The tendering process can be a bit of a black box for those who are new to it (and sometimes for seasoned tenderers as well!). How do you find tendering opportunities? How do you find the RIGHT opportunity? How can you maximise your chances of success? Is the process really worthwhile? These are some of the questions we frequently hear as tender consultants.
Tendering for the first time can be quite daunting. We understand that, so for the tendering novice, we have compiled a list of the top 5 things to know before getting started.
1. How to Find the Best Opportunities
I’d really love to submit a bid for a tender, but I don’t know where to find one!
Every year, Government agencies and large companies release a number of tenders requesting suppliers for a range of different services, programs and products. Yet, the ever-present question: where do you go to find the tenders?
Tender listings can be found on several websites and tender portals for various Councils. AusTender is a good place to start. You can also sign up to receive tender notifications from state or local government agencies through their respective online portals (click here and here to find out more).
Private organisations also release tender opportunities, which can be advertised publicly through platforms such as Tenderlink, or privately through invitation. Finding these opportunities can be difficult, but a professional tender consultant should be able to assist.
At tendered, one of the things we provide for our clients is a free tender notification service. We do the hard work, dig through all of the current listings, find the opportunities that best align with your company’s capabilities, and send them your way.
2. Know What Opportunities to Tender on and What to Avoid
When deciding whether or not to submit a proposal for a tender, ask yourself these critical questions:
- Are there any pre-qualification requirements? If so, do you meet these requirements?
- Are you in a position to comply with all tender conditions? If not, this may not be the most suitable opportunity for you (this isn’t a deciding factor however).
- Do you have the labour resources to fulfil the contractual requirements? It is worth noting that a number of suppliers will scale to meet demand. If you don’t currently have the labour resources but have the capacity to meet resourcing expectations upon award of contract, then this is ok. If you exaggerate your labour resources and cannot live up to your claims, this is not so ok.
- Do you have previous experience with contracts of a similar scope? If not, you might need to build up your CV to get your foot in the door. Perhaps you could put your hand up as a subcontractor for some bigger companies with tendering experience.
- What are your current commitments? Do you have the time and resources to fulfil all your contractual obligations?
- Do you have the necessary skills/expertise/ qualifications/accreditations/permits?
Your answers to the above questions should give you a pretty definitive answer as to whether to submit a bid or steer clear of it. If you’re still struggling, click here to read about bid / no-bid processes and find out about our bid / no-bid calculator.
Be discerning. Don’t go for everything.
3. Understand How Your Business is Different to the Competition
Successful tenders stand out. The successful bidder has to do more than simply meet the criteria. Think of it like working out the difference between a grade A assignment or a grade B assignment. A B assignment has ticked most or all of the boxes, delivered on most or all of the stipulated criteria, but it’s missing that WOW factor to show that you’ve gone over and above what was expected. So, firstly ask yourself, how can you give your submission a WOW factor? What makes your company an A in a sea of B competitors? What’s your point of difference?
Secondly, and importantly, know your competitors. You can’t know your point of difference until you have an intimate knowledge of what else is out there on offer. How many other businesses offer services that are similar to yours? How big/small are they relative to you? What are their websites like (this gives a clue as to how modern and innovative their systems might be)? Do they have systems accreditation? Do they have any industry awards? What do people say about them? Are there any google reviews?
In other words, do your research. Make sure you have a point of difference that is worth talking about.
4. Treat the Tender as a Priority and Invest in the Process
Tendering is serious business. Make sure you are treating it as such and giving the process the time and attention required by ticking off the following:
- Read the entire document (or make sure someone does). Make sure you are familiar with not only the returnable document, but any accompanying tender specifications, conditions, and addenda. Read the fine print. Remember that you are entering into a contract.
- Going for a tender is often more involved than you might think. To maximise your chances of success, give yourself plenty of time to organise your schedule and plan of attack. If you don’t have the time or confidence to do it yourself, hire a professional.
- Know your audience (as you would if you were preparing for a job interview). If you’re thinking of submitting a proposal to secure a contract with Brisbane City Council, make sure you know Brisbane City Council inside out and can talk to the unique requirements of the contract.
5. Talk to a Professional
Let’s face it, the tendering process can be dull, time-consuming, confusing, and sometimes it really seems like certain procurement agencies are trying to get a rise out of you by making the process as laughable as possible (you know who you are). However, going for tenders can be an excellent way to generate a steady source of income for your business, and for some companies, tendering is bread and butter work.
Tender writing is a niche skill, so your tender success rate is almost always going to be greater with the assistance of an expert in the field. In addition to a higher success rate, consulting a professional means that the dull, time-consuming, confusing and occasionally laughable process of tendering is now their headache, not yours. So, if you are considering your debut into the tendering game, do yourself a favour and consult with an expert who knows exactly what the procurement panels are looking for in a response, and how to traverse the black box terrain. You will never look back.
