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Prepare tenders for catering contractsPrepare tenders for catering

contractsD1.HCA.CL3.06

Trainee Manual

Prepare tenders for catering contracts

D1.HCA.CL3.06

Trainee Manual

Project Base

William Angliss Institute of TAFE555 La Trobe StreetMelbourne 3000 VictoriaTelephone: (03) 9606 2111Facsimile: (03) 9670 1330

Acknowledgements

Project Director: Wayne CrosbieChief Writer: Alan HickmanSubject Writer: Alan HickmanProject Manager: Alan MaguireEditor: Jim IrwinDTP/Production: Daniel Chee, Mai Vu, Riny Yasin, Kaly Quach

The Association of Southeast Asian Nations (ASEAN) was established on 8 August 1967. The Member States of the Association are Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand and Viet Nam.

The ASEAN Secretariat is based in Jakarta, Indonesia.

General Information on ASEAN appears online at the ASEAN Website: www.asean.org.

All text is produced by William Angliss Institute of TAFE for the ASEAN Project on “Toolbox Development for Front Office, Food and Beverage Services and Food Production Divisions”.

This publication is supported by the Australian Government’s aid program through the ASEAN-Australia Development Cooperation Program Phase II (AADCP II).

Copyright: Association of Southeast Asian Nations (ASEAN) 2013.

All rights reserved.

DisclaimerEvery effort has been made to ensure that this publication is free from errors or omissions. However, you should conduct your own enquiries and seek professional advice before relying on any fact, statement or matter contained in this book. The ASEAN Secretariat and William Angliss Institute of TAFE are not responsible for any injury, loss or damage as a result of material included or omitted from this course. Information in this module is current at the time of publication. Time of publication is indicated in the date stamp at the bottom of each page.

Some images appearing in this resource have been purchased from stock photography suppliers Shutterstock and iStockphoto and other third party copyright owners and as such are non-transferable and non-exclusive. Clip arts, font images and illustrations used are from the Microsoft Office Clip Art and Media Library. Some images have been provided by and are the property of William Angliss Institute.

Additional images have been sourced from Flickr and SKC and are used under Creative Commons licence: http://creativecommons.org/licenses/by/2.0/deed.en

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http://creativecommons.org/licenses/by/2.0/deed.en

http://www.asean.org/

Table of contents

Introduction to trainee manual.............................................................................................1

Unit descriptor......................................................................................................................3

Assessment matrix...............................................................................................................5

Glossary...............................................................................................................................7

Element 1: Identify tender requirements..............................................................................9

Element 2: Determine ability to meet tender requirements and conditions.......................37

Element 3: Estimate costs.................................................................................................51

Element 4: Prepare submission for management..............................................................61

Presentation of written work...............................................................................................79

Recommended reading......................................................................................................81

Trainee evaluation sheet....................................................................................................83

Trainee Self-Assessment Checklist...................................................................................85

© ASEAN 2013Trainee Manual

Prepare tenders for catering contractsPrepare tenders for catering contracts

Introduction to trainee manual

Introduction to trainee manualTo the Trainee

Congratulations on joining this course. This Trainee Manual is one part of a ‘toolbox’ which is a resource provided to trainees, trainers and assessors to help you become competent in various areas of your work.

The ‘toolbox’ consists of three elements:

A Trainee Manual for you to read and study at home or in class

A Trainer Guide with Power Point slides to help your Trainer explain the content of the training material and provide class activities to help with practice

An Assessment Manual which provides your Assessor with oral and written questions and other assessment tasks to establish whether or not you have achieved competency.

The first thing you may notice is that this training program and the information you find in the Trainee Manual seems different to the textbooks you have used previously. This is because the method of instruction and examination is different. The method used is called Competency based training (CBT) and Competency based assessment (CBA). CBT and CBA is the training and assessment system chosen by ASEAN (Association of South-East Asian Nations) to train people to work in the tourism and hospitality industry throughout all the ASEAN member states.

What is the CBT and CBA system and why has it been adopted by ASEAN?

CBT is a way of training that concentrates on what a worker can do or is required to do at work. The aim is of the training is to enable trainees to perform tasks and duties at a standard expected by employers. CBT seeks to develop the skills, knowledge and attitudes (or recognise the ones the trainee already possesses) to achieve the required competency standard. ASEAN has adopted the CBT/CBA training system as it is able to produce the type of worker that industry is looking for and this therefore increases trainees chances of obtaining employment.

CBA involves collecting evidence and making a judgement of the extent to which a worker can perform his/her duties at the required competency standard. Where a trainee can already demonstrate a degree of competency, either due to prior training or work experience, a process of ‘Recognition of Prior Learning’ (RPL) is available to trainees to recognise this. Please speak to your trainer about RPL if you think this applies to you.

What is a competency standard?

Competency standards are descriptions of the skills and knowledge required to perform a task or activity at the level of a required standard.

242 competency standards for the tourism and hospitality industries throughout the ASEAN region have been developed to cover all the knowledge, skills and attitudes required to work in the following occupational areas:

Housekeeping

Food Production

Food and Beverage Service


Prepare tenders for catering contractsPrepare tenders for catering contracts1

Introduction to trainee manual

Front Office

Travel Agencies

Tour Operations.

All of these competency standards are available for you to look at. In fact you will find a summary of each one at the beginning of each Trainee Manual under the heading ‘Unit Descriptor’. The unit descriptor describes the content of the unit you will be studying in the Trainee Manual and provides a table of contents which are divided up into ‘Elements’ and ‘Performance Criteria”. An element is a description of one aspect of what has to be achieved in the workplace. The ‘Performance Criteria’ below each element details the level of performance that needs to be demonstrated to be declared competent.

There are other components of the competency standard:

Unit Title: statement about what is to be done in the workplace

Unit Number: unique number identifying the particular competency

Nominal hours: number of classroom or practical hours usually needed to complete the competency. We call them ‘nominal’ hours because they can vary e.g. sometimes it will take an individual less time to complete a unit of competency because he/she has prior knowledge or work experience in that area.

The final heading you will see before you start reading the Trainee Manual is the ‘Assessment Matrix’. Competency based assessment requires trainees to be assessed in at least 2 – 3 different ways, one of which must be practical. This section outlines three ways assessment can be carried out and includes work projects, written questions and oral questions. The matrix is designed to show you which performance criteria will be assessed and how they will be assessed. Your trainer and/or assessor may also use other assessment methods including ‘Observation Checklist’ and ‘Third Party Statement’. An observation checklist is a way of recording how you perform at work and a third party statement is a statement by a supervisor or employer about the degree of competence they believe you have achieved. This can be based on observing your workplace performance, inspecting your work or gaining feedback from fellow workers.

Your trainer and/or assessor may use other methods to assess you such as:

Journals

Oral presentations

Role plays

Log books

Group projects

Practical demonstrations.

Remember your trainer is there to help you succeed and become competent. Please feel free to ask him or her for more explanation of what you have just read and of what is expected from you and best wishes for your future studies and future career in tourism and hospitality.

2© ASEAN 2013Trainee ManualPrepare tenders for catering contractsPrepare tenders for catering contracts

Unit descriptor

Unit descriptorPrepare tenders for catering contractsPrepare tenders for catering contracts

This unit deals with the skills and knowledge required to Prepare tenders for catering contractsPrepare tenders for catering contracts in a range of settings within the hotel and travel industries workplace context.

Unit Code:

D1.HCA.CL3.06

Nominal Hours:

35 hours

Element 1: Identify tender requirements

Performance Criteria

1.1 Clarify key objectives and/or requirements of tender in consultation with management

1.2 Analyse fixed and variable costing elements in consultation with management

1.3 Identify and analyse tendering criteria and conditions

Element 2: Determine ability to meet tender requirements and conditions


2.1 Assess ability to provide catering service/s specified in tender

2.2 Assess viability of tendering for the provision of catering service/s

2.3 Identify unique requirements of tender

Element 3: Estimate costs


3.1 Use enterprise rate and/or costing schedules to establish costing

3.2 Confirm availability of labour, equipment, materials and other relevant items according to enterprise requirements

Element 4: Prepare submission for management


4.1 Outline required resources and capacity within submission

4.2 Outline cost estimate within submission

4.3 Outline operational details within submission



Unit descriptor

4.4 Outline proposed products and outcomes required to meet tender requirements


Assessment matrix

Assessment matrixShowing mapping of Performance Criteria against Work Projects, Written Questions and Oral Questions

The Assessment Matrix indicates three of the most common assessment activities your Assessor may use to assess your understanding of the content of this manual and your performance – Work Projects, Written Questions and Oral Questions. It also indicates where you can find the subject content related to these assessment activities in the Trainee Manual (i.e. under which element or performance criteria). As explained in the Introduction, however, the assessors are free to choose which assessment activities are most suitable to best capture evidence of competency as they deem appropriate for individual students.

