Tenders Evaluating and Contracts Management Excellence
Course Code: LT14
Course Objective
- Determine the procurement strategy choices available for a given opportunity
- Plan and manage a competitive tender process from A to Z
- Identify, assess and make proposals on how to manage procurement risks
- Select and apply alternative approaches to defining user requirements
- Create an appropriate evaluation methodology to judge bids and tenders
- Evaluate vendor proposals from a technical and commercial perspective
- Handle the outcomes from a competitive bid process
Target Audience
- Contract Professionals and Administrators
- Contract Analysts and Engineers
- Specifiers, Buyers, Purchasing Professionals and Procurement Officers
- Anyone involved in the preparation, evaluation and management of commercial invitations to tender, requests for bids and proposals and contracts for the purchase of services, materials or equipment
Course Outline
DAY 1: Setting the Strategy for Bids and Tenders
Competency Description: As procurement professional you need to take the lead, or provide assistance to others, in setting the purchasing strategy, and then turning the strategy into an effective tender plan.
Key behaviours:
- Leadership within your function
- Setting the direction of the purchasing project
- Tender Process planning management
- Giving advice and guidance to requesting departments
Topics to be covered:
- Competitive and non-competitive bids
- Selecting the tender strategy
- Creating the tender plan
- Using e-procurement techniques
- Analysing Tendering risks
- Choosing the best contract type, including
- Lump sum contracts
- Fixed price contracts
- Cost reimbursement contracts
- Measurement contracts
- Industry specific contract types
DAY 2: Best Practices in Tender Procedures
Competency Description: As the procurement lead, or as a significant contributor to implementing the tender plan, you need to have an excellent understanding of what the tenders process is and how to add value to the process.
Key behaviours:
- Expedite the selection of the bidders
- Facilitate and enhance the development of an internal cost estimate
- Constructively challenge the requirements assessment
- Manage the tender activities efficiently and effectively
- Avoiding external communications traps
Topics to be covered:
- The End to End procurement cycle
- Seeking expressions of interest
- Advertising the contract
- Pre-qualification methodologies
- The importance of the internal cost estimate
- What is the role for negotiation?
DAY 3: Optimizing the Tender Documents
Competency Description: The tender process depends on bidders receiving documentation they can understand and that encourages them to bid cost-effective solutions to meet the buyer’s needs. Every document in the buying organisation’s Invitation pack can improve or reduce the prospects of a successful competition. Procurement professionals should apply their skills to encourage a healthy competitive response.
Key behaviours:
- Suggest improvements to the statement of requirements
- Contribute to the debate about the terms and conditions to apply
- Identify the unintended consequences of the scope of work documents
- Plan a robust and realistic tender response schedule
Topics to be covered:
- Contents of the Tender package?
- Ensuring a robust specification / Scope of Work
- Defining the response you require from bidders
- Essential clauses in the draft terms and conditions
- Anticipating and reducing the risk of scope change
DAY 4: Managing the Technical and Commercial Evaluation
Competency Description: Many organizations recognize that the cheapest compliant proposal may not give the best value for money. But how can organizations establish a fair and transparent process that enables them to select a bid that is not the lowest price?
Key behaviours:
- Understand the evaluation options
- Make the case for alternative evaluation and award criteria
- Construction of an evaluation framework
Topics to be covered:
- The purpose of bid evaluation
- Lowest price or best value for money?
- Stages of the evaluation
- Clarifying bids to assist the evaluation
- Choosing Evaluation / Award criteria
- Techniques to carry out the evaluation
DAY 5: Managing the Contract Award Stage
Competency Description: The results of the evaluation should lead to a contract award to the winning bidder and the rejection of unsuccessful bids. But the process needs careful communications and sometimes the result is challenged or the winner declines the award. What are the traps to avoid and tips to follow to ensure the competition leads to contract commencement?
Key behaviours:
- Avoiding process traps for the unwary buyer
- Dealing with disappointed losing bidders
- Securing the commitment of the winners
Topics to be covered:
- Communicating the results – internally and externally
- Working with Tender Bonds and Performance Guarantees
- Dealing with disputed contract awards
- Operating under pre-contract Letters of Intent
- Managing pre-contract scope changes
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