Navigating Public Tenders: A Guide to Winning Bids

The pursuit of ongoing improvement and growth leads many businesses to explore public sector tenders. Collaborating with institutions and organisations in the public sector gives companies across many different industries the opportunity to increase their productivity and profits and accelerate development, which has become a lot harder in recent years, given the rising competition in almost all fields. 

The fact that the UK government allocates around £350 billion annually for the procurement of goods, services, and works, and favours the involvement of small and medium-sized enterprises (SMEs) through frameworks such as the Procurement Act 2023, makes the prospect of tapping into public sector tendering all the more appealing. 

However, for the uninitiated, stepping into the public sector and bidding for government contracts can present a series of challenges due to the complexity of the process and the strict rules and standards that govern this space, which differ significantly from those in the private sphere. 

Therefore, before you embark on this journey, you might want to arm yourself with the necessary knowledge, so you can navigate this intricate landscape more smoothly and confidently, and increase your chances of securing contracts. 

Reasons to give public sector tendering a try 

Public sector tendering implies competing with other companies to win contracts that different public sector bodies and organisations put out. If you are successful, you can enjoy numerous benefits. For starters, by obtaining contracts and delivering goods/services to companies in the public sector, you will expand your market reach and procure new business, which will bring in more money to your company and fuel its growth. 

Public contracts are rather lengthy, typically spanning multiple years, and most organisations tend to stick with the same providers if they’re satisfied with the quality of their work. So, if you manage to get your foot in the door, you’ll have the chance to build lasting partnerships and ensure repeat business. This can provide you with a consistent revenue stream that can keep your business afloat even during difficult times. 

Working in the public sector can also serve as a reputation booster and support your networking efforts. Companies that manage to meet the high standards imposed by government bodies and earn contracts with them are generally seen as trustworthy and dependable, which can facilitate new connections and prompt other potential clients to take an interest in the products/services they offer.

How to approach public sector tendering 

The first aspect you need to focus on is understanding how public procurement differs from private sector contracting. Government contracts are awarded through a formal, competitive bidding process that follows very strict and clear procedures, whereas in the private sector, the entire process is much more relaxed and flexible, and companies can employ different strategies to obtain the goods and services they require.  

Transparency, value for money, and fair competition are the core principles that stand at the basis of the public procurement process. It all starts with the release of a public notice, which can take the form of an invitation to tender (ITT), a request for information (RFI), a request for proposal (RFP), or a request for quotation (RFQ). These documents inform the public about the procurement needs of the organization, outlining the contract details and the steps companies need to follow in order to apply and qualify. Interested parties can submit their applications, and after rigorous verifications, the contract is awarded to the Most Economically Advantageous Tender (MEAT). 

It’s important to prepare your company to enter the competition for public contracts, as you don’t want to jump in before you’re ready and thus waste time and resources. When evaluating applications, buyers will usually take into account suppliers’ trading history (the longer, the better), financial standing, and experience in delivering similar contracts, so make sure you can provide detailed information in this respect. You should also assess your resources to ensure you have everything you need to deliver contracts successfully. 

Searching and finding the right tenders for your company can be a challenge in and of itself. The UK government publishes over 50,000 contracts each year, and makes an effort to direct as many of them to SMEs, which means there are plenty of opportunities to take advantage of. But that also means you need to put in quite a bit of effort to identify relevant tenders. Fortunately, using a government contracts finder tool can expedite the process, helping you sift through the options much faster and spot the best opportunities for your company in time.  These tools let you apply different filters while browsing, so you can focus on finding tenders that align with your specific needs. You can also activate alerts and get notifications when a tender that matches your search criteria is published, so you can stay informed and make sure you don’t let valuable opportunities slip through your fingers. 

Another key step in the preparation process is thoroughly researching the tenders you think might be a good fit for your company. You need to read all the documents carefully, paying particular attention to the terms and conditions, requirements, and eligibility criteria. If there’s something you don’t understand, you should contact the buyer for clarification.  

Then you can proceed to the final step, which is crafting a competitive proposal. This implies following all application instructions as requested, while also emphasizing your company’s strong suits and value proposition. Keep in mind that you also need to manage your time effectively and meet the deadline specified in the procurement notice, as late submissions will automatically be rejected.

Final considerations 

As a newcomer, you might find public sector tendering complicated and challenging. That’s why it’s essential to do your due diligence and focus on educating yourself. Once you learn the ropes, you’ll find it much easier to engage with buyers and compete for contracts. While the learning curve might seem steep at first, the potential rewards are well worth the effort, so take the time you need to prepare and don’t let early challenges discourage you from giving public tendering a try.