Work Projects

Written Questions

Oral Questions


1.1 Clarify key objectives and/or requirements of tender in consultation with management 1.1 1 – 4 1

1.2 Analyse fixed and variable costing elements in consultation with management 1.1 5, 6, 7 2

1.3 Identify and analyse tendering criteria and conditions 1.1 8 – 11 3


2.1 Assess ability to provide catering service/s specified in tender 2.1 12 – 15 4

2.2 Assess viability of tendering for the provision of catering service/s 2.1 16 – 19 5

2.3 Identify unique requirements of tender 2.1 20, 21 6


3.1 Use enterprise rate and/or costing schedules to establish costing 3.1 22, 23, 24 7

3.2 Confirm availability of labour, equipment, materials and other relevant items according toenterprise requirements

3.1 25, 26 8


4.1 Outline required resources and capacity withinsubmission 4.1 27, 28, 29 9

4.2 Outline cost estimate within submission 4.1 30 10

4.3 Outline operational details within submission 4.1 31, 32, 33 11

4.4 Outline proposed products and outcomes required to meet tender requirements 4.1 34 12



Assessment matrix


Glossary

GlossaryTerm Explanation

24/7 Twenty-four hours-a-day, seven days-per-week

CBA Cost-Benefit Analysis

CEO Chief Executive Officer

COP Code of Practice

CV Curriculum Vitae (personal résumé)

CVP analysis Cost/Volume/Profit analysis

Client The person or business issuing the RFT

Deliverables The requirements of the catering contract

EMP Emergency Management Plan

F&B Food and Beverage

FIFO First In, First Out stock control

HACCP Hazard Analysis Critical Control Points

HR Human Resources

KPI Key Performance Indicator

PC packs Portion Control packs

RFT Request For Tender

ROI Return on Investment

RSA Responsible Service of Alcohol

SOLAS Safety Of Life At Sea

SOP Standard Operating Procedure

SME Small to Medium Enterprise



Glossary

Term Explanation

Tenderer Person or business who submits a tender application

Tender price The price the business wants to charge for the work performed under the tender

Tender team Group of staff from within the business who assist in identifying tender requirements and preparing tender submission

Travel packs Food which is served from the site and taken off-site (for example) by employees working at a remote location

USP Unique Selling Points

QA Quality Assurance



Element 1:Identify tender requirements1.1 Clarify key objectives and/or requirements of

tender in consultation with managementIntroduction

When a Request for Tender has been obtained the first step is to determine what the objectives of the document are.

This section provides background information to tenders and the tendering process, describes activities necessary to identify and clarify tender requirements and provides examples of project deliverables.

Tenders and the tendering process

Tender – definedA tender is a formal offer from you to do work for another person/business.

When the tender is accepted, a legally-binding contract is formed.

RFT – definedAn RFT is a Request For Tender.

It is a document from another person/business asking you to submit a tender stating how you will meet the needs specified in the RFT and the price you will charge for the products and services offered.

The tendering processThe tendering process can be seen as comprising the following steps/stages:

Identify the opportunity to submit a tender

Obtain the RFT documentation

Identify and clarify key objectives and/or requirements

Determine ability/capacity to meet tender requirements

Assess feasibility/viability of the tender

Determine resource requirements

Estimate/calculate costs

Prepare tender documentation

Submit tender

Speak to tender, if requested/short-listed.




Reasons businesses issue RFTsThere is an increasing trend for companies to ‘tender out’ their work.

This may be because they:

Believe the tendering process is the best and most effective way to obtain high quality products and service at best price

Find tenders often develop new ideas and/or concepts for product and service provision as part of the offer made by those responding to RFTs

Want to identify what different providers have to offer

Are obliged by internal company requirements (or mandatory legislated obligations) to submit all contracts over a certain value to a compulsory, competitive tendering process.

Reasons businesses respond to RFTsNot all businesses seek out RFTs.

If your business seeks to respond to RFTs it will be because they want to:

Increase market share

Expand the business

Increase revenue

Raise profit

Enhance business viability

Grow the reputation and market presence of the business.

Types of catering contractsThere is no limit regarding the type/nature of catering contracts for which an RFT may be prepared.

Clients can offer contracts for any form of catering to meet their specific needs.

Commonly, catering contracts are offered for:

Schools – day schools and boarding schools

Hospitals and aged care facilities, including:

Facility catering

In-home provision of meals

Prisons/jails

Work sites and canteens – including remote site locations, often involving oil rigs and mining sites

Hospitality venues – who do not want to operate their own food business within the facility

Sporting and entertainment venues – for the provision of catering at events



Transport catering – which may relate to the provision of catering for:

Airline catering – in-flight and/or at terminals

Railway catering – on board and at stations

Cruise catering

One-off jobs with food service operators who wish to tender out the work they have secured.

Identify the opportunity to submit a tender

You can become aware there is an opportunity to submit a tender in the following ways:

Registering with government agencies to be included on their distribution list when they have RFTs to circulate. When you are registered you will automatically be forwarded notification and the relevant documentation

Regularly searching the internet:

Using key words such as <name of your country> + <catering contract>

Visiting known sites of potential/past clients who you know issue online RFTs

Reading an advertisement about the RFT in:

A newspaper – this is a common method for companies to notify potential tenderers that there is a catering contract available

A trade magazine

A government gazette

You will need to follow-up this advertisement by:

Visiting a website

Telephoning a contact person

Receiving direct communication from the client – sometimes the client will identify businesses it wants to tender for the work/catering they have to offer.

In these cases they may directly approach you:

By telephone – to enquire if you are interested

By email – sending you an electronic version of the RFT

In person – arranging a meeting and giving you a copy of the RFF. This is most common where the two businesses have had previous dealings with each other

Registering and paying a Tender Information Service to:

Monitor suitable catering RFTs as they become available

Forward documents to you for contracts which meet the criteria/specifications you have provided.




Obtain the RFT documentation

When you identify an opportunity to tender for a catering contract you will need to obtain the relevant RFT documentation.

Sometimes the RFT documents will be provided when you are notified of the opportunity to tender – either in electronic or hard copy form.

Obtaining RFT documentation may require you to:

Visit a website, register as an applicant and download the documentation

Telephone or otherwise contact a nominated person to request hard copy and/or electronic copies

Call in to a given address and collect a copy

Attend a general meeting – where all potential respondents are given a copy of the RFT documents and have the requirements of the tender explained to them.

Sometimes:

RFTs are provided free-of-charge to any business interested in tendering

There may be a need to lodge a non-refundable deposit/fee to obtain the RFT documentation.

Need to involve management

It is standard practice to involve management when considering an RFT.

It is necessary to involve management in this process to:

Gain the benefit of their experience and expertise with tendering – where they have previously participated in other tender applications

Identify if the business is interested in submitting a tender or not – because management has access to the Business and Strategic Plans of the business and can best determine whether the business is seeking to:

Grow or expand

Contract or down-size

Move into new market areas

Focus on new target markets

Re-position the business in the marketplace

Be made aware of the opportunity facing the business – so they can factor this into other thinking and planning for the business

Authorise actions necessary to research and prepare for the tender application – there is always a need for management to:

Agree to the time necessary for preparing a tender submission – this process always requires a large/significant amount of time

Authorise resources required for a detailed tender submission – such as visits to the client/work site as identified in the RFT, meetings with client and internal staff meetings, preparation of documentation



Allow the ‘tender price’ to be calculated in a way that best suits the needs of the business – for example, management may:

Be desperate for the contract and so be prepared to approve a low tender price to win the business because of a poor cash flow position

Only want to tender if they can charge the ‘normal’ prices they charge for their products and services

Be prepared to tender at a lower price in order to break into a new market and/or start a business relationship with a new client

Insist a higher than normal price is included in the submission because of previous problems management is aware of when dealing with this client

Want to determine the profit which will flow to the venue if they win the contract.

Identifying and clarifying key objectives and/or requirements

It is vital to appreciate that:

The specific contents or requirements for all catering contracts will differ

You must understand the details of the contract – it is not sufficient just to have an overview or vague idea of what is required

There is a need to check and confirm you have all parts of the RFT documentation –many RFTs comprise a series of sub-documents which combine to produce the total RFT documentation.See below ‘Tender documentation’.

You can identify and clarify the requirements of an RFT by using a combination of techniques, such as:

Forming a ‘Tender Team’ – this is a group of people from within the organisation (see ‘Composition of the Tender Team’ below) who will assist with the tender application. They will help by undertaking activities such as:

Reading the RFT and contributing to analysis of it

Attending relevant meetings

Undertaking designated research

Performing calculations and costings delegated to them

Identifying, developing and trailing F&B options for the tender

Preparing draft materials for the tender submission

Reading and re-reading the RFT – this is a critical aspect of the process at this stage.You should:

Read the RFT on your own – this should be done:

– In a quiet place without interruptions

– Taking notes as you read – about issues requiring special/further attention, and items you need to clarify

– Posing questions you think need to be asked and answered as part of the decision making process (‘should we apply for the tender?’ for example)




Re-read the RFT – you must always read the RFT at least twice – you will always identify new things the second time you read the document

Read the RFT with others – such as management or the Tender Team to get their perspective and interpretation about requirements and tender objectives

Making contact with the client – it is always necessary to make contact with the business presenting the RFT as a standard practice when considering responding to their offer.

Every RFT will nominate a contact person and this person MUST be contacted – see ‘Communicating with the nominated contact person’ below.

Examples of key objectives and requirements

‘Key objectives and requirements’ refer to the specific focus for the project/contract.

Many RFTs contain a document or section titled ‘Objectives’ or ‘Background’ or ‘Scope of Work’ or ‘Contract Specifications’ providing an overview of what the catering contract is all about.

This gives context for the tender and helps you determine whether or not you want to, or able to, proceed with the application.

Advice regarding key objectives and requirements for a catering contract may involve statements such as:

“The successful caterer will provide total catering services to workers, management and visitors on an oil rig situated 15 kms off-shore from a nominated city, providing four meals a day to cater for 24-hour shift works, 365 days of the year for a three-year period.

A full-time crew of 345 personnel staff and operate the rig, comprising workers predominantly from XYZ countries.

In addition there is a need to operate a shore-based function centre capable of delivering food and beverage services to 1,200 on an as-required basis subject to bookings from local businesses and communities.

All rig employees of the successful tenderer will need to complete the mandatory SOLAS course and work a 14-day on and 14-day off rotation.

All crew transportation and deliveries will be via helicopter.

High seas and hurricanes are common in the platform area and the rig must be sufficiently provisioned to operate for a minimum of 15 continuous days without re-supply.”

“XYZ requires a caterer experienced with the provision and service of food in medical facilities to serve 18,000 meals per day to patients (average 14,000 meals per day), staff and visitors (average 4,000 meals per day) of a Grade B, medium-size in-patient hospital.



