule, however, the following characteristics influence their selection process.
Compliance and Regulatory Adherence
Public sector procurement includes mandatory regulations at a national level that are non-negotiable. The new Procurement Act and its reforms, for instance, have made social value a compulsory deciding factor in tender evaluation.
Compliance has more to do with industry regulations, for example, diversity policies in the manufacturing industry.
Accreditation and certification also refer to industry regulations, but compliance isn’t always compulsory. One government body may require ISO 9000 certification, an international standard for Quality Management and Quality Assurance Standards. Another public sector body might be more flexible, recommending ISO 9000 certification but not making it compulsory.
Financial Stability and Reliability
Public sector buyers don’t work with businesses that pose a financial risk. Contracting authorities will check the financial status of all shortlisted tenders.
Unlike your mortgage provider, public bodies don’t go back three months. Decision-makers go back three years to see how long suppliers have been financially stable and whether they are likely to remain reliable in the coming years.
Quality and Performance
Key decision-makers love high-quality goods and services and consistent peak performance. Suppliers must prove that their quality and performance exceed expectations.
Case studies that prove your methods work for government procurement projects are like gold.
It’s likely that you’ll need two or three case studies demonstrating your proficiency in public services from the past three years.
Also: Remember the ISO 9000 certification that assures quality? It really is very highly recommended for suppliers in public procurement.
Innovation and Value-Added Services
There are thousands of suppliers who fit the criteria in a public sector contract. Granted, not all of them will bid on the same public contract opportunities, but the point is that suppliers must deliver something that sets them apart from the masses.
Innovative new technology is great, but innovation isn’t everybody’s bag. Adding value to services, however, is a great way for suppliers to score points with public sector buyers.
Think of a method that saves time (and money) in the procurement process. Maybe implementing AI at a certain step in the supply chain shaves three days off of bulk orders. The improved efficiency can be worth a lot of extra points.
Sustainability and Corporate Social Responsibility (CSR)
The new Procurement Act places a lot of importance on social value, whether it’s environmental, social, or economical. It’s a bit like the usual CSR for central and local government organisations, but on steroids.
Suppliers must have a tangible, positive impact on their local communities, not a vague promise to decrease carbon emissions by 3% in the next three years.
Things like apprenticeships for the local youth, community vegetable gardens, and updated libraries can make a big difference to communities’ general quality of life – and that is great for social value.
Cost-Effectiveness and Value for Money
Before the new Procurement Act, central and local authorities awarded public sector contracts according to MEAT – Most Economically Advantageous. Basically, the lower the price, the better.
Now contracts are awarded according to MAT – Most Advantageous Tender. Price is an important factor in contract evaluation, but so are social value, innovation, performance, and financial stability.
Decision makers must now consider overall value for money, which means that a business with a relatively high bid can still win a contract if they deliver something that no one else can. They can trump suppliers who come in at a lower price, but who meet the contract criteria only.
Building Strong Supplier Relationships
A good relationship between buyers and suppliers can be the difference between winning a contract and missing out by the skin of your teeth. However, you don’t want to spend aeons of time schmoozing people who have no say in supplier selection.
This is why it’s so important to find out who are the key decision-makers in a company.
The foundations of a strong supplier-buyer relationship
Good relationships depend on several factors, but there are foundations without which relationships fail.
Communication and Transparency
The importance of good communication cannot be overemphasised. Regular, open, and honest communication from both sides ensures everyone is always on the same page. If it can’t ensure complete understanding, it can quickly address any misunderstandings, misconceptions, and confusion.
Communication also encourages collaboration and can play a critical role in innovation.
Transparency falls under communication because it facilitates accurate information sharing. Good tender platforms include transparency features as standard. Data is accessible to anyone who needs it and real-time updates ensure that decisions are based on the most recent procurement activities.
Flexibility and Responsiveness
The public sector is dynamic. Often, success relies on the quick reassessment of circumstances and rapid adaptation to the new situation.
Suppliers must have the flexibility to adjust procurement strategies to accommodate the changing public sector market.
It’s not enough to recognise the need for change. It’s not enough to tweak the plan. Suppliers must be responsive and actually implement the strategy changes ASAP.
Early Engagement
Think of early engagement as wooing decision-makers. Suppliers must know how to identify key decision-makers so they can take advantage of meet-and-greet opportunities. They should anticipate which events government buyers are likely to attend and ensure they are there with a smile and a business card or two.
However, and this is very important, these events are not sales opportunities, so leave the spiel at the office. Instead, they are opportunities to find and discuss common ground and get to know one another better.
Proposals Win Over Key Decision-Makers
Engagement is great – highly recommended, but it represents the human side of public sector organisations. A proposal represents the professional side of your business. It’s crucial to put a lot of effort into your proposal so that it’s obvious you meet all the contract criteria, but you also need to include all the extra stuff – value, innovation, etc.
Writing proposals for public contracts is tricky. It’s important to match the tone in the tender notification, and the tone on government buyers’ websites, blogs, webinars – basically any content published on the web. By relating to government organisations, government organisations can relate to you.
It’s the similarity and familiarity that do it, after all, like attracts like.
Research and Understanding
If you want to succeed in public sector procurement with central and local government bodies, you need to understand the market completely.
This includes the industry, your field, your target market, and public procurement policy. This is time-consuming because you must research and interpret a lot of data. It’s time you might not have or which you would prefer to spend in other sectors of procurement in government.
Cadence Marketing undertakes highly targeted bespoke research that generates data on local priorities, supply chain services, and resources. This data provides insight into local procurement activity, and underlines challenges that contracting authorities are likely to experience.
You can address the problem proactively, using innovative and, above all, practical techniques that provide the extra value that decision-makers are looking for.
Contact Cadence Marketing now to find out how our research and other services can benefit your journey in public sector procurement.
