Since I last wrote for CMM, a lot has happened. Yes, there has been a pandemic, and more recently, we have seen the introduction of the Procurement Act 2023, which will come into force by October 2024.
We have seen some changes that have already hit procurement in the social care sector. Local authorities and their procurement teams have now been tasked by the Procurement Act 2023 to engage with service providers before publishing a tender. If they don’t, then they have to publicise why they didn’t engage with the provider network, and most are using market engagement events for this purpose.
This is where the local authority procurement team meets with providers, often over video conference, to understand your likes, dislikes, how service efficiency can be improved and whether there is the capacity and interest to provide services. Some procurement teams use market engagement events to communicate their vision and/or strategy, which is a great place to spark ideas for the added value that your company can offer.
If you know the local authority’s strategy, vision or mission, you can work on innovative ideas to support the procurement team’s outcomes. This gains you those all-important added value points when your bid comes to be evaluated. An answer to a question that covers all the requirements, but provides no added value, might earn only 80% of the available marks. Why not make it 100% and make adding value your key priority?
Social value and net zero
Another recent change is the addition of social value. In addition, if you’re tendering for NHS services (whether the NHS is the sole or a joint commissioner), you can add net zero to that list. The need for the NHS and local authorities to work in partnership has crystallised over the pandemic, during which time the NHS was heavily supported by local social care providers. That close relationship looks set to continue, with integrated working and partnership arrangements high on many commissioners’ current list of priorities.
The NHS has set a target of being net zero by 2040 for all direct emissions they control – and being net zero by 2045 for all indirect emissions. Therefore, social care providers need to be aware of what is coming down the road. You need to start thinking about a strategy for carbon reduction. Look both upstream as well as downstream. What do you buy? Where from? When finished with the product, how do you dispose of or recycle it? Are there any alternative local suppliers you could use, reducing carbon emissions incurred in shipping?
Make sure all your suppliers can provide you with a robust disclosure and transition plan to net zero. Check out and understand the lifetime carbon assessment of each of the products you consume – these can range from physical items, such as personal protective equipment, washing machines and chemicals/powders to logistical products, such as staff travel to and from offices, or to and from the homes of people drawing on care and support.
In your bid, create a timeline of events around social value and net zero that demonstrates numbers achieved and forecasts (e.g., CO2 emissions saved). Furthermore, you should explain how you will monitor and report your figures, plus how you will record and analyse the figures to identify potential improvements.
Remaining ‘fit to compete’
Public sector tendering is a competition, and you must put on your best game face to have a chance of winning. Make sure you have a strong winning strategy and know what will your strategy be if you win? What minimum price can you afford to work for? This is very important for framework tenders, where you’ll have multiple successful competitors, each trying to make their mark with the commissioning authority.
Here are a few key questions you may wish to consider:
- Do you have marketing material to help you get new business from the procurement team?
- Can you back this up with feedback from people drawing on care and support, their family, friends and other key stakeholders?
- Can you prove you have capacity to provide cover for winter pressures, pandemics and unusual weather events, such as summer heatwaves?
Get to know the local authority, the community and the wider stakeholder group which the local community uses. Understand where their needs are and who your competitors are. Develop credible solutions that save time, money, reduce carbon and benefit the local economy. Do you know what the local authority’s main priorities and objectives are? What is their strategy for achieving these and how can you fit into that?
Remember, building rapport has never harmed any sales process. Writing tenders for someone you have never met is much riskier than being on top of the local strategy and integrated with the community.
If you understand all the above, you will be better placed as a company to align yourself with the local authority’s objectives. This applies throughout the tender process and afterwards. When communicating with the local authority, you need to make sure all communication has a value. Why should they read your email and what benefit will they derive from reading it?
Here are a few handy hints and tips:
- Read and fully understand the tender, including the instructions to tenderers. The instructions are your guide to the whole process, including timelines. For example, some local authorities are putting deadlines for TUPE enquiries ahead of the tender deadline – without this vital costing information, you cannot make an informed decision on your costs.
- Read the specification document carefully, understanding what and how the procuring organisation wants the service to be delivered. Mirror this in your answers.
- Break the questions down, as many have several elements. Create a sub-heading for each element and make sure your answer flows. Take the evaluator on a journey: engage them, showing them that you understand and care.
- Include in your answer both qualitative information, such as case studies, and quantitative data, showing that your examples are one of many. Reassure the procurement team that you have the capacity and capability to scale up.
- Be mindful of risk. There is plenty in social care provision, so advise the evaluator of the risks and how you will mitigate them, even if the question does not mention them.
- Look at previous tenders and create a list of subjects that are frequently covered by questions. Engage with your teams, considering how you can add value to each subject matter. If you do this, you may improve your scores by up to 20%.
- Social value/net zero will soon be given a minimum evaluation score of 10%, so make sure you put credible figures into your tender. Work with your team on creating strong net zero targets and speak to your local community, developing relevant and measurable social value initiatives that provide strong outcomes.
- Proofread and have your tender evaluated by someone not connected with your company – someone who has procurement knowledge. Be prepared to re-write elements that need more detail.
If all of this fills you with a feeling of panic, then please reach out and seek Insequa’s advice. It may be the tender you are looking at is not right for you, and you may save yourself a large amount of time and stress by having a conversation with a professional.
How has your business demonstrated added value to procurement teams? Leave a comment on this article or join the conversation to share your thoughts.
Peter Hamilton is Director at Insequa Ltd
Email: [email protected]
X: @insequaltd