Patient meals must be delivered to the wards where they will be served by nursing staff.

Successful tenderers will need to produce rotating menus. This many comprise of two-week cycles with three courses with three choices per course for patients across a wide-range of specific health-related requirements (see Appendix C for details) to support specified medical and nutritional requirements.

One ‘public’ canteen and two staff canteens also need to be catered for providing a range of pre-prepared and made-to-order sandwiches and rolls as well as 10 hot and cold meals per service session plus side dishes, non-alcoholic beverages and proprietary lines of biscuits and confectionaries.”

“The XYZ Boarding School requires the services of an experienced caterer to deliver meals, snacks and light refreshments for 450 children and 60 staff at their ABC campus.

All children and staff are live-in at the school and rely on the caterer for all their food and beverage needs during the school year, as well as catering for camps, excursions and special events conducted by the school from time-to-time.

The school has several students with special needs diets based on health or medical, cultural and religious requirements.

Alcohol is to be served with meals provided to staff, parents and visitors, as well as at functions and nominated special events.

The XYZ Boarding School believes in ‘health body, healthy mind’ and seeks a provider with demonstrated ability to prepare attractive, nutritional and tasty meals to underpin this philosophy.”

“ABC Penitentiary provides secure housing for 5,000 high-security inmates and employs 1,500 full-time staff.

The facility is located in the ABC desert 120 kms from the nearest town and accessible only by road: a helipad is also available.

Catering requirements for the period of the contract require: Service of three meals-a-day to the prison population in four general dining halls

operating two sittings per hall, per service session Individual service of all meal types to invalid inmates in the infirmary and prisoners

who are confined to their cells Twenty-four hour operation of staff canteen providing hot a cold meals for sit-down

and take away consumption Annual functions for approximately 1,500 attendees for the Governor’s ball and the

national Prisoner Progress Convention conducted in September each year.” Bundling of requirements – catering contracts may also require a range of items to be

provided in addition to the standard food and beverage requirements: Provision of accommodation Provision of transport Establishment of kitchen facilities at the sites.




You can see how, from reading the Objectives or Background section of the RFT, you can quickly:

Gain an overview and understanding of the job or contract

Determine whether or not it is worth investing more time and money in preparing a submission

Identify any ‘knock out’ questions or issues which may automatically exclude you from applying.

Identifying ‘knock out’ questions or issues‘Knock out’ questions or issues are any demands made by the client which you cannot meet.

They stop you being an eligible candidate for the tender.

Identifying them early is important to save you wasting time, money and effort submitting an application for a tender you have no real chance of winning.

Examples of knock out questions can include:

Need to have demonstrated previous experience – and your business has never had any

Need to be a ‘local’ company in another country – where you have no existing presence and are not willing to establish a presence

Applications may only be offered to national businesses – and you are based in another country

Need to hold a liquor licence to support the service of alcohol – but your company policies forbid you doing this

The magnitude, complexity or establishment cost for the project is simply too much for the size, experience or expertise of your business

Need to make an application as a sole provider – and not in conjunction with other businesses. This can rule you out of contention if you need to make a joint-venture submission

Need to use certain technology – which you are unable to fund or obtain

Inability to comply with specified issues – which may relate to security, environmental issues, employment, status of your business. The RFT may require only registered companies to apply.

Composition of the Tender team

Membership of the Tender Team should comprise:

Management representative – this may be the owner of the business in SMEs

A Tender Manager – this is the contact person for all communications relating to the tender submission.

The Tender Manager has ultimate responsibility for preparing and submitting the tender application.



Someone from Administration – to assist with accessing or providing necessary business information

Head Chef – to provide food-related expertise

Other cooking staff – with expertise/experience relevant to the requirements of the tender

Beverage manager – for advice/input of beverages, if required.

Communicating with the nominated contact person

Communicating with the nominated contact person should include:

Making initial telephone contact with them – to introduce yourself and indicate your interest in the RFT

Getting to know the client – it is extremely important to do this in order to:

Develop a positive relationship between your business and the client – you need to do whatever is necessary to ensure the contact person is well-disposed towards you personally and towards your employer

Identify specific challenges and or other problems their business is facing – which may not be specified in the RFT documentation but which are important to them and which may form a significant part of the decision making process when they decide who to award the catering contract to

Get a better ‘feel’ for them/their business and what they want – it is a fact of life the expectations of clients usually exceeds what is contained in most RFT documents, and the only way to identify these additional requirements is to engage with the client in person

Arranging a face-to-face meeting with them – this may be at their workplace or at your venue/business.

This allows you to:

View their office/workplace

Visit, inspect and gain an appreciation of the site where the contracts is to be undertaken. See ‘Visiting the site’ below

Show the client your workplace, its facilities and the resources you have available




Tender documentation

The entire tender documentation often comprises several individual documents, such as:

Cover document – detailing:

Name of the tender

Code number for the tender

Identification of all documents comprising the RFT documentation

Overview of the objectives for the tender

Conditions – covering:

– Definition and interpretation of terms used in the documents

Details of client

Description of sites where catering is required

Details of any mandatory meetings required for tender applicants – to obtain standardised details and information relating to the requirements of the tender

Information about short-listing of applicants

Rules applying to tender submission and submission requirements – more information about this is provided in section 3.1

Need to observe confidentiality

Rules governing communication with the client to obtain extra information – commonly, the client will respond to your queries and then forward the information they have given you to all other interested parties or applicants

Need to avoid conflict of interests

Period/term of the contract being offered

Need for compliance with terms and conditions specified in the RFT documentation

Need to provide warranties

Complaint handling and dispute resolution procedures

Need to indemnify the client

Rights and responsibilities of both parties in relation to the contract

Need for risk assessment

Requirement for insurance

Stipulation of mandatory reporting regarding implementation or discharge of the contract

Need to provide sample menus and names of products, ingredients or suppliers to be used

Evaluation criteria – which identifies how every submission will be evaluated, setting out

Details of criteria which will be used to judge the submission



The relative weighting of each criterion – in numeric or percentage terms

Lowest price will not necessarily be awarded the contract

Reference to the fact that every submission will be assessed against certain points such as:

– Quality – as defined by the RFT

– Performance standards – as stated

– Other relevant matters – for example, environmental concerns, ethical purchasing of ingredients and products, use of local labour

– Previous performance

– Value-for-money

Application document – this is the official form which MUST be used as the basis for the tender submission and which is likely to contain space for you to address information regarding:

Formal acceptance of terms and conditions specified in the documentation

Information and details of your business

Confirmation of compliance with stated Specifications for the provision of goods and services as started in the RFT

Details of your previous experience and demonstrated capacity to meet the requirements of the tender

Alignment with designated:

– QA requirements

– COPs

– Certification – of the business and/or staff who will deliver the required products and services

– Pre-requisite training – such as ‘All staff must hold XYZ food safety certificate’

Service plan – detailing how food and beverages will be displayed and made available, include delivery of foods from the kitchen to patients in wards

Customer feedback – explaining how you will track the satisfaction of customers including patients, inmates or workers with the foods and beverages provided and with the service delivered to them

Monitoring and reporting of the contract

Details of the risk assessment which has been undertaken for the project – and the insurance policy which will cover the operation

Costings – detailing as appropriate to the RFT:

– Details of nominated sub-sections of food and beverages or other products or services required by the contract

– Selling prices for items

– Labour costs

– Management fees

Staffing details – identifying number and type of staff to be used




Appendices – which may give space to provide:

– Curriculum vitae for staff to be used

– Outlines of previous tenders which have been discharged

– Sample menus – with recipes

– Photographs of meals

Invoicing for the contract – identifying how and when payment is required

Signatures of nominated persons – on behalf of your business to formally apply for the tender.

Visiting the site

Arranging the visitYou should always consider visiting the site, venue or location where the contract is to be undertaken.

Your visit:

May be required as a condition of the application

May need to be arranged through the contact person nominated in the RFT documentation

Can be undertaken at your own discretion without notifying the client of your visit – where the contract applies to an area which is open to the public.

Reasons to visitUndertaking a personal visit to the site can reap many benefits and always provides a rich source of information which can be referred to when deciding whether or not to proceed with a tender submission and when constructing the actual application.

Your visit may enable you to:

Speak to staff who are working at the location – and gain their impressions and insights into:

The operation of the business

Problems they have identified

Suggestions for improvement

identification of potential for the operation

Trade volumes

Inspect the facilities and equipment – to:

Identify what is available

Gain an appreciation of its age and condition and/or need for repairs, maintenance, service or replacement

Learn the layout of equipment and utilities



View a shift/session – to gain first-hand experience of the existing service protocols and the volume of trade being processed. This can be matched against claims made in the RFT regarding potential/required numbers of meals, whether per session, day or shift

Observe operations and evaluate the food and/or beverages being offered – in terms of :

Prices charged

Quality

Serve sizes

Plate appeal

Types of meals – names of dishes, brand names of packaged products

Ingredients used

Cooking styles and methods used

Talk to food or beverage consumers – to:

Obtain their feedback on the food and beverages on offer – in terms of relevant factors such as taste, quality, choices, serve sizes, availability

Obtain their feedback on prices

Obtain their feedback on service standards

Seek their suggestions for improvements

Identify the issues they rate as priorities for attention.

1.2 Analyse fixed and variable costing elements inconsultation with management

Introduction

When you have a sound and detailed understanding of the RFT documentation you can start analysing certain aspects of the offer in more detail.

This section identifies and discusses common costing elements of RFT documents.

Need to involve management or the Tender Team

Management and/or the Tender Team should be part of this analysis process because they can:

Help by providing advice based on their experience

Perform calculations required for analysing variable costs

Assist with necessary research – such as:

Sourcing products and prices

Obtaining quotations for ingredient and products

Determining availability of required resources




Trialling/testing required elements – such as:

– Tasting ingredients

– Developing recipes

– Inspecting workplaces where service delivery is required – to determine resources and space available; to identify local issues problems and possible other opportunities

Provide direction about costs to be applied

Approve, reject or modify proposed costs

Identify ability of the business to obtain required resources to meet needs of each element.

