Bids, Tenders and Proposals: Winning Business Through Best Practice by Harold Lewis ISBN:0749438606 Kogan Page © 2003 (248 pages) Advice to help you compete successfully for new work. Table of Contents Bids, Tenders and Proposals-Winning Business Through Best Practice Chapter 1 - A Bid to Succeed Chapter 2 - Bidding for Public Sector Contracts Chapter 3 - Tendering for the Private Sector Chapter 4 - Bidding for Research Funding Chapter 5 - Pre-qualifying for Tender Opportunities Chapter 6 - Deciding to Bid Chapter 7 - Analysing the Bid Specification Chapter 8 - Managing the Bid Chapter 9 - Talking to the Client Chapter 10 - Bidding in Partnership Chapter 11 - Thinking the Work Through Chapter 12 - Developing and Writing the Bid Chapter 13 - Explaining Approach and Methodology Chapter 14 - Focusing on Contract Management Chapter 15 - Defining Outputs and Deliverables Chapter 16 - Communicating Added Value Chapter 17 - Presenting CVs Chapter 18 - Describing Professional Experience Chapter 19 - Using Graphics in the Bid Chapter 20 - Stating Your Price Chapter 21 - Producing and Submitting the Bid Chapter 22 - Understanding How Clients Evaluate Tenders Chapter 23 - Presentations to Clients Chapter 24 - Do Your Own Tender Auditing Chapter 25 - Ten True Stories Index List of Figures List of Sidebars UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE Back Cover Acknowledged expert Harold Lewis, who has written over 200 successful tenders and proposals, offers “best-practice” advice to help you compete successfully for new work. He covers every step in the process of tendering, including: bidding for public sector contracts; the EU procurement framework; tendering for the private sector; tendering for research projects; analyzing client requirements; building a bid team; developing and writing the bid; communicating added value; presenting CVs; describing professional experience; producing and submitting tenders; stating your price; understanding how clients evaluate tenders; making presentations to clients. The proven techniques described in Bids, Tenders and Proposals are within the reach of everyone, whether firms of contractors or individuals working on their own. Just as relevant to small projects as to large contracts, the advice is invaluable. About the Author Harold Lewis is an independent consultant with more than 30 years’ professional experience as a specialist proposal writer, technical editor, and trainer. He is a leading authority on the development and writing of competitive tenders for professional services contracts and consultancy assignments. His extensive experience includes preparing successful bids for projects funded by international and regional development agencies, government departments, local authorities, research bodies and corporate organizations in the private sector. Bids, Tenders and Proposals-Winning Business Through Best Practice Harold Lewis London and Sterling , VA This book has been endorsed by the Institute of Directors. The endorsement is given to selected Kogan Page books which the IoD recognizes as being of specific interest to its members and providing them with up-to-date, informative and practical resources for creating business success. Kogan Page books endorsed by the IoD represent the most authoritative guidance available on a wide range of subjects including management, finance, marketing, training and HR. The views expressed in this book are those of the author and not necessarily the same as those of the Institute of Directors. First published in Great Britain and the United States in 2003 by Kogan Page Limited Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be reproduced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 120 Pentonville Road London N1 9JN UK www.kogan-page.co.uk 22883 Quicksilver Drive Sterling VA 20166-2012 USA Copyright © Harold Lewis, 2003 The right of Harold Lewis to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 0 7494 3860 6 British Library Cataloguing-in-Publication Data UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE A CIP record for this book is available from the British Library. Typeset by Saxon Graphics Ltd, Derby Printed and bound in Great Britain by Biddles Limited, Guildford and King's Lynn www.biddles.co.uk Harold Lewis is an independent consultant with more than 30 years' professional experience as a specialist proposal writer, technical editor and trainer. He is a leading authority on the development and writing of competitive tenders for professional services contracts and consultancy assignments. His extensive experience includes preparing successful bids for projects funded by international and regional development agencies, government departments, local authorities, research bodies and corporate organizations in the private sector. Chapter 1: A Bid to Succeed About this Book If you are engaged in professional services, consultancy or research, you will find guidance here on every step in the process of writing tenders for contracts and project funding. The book puts at your disposal techniques that the author has perfected as a specialist writer in this field and insights gained from his experience as a tender evaluator with client organizations in the public and private sectors. Those who are new to bid writing will learn how to build the confidence to start producing successful bids. Those who are more experienced will, it is hoped, be shown new ideas that extend and reinforce their skills. The scope of the book includes a broad range of procurement and funding. The text aims to deal comprehensively with its subject matter, but it does not cover tendering for supplies or works contracts or 'design, build and operate' schemes and similar contracts. Much of the material will be relevant to public- private partnerships, though procurement issues related specifically to these initiatives are not addressed directly in the book. This introductory section is followed by chapters highlighting aspects of bidding in three broad environments - public sector procurement, particularly within the EU framework (Chapter 2), contracts for private sector clients (Chapter 3) and applications for research funding (Chapter 4). Pre-qualification procedures are the subject of Chapter 5. The process is then traced out step-by-step from the decision to put in a bid (Chapter 6) through the task of managing its preparation and development to the construction of the text (Chapters 7 to 12). The categories of information normally included in a bid, from technical analyses to cost estimates, are discussed in Chapters 13 to 20. The concluding sections (Chapters 21 to 25) follow the bid through the stages of submission and evaluation as well as outlining a procedure to assist in the continuous improvement of bid quality. The techniques described in the book are within the reach of everyone, whether firms of contractors or individuals working on their own: they can be put to use in bidding for small projects as much as large contracts, in writing short proposals as much as multi-volume tenders. Chapter 12 contains a complete bid - a letter of just a few pages - as a practical and small-scale example of the approach set out in the book. There is a point of definition to be made at the outset. Though the type of document that is the subject of this book - a formal written offer to undertake work or provide services for a stated price - is called a tender in services procurement, consultants are more likely to refer to it as a proposal or bid, while research bodies may talk about an application for funding. Since the book is relevant to all these fields, the words 'bid' and 'tender' are used here without distinction as inclusive and generic terms. Similarly the term 'contractor' denotes any person or organization putting in a bid, whatever their background. The bidding process from tender announcement to contract award is summarized diagrammatically in Figure 1.1, which indicates also the types of document that may be associated with each stage. UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE Figure 1.1: Generalized Summary of Bidding Process In most sectors of procurement, competitive bidding is the norm for all except small, low-value and low-risk assignments. Single sourcing is generally considered acceptable only if the work is a logical extension of a previous or existing contract and continuity is required, or if only one contractor is qualified to undertake the work, or if a contract has to be awarded quickly in an emergency. But even in these situations it makes good sense for the client to ask the contractor for what is to all intents and purposes a bid, stating how the work will be performed, when it will be completed, what the deliverables will be and what the work will cost. Guidelines to Set You on Course Focus on the client's needs The prime function of a bid can be seen from the standpoint of the contractor as securing work through a competitive response to the client's requirements. But it is important to view the bid also from the client's perspective. For the client, its purpose is to help identify accurately and reliably the contractor likely to deliver the best value and achieve the best results. Following the client's instructions and supplying the information the client needs to reach this decision are matters of common sense; yet it is surprising how many bids fail in this respect. The procurement activity in which the bid plays a central role is 'owned' by the client: it is the client who sets up the competition, the client who invites contractors to bid and the client who judges the qualities of each competitor. So the client's priorities, not those of the contractor, have to take centre stage. A bid that shares with the client an identity of understanding and commitment is more likely to succeed than one that sees only the contractor's point of view. This is one reason why it is important to try to gain in-depth knowledge about a client's business environment, strategies and objectives before the stage of writing the bid. And it is the reason why an effort has been made throughout the guidance offered in this book to reflect the views and preferences expressed by clients. Match the bid to the opportunity Knowing how to develop bids efficiently and communicate them powerfully is a key business skill, essential for survival and growth. Bids are first and foremost business documents. To succeed they need to exhibit businesslike qualities both in the way they address the work to be done and in the way they speak to the client. The bid has to show that the person or people who wrote it thought hard about the client's requirements, developed it specifically for that opportunity and exercised care in its preparation, and that it was not patched together using copy-and-paste commands. Some contractors seem to have a production-line attitude to bids. They think they have found an easy solution: all that is necessary is to splice and recycle the same material. This is because they see bid preparation as a chore to be despatched with as little effort on their part as possible. It is a frame of mind that wins few marks from clients. They can instantly detect a standard, off-the- shelf formula dusted down for one more appearance. Give each bid your best effort Few contractors manage to win work by half-heartedly going through the motions of tendering. There is little point in submitting a bid unless it is designed to be as competitive as it can be in terms of both technical quality and value for money. The aim should be to establish an invincible case for the superiority of the bid, working hard to get its content right and communicating its strengths as convincingly as possible. Be honest and realistic about what you can achieve Don't oversell or inflate the bid with unrealizable promises. The only result of that will be flocks of chickens coming home to roost. Back up your claims with solid facts and credentials that you can prove. Readability makes a difference UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE No amount of slick phrasing can disguise a lack of technical substance. But a bid needs