SMEs are being welcomed with open arms to public sector procurement. At least, that’s partly what the Procurement Act 2023 is designed to do. However, many SMEs find it downright challenging. It could be that procurement processes are still a little confusing. Or that SMEs make mistakes in their tender submissions that disqualify them from tender opportunities.
Mistakes are easy to make, especially when the process is still new to the majority of hopeful suppliers. We’re going to look at the top 10 tender mistakes to avoid and provide tips to turn it around, so you can start writing (hopefully) error-free tender responses.
10 Common Bidding Errors SMEs Make
If you think that your bids are super, but you’re struggling to win government tenders, you could be making one of the following errors.
1) Failing to thoroughly read and understand the tender requirements
It’s human nature to rush when we’re under pressure. We skim through pages, looking for keywords that provide a clue about what to do. Unfortunately, our keywords might not match the contracting authority’s intentions. We get the wrong idea and run with it.
You’re lucky if you catch your mistake before bid submission because you can change your answers – except it costs you twice the time. If you only spot the mistake just before submitting your bid, you won’t have enough time to redo the tender documents – that is a lot of time wasted.
Take the time to read through the tender. Do it again. Discuss it with your team to make sure you all understand what’s required. If you still don’t understand, ask the contracting authority. They’re usually happy to help.
2) Submitting incomplete or incorrect documentation
At school, you could get away with skipping test questions because you could make up the marks elsewhere.
That’s not how it works in public sector procurement.
If you don’t provide the information required, your bid is disqualified. It’s as simple as that.
Common mistakes include:
- Incomplete or blank cost proposals.
- Incorrect formatting, like using the wrong font (yes, it can boil down to font!)
- Omitting documents that require a signature, or failing to add your signature where required, for example, confidentiality agreements. Those must be signed, no exceptions.
Always read your completed documents before you submit them to contracting authorities. You’re looking for spelling mistakes and grammatical errors as well as the content you’ve supplied.
Often, your brain makes automatic adjustments so you don’t see mistakes. It’s a good idea to ask someone else to go over the bid. They should focus on formatting, structure, flow, and accuracy, as well as pesky typos.
3) Poor bid presentation or formatting
This is about understanding the technical requirements. For instance, can you include diagrams to support information or charts to underline relevant evidence?
It also includes word count. The question is, does that include diagram descriptions? Or, are descriptions excluded from the word count?
The format in which the bid is saved can pose a problem. Many public sector buyers use strict naming conventions or require all docs to be saved as PDFs.
Read over your submission to ensure you’ve nailed the formatting. Ask someone who hasn’t read the tender submission to check for errors, like incorrect file names and docs saved as Word Documents instead of PDFs.
4) Focusing too much on price and not enough on value
The Procurement Act 2023 has changed the emphasis on price to value. This includes added value to procurement processes, more streamlined operations, innovative solutions, and social value.
Social value is a biggie. It includes environmental, social, and economic value added to local communities. This could be a new initiative to uplift disadvantaged communities or additional support to existing projects through funding or provision of resources, including labour.
SMEs have an advantage here because they are more flexible than large enterprises and can adapt quickly to changing conditions. They’re also closer to the ground and more familiar with the challenges communities face.
SMEs must leverage this advantage. Get cracking so you already have something to show for your social value efforts
5) Overlooking key compliance requirements
It’s important to note that government contracts are unique. Each contract has its eligibility criteria and compliance requirements. Suppliers must ensure they know which applies to the contract opportunities in question.
That being said, compliance with some government and industry regulations is mandatory. For example, Cyber Essentials is a government-backed scheme that is non-negotiable in certain instances where robust security protocols are required.
For example:
- When citizens’ personal information is handled by suppliers.
- When government employees’ personal information is handled by suppliers.
- When the contract includes ICT systems and services.
- When the contract includes service delivery, public finances, and daily government operations.
Public sector bodies sometimes allow suppliers without Cyber Essentials certification to use equivalent security protocols. For example, ISO 27001 is the international standard for information security management systems.
SMEs must understand the criteria specific to their industry, as well as contract-specific requirements. Ensuring regulatory compliance is an easy win that will help your chances of winning contracts.
6) Failing to tailor bids to each contract’s specific needs
There are no cookie cutters in public procurement. Each contract is unique and so should their tenders be. Once again, this goes back to understanding the contract. Only when you fully understand the specifications can you begin working on a tender that specifically provides relevant solutions.
This is also an easy win for SMEs because they often have the flexibility to tailor their bid proposals more narrowly than larger organisations, which might have stricter, less flexible instructions.
7) Not conducting adequate market research and competitor analysis
When you’ve got a good product, it’s easy to underestimate your competitors. Thorough research provides an accurate view of the market and the competitors you must watch out for.
The market is fluid; suppliers crop up and fade away. They change business operations or refine their products. Trends come and go and requirements change. To supercharge SMEs’ tendering process, they must keep their market research up to date, so they aren’t using ineffective strategies or trying to one-up competitors that are no longer there.
Market research is time-consuming and requires a strategic approach beyond many SMEs. Public sector marketing agencies are worth the expense. They can provide invaluable advice when it comes to government contract bidding strategies.
8) Missing important deadlines
If anything screams ‘unprofessional’ it’s missing deadlines. If you can’t submit a bid on time, how can you deliver services, products, or works on schedule?
Typically, late submissions are disqualified immediately. The bid isn’t even opened. You could try appealing to the buyer’s better nature if there are extenuating circumstances. But whether they’re considered is up to the contracting officer.
It’s best by far to just get your tenders in on time. Don’t delay writing the bid. Even if you’re waiting for information or documentation, you can complete other sections of the bid. The least you can do is map out a skeleton that you just have to flesh out when the information comes in.
9) Not providing evidence of past successes or case studies
This is tricky for SMEs that are just entering the market, but all is not lost. It’s possible that what you have to offer – efficient tools, innovative solutions, cost-effective processes – trumps suppliers with plenty experience. However, services must be relevant to the contract.
If the tender is for fixing local roads, it’s no good showcasing your paving experience in residential homes, even if you know you can deliver the project.
Basically, if it’s not relevant, leave it out. Focus on making your skills shine so that it’s clear how much value you provide.
It helps if you’ve been successful in the private sector because you can use those case studies as evidence of your skills.
10) Inadequate planning and resource allocation
You cannot write proposals for government contracts on the fly. You shouldn’t write any bid on the fly, but this is especially important for the public sector because requirements are stricter. Think of the formatting and naming conventions. You simply can’t wing it.
You need a structured plan to avoid making government tender mistakes. If you need to make adjustments, do so with your team’s input. They stay in the loop and will tell you what adjustments are realistic and if they still fall in your wheelhouse.
Work as a team and collaborate when writing those sections of the proposal. They’re the experts and will know what resources are needed to deliver the project, whether you have the resources available, or if you can easily access them without adding too much to the bid price.
Find Contracts To Match Your Skills
Now that you know how to avoid making mistakes on your bid proposals, you must find opportunities to put them to good use. Your best bet is a contracts finder like Supply2Gov. S2G’s database of government tenders is bigger than the national database used by contracting authorities.
The government has made it easier for SMEs to participate in public sector procurement, but it’s up to you to grab your piece of the pie.
Register to start receiving tender alerts specific to your business and get down to winning government tenders and contracts immediately.