Difference between and examples of ‘fixed’ and ‘variable’ elements

Fixed costs are costs which stay the same regardless of the volume of catering/food production which needs to be provided.

Examples can include:

Contract management

Insurance

Venue hire or rent

Security

Permanent staff

Maintenance or service agreements

Membership of organisations or associations.

Variable elements are items which vary with the amount of catering provided.

They may also be referred to as ‘semi-variable’ or ‘mixed’ costs.

They include:

Food

Beverages

Transportation

Power and other utilities

Staffing – to an extent, such as extra service, kitchen and cleaning (casual , part-time and overtime payments) staff required to cope with higher levels of catering or service delivery

Laundry.



Considerations when analysing fixed costs

Because fixed costs do not change regardless of the production and service levels the only analysis required is to:

Ensure all fixed costs have been identified for all of the outcomes and deliverables required under the tender – it is vital all of these are named because failure to do can have a major, negative impact on the viability and profitability of the tender

Calculate the actual costs attaching to each identified fixed cost – this can mean:

Obtaining quotations

Sourcing options and possible alternatives

Undertaking price comparisons

Negotiating deals with suppliers and providers

Determine how the costs will be defrayed when the tender pricing/costing is done – for example:

Will you identify each cost and list the cost at ‘full cost recovery’ value only?

Will you add a percentage to each fixed cost? So you show a profit and return on each cost

Will you integrate all fixed costs into the pricing/costing for other tendered items? For example, assimilating all these costs into:

– A project management fee

– The individual selling price for products

– Costing for ‘food’ and/or ‘beverages’ as defined by the RFT.

Issues when analysing variable costs

Issues when analysing variable costs may include:

Identifying all items which can be classified as variable costs

Quantifying volumes for each identified item at a series of production/service points. For example:

Maximum volumes

Average volumes

Minimum volumes

This is particularly important where the RFT documentation requires you to provide costing on a ‘per meal’ basis, also referred to as ‘activity per service’, as it allows you to tender at three different volume rates.

Determining base costs and prices for each identified variable cost

Conducting CVP analysis

Considering required selling prices – as necessary for the RFT or as required to generate sales or profit required by your application




Developing a comprehensive and relevant cost pricing strategy for each food and beverage items to be provided – determining relationship of costs to selling prices for items or ‘per meal’ revenue earned under the contract

Undertaking CBA for the project – or for individual components of the tender

Identifying the nature of deals which can be obtained from suppliers, such as:

Quantity discounts at different purchase volumes

Bonus offers – for buying certain amounts

Better terms of trade – such as more time to pay or increased discount for prompt payment

Identifying alternative uses for ingredients or products which may not be used at the client’s site – for example:

Some suppliers are prepared to take back items you are unable to use

If you operate another venue/catering business, you may be able to transfer perishables to this other venue and use them there

Determining relationship of costs to selling prices for items or ‘per meal’ revenue earned under the contract

Considering budget implications – for allocation of funds to budgets

Predicting contribution margins for products and elements – as part of Break-Even analysis

Determining these individual costs as a percentage of expected revenue.

Full cost recovery

Where you are asked to provide certain services to support the tender you may elect to do this on a ‘full cost recovery’ basis.

This means you only charge the client the same amount you paid to obtain the service from a third party. This approach does not generally apply to products.

For example if you were required to include travel and accommodation in your catering contract you might only cost out this expense to the client at the same rate/amount the travel agent charged you.

This means:

The client is not charged extra for the service

You do not show a profit/return on your effort

The price you quote allows the focus to be on just the food and beverages you are providing

It is a sign of goodwill towards the client – because, in effect, you are doing something for nothing as an ‘added extra’ for them.



Cost plus

An alternative to charging/costing out an item at ‘full cost recovery’ is to charge the items (products or services) out as ‘cost plus’.

This means you charge the client:

The amount it cost you

Plus, either:

A nominated percentage – such as ‘plus 10%’ or ‘plus 15%’,

A set ‘service fee’ per transaction.


Introduction

Another initial step in identifying tender requirements is to identify and then analyse the specific tendering criteria and conditions set out in the RFT documentation.

This section indicates how tendering criteria and conditions can be identified, provides examples of possible criteria and conditions, and identifies considerations in their analysis.

Purpose of this stage

At the end of the process of you need to know with absolute clarity and certainty:

Exactly what products and services are required

Precisely when it is required to be provided – and the duration of the contract being offered

Where service provision is required – the location or sites for service delivery

How food and beverages are to be supplied

Limitations on or mandatory requirements applying to eligible tender applicants

Compulsory submission requirements as stipulated by the client

Date and time by which the application must be submitted.

You should have also:

Made contact with the client through their nominated ‘contact person’ – to demonstrate your interest in applying, clarify issues and develop a rapport.




Identifying tendering criteria and conditions

You can identify the criteria and conditions for a tender by:

Reading the RFT document – the relevant criteria and conditions will usually be set out under headings such as:

Objectives

Deliverables

Goods and services to be supplied

Specifications of products of services

Service requirements

Terms and conditions

Proposed contract

Conditions for tendering

You will need to read all of these sections as each individual section can contain specific information not contained in other sections.

Attending pre-tender meetings – conducted by the client for those wishing to lodge a tender submission.

This may be a mandatory requirement for tenderers or it may be optional.

It is beneficial to attend these as doing so:

Demonstrates commitment to the tender

Enables face-to-face meeting with the client/their representative

Often provides extra detail not provided in the RFT documents

Provides an opportunity to ask questions

Gives you an insight into the competitors who are also likely to make a submission

Seeking clarification from the contact person named by the client in the RFT documents – remember in most cases the information provided to you as part of this explanation will also be provided to others who have registered as showing interest in applying for the contract.



Tendering criteria

Criteria are standards or specifications relating to products and services which must be met in your tender submission to qualify you for consideration as a legitimate tenderer.

The information contained in the ‘Objective’ or ‘Background’ section of the RFT documents is addressed, expanded on and specified through the tendering criteria so there is some degree of duplication between these two areas.

Criteria may relate to:

Food safety – which may refer to application of HACCP procedures and protocols to the total food handling process with a view to identifying anything that could pose a threat to consumers.

This process demands analysis of and establishment of control points and controls for the following food handling steps:

Purchasing of food

Delivery of food into the premises and its receival

Storage of incoming food – dry, refrigerated/cold, or frozen

Preparation of food – including thawing of frozen food

Cooking and processing of food – including cooling of hot food

Storing and holding of prepared or cooked food – hot and cold

Re-heating of previously cooked food

Packaging of food for take away or travel packs

Service and display of food – including self service

Transportation of food where food has to be transported to a secondary location or event

Catering to be provided – for example:

Breakfast, lunches and dinners

Suppers, morning teas and afternoon teas

Take away food requirements

Demand for travel packs

Provision of snacks, which commonly need to be available 24/7 – and may only need to be provided via vending machines

Volumes –number of meals to be provided on a daily or other basis

Dates – this may address:

Specific dates for specific catering

Dates/times when catering is not required

Duration of the contract – the dates the contract will start and finish




Service times – on a daily basis for each meal type, for example:

Breakfasts – 05:30AM – 09:00AM

Lunches 11:45AM – 2:30PM

Dinner 05:45PM – 09:00PM

Overview of those to be catered for – which may include reference to:

Personal descriptors, such as:

– Patients and staff

– Prisoners and wardens

– Students and teachers

Age ranges

Nationalities

Gender

Types of food to be provided – detailing, for example:

Types and cuts of meat and fish

Types of fruit and vegetables

Nomination of certain dishes(including provision of quantity foods recipes for these dishes

Specification of diet types to be provided – this is more important in institutions such as hospitals, aged care facilities, prisons and schools, but of increasing importance in other venues and facilities.

RFT documents may require, for example, the need to provide food which caters for:

Low-fat menus

Low-salt menus

Diabetic menus

Gluten-free menus

Meals across a specified range of calorific content

Nominated vegetarian requirements

Certain allergies

Quality-related criteria – which may address:

Use of fresh food – or designated requirements regarding amount of fresh food to be used

Prohibitions on nominated foods – there may be a specific ban on the use of:

– Certain foods

– Use of certain suppliers

Speed of service of food – detailing number of people to be served in a given time or at a designated service period

Need for action to be taken to swab work surfaces and food equipment and forward the



specimens to a designated laboratory for analysis to determine the level and type of microbiological contamination

Pricing – RFT documentation may prescribe:

Maximum selling prices which can be charged for items – for example in a staff canteen when selling to workers, or in a public canteen at a hospital

Parameters for food cost percentages for dishes

Selling points for nominated food and beverage types

Cooking or preparation methods – commonly separating dishes into ‘wet’ or ‘dry’ dishes and specifying cooking methods which can be used, must be used or must not be used, for example:

Boiling

Frying

Baking

Poaching

Stewing

Braising

Grilling

Cooking styles which must, should and/or should not feature on the menu, such as, for example:

Chinese

Mexican

French

Italian

Asian

Western

Service styles – focussing on how food is to be served to those who will eat it.

Considerations may include:

How meals are to be displayed

How meals are to be served and service style

Requirements for packaging take away food

Requirements for enabling provision of hot and/or cold travel packs

Liquor service – if the RFT covers the service of alcohol criteria commonly address:

Need for successful tenderer to apply for a nominated type of liquor licence

Need to maintain the licence for the duration of the contract

Requirement to transfer licence to next successful tenderer at conclusion of this contract

Ensure all liquor service staff have completed a nominated RSA course

Comply with all legislated obligation

Contract management team – detailing:




Structure of the team

Roles and responsibilities

Required contact details

Their CV

Customs, religions or cultural requirements or restrictions to be catered for – for example food requirements as they apply to:

Islam

Buddhism

Hinduism

Judaism

Lifestyle diets

Ancillary requirements – which can cover a multitude of food and beverage-related topics such as:

Condiments – such as salt, pepper, mustards, sauces and other specified items and how they are to be provided. For example:

– In shakers, pots, bottles or other suitable shared containers?

