In the business world, public tenders represent a golden opportunity for growth and development. However, winning a public tender requires more than just luck; it demands strategy, thorough preparation, and an understanding of the process. This blog post will provide you with a detailed guide through the key steps and tips to increase your chances of success in public procurement. Whether you are an experienced bidder or just entering the world of public tenders, here you will find valuable information to help you stand out and secure desired contracts.
1. Understand Public Procurement Terms
Public procurement is a complex process filled with specific terminology. Understanding these terms is crucial for successfully navigating tender documentation and avoiding errors. Some of the most important terms include:
-
Tender Documentation: This is a set of documents published by the contracting authority, which precisely define the subject of the public contract, conditions, requirements, and technical specifications. Careful study of this documentation is essential as it contains all the information needed to prepare a valid bid.
-
Estimated Value: Represents the maximum amount the contracting authority is willing to pay for goods, services, or works. This value includes possible extensions and options, and the contracting authority is obliged to determine it before initiating the procurement procedure.
-
CPV Codes (Common Procurement Vocabulary): These internationally valid numerical codes are used for the classification of products and services in public procurement. The use of CPV codes enables a unified identification of the subject of procurement across the European Union, facilitating the search and understanding of tenders regardless of the language.
In addition to these, it is important to familiarize yourself with other terms specific to public procurement, such as procurement thresholds (low-value procurement, simple procurement, high-value procurement), types of contracts (works, goods, services), and different procurement procedures (open, restricted, competitive procedure with negotiation).
Before embarking on bid preparation, dedicate time to researching the contracting authority. Understanding their needs, operational methods, and goals will help you tailor your bid and highlight your strengths. Your bid should clearly demonstrate that you possess the necessary knowledge, skills, and/or products that will meet the contracting authority's requirements and add value to their project.
2. Find the Right Tender
Preparing and submitting bids for public tenders is a time-consuming process. Therefore, it is crucial to focus on tenders where you have the highest chances of success. This involves assessing your own capabilities and resources compared to potential competitors.
Check Evaluation Criteria
Every public tender has clearly defined criteria based on which the best bid will be selected. Price is no longer the sole decisive factor; the emphasis is on "the highest quality for a reasonable price." Therefore, it is important to analyze whether these criteria work in your favor and if you can offer a solution that stands out in terms of quality and innovation.
Review Specifications
Evaluation criteria are closely linked to contract specifications. Carefully study all specifications to identify potential "red flags" that might discourage you from submitting a bid. These could include excessively short delivery times, unclear or contradictory specifications, or evaluation criteria that do not favor you. If you have any doubts, contact the contracting authority for clarification – it is your right and their obligation.
Consider your company's position relative to the competition. Can you offer added value that will set you apart? Your bid must be competitive and offer the best quality at a reasonable price. A successful bid is not just the one with the lowest price, but the one that best meets all the contracting authority's requirements and offers an optimal solution.
3. Avoid Common Mistakes
Even the most experienced bidders can make mistakes, especially when under pressure from tight deadlines. The most common errors that can lead to bid disqualification include:
-
Missing Signatures: Even if only one signature is missing, the bid must be disqualified. Ensure all necessary documents are properly signed by authorized persons.
-
Using Incorrect Forms: Contracting authorities often provide specific forms within the tender documentation. Always use these forms and avoid your own formats, unless otherwise specified.
-
Incomplete Documentation: All documents listed in the tender documentation must be attached to the bid. Missing documents are a common reason for bid rejection. Before submission, perform a detailed check of all attachments.
In addition to these formal errors, it is important to pay attention to the content. The bid must be clear, precise, and fully meet the contracting authority's requirements. Avoid general phrases and focus on the specific benefits and solutions you offer.
4. Schedule Your Time
Effective time management is crucial for successful bid preparation. Once you decide to participate in a tender, ask yourself the following questions:
- When is the deadline for submitting bids?
- How much time is needed to prepare all the documentation?
Realistically estimate the time required to collect all documents, make calculations, and write the bid. Create a detailed list of all necessary documents and check which ones you already have on hand and which ones you need to update or obtain. The goal is to have everything ready in advance to avoid stress and last-minute errors.
Regularly check your progress and allow enough time for multiple reviews. Administrative errors often occur when things are rushed. Therefore, instead of working on the bid content until the last moment, focus on checking formalities and ensuring everything is in accordance with the contracting authority's requirements.
5. Research the Competition
Knowing your competition is invaluable. Research who your main competitors are in the public procurement area, what their strengths and weaknesses are, and how they position themselves in the market. Identify a few key things that differentiate you from them. This could be specific expertise, innovative solutions, better quality of service or product, or a more competitive price.
When the contracting authority compares bids, a clear presentation of your unique advantages will help them recognize why you are the best choice. Your services should positively differentiate themselves from those offered by your competitors. Competitive analysis can also reveal areas where you need to improve your business or offering.
Using services for monitoring competition and the market, such as those offered by BidRadar, can provide you with access to all the necessary information to always stay one step ahead. Instead of spending months gathering data, relevant information can be available to you in just a few clicks.
6. Additional Tip: Don't Give Up!
It is unrealistic to expect to win every tender you apply for. Many companies give up after a few unsuccessful attempts, leaving the market to the competition. However, persistence is key. If you haven't secured a contract, analyze your situation and approach to tenders. Request feedback from the contracting authority to find out what you can improve in your next bid.
Continuously identify new business opportunities, monitor competitor activities and market changes. Be diligent and follow changes in public procurement legislation. All of this will help your company discover new markets or potential suppliers you might want to work with. By understanding your goals and adapting your business profile, you can significantly increase your chances of success.