10 Things to Ask Yourself Before You Tender

Tendering is a great way to grow your care business as it can secure long term contracts that can help you achieve your growth ambitions. However, winning tenders is not as straightforward as it seems. We partner a specialist tender writing company, who have produced this useful list of ‘10 Things to Ask Yourself Before You Tender’.

If you win, can you deliver? In the event of you winning the tender, will your business be able to handle the uplift in work? It is important to consider how the new estimated volume of work would impact your business. Would more staff be required? Additional premises? What are the costs associated with mobilisation?
Can you offer a competitive price that is sustainable? Pricing is an important part of tendering. Will your submitted pricing not only be competitive, but also sustainable over the contract term?
Is TUPE involved? Some tenders involve TUPE, meaning you will be required to take on staff that are associated with the contract currently employed by the incumbent supplier. Tenders should have a document detailing the TUPE requirements including the number of staff involved, salaries, pension contributions etc. Onboarding staff via TUPE can offer a straightforward solution to staffing the contract. It can also be complicated and a red flag for some bidders.
Tender weightings. Every tender has weightings for price and quality. These will be used to evaluate tenders and ultimately help the Commissioner to appoint a winner. If the tender has a large weighting for price, can you be competitive enough against other bidders you expect to be taking part? If not, it is worth considering whether to take part.
Can you put together a strong tender response? Responding to a tender can be very challenging, especially when there is only a short response window. Typically, the tender will be awarded for between 3 and 5 years to the winner(s), so it is worth trying everything you can to get it right at the first time of asking. Our partner specialises in writing or reviewing tender responses for clients saving you the hassle and stress when completing a tender.
Timescales. Tender documents will detail the timescales of the procurement process and an expected contract commencement date. Can you mobilise in time for the go-live date? Should additional equipment, staff or properties be required, will they be in place in time? Tenders may ask for evidence from bidders that properties or equipment will be in place in time.
Financials. Nearly every tender will assess the financials of bidders taking part. It is common that your company accounts will be reviewed as part of the tender process. Sometimes, tenders will stipulate turnovers and certain credit ratings or ratios you must meet or exceed in order to pass the financial assessment stage.
Competitor analysis. Which competitors will be taking part? It’s worth considering their potential response to the pricing and quality elements of the tender. For example, if accreditations are scored as part of the tender process, how many do you have? How many do they have? If the tender is heavily based on pricing, where do you sit? Will you be undercut and if so, by how much? Are you competitive? Can you put together compelling tender responses?
Resources. In addition to your current business output, do you have enough resources to not only fulfil the demand of the volume of work being tendered, are you able to manage it? Often, tenders stipulate that a dedicated Account Manager be appointed and regular review meetings attended. Can you demonstrate that you have the resources to show the account the attention it requires?
Contractual stipulations. Within the majority of tenders, KPIs will be provided detailing expected contractual performance for the winning bidder(s). For example, KPIs may detail required response times, stock levels needed, amount of resources/staff levels required, complaint rectification speeds etc. It is worth asking yourself if you can meet the KPIs provided before deciding to proceed with the tender

We hope these 10 points provide some insight as to the types of questions companies should ask themselves before they embark on trying to win business through tendering. If you have found a tender and would like support in this area, then please do not hesitate to contact our Business Efficiency Team on 01273 424904 for more information.