– In PC packs?

– Supplied ‘inclusively’ or sold to those who want them

Type, style, quality and quantity of crockery, cutlery glassware and other service ware

Serviettes or napkins

Tablecloths.

Tendering conditions

Conditions are requirements you must accept as part of the process of making a tender submission for this contract with this client at this time.

For example, conditions may apply to:

Using existing kitchen and service as currently provided at the contract site – or being prepared to provide any extra equipment required ‘at own cost’

Providing nominated equipment at tendered own cost’

Nominating certain types of equipment to be used for specified operations

Accepting the payment terms and dates offered in the RFT document

Agreeing:

To making a personal presentation to the client to explain the submission



The client reserves the right to alter food and beverage requirements at any time subject to:

– A minimum advance notice period – such as 30 days for special events/changes to previously agreed delivery requirements

– Joint agreement – between you and the client

– Necessary adjustments to original or agreed payments

That the decision of the client as to who is the successful applicant is final.

Considerations in analysis

When analysing the tendering criteria and conditions, you and your tender team need to pose and develop answers to a series of questions based on the topics and constraints raised in the RFT.

The nature of the answers you honestly provide to these questions will be highly influential in deciding your next step or if you proceed to the next step.

Questions may include:

Do you have the necessary experience called for in the RFT?

Can you prove this?

How should you prove this experience?

Which past or current catering contracts will you refer to?

Who might provide you with a Letter of Commendation to support the application?

Can you provide the required products and services at the sites listed?

How can you deliver these products and services?

What do you know about this site, location, town or venue?

What problems or challenges does this remote location pose?

How will you transport materials and equipment to the site on a regular basis and how much will this cost?

How will you get staff to and from the site?

What staff do you have who can fulfil the requirements of the RFT?

Are there any special needs in terms of knowledge and skills required for the preparation or service of food at the nominated venues?

Are they willing to work on this project or at this location?

What staff would you need to recruit?

How difficult might it be to recruit the required staff?

How much would you need to pay staff working on this project/contract?

Do the requirements of the RFT:

Meet/align with the stated plans and strategies of the business?

Integrate with existing operations?




Enable the business to:

– Pursue identified new markets?

– Gain identified market share?

– Re-position itself in the marketplace or eyes of consumers?

What money needs to be spent:

To buy new plant, equipment, machinery or utensils to enable required products and services to be provided?

To train staff to required standards or certification?

To develop and implement systems, SOPs, policies, COPs, protocols and QA requirements specified?

To renovate, refurbish or otherwise bring the contract location to the required level of safety, cleanliness and appearance?

When does it need to be spent?

Will existing systems and protocols in the business integrate with other service provisions at the contract site – in terms of:

HR – in areas such as:

– Rostering?

– Payroll?

– Training and development?

– Induction and orientation?

– Industrial relations?

Stock management – covering:

– Purchasing?

– Issuing?

– Control and monitoring/tracking?

Recording and reporting?

Internal communications?

Determining financial performance of the contract?

Cash control protocols – regarding:

– Cash handling and cash security on-site?

– Budgets?

– Accounting operations and bookkeeping?

Do you need to seek a joint-venture partner to assist with:

Financing the project?

Giving the necessary experience and expertise to the application?

Providing ‘local’ knowledge of the site/?

Are you prepared or otherwise ‘able’ to comply with:

Insurance requirements?



Timetable or delivery schedules?

Registration of your business with a nominated organisation or authority?

Business type or status requirements?

Other eligibility criteria as stated in the RFT?

Limitations and constraints imposed?

Conflict of interest requirements?

Lodgement provisions – for example:

– If submission is required to be hand-delivered in a foreign country, are you prepared to pay someone (airfares, accommodation, and time) to do this?

– If there is a need to send three people overseas to make a formal presentation (face-to-face) of the tender, are you willing to do this? Can you afford to do this?

Have you investigated requirements relating to contract-specific requirements – such as:

Setting up a business in a foreign country?

Securing operating license, permits and other in-country authorisations?

What requirements including documents, limitations and evidence, apply to overseas countries and aliens working in-country?

Food safety? Taxation? Occupational health and safety?

Are you prepared to disclose certain information and problems your business has encountered?

Many applications require you to identify:

Civil action the venue is party to

Criminal action initiated against the venue

Orders or injunctions made by authorities requiring the venue to take prescribed action

Financial statements showing the financial status of the organisation

Nominated operational and other plans for the business

Potential conflicts of interests.




File and share information

Standard practices in relation to all information relating to a tender submission are to:

Create one or more relevant paper-based or electronic files – and file all relevant information

Share the information gathered with all members of the Tender team – in hard-copy or electronic form.

Information which should be filed and shared includes:

Copies of all RFT documents – and copies of all generally-released extra information.

This may include:

Amendments and updates to the original suite of RFT documents

Responses to questions posed by you or other tender applicants

Personal comments, notes, questions and issues on the basis of:

Reading the RFT

Inspecting worksites

Talking to the designated contact person

Research undertaken

Feedback obtained – from (for example):

Previous businesses that have won the contract you are applying for

Past/existing workers at the contract venue

Authorities/agencies which have legislated jurisdiction over and responsibility for the business

Customers/users of the catering provided

Relevant documentation – which can include:

Venue policies and procedures

Venue plans and strategies

Legislation applicable to the tender

Sample menus

Quotations from suppliers

Advice from service providers – such as insurers, service technicians, legal counsel, accountants and financiers

Draft – and final – responses to requirements of the RFT.



Work ProjectsIt is a requirement of this Unit you complete Work Projects as advised by your Trainer. You must submit documentation, suitable evidence or other relevant proof of completion of the project to your Trainer by the agreed date.

NOTE: This Work project forms the basis for all subsequent Work Projects

1.1 To fulfil the requirements of this Work Project you are required to obtain RFT documentation for a catering contract and prepare a report which:

Includes a hard copy of the RFT documentation

Details the key objectives and requirements for the tender

Identifies and analyses the fixed and variable costing elements

Identifies and analyses the tendering criteria and conditions

Details (if applicable) the evaluation criteria for assessing tender submissions.




SummaryIdentify tender requirements

When identifying tender requirements:

Actively seek out tender opportunities and obtain RFT documentation Read, identify and analyse the requirements of the RFT Create a Tender Team to assist with tendering Identify ‘knock out’ topics/requirements as soon as possible Involve management in identifying tender requirements Make contact with the client to ask questions, clarify issues and arrange a meeting Try to visit and inspect the venue/worksite where the work is to be carried out Identify all fixed and variable costing elements Request administration or management to analyse identified costing elements Ask/pose lots of questions Identify and analyse all tendering criteria and conditions listed in the RFT Continue involvement of management and the tender Team throughout the initial analysis and

identification processes Identify the evaluation criteria which will be used to judge the tender submission File all tender-relevant information and documents Share all information openly with Tender Team.



Element 2:Determine ability to meet tender requirements and conditions2.1 Assess ability to provide catering service/s

specified in tenderIntroduction

An important element of determining your ability to meet tender requirements and conditions is the need to assess your ability to provide the required catering services specified in the RFT.

This section discusses the importance of this point and explains how the assessment is made.

Importance of assessing your ability to meet requirements

The assessment of your ability to provide the services and products listed in the RFT is important to:

Assist in the decision about whether to proceed with the application or not – the earlier this decision can be made, the better as it costs time and money to prepare a response to an RFT

Identify the resources necessary to discharge contract requirements – in terms of:

Physical resources

Human resources

Financial resources

See ‘Identifying resources’ below

Serve as a basis for assessing the viability of tendering.

Assessing ability to provide required catering services

The basic processAssessing your ability to provide the outcomes/deliverables as identified in the RFT documentation must address these activities:

Involving Management and the Tender Team

Allocating time/meetings for this stage of the process




Confirming RFT requirements and ensuring there is a comprehensive and detailed understanding of the requirements – which MUST be underpinned by feedback and additional information received as a direct result of:

One-to-one contact with the client

Site visit and inspection

Willingness to undertake necessary research:

With suppliers, providers and support services in relation to product and service availability, continuity of supply, terms of trade, delivery, prices and quality

In relation to developing, testing/trialling and costing recipes

To prepare sample menus

To draft and cost model staff rosters for operational aspects of the tender

Asking and answering a series of questions – see below.

Asking and answering a series of questionsQuestions which need to be addressed include:

What is required?

You can only start this process when you have a full understanding of what is required under the RFT.

What products and services have to be provided?

When and where?

What are the performance measures (KPIs, service standards and associated criteria for food, service, food hygiene and other relevant factors) for each aspect of the contract?

How many staff are required?

Can the business do this? Can you actually deliver what is required?

What factual evidence is there to support the answer to this question?

What is your ‘gut feeling’?

What is your demonstrated experience?

What is your potential?

Does the business want to do this?

Why? Why not?

If you won the contract:

When could you start? Does this fit with RFT requirements?

Is the work in accordance with organisational plans for the development/growth of the business?

Does the work align with current workplace activities and culture?



Would the new contract require you to diversify into areas which are not your core business?

Many businesses have strictly identified activity and operational parameters and they may refuse to take on a contract which takes them outside these boundaries.

What are the restrictions or challenges posed by the contract?

Is the contract site ‘too remote or distant’? For example, is the delivery site in another country?

Are there significant potential problems in relation to:

– Language barriers?

– Cultural issues?

– Procurement of materials?

– Delivery of products onto the site?

