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Kip FX Design · #1 10-02-2010, 12:31 PM

Does anyone have any experience with Tenders?

What the hell do I do with this?

The financial evaluation will be carried out using the CIPFA Code of Practice. The procedure is to:

Eliminate any quote which fails to meet any minimum criteria

Eliminate any quote which is found to be too low to be credible (after making enquiries described in sub-paragraph 9.11a of the Code of Practice) or too high to be acceptable, however many points it scores in all other respects.

For the remaining quotes, calculate the mean (arithmetic average) price for the price.

Give half the points available for price (i.e. 50 half of 100) for this mean price.

For prices below the mean add 2% of the total price points (e.g. 2 points of the total of 100) for each 1% of the tender price below the mean for net prices.

For prices above the mean deduct 2 points respectively for each 1% of the price above the mean.

Pixeland · #2 10-02-2010, 04:08 PM

I know about tender steaks if that helps ...

Greenie · #3 10-02-2010, 04:21 PM

Quote:

Originally Posted by Kip FX Design

Does anyone have any experience with Tenders?

What the hell do I do with this?

The financial evaluation will be carried out using the CIPFA Code of Practice. The procedure is to:

Eliminate any quote which fails to meet any minimum criteria

Eliminate any quote which is found to be too low to be credible (after making enquiries described in sub-paragraph 9.11a of the Code of Practice) or too high to be acceptable, however many points it scores in all other respects.

For the remaining quotes, calculate the mean (arithmetic average) price for the price.

Give half the points available for price (i.e. 50 half of 100) for this mean price.

For prices below the mean add 2% of the total price points (e.g. 2 points of the total of 100) for each 1% of the tender price below the mean for net prices.

For prices above the mean deduct 2 points respectively for each 1% of the price above the mean.

All they're saying is they they have a method that (1) discriminates against implausibly low prices and (2) rewards below average prices / punishes above average prices in a linear way. Its probably what anyone would do when assessing tender responses, but they have a numerical method for it.

If price counts for 100 points, how many points are awarded to functional and contractual compliance? That tells you how important pricing is in the overall evaluation.

If it was me, I would assess how important price is in the overall evaluation. Together with my view of how price competitive I am likely to be, and how functionally complaint, this would influence my bid / no bid decision. If I still decide to bid, I wouldn't worry about it further.

Hope this makes sense and helps

IP · #4 10-02-2010, 06:14 PM

Quote:

Originally Posted by Kip FX Design

Does anyone have any experience with Tenders?

What the hell do I do with this?

The financial evaluation will be carried out using the CIPFA Code of Practice. The procedure is to:

Eliminate any quote which fails to meet any minimum criteria

OK, so that just means is if what you are offering is less than what they have stated they want, your tender will not be considered.

Quote:

Eliminate any quote which is found to be too low to be credible (after making enquiries described in sub-paragraph 9.11a of the Code of Practice) or too high to be acceptable, however many points it scores in all other respects.

Again, they will remove any tender where the price is seen as unrealistically low, which they will presume is either a loss leader to get your foot in the door or that when it comes to providing the service you may fail due to being too cheap and the same for any tender that has gone ridiculously high with the price.

Quote:

For the remaining quotes, calculate the mean (arithmetic average) price for the price.

Of all the tenders left after removing the above they will find the average price of all tenders.

Ie:Company A tenders at 40p
Company B tenders at 50p
Company C tenders at 60p

The average will be 50p.

Quote:

Give half the points available for price (i.e. 50 half of 100) for this mean price.

For prices below the mean add 2% of the total price points (e.g. 2 points of the total of 100) for each 1% of the tender price below the mean for net prices.

For prices above the mean deduct 2 points respectively for each 1% of the price above the mean.

So of their scoring system, price is only half of their consideration, the other half is presumerably made up of things like "timeframe", "quality" etc

The company that gets nearest to 100% will receive the contract, as 50% of that is down to the average realistic price, using my above example:

Company A was 20% below the average tendered price, so it will get 50points + (20 x 2 points) = 90 points

Company B was average so will get 50 points

Company C was 17% (rounded to nearest %) higher than the average tendered price so it get 50 points - (17 x 2 points) = 16 points.

Does that make it any clearer?

Kip FX Design · #5 10-02-2010, 06:26 PM

Sorry IP, should have added this!

Criteria:
Weighting:
Points:
How well has the brief been interpreted?
20%
100 Points

How well does the approach demonstrate originality, flair and creativity?
20%
100 Points

What previous experience does the organisation have of promotional campaigns?
20%
100 Points

Examples of exemplary customer care and ability to build a good relationship with clients
20%
100 points

TOTAL
80%
400

Then the monetary side is 20%, 100 points!

IP · #6 10-02-2010, 06:39 PM

Quote:

Originally Posted by Kip FX Design

Sorry IP, should have added this!

Criteria:
Weighting:
Points:
How well has the brief been interpreted?
20%
100 Points

How well does the approach demonstrate originality, flair and creativity?
20%
100 Points

What previous experience does the organisation have of promotional campaigns?
20%
100 Points

Examples of exemplary customer care and ability to build a good relationship with clients
20%
100 points

TOTAL
80%
400

Then the monetary side is 20%, 100 points!

Well in many respects that is even better, if you can prove yourself on the top four, then you can charge a better more profitable (hopefully) price, with only a fifth of your overall score being judged on price.

So again in my example above even company C which is charging 50% more than company A could easily win the tender if they get the other factors right.

The message they are trying to get across is that you should be realistic about pricing, while it will make a slight difference if you are higher or lower than the average tender other factors are in play. Play to your strengths in making the tender. If price was your only strength it would be unlikely you would get the contract.

Kip FX Design · #7 16-02-2010, 05:43 PM

. . . and today was the day that the next stage would be announced, and I am glad to say that we are presenting in person to the local companies and the council next Monday afternoon.

I cannot say how happy I am today, thanks to Steve for a testimonial that must have earned us some points in their breakdown/tender structuring.

Now I have to imagine I am on Dragons Den next Monday, and have the best presentation ready, that I have ever done!

So chuffed that we were not only approached personally, but that we are through to the next round! Woohoo!

seanstevens · #8 16-02-2010, 05:53 PM

Well done Mr. Kip and best of luck for next week.

IP · #9 16-02-2010, 07:31 PM

Indeed Well done mate!

Kip FX Design · #10 16-02-2010, 08:12 PM

Cheers fellas, more confident now then I was before, and now that I am not tempting fate will show you what I submitted, well some of it, the files are huge, smallest one is 24mb so a couple of screen dumps.

It is all to do with the BID scheme, you should look into your own towns ones, I think they are a great idea! Only had to submit 2 things with the costing breakdown, submitted all 6, I should maybe read things properly next time!

Picture 7.jpg

Picture 8.jpg

Have a feeling an email from a local business helped out aswell!

hehe

Heeeelllllppppppp!

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