Tendering for Contracts Training - Top Ten Procurement Tips

   How to Write A Winning Tender Proposal   #1

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How Do You Write A Winning Tender Proposal?

 
Reviewing the tender requirements and some of the required steps in preparing your procurement proposal.
When contract providers need a specific product / service or task to be performed, they invite contract suppliers to submit proposals for a competitive bid.

The supplier who submits the most economically advantageous bid may be called in to make a presentation of the ideas presented in their proposal. Therefore, your proposal must be convincing enough to result in an invitation to present your ideas.

Barriers to SME Entry into the Contracts and Procurement Process
One of the main barriers to SME entry into this lucrative sector is the quality of documents that have to be submitted.

You may have already identified the appropriate strategy that will set you apart from your competitors. If the potential contract provider intends to select the contractor strictly on the proposal evaluation, your proposal must position you and your company as the obvious choice. The strategy you adopt will be the overriding theme in your proposal.
  1. Show the potential contract provider the value benefits that will be gained
  2. Have a unique asset that you competitors don't have
  3. An established reputation for technical superiority
  4. Quality, ontime delivery and testimonials
  5. Demonstrate your awareness of the issues involved
  6. Your ability to provide the correct solution to the problem
  7. Your ability to provide a first class product / service
  8. Your ability to satisfy the needs of the project on time and on budget
  9. Demonstrate how you will meet the required schedule at the proposed cost
  10. An unusually low bid might result in a loss of credibility by raising doubts
  11. All requested documents, must be supplied at the appropriate time
  12. You will often score points for your attention to detail

As a Small to Medium Enterprise, you might feel at a disadvantage compared to large well-established firms.

You can turn your size into an advantage by emphasising that you will assign your most experienced staff to the project.
Once you have performed the necessary background research regarding your prospect's needs and identified the best strategy for your proposal, you can begin your first draft proposal. (very often you will not have much time for this task)

You will be given strict guidelines for the acceptable format, such as: Company background, Objective, Suggested Approach, Schedule, Qualifications, Staff and Cost, etc. This information will be requested at the time you receive your invitation, and form the basis for the (PQQ) - Pre- Qualification Questionnaire. your mid-point hurdle.

Be clear when you write and remember to work on your strategy throughout the text. Include figures, graphs, etc. to break the visual monotony of words. Have your proposal reviewed before submission. Errors in grammar and spelling reveal a lack of attention to detail which may cost you the contract.


When you receive a request for a proposal (RFP) or (PQQ)
You may also receive a proposal template that you must use to respond, the content of each (RFP) or (PQQ) will change each time.

Based on the requirements of the (RFP) or (PQQ), you must fill in every section correctly, after deciding how you will supply what is requireed.

Your Company's ackground
Review their requirements and provide detailed information on your company's background, its product / service, its staff, market sector, achievements, quality management systems, and attach any testimonials that you have in the appropriate section.

The Scope
Consider and discuss in detail each item in the (RFP) and how you intend to tackle it. Use diagrams to illustrate your configuration. This will be the longest section of your proposal and will probably have several subsections.

The Schedule
When is the anticipated start date? How long will each task take? Make a table of your expected schedule for completing the project.

Your Staff
All contract providers want to see a full list of all staff / sub-contractors that will be working on the project. This is especially important for government projects, provide all applicable resumes.

Cost
Breakdown the cost by equipment and personnel time to come up with your expected budget.

Supporting Information
Add any supporting info here, back up your reasoning with third-party quotes, research, test results, etc. You can also add information about similar projects you have completed for other firms and what the results were of those. Include testimonials from past clients, clippings from news papers, etc.

Drafting a Winning Tender Proposal does not have to be so difficult

Is Your Procurement Strategy upto the Task?
Understanding the potential contractor's needs and developing the appropriate strategy is based on discussion, dialog and debate through conversations. Ultimately, the objectives can be expressed via a scorecard or some other device for measuring and reporting on company performance. Determine the objectives and assign individual effort to each task. The result can then be assessed in light of these objectives.
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How To Write a Winning Tender Proposal Part #2, coming next

Summary
Learn to develop a tendering strategy that is adaptive to the public sector procurement process, determine what is required and devise and adopt the means to become the preferred supplier.

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