Friday, 27 February 2015

Legal Tender

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Tenders are changing. An 80 odd page PDF plopped into my email box before Christmas with all those latest sexy (blimey I need to get out more), OJEU legislative changes. Its vast too. Like as they say, a curates egg, 'good in parts'.

There are some great things that will make procurement a little easier, however some changes will add greater pressure on many people looking to procure. This stuff is not bedtime reading, but it may be beneficial if you are an insomniac, in getting some well earned shut-eye.

Here's the highlights of the changes, coming in only a few days time:

1) Contracts can be varied, up to 50% of value. You need to stick with the same supplier. Ideal for possibly IT, where additional integrated modules are needed, due to changing requirements

2) Negotiated Procedure is no more. Dont even think about going there. For IT it was pretty useless anyway.

3) All documents need to be created and distributed up front. More work for the vendors, but less chance of a supplier getting through the PQQ and not being able to satisfy the detail of the ITT

4) All tendering should be digital by October 2018. Any easy requirement to satisfy as pretty much everyone is using a 'Due North' style incarnation by now. Dont ask me what I think of it, its speed, flexibility etc, but it does tick the box. Maybe one for another blogpost that one(!)

5)  Its likely more stuff will need to be tendered. Although a 'light touch' regime is proposed for social services type contracts, (up to about £560K). Lucky you.

6) Contracts for work over £25K need to go public too

7) More negotiation is being supported. So you do not have to accept the default offer. This in my opinion is good for ICT procurements. The old 'best or final offer' now is revised to allow a last submission of improved tender. All of this process must be sorted before the tender deadline. I know a number of suppliers who try to subvert the final deadline, basically get it sorted in the time-frame. Thats the only way to be competitive on cost. Lads, dont phone me after the deadline, my mobile will be on divert.

8) DLO (what a vulgar term) rules also now allow up to 20% leway for new business. (Yay!)

9) Tests for capability & financial strength come at the end for the selected contractor. These are what most people knew as the red-line, pass or fail questions. A 'self declaration' will wave suppliers through, so in effect only the preferred bidder will need to complete the equivelent of the PQQ red-line questions. Methinks this could be problematic.

10) Conflicts of interest will need to be more comprehensively tested. For example, consultants part of a group that are possibly involved in procuring other members of the group (eg for applications), or have advised bidders, need now to come under scrutiny. Some of the 'Chinese Walls' as often talked about, will obviously disbar some consultants from helping organisations procure particular solutions.

Related Post: If you are procuring, find your perfect partner at the conferences...


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B52s Legal TenderB52s Legal Tender.
(c) Tony Smith, Acutance Consulting 07854-655009

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