The decision to challenge procurement decisions seems to be more common in recent years. At a time when frameworks are increasingly ‘ring-fencing’ major work streams, failure is perceived as simply unacceptable by many.
The sheer cost of the tender resources, that are required to get bids over the line, is significant enough for many to entertain a challenge when things don’t go their own way. In many cases though, it is the transparency of the tender evaluation process which is the deciding factor. These challenges impact on everyone involved and can be damaging to reputations and bottom lines.
Remember the old adage, that ‘nothing in life is free’? The costs of bidding (and challenging decisions) are, ultimately, recovered through bidders’ turnover. This means that clients collectively bear the cost of both their own, and their bidders’ procurement resources.
There are a few simple changes would minimise wasted resources for everyone, whilst significantly improving client/contractor relationships and maximising the long-term return on their respective investments.
Better, earlier market engagement would enable clients and potential bidders to discuss requirements and clarify qualification parameters. Some major clients already adopt this practice, but even they need to open up a bit more, say what they really want, and be prepared to really listen.
Some might argue that this might reduce the number of bidders and that this would limit client’s choice. The fact is that those who decline are actually saving both their own and the client’s, time and resources.
Avoiding duplication and taking the guesswork out of the process would also be welcome. This could be easily achieved at ITT by providing a list of the basic PQQ criteria which have already been evaluated (and so don’t need to be repeated in the tender submission). For added peace of mind, clients could require bidders to validate the currency of all statements made in the PQQ.
Greater transparency would lead to a win-win situation. Giving bidders the freedom to really focus on project-specific proposals will ultimately add value for the contractor, the client and their customers.
Isn’t that the whole point of good procurement?
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