By Bizna Brand Analyst
Having the government as a customer is a good thing. It brings your business a variety of benefits; first and foremost the assurance that the government will not go broke or become insolvent. Furthermore, unlike many private sector contracts that have preference for larger corporations, small and medium enterprises have equal access to government opportunities.
The high level of accountability checks in the public administration sector means that the government is more accountable to its suppliers than private firms. Becoming a government supplier also gives your business a level of accreditation that will make applying for your next tender or attracting new customers a breeze.
Bidding for a tender does not have to be stressful or difficult if you understand how it works and what the government’s objectives and issues with the project are. The following tips will help you secure that much hankered after opportunity.
- Understand how tenders are evaluated
There are hundreds of government departments, agencies, authorities and other bodies that have diverse service needs from advertising and office equipment to cleaning, engineering and project management.
The first step in the selection process involves determining if your tender complies with the mandatory conditions for participation and contract conditions. If it does not, your business may be eliminated from the first stage, so make sure you answer each evaluation criteria clearly and concisely.
Your application will then be assessed against non-cost evaluation criteria, which mainly involves factors such as:
a. Technical merit
b. Capability of your business to fulfill requirements such as technical and management competence, financial viability and relevant experience
c. Skills, experience and availability of key personnel
d. Quality assurance requirements
e. Risks or constraints associated with your business
Note: If you haven’t applied for, or won a tender before, look to collaborate with someone who has to increase the credibility of your application. Government agencies are risk-averse and love to deal with ‘tested and proven’ business.
2. Understanding tender pricing
The government’s contracted agency will then assess the pricing and value for money of the tender, which means picking the proposal that provides the desired outcome at the best possible price. This doesn’t always mean the cheapest price. Factors that your tender will be assessed against include:
a. Maintenance/running costs
b. Strategic partnerships
c. Disposal value
d. Contribution to government policy objectives
5. Demonstrate a good track record
It’s not only important to have a good record of your past performance, but to also demonstrate this in your tender response. You should include any details of previous awards, projects or other triumphs similar to the tender you are applying for. You can also attach your company profile, key staff resumes and any previous dealings with the government as appendices to further demonstrate your business’s suitability.
The government is generally unlikely to fund new projects unless you have special connections. They’re more likely to be interested if you have a proven track record i.e. you have already launched/developed/been delivering the program/project in question and have achieved good success with it. This proves you are committed and have the smarts and where-with-all to continue to successfully deliver the initiative, should you be successful.
6. Build relationships
Much like any other customer, the government will view your tender in a favourable manner if you have a strong and positive relationship with them. It is crucial to ensure that the government market know about your business’s capabilities and are confident in them, especially if you have never supplied the government before.
You should identify any agencies or bodies that may require your goods and services, and any specific areas that will make purchasing decisions. Liaise with government officials, either through a formal meeting, information session, networking event or forum, and provide them with information about your business. Don’t overwhelm them with excessive advertising or cold calling but make sure to leave your contact detail, pricing schedule, track record and company profile. As these moments are usually few and short, you should aim to differentiate your business in order to be more memorable.
Relationships don’t always have to be direct either. You can look into forming a strategic partnership with the agency by forming a consortium and submitting a joint bid, or by becoming a sub-contractor.
A sub-contractor performs duties for a prime contractor, who has a direct relationship with the government agency. This grants you the status of supplying to the government without having to directly take part in the competitive, at times stressful tender process.