to be written in a way that conveys energy and enthusiasm, and it should be interesting and easy to read. There is a consensus among evaluators that the bids most likely to win are those that make their case straightforwardly, concisely and vividly. Once in a while an evaluator will be fortunate enough to come across one that is really outstanding: it may have an imaginative and compelling structure; it may have examples that bring the text to life; it may communicate an intense commitment to the challenges of the assignment; its use of graphics may be unusually creative; it may have a hands-on feel and a clear sense of having done the job before. All these qualities give the bid a directness and personality that heighten its competitive impact. Keep calm and in control If they were willing to admit it, there are many contractors who greet the arrival of an invitation to tender not with eagerness but with feelings close to panic. This reaction is understandable when you are faced with a complex and stressful intellectual challenge and an unforgiving deadline, particularly if you have relatively little experience of bid writing. But don't let fear last for more than about five minutes: you need to get down to work! The best antidote is to know that you have available a structured procedure that will enable you to develop the bid methodically and that will quickly yield positive results. That is what the guidance in this book is intended to provide. Developing Skills in Bid Writing The more experience you gain in writing bids, the less intimidating the task seems and the easier it becomes to find the most effective means of communicating your message. For people who are on the staff of a firm, one useful route into the process is to start by contributing technical input to bids and pre-qualification material, working with bid managers and proposal specialists. If you are a manager looking to develop good bid writers, you need first to identify people with the right qualities and then help them build up a bank of skills not just in business communication and the logistics of bid preparation, but also in the strategic aspects of tendering: gauging a practicable response to the scale of contract requirements; analysing contract issues, options and approaches; seeing contracts from the client's side of the table; matching technical procedures with their cost implications; applying project management techniques in developing work programmes; researching markets and projects; understanding client needs and priorities; applying first-hand project experience to bid development; acquiring an attitude of mind that looks into the mechanics of a project, sees what problems might occur and how to prevent them, and builds these measures into an effective partnership between client and contractor. Successful bid writers: are bright technically; know how to write clearly and directly; work conscientiously and methodically; do what the client asks; care about detail; perform well in a team; understand outputs and meet deadlines. UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE UNREGISTERED VERSION OF CHM TO PDF CONVERTER PRO BY THETA-SOFTWARE Chapter 2: Bidding for Public Sector Contracts The EU Procurement Framework The term 'public sector' as used in EU member states covers central government, regional and local authorities, utilities, European institutions such as the European Commission (EC) and its related programmes, and other bodies governed by public law. The Commission estimates that public sector procurement in the EU in 2002 had a potential value of more than 1,000 billion euros, equivalent to about 15 per cent of EU gross domestic product. All public sector authorities are subject to European public procurement rules, intended to secure open and fair competition, transparent and auditable contracting procedures and equal access to contract opportunities for all EU suppliers. Utilities (defined as entities operating in the water, energy, transport and telecommunications sectors) are required to comply with procurement rules that differ in some points of detail from those applying to other parts of the public sector. Public procurement rules are defined in a series of EC procurement directives implemented at a national level through regulations and other forms of legislation. During 2002 revised versions of the directives were under review by the Council of Ministers and the European Parliament. Final agreed texts were expected to be approved by the end of 2002: the revised directives are likely to come into effect through national legislation during 2004. The purpose of the procurement rules is not so much to establish consistent procedures across the EU member states, as to eliminate discriminatory and uncompetitive practices counter to the public interest, and to ensure public money is spent in a way that achieves best value. Authorities in the UK are able to apply their own procedures for tendering and contract award on the basis of standing orders, provided these do not infringe EU rules or the requirements of UK legislation and government accounting principles. Public sector contracts for services and consultancy in the UK are governed principally by the following regulations: The Public Services Contracts Regulations 1993; The Public Contracts (Works, Services and Supply) (Amendment) Regulations 2000; The Utilities Contracts Regulations 1996; The Utilities Contracts (Amendment) Regulations 2001. . team; developing and writing the bid; communicating added value; presenting CVs; describing professional experience; producing and submitting tenders; stating your price; understanding how clients evaluate tenders; making. and corporate organizations in the private sector. Bids, Tenders and Proposals- Winning Business Through Best Practice Harold Lewis London and Sterling , VA This book has been endorsed by the. opportunity Knowing how to develop bids efficiently and communicate them powerfully is a key business skill, essential for survival and growth. Bids are first and foremost business documents. To