Why has the client issued the RFT documentation?

Is it because a previous caterer has tried and failed? What does this mean? What signals does this send to you?

Have they found it is too difficult and/or expensive to deliver the required products and services? If they cannot do what is required, why/how can you?

Is the client genuinely committed to the project or do they appear to be trying to distance them from it?

What does the client know about your organisation?

Do they know you exist?

Have you contracted with them before?

Are they aware of your work, the other clients you have and or similar work you have already done?

Have they indicated they want you to win the tender but must go through the process of offering the tender for legal or other reasons?

What do you know about the client?

What problems or challenges are they facing?

What is important to them, and why?

What are the resource implications? See below




Identifying resources

Identifying resources required to deliver tender requirements involves completion of the following activities:

Naming the resources

Attaching numbers to each of the identified resources – such as volumes, quantities, volumes, amounts, hours

Preparing job descriptions for positions – to assist in determining the staff who need to be recruited, and or the training which needs to be provided to your existing staff

Conducting preliminary discussions with possible financiers to identify their potential for providing financial support for the project – and identifying the amount of finance they may be able to supply and the cost of that funding

Identifying and or confirming resources already available at the contract site – and establishing the condition of each available item including plant, equipment, machinery, infrastructure, utensils, crockery, cutlery, systems and technology

Determining acquisition options for each classification of resources as appropriate – see below

Identifying and resolving problems and issues associated with obtaining the identified required resources

Calculating cost for each set of resources

Determining on-going costs – such as service and maintenance, staff training, repairs and replacements.

Acquisition options You may consider the following when assessing how to obtain resources:

For physical resources

Options can include:

Using existing resources – either:

As provided ‘on site’

Which you already own within your venue

Items which are available from other workplaces in your wider organisation

Purchasing – new or used

Leasing

Renting or hiring

Joint-purchasing with a partner.



For human resources


Multi-skilling existing staff

Up-skilling current workers

Recruiting new staff with required experience and expertise to fill new positions

Outsourcing certain services

Engaging more staff to supplement available staff

For financial resources


Obtaining loans from financial institutions

Seeking private investment

Negotiating better terms of trade with suppliers

Searching for government or other subsidies.


Introduction

There is always a need to assess the viability of providing a response to an RFT

This section identifies and discusses determination of the viability of tendering within a specific organisational context

Considerations and context

Determining the viability of tendering for the provision of catering services involves analysis and evaluation of many factors.

These factors will vary between RFTs.

While profitability is nearly always a principal consideration, there are frequently many other matters which should impact your thinking and the final decision about whether or not the tender is a viable one.

What is ‘viability’?Assessing viability seeks to answer the question ‘Is it worthwhile submitting a tender for this catering contract?’

Determining the ‘viability’ of tendering for the provision of catering services under a contract requires to a formal and structured analysis of the topics listed below.




Costs involved in the tendering process This relates to the time and expenses involved in submitting an application – this may mean you are involved in costs related to:

Meetings – internal Tender Team meetings, meetings with management and external meetings with the client and other stakeholders

Research – into tender requirements, the site, competitors, previous product and service provision on site, legal compliance requirements, resources required

Development – of new required menu items, policies and procedures, service protocols to meet stated requirements

Testing – of products as well as SOPs and service and other protocols

Fees associated with the application – there may be a need to pay a fee to register as a tender applicant

Complexity and requirements of the RFT response – some RFTs can be relatively short and require only basic information to be provided while others can be very detailed and demand you submit well over 100 pages.

There is obviously a very strong link between the information and detail required in the submission and the time it will take to research, prepare and submit an application.

Travel – to:

Meet with the client

Attend information sessions

View sites

Identify and negotiate with local suppliers

Hand-deliver your submission

Make a presentation to support your application

Build a positive relationship with the client.

Time-related factorsThe importance of certain factors which influence viability is likely to vary over time.

A critical factor ‘today’ may be an irrelevancy ‘tomorrow’.

Something not relevant today may be a vital consideration tomorrow.

For example:

If you have a low cash flow situation and desperately need revenue, then even a contract which fails to deliver the normal ROI is likely to be pursued – because ‘some cash is better than no cash’



Conversely, if you are ‘busy’ and generating sufficient cash and profit you will not need to win the contract as much as in the previous situation.

Site locationSome tenders are attractive and viable if they exist ‘nearby’, which may be within a given distance, within the same city, within the same country or in an adjoining country.

Other applications may, simply by virtue of their geographic location, render the RFT an unviable proposition due to issues relating to:

Travel and transportation

Lack of local knowledge

Cultural and language issues

Different legislated obligations.

ProfitabilityProfitability may be judged primarily in two ways and it is up to you, management and the Tender Team to determine what the profitability criteria are for individual tenders.

Profitability may be seen:

In strict monetary terms – the amount of profit expected to be earned from performing the contract

In percentage terms – judging either or both of:

The overall ‘return on investment’ to be gained from participation

The percentage mark-up to be obtained on food and beverages.

What other potential opportunities exist with this client into the future? Will undertaking this contract better place you to tender for future (more lucrative) contracts?

Future considerations

There are often times when you will be obliged to tender for a contract even though you know you will not profit from being awarded the contract.

This can be acceptable in situations where:

You believe undertaking this contract better places you to tender for future contracts

Your organisational plans required you to break into this new client or market

Your strategy is to secure the contract and learn more about the operational requirements of the client and this type of catering service on-the-job, so you are better prepared and more informed for future opportunities.




Other tender applicantsUnless you are the only business to which the RFT has been provided it is always worthwhile considering the competition ranged against you in terms of who else is applying for the contract.

Who else do you know or think is applying?

You can identify this by asking around, and through attendance at information sessions related to the RFT.

When you have identified them you need to undertake some form of competitor analysis:

What is their history and track record?

What are their Strengths and Weaknesses?

What Opportunities and Threats do you think the tender poses for them?

What are their USPs?

What approach to the RFT do you think they are likely to take? Will they seek to compete on the basis of:

– Price?

– Expertise in the type of facility where the catering is to be provided?

– Previous experience in the geographic area?

– Their proven and demonstrated track record?

– Management proficiency?

– Innovation?

– Technology?

Can you realistically expect to compete against them?

Are they a genuine threat?

Is a regular contractor applying?

And is this likely to mean they will get the contract because the client is familiar and happy with their past performance?

It can be a fact of life some RFTs are issued simply to comply with a legal or internal requirement: the reality is sometimes the decision about who will be awarded the contract has been made before the RFT has been distributed.

Is the current or previous contractor applying or not?

This requires you to:

Find out how they have performed

Determine whether or not the client is satisfied with their performance

Try to find out their satisfaction levels with the results/profit/outcomes from the previous contract

If they are not re-applying, asking them why not



Identify any competitive advantages you have over these organisations – what innovations are you able to offer that the competition cannot?

Is it a competitive tendering process, or is your business the only one asked to tender?

You will be encouraged to submit a tender if you know you are the only applicant.

Outcomes of risk analysisYour risk analysis must reveal either:

There are no significant risks associated with the contract

or

You can implement suitable risk controls to eliminate or sufficiently mitigate identified risks.

Risk management

A formalised risk management is undertaken by many operators for large RFTs and you need to know what the outcome of the risk assessment is.

The process addresses three stages:

Risk identification for the project – identifying risks your businesses sees as being attached to the project if you were the successful tenderer

Risk analysis – a process where you evaluate the identified risks to determine their potential Consequence and Likelihood, and identify and analyse possible control for each of the risks which have been listed

Risk control – where each of the identified risks has (at least one) control allocated to it in order to ensure the risk posed can be effectively mitigated

Your analysis of the risk assessment must look at:

Effectiveness of each control

Cost of implementing controls

Associated legalities

Impact on operation of the business.

Other factors and issuesThere are nearly always ancillary issues which are factors in your thinking when determining viability of a tender.

These considerations may address a wide range of topics such as:

Would winning this tender enhance your image or build your brand in the marketplace?

Do you have existing spare equipment or other capacity which could be productively and profitably used on this contract?

Would winning the contract provide you with a useful and beneficial second outlet for menu items and food and beverage products?





IntroductionBecause all catering contracts are unique, all RFT requirements will be unique.

This section identifies how to identify unique requirements and gives examples of what these requirements have been in previous RFT documentation.

Identifying the requirementsThe same techniques used to determine the objectives, requirements, criteria and conditions for a tender are the same ones used to identify ‘unique requirements’.

To re-cap previous notes, these methods involve:

Consulting with management

Using the Tender Team

Reading and reading the RFT

Making sure you understand the RFT

Clarifying ambiguous terms, statements and requirement listed in the RFT documentation

Asking questions of the client

Attending pre-tender meetings.

In addition there is always a need for you to:

Use common sense – to evaluate the nature, complexity and importance of each unique requirement

Apply industry knowledge – about how to determine and respond to unique requirements

Use venue knowledge – to recognise what is standard and what is ‘unique’ in terms of what your organisation can provide.

The nature of ‘uniqueness’

Certain requirements as stated in the RFT documentation can be unique (see ‘Examples of unique requirements’ below) but it is important to understand ‘uniqueness’ can be relative.

What is ‘unique’ for you or your business, may not be unique to another tender applicant.

For example:

If the tender required you to provide catering services in a country where you had not previously worked, then this would be unique – if you had delivered contracts in that country before then this requirement would not be unique

If you were applying to deliver catering to a hospital and had only ever delivered catering services to prisons and sporting arenas then this ‘hospital’ focus would be unique for you.



Examples of unique requirements

In practice there is no limit to what a client may requests in their RFT documentation, so it is impossible to create an all-inclusive list of unique requirements.

