Public sector bids are a great way to open newer avenues for companies big or small. Winning public sector bids is highly competitive and comes with a lot of effort. It is also associated with large volumes which is why it is much sought after. Moreover, public sector tenders come with a high prestige associated with it as companies that supply to public authorities often become prone to repeat business and new business of high quantity.
Since the success of an organization ultimately depends on the consumption of its product/services, it is believed that securing public sector tenders can give much needed cushion to companies in business. In this article, we highlight the major strategies for winning public sector tenders for companies all over the world. The article provides a breakdown of the key strategies that successful companies use in securing public sector tenders.
Research & Development:
Securing government bids is a long term game. Companies must realize that a lot of planning goes behind securing a public tender. Therefore, research and development forms an integral part of the success in securing public tenders. Research and development in public tenders consists of gaining information on past contracts to understand detailed requirements set out by the contracting authorities and even researching past winners and the price at which the bid was awarded.
Such type of information also known as business intelligence information is pivotal in understanding tenders and authorities past records. It also helps in tailoring the product and services to the needs of the government authorities so that the final bid is more appropriate and appealing to the authorities.
Tuning to Technical Requirements:
Most public tenders come with technical requirements that are detrimental towards its acquisition. Companies must thus pay full attention to all details as specified in the technical requirements. In many cases, technical specifications is the single most influential criterion for evaluating the bid. Successful companies are the ones who pay full attention to the documents provided by the authorities and ask queries before submission to be precise in their offering.
Clarifying ambiguity points is a good strategy as it allows companies to communicate with the authorities as well as understand their requirements in a fulfilling way. Knowing the customer too forms an integral part of the bid preparation. Companies must research the authority with which they intend to do business and pick up key selection points for which they can be considered. It also allows exploiting the areas in which they can score against their competitors thereby increasing their chances of success.
Customization in the Bid:
In a competitive environment, bids are often selected based on the level of customization that the product/service can offer to the authorities. In cases where there is a standalone and a standard product, customizations can include cost advantage, discounts and even after sales services whereas in service categories, customizations can include tailored and personalized add-ons that can suit the authorities’ interest.
Bids that can be highly customized stand a better chance to be selected in public tenders as it allows room for the authorities to work with the company. Customizing the bid can also include adding value proposition or a compliance with the legal or technical criterion or even flexible payment terms. All these add-ons have the potential to create a stand out bid.
Demonstration of Key Capabilities:
Bidders must exemplify their key capabilities and highlight it as much as possible in their bid. Companies must also highlight any past experiences of working in a public tender. Previous references to governmental organizations can greatly enhance the chance of securing the bid as it is a sign of assurance to the authorities. Having a local presence in the country too must be highlighted to showcase local expertise.
Understanding the local culture of the country too helps in maintaining a good rapport with the authorities. Finally, any additional certifications or qualifications must be mentioned explicitly to make the authorities aware of the company’s prowess. Overall, demonstration of the key capabilities is a key aspect in succeeding in bids.
Pricing:
Pricing is a key factor in public bids and is considered to be the most influential factor in deciding the winner. A successful bidder is expected to keep a competitive pricing by understanding the market prices while being strategic to the company’s business. Pricing strategy can be influenced by using data from past purchases, market research and even industry insights on the product/service to be procured. One key technique is to give a price breakdown of all the products and services included in the bid.
This shall allow authorities to consider the value behind every item procured and give them a chance to negotiate. A lump sum price would not be a good idea if the products are procured with different specifications as often authorities may tend to change their requirements later. Also, it must be understood that conducting business with public entities is a collaboration rather than a transactional business and must consider all stakeholders for giving the best to the community.
Overall, the above pointers are a good head start for companies while bidding in international tenders. In conclusion, public tenders must be seen more of a collaborative effort rather than a transactional business and all stakeholders must be kept in mind while submitting a bid for the betterment of the society.
Companies must ensure they maintain excellent communication with the authorities and show willingness to work together rather than treating it as a transactional opportunity as public bids are a long term game. Although there is no set strategy for securing public tenders, the above actions can lead to better success rate while bidding and ensure more visibility to the authorities. For more Tender Opportunities, visit Tender Impulse.
