Key elements to putting together a successful, comprehensive bid
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Transcript of Key elements to putting together a successful, comprehensive bid
Key elements to putting together a successful, comprehensive bid
RESPONSIBLE & RESPONSIVE BIDDING
Have you ever…
Submitted a bid late?Forgotten to sign the bid forms?Not included all the required attachments?Lost money because your bid did not include all costs?
THE EDUCATED BIDDING PROCESS
Breaking the mass of data down to manageable parts with a systematic approach.
WHO CAN BID?
Any business that sells a product or service and is:
ResponsibleCompetitivePatientWill invest the resources to market their businessTechnologically proficient
RESPONSIBLE
Has the financial and physical resources to start the project on time,Has the appropriate registrations or licenses Meet timelines and deadlines with the work and necessary reporting, Finish on budget and on time.
OTHER BIDDER CRITERIA
You may be asked to provide proof of:• Compliance with all applicable laws pertaining to the
solicitation, including Prevailing Wage Act / Davis Bacon Act• Federal E I N or Social Security Number• Equal Employment Opportunity Policy• Certificates of Insurance on Workmen’s Comp, General
Liability, Errors & Omissions, Professional Liability, Product Liability
• License to work in that city, county or state• Minority & Women Business Enterprise Participation
COMPETITIVE
Understand competitorsUnderstand the clientUnderstand the market Offer value as well as competitive price
PATIENCE AND MARKETING
Be able to bid and endure the bidding process. Bidding is a form of marketingBidding takes time and money to prepare the bidYou may win 3 out of 10 bids submitted
TECHNICALLY SAVVY
Download solicitation material from online sourcesPlace business on registration lists
Industry-specific organizationsPA UCPSystem for Award Management (SAM)
Search for bid opportunities onlineeMarketplaceFedBizOps
Maintain databases of informationMore offerors are requiring electronic bidding
TYPES OF SOLICITATIONS
IFB (Invitation to Bid)
Bid package is considered completePrice is a major consideration
RFQ (Request for Quote or Request for Qualification)
Request for information on pricingNot a binding contractContract will come out of a purchase order
RFP (Request for Proposal)
Project details are not complete / owner is looking for someone to help them complete the design and details of the projectEvaluated on Technical Proposal, Cost and DBE participation
Any process for evaluating and responding to a request for pricing, opportunity to bid or invitation to qualify as a vendor will require equal diligence in order to win bids and make a profit.
EACH SOLICITATION IS UNIQUE
Read very carefully. Then READ IT AGAINEverything you need to know about doing the job should be in the solicitation document(s).
FIRST LOOK FOR…
1. Scope of Work: Does it fit with what your company does?
2. Specifications: Have you ever bid this scope with these specifications or conditions?
3. Resources: Do you have the physical and financial ability to perform this contract?
SPECIFICATIONS
Manufacturers and Suppliers:Technical specifications / drawings / patternsPackaging and delivery requirementsBid formsPayment terms
Service ProvidersWhat you will deliverHow you will deliver itBid formsPayment terms
SPECIFICATIONS (Project Manual)
General ConditionsInstructions to BiddersScope of workWage Rates
Bid FormsAddenda/BulletinsSpecial ConditionsPayment Terms
Construction Projects
BLUEPRINTS, DRAWINGS, TECHNICAL SPECIFICATIONS
Any solicitation may haveLayout / ScaleNotesSymbols Abbreviations
MANDATORY REQUIREMENTS
Common to many solicitationsForms Units of Quantities / Measure / PricingSchedule
Start dateIntermediate timelinesFinish date
Other required documentsBonds / InsuranceLicenses / PermitsMWBE percentage participation
ADDITIONAL INFORMATION
Construction ProjectsGeo-technical reportsHazardous Waste ConditionsAlternates
Manufacturers, Suppliers, Service Providers
AlternatesContract extensions
PRE-BID MEETINGS
Primarily Construction but can apply to other goods and servicesAdditional information from project personnel. Affords all bidders a chance to ask questionsA networking opportunity between Primes and Subs for this and future projectsProvide for a walk-through of the site
WALK-THROUGH (actual)
Also known as a “Site Visit” in ConstructionAsk for a site visit if one is not offeredUse a check list on every walk-throughMake sketches if necessaryTake pictures if allowed.
WALK THROUGH (virtual)
ConsultantsVisit the offeror’s websiteResearch offeror’s competitorsVisit the offeror’s place of business
Check out the facilityGet a feel for the company climate
WALK THROUGH (virtual)
Manufacturers / SuppliersVisit the offeror’s websiteObtain a sample of previous parts or supplies from past contracts
ASK QUESTIONS
Follow the procedure set up in the bidding documents.
Use a Query List to compose all your questions from any source of informationCompile questions into one request for information if possibleSend your questions in writing to the contact listed in the solicitation. If your question and answer are not in writing, you do not have an answer.
REVIEW
You’ve read and understood the solicitationQuestions have been asked and answeredYou are now ready to start putting the bid together
MANAGING THE BID PROCESS
POINT OF TRANSITION
The solicitation (generated by the owner/ offeror/client) is owned by the offerorOnce you process the paperwork into a bid it becomes your bid and will be a part of your contract when you win. You will be bound by your offer (bid).
BID DOCUMENTS ELEMENTS
PrioritizeUse your research to craft the bidAllocate tasks to analyze the bid documents and prepare the estimate
Take-offsPricingReview and Reconciliation
CALCULATING THE ESTIMATE
Be accurate with figures: Expenses that are your responsibility MaterialLaborEquipmentFeesOverhead and Profit
CALCULATING THE ESTIMATE
You don’t get a “do over” if you miss something or add incorrectly. You hurt yourself when you get a contract based on your figures and they are wrong.
PROCESSING THE FORMS
Review the forms as part of your beginning process, not at the endQuestions about the forms should have been asked during the Q & A.Use the forms suppliedDo not improvise
FORMS
You don’t get a “do over” if you do not fill out the forms correctly or omit something. All of your work can be for nothing if the forms are missing anything.
PACKAGING THE BID
Cover letterEstimateRequired formsRequired AttachmentsBid submission
DUE DATES AND TIMES
Deliver your bids on time and to the right place
If possible, secure proof of timely bid submittal
One minute late, and the whole exercise was a waste of time and money.
CONDITIONAL BIDS
An easy way to get your bid tossed Definition: a bid with exceptions
Different materialsDifferent termsDifferent conditions
DON’T DO THEM!
AFTER THE BID GOES IN…
Keep track of datesBid OpeningAward
File for future reference:Estimating work sheetsResearch of the project/solicitation
MORE INFORMATION
WebsitesIndustry SpecificCompetitorsIndustry Related Associations
Books and Industry-related publicationsAmazon Trade Association magazines
QUESTIONS?
COMMENTS?
Presented by
Elizabeth Bowers Corporate Small Business Liaison Officer
One PPG Place, 27th FloorPittsburgh, PA 15222