The following, however, is an indicative list:

Requirement to provide food and beverage 24/7

Need to use local or specific, nominated suppliers

Requirements to cater for a specific culture

Need to provide meals to meet certain dietary requirements

Occasional need to provide catering for ‘special events’ in addition to the normal, day-to-day catering requirements – such as need to cater for:

Board meetings every month

Annual General Meetings

Fundraising events

Celebrations Specified meetings, functions and events

Need to operate a liquor licence Requirement to produce a given number of choices per course or service session

Need to offer a stipulated range of take away items Need to sell a given assortment of packaged foods and beverages for retail sale

Demand for different classifications of food to be served at the one time – for example, there can be a need to produce:

One type, style, quality of food for the public in the general public outlets – at a given set of prices or selling points

A different range and or standard of food for patients A further range including type, style and quality of food for hospital staff and

doctors – at different price points to the canteen Shut-down at given periods – for example at boarding schools

Need to align operations with designated Codes, QA systems or other criteria Necessity to employ a given number or percentage of local employees

Mandatory requirement to use nominated equipment or service systems – to prepare, deliver or serve food

Need for the client to taste test and approve menu items before they can be offered

Adherence to designated food safety protocols Mandatory reporting requirements

Requirement to participate in stipulated meetings with the client to discuss progress, resolve issues and make recommendations for improvement to service delivery

Compulsory training or certification for staff




The right of the client to inspect the premises and provision of catering services either ‘on demand’ or at identified times

Maximum selling prices which you can charge for items to be provided Stipulation payment for services rendered will only be made at certain times

Requirement for your organisation to join a nominated industry association when/if it wins the contract

Necessity to provide a management structure/team at the project site and/or for the contract

Requirement to provide evidence appropriate risk management for the project has been undertaken

Need to provide identified financial statements and disclose other information which is usually regarded as ‘commercial in confidence’

Requirement to identify the supply chain to be used for materials and ingredients Need to provide emergency procedures to deal with nominated occurrences at the

catering site.




2.1 Using the RFT which formed the basis of your response to Work Project 1.1 prepare a submission which:

Explains or demonstrates how you would assess the ability of an organisation to provide the required catering services making reference to specific points/requirements identified in the RFT documentation

Explains or demonstrates how you would assess the viability of tendering with reference to the nature, context and requirements of the RFT

Identifies unique requirements of the tender explaining why (in your context) you have identified them as unique.




SummaryDetermine ability to meet tender requirements and conditions

When determining ability to meet tender requirements and conditions:

Assess your ability to provide the required catering services Identify the human, physical and resources required Involve management and the Tender Team in all considerations and activities Pose lots of questions Consider a range of resource acquisition options for identified need Determine the context of the contract for your business, its focus and its operations Calculate the financial and other costs involved in making an application Determine viability of the tender Consider all relevant factors, not just profitability Do an analysis of identified competitors Undertake a risk analysis process, where/if necessary Be aware of all unique requirements for the tender.



Element 3:Estimate costs3.1 Use enterprise rate and/or costing schedules

to establish costingIntroduction

A vital aspect of all tender applications is to establish the costs you will incur in delivering the services required by the contract.

This section discusses the importance of costing and identifies the use of a variety of rate and/or costing schedules as part of this process.

Importance of this step

Establishing correct and competitive costing is such an important phase of the tender development process because:

Your tender price will need to reflect and (usually) cover the identified costs associated with providing the required products and services – this underlines the need for most submissions to return a profit to your organisation

The organisation which wins the tender is mainly determined on the basis of the tender price they submit – subject to other factors such as quality, compliance, value for money, performance and other nominated evaluation criteria

Clients usually expect the tender price to represent a saving to them assessed against the cost they would incur in delivering the catering themselves

Where tender submissions provided by two applicants appear similar in all other respects, it is the tender price which will determine who secures the contract

This part of the tendering process is often the most time consuming aspect of the tendering process – and frequently the one about which there is the most debate, discussion and disagreement amongst management and the Tender Team

Where the client has decided on a competitive tendering approach, there is usually a high degree of similarity between the costing presented by all applicants.




Background to rate or costing schedules

Rate or costing schedules:

Are lists of costs your business will charge for a range of products and or services showing:

Name of products and services

Amount charged per unit – as appropriate to the product or service, be it per item, per hour, per person or per meal

How rates vary as more or less of each unit is required Will be developed by your business to facilitate costing of tenders – and to assist with

the provision of quotations for smaller events or functions Must be current and comprehensive – meaning the

costs associated with each charge or unit must: Be up-to-date – you cannot afford to use dated

prices as they can change so quickly, using a dated schedule can mean the difference between profit and loss for a tender

Include all associated costs – for example, if you need to pay your supplier a fee for insurance, delivery and or re-packing then this amount needs to be added to the unit cost of individual ingredients and items.

This means you need to identify the landed in-store cost for everything, as opposed to (just) the ‘list price’ or wholesale price for items.

Must be approved by management before they are used – as a means of verifying you are using the correct ones

May be prescribed (in part) by the client – as part of the RFT documentation: that is, some RFTs may set parameters or limits within which you are required to operate in order for your submission to be accepted for consideration

May need to be included by you as part of the total tender application you submit Must clearly indicate whether costs are inclusive of any relevant taxes or not.

Examples of rate or costing schedules

There is no standard list of rate and or costing schedules which you may be required to address.

There is also no standard definition of what each schedule contains.

If in doubt about what you need to include in your schedules or about the format they should take, you must clarify these with the client or their nominated contact person.



Rate and or costing schedules may relate to cost components such as:

Labour ratesThis schedule will need to detail:

The individual job positions to be used to provide the required products and services – such as kitchen hands, cooks, chefs, service staff, cleaners

The hourly rate:

For all classifications of staff – for example ‘Grade 1’, ‘Grade 2’, ‘Grade 3’

For casuals and part-time staff

Identifying (where applicable) differential pay rates for week days, weekends and public holidays

The weekly, or fortnightly or monthly pay rates for full-time staff

Rates for management personnel including all support and administrative services – which may include HR, payroll, secretarial services, office staff

On-costs relating to staffing – such as uniforms, training, sick leave, holiday and leave loadings, superannuation, worker’s compensation, hiring costs, accommodation and other related expenses

In some cases there may also be a need to:

Generate sample rosters – for a given period for each of the operational and support areas such as administration, management or cleaning

Cost those rosters – using the identified labour rates as the basis for these calculations

Include the sample rosters and the costings into the tender submission.

Standard equipment costsYou may also be required to construct and include a schedule for costs associated with the provision of equipment you intend using to deliver the RFT requirements.

Equipment can relate to:

Plant and equipment

Systems and technology

Items and utensils required for preparation, storage and service of F&B

Cleaning, hygiene and sanitations

In many cases this schedule is not required as:

Equipment cost is integrated into the costing for food and beverages

Equipment is often provided at the site by the client – meaning there is no need for you to provide it.




A schedule for equipment may be required:

Where the client requires a specific system, process or item to be used

Existing equipment on-site is inappropriate or insufficient

There are legal compliance demands

If the use of additional or different equipment will result in other savings – such as savings in labour, or reduction in wastage and or power usage

Where equipment upgrades and or modifications are required.

The nature and content of the schedule for ‘standard equipment costs’:

May be prescribed by and included in the RFT documentation

Is usually listed as a total cost per item of equipment for the duration of the contract – that is, items and costs are rarely listed on an hourly, daily, weekly or other basis

Should include ‘service and maintenance costs’ – unless there is a requirement to provide a separate ‘Standard service costs’ schedule (see below).

Current commodity costsThis is the cost of materials/ingredients to be used to provide the necessary food and beverages required by the RFT.

Standard requirements include:

Need to only identify commodity costs for items nominated by the client in the RFT document

Need to identify and cost all commodities required to produce:

All the menu items to be offered

Only the menu items covered under ‘Standard unit costs’ below

Need to include ‘price lists’ or quotations from suppliers you intend using – as proof of costs

Need to identify for each commodity listed, not only the cost, but also:

Supplier name – and contact details

Size – for example, in number of units per carton, weight, volume or other applicable measurement

Brand name

Quality identifier – for example:

– Grain-fed beef

– Export quality

– Grade number

On-costs – all the costs which are/need to be added to the wholesale unit price to arrive at the landed in-store cost.



Standard service costsWhile it is often relatively easy to project costs for many other expenditure items, it can be quite difficult to anticipate accurate service costs.

Service costs can include:

Cost required to service existing equipment at the contract site to bring items up to fully-operational status – this is the initial service you will apply to equipment before you start providing the contracted services.

Standard practice is to work with a service provider or service technicians and obtain a quotation from them for this work.

Preventative maintenance – this is scheduled maintenance provided to equipment with the intention of avoiding equipment failure or breakdown

Estimated repairs and breakdowns – detailing projected costs for effecting repairs when equipment fails

Cost of engaging replacement equipment – to substitute for equipment which needs to be taken off-site for service or repairs

Cost of providing stand-by items – to make sure necessary operations can continue in the event an essential piece of equipment needs to be taken out of service

Impact of normal wear and tear – this is the depreciation which needs to be factored into consideration of equipment.

Standard unit costsThe standard unit cost schedule may:

Identify all Food and Beverage items which will be provided – including items prepared on-site as well as packaged items offered for retail sale

Include the standard recipe for each item – showing type and amount of ingredients used and preparation method

List the cost for each dish or menu item – on a per serve basis

Contain a photograph of each item.

Standard material costsThis can be a wide-ranging schedule covering, for example, the cost of materials other than food and beverages (commodities) such as:

Cleaning chemicals

Disposable or single-serve items

Linen and laundry

Water

Energy

Printing and stationery

Many other items variously classified as ‘overheads’.





Introduction

Another important aspect of preparing a tender application is to determine or confirm resource availability for items already identified as being necessary to deliver the required catering services.

This section examines critical elements of this component of a tender application.

What resources need to be considered?

All resources identified as being necessary to deliver the requirements of the contract need to be considered:

Human resources – labour to perform work which needs to be undertaken

Physical resources – plant and equipment; food and beverages; support materials

Financial resources – funds to make purchases and pay labour

Information – operational and other underpinning information necessary to comply with client expectations and requirements as well as legal compliance issues.

Scheduling

It is standard practice when looking at the availability of resources to undertake basic scheduling activities.

Scheduling is a planning process which:

Allows you to make the most effective use of scarce resources – so the right resources are available in the right place at the right time

Helps confirms the required resources are available

Enables identification of times when there are insufficient resources – so alternate arrangements can be made (see Alternative arrangement’, below).

This means:

Identifying the ‘start’ and ‘finish’ times for the contract

Identifying the resources required for the contract

Determining the times at which the identified resources are required (see below) for the contract

Identifying the resources required for the operation of the business

Determining the times at which the business requires resources for the operation of the business (see below)



Over-laying both sets of demands on resources against the required times for both sets

Identifying where there appears to be a lack of, or insufficient, necessary resources.

Determining times for required resources

Considerations must include:

Peaks and troughs in trading – by the hour, day, or other relevant timeframe

Requirements for mandatory cleaning of equipment and facilities

Preventative maintenance or service requirements for plant and equipment

Special events and functions

Known staff-related requirements – such as:

Training and development

Leave entitlements.

What is ‘confirming availability’?

In this context ‘confirming availability’ means ensuring required identified resources are:

Actually present in the workplace – serviced, safe and ready to use

Available when needed – not needing to be used somewhere else in the organisation at the same time

Can be successfully transferred from one location to another – so they are ready for use when required

Confirmed as being obtainable from elsewhere – if the business does not already have them available and or on-site (see Alternative arrangement’, below).

Available in required sufficient quantity to meet identified need – on an on-going basis

Confirmed through normal supply chain providers – such as your usual suppliers or identified local suppliers

Compatible with requirements of the contract – in terms of skills and knowledge (for staff), and capacity and function for physical resources)

Compliant with relevant legislation – regarding (for example) as appropriate to the individual nature of each resource workplace safety and health, testing, and certification.




Alternative arrangements

Physical resourcesOptions for obtaining or making available, additional physical resources to meet contract needs may include:

Re-scheduling activities such as the provision of maintenance, training, staff meetings, cleaning – so the demand on the items is altered to better accommodate identified needs

Purchasing, leasing or renting or hiring more equipment

Sharing equipment with another venue

Borrowing equipment from someone else

Buying different or better equipment – which will enable more productivity to be obtained thereby reducing demand on time for the item

Upgrading operations to integrate new technology – which can often solve resourcing issues

Ensuring all plant and equipment is properly serviced and maintained – to reduce the potential for breakdowns and down-down

Locating dedicated items of equipment at each worksite – so each site has their own equipment to use and schedule as they see fit.

Human resourcesOptions for obtaining or making available, additional human resources to meet contract needs may include:

Hiring more staff

Allocating extra hours for staff – such as converting part-time job to full-time or turning casual staff into part-time or full-time employees

Providing training to make staff more productive and effective – which includes up-skilling and multi-skilling employees

Out-sourcing certain tasks to external providers.

TimingAnother option which may assist with scheduling can be varying service times – that is, changing the times at which the contract site and your normal workplace venue operates.

This option is not always available as most contracts demand you operate at given times, but:

You should check to see if this option is available – through discussion and negotiation with the client

You may be able to make the changes at your normal workplace – rather than at the contract site.




3.1 Using the RFT which formed the basis of your response to Work Project 1.1 and 2.1 prepare a submission which:

Demonstrates use of rate and/or costing schedules to establish costing

Confirms availability of resources required for the contract.




SummaryEstimate costs

When estimating costs:

Appreciate the importance of costing in the overall tendering process Develop rate and/or costing schedules for identified resources in accordance with RFT

requirements Ensure and verify resources required for the contract Identify resources already available and their predicted usage/commitments Schedule usage of all resources for the project and normal business activities Compare and contrast available resources with identified demand Secure additional physical resources as required on the basis of analysis Hire more staff and/or provide extra hours Train staff.



Element 4:Prepare submission for management4.1 Outline required resources and capacity

within submissionIntroduction

Developing the submission in response to an RFT is the culmination of all the planning and research which has occurred in relation to the tender.

This section identifies submission options, provides an overview of possible submission requirements, presents basic submission writing considerations and highlights the need to outline required resources and provides examples of same.

Submission options

The standard submission options for a response to an RFT are:

A written submission in hard-copy and or electronic form:

Hand-written submissions are not acceptable – they need to be word processed

Signatures will need to be attached at certain points – such as a signature from the CEO formally making the offer contained in the submission

Verbal presentation – you may be required to make a verbal presentation in support of your application:

As part of the initial submission

If your submission is short-listed – note some clients use a two-stage process where your application, if it is not rejected outright, may be ‘long-listed’, in the first instance – and, if successful at this stage, then will be ‘short-listed’

Combination of written submission and verbal presentation – to the client or their representative.




Possible submission requirements

The submission requirements for tender applications will be provided in the RFT documentation and may be further discussed and explained at tender meetings held by the client for potential applicants.

General requirements will address:

Number of copies of the submission document required – three to four copies are usually required

Maximum number of pages – the RFT may set a maximum number of pages for the submission document, to prevent tender applicants sending in ‘too many’ pages for the client to read

Need to use Application document supplied as part of the RFT – as opposed to you being allowed to create your own ‘individualised’ approach to the submission

Need for electronic version – stipulating:

Formatting requirements

Need for e-version to be virus-checked

How the submission is to be lodged – for example:

Electronically – which usually means via email

By mail

By hand

Where submission is to be lodged – identifying, for example:

The location of the Tender Box

A street address – with name of company

Date and times by which application must be received in order for the application to be considered:

Commonly the time is 4:00PM on the day in question

There may also be a date before which submission will not be accepted.

Basic submission writing considerations

When crafting the tender application it is worth bearing the following in mind:

Be certain of the submission requirements – as stated in the RFT document

Make sure you are aware of the evaluation criteria – and relative weightings of each criteria: these should provide a focus and set of priorities for your submission

Adhere to:

Maximum word numbers

Maximum page numbers

Write with clarity, purpose and economy of words

Refer to previous successful tender applications – as a guide to what to do

Continue to use the Tender Team to develop the proposal



Realise you will have to prepare a draft and then revise this version – many times over

Presentation is important – it is true ‘first impressions count’ and clients can infer competency from the quality of the submission documentation

Always include ‘Letters of Support’ – where this is allowed by the rules governing the submission

List a person who the client can contact for follow-up

Ensure the cover page of the submission clearly identifies:

The name of the contract being applied for – and the code of the contract/RFT

Your business name – and contact details

Date

Construct the submission in accordance with stated requirements – for example:

Using the pro forma application document provided in the RFT documentation

Adhering to nominated constructs – for example:

– Different ‘Sections’ – ‘Section A: Ability to deliver tender requirements’, ‘Section B: Costing’, ‘Section C: Staffing’

– Different ‘Parts’ – ‘Part 1: Operational Detail’, ‘Part 2: Compliance’, ‘Section 3: Value for Money’

If the RFT documents include a ‘Submission Checklist’, make sure you use and/or (as required) complete this – to ensure you provide all necessary information, documents and other requirements as part of your tender application

Explain any industry terms, acronyms and/or jargon used in the application to optimise proper understanding of offers and intentions

If allowed by the RFT attach a series of Appendices to give you space and opportunity to add extra information, examples, letters of support, testimonials, examples of relevant experience and similar

Include necessary payment or deposit – as identified in the RFT documentation

Check and proof-read the final application before submitting it – to avoid spelling, grammatical and other errors and or omissions

Submit to management – for their final approval and signatures

Make sure you keep a copy of the application – for your own future reference.




Need to outline required resources

There will always be a need to outline the required resources in a tender application.

The extent of this requirement can, however, vary quite considerably.

Some submissions demand detailed identification and description of resources, while other RFTs ask for far less.

Whenever in doubt about what is required or what the client is looking for in this regard, always contact the client/nominated contact person and seek clarification as ‘required resources’:

Relate directly to the price of your submission

Are often heavily weighted in terms of the evaluation criteria for the contract.

Sometimes the resources you need to outline will be prescribed in the RFT documentation – that is, the documentation will list the resources you need to outline: all you need to do is insert details, such as:

Quantity, amount of volume required – which may be required:

On a weekly basis

On a monthly basis

For the entire contract

Brand, type or supplier name

Cost.

Examples of required resources

For a catering contract there is a standard need to address the following resources:

Labour – in terms of:

Job descriptions of staff

Numbers of staff in each position

Hours and or indication of the employment status of workers (casual, part-time or permanent)

Wage rates – including overtime and relevant penalty rates

Raw food materials – which can be a requirement to:

Identify ingredients

Name suppliers

Indicate projected volumes or quantities

List costing for each item

Packaged and pre-prepared items to be used – these may include:

Convenience food

Packaged foods for retrial sale

Most beverages including liquor



Funding arrangements – some RFTs can require you to identify:

Funds to be borrowed to enable the contract to be discharged

Name of lender

Interest rates

Repayment amounts

Dates for payment

Support services and requirements – which can address a number of sub-categories such as:

Cleaning materials and chemicals - outlining:

– Type of products and brand names

– Supplies

– Volumes

– Cost

Service and maintenance

Compliance expenses – with local legislation and COPs and SOPs required by the client

Advertising and promotion.

4.2 Outline cost estimate within submissionIntroduction

The amount you intend charging for the products and services you intend delivering must always form a central part of all tender submissions.

This section focuses on ensuring you provide required cost estimates in-keeping with client requirements and expectations.

Requirements for this important stage

Critical considerations include need to:

Be certain about the cost estimations required by the RFT documentation – these can vary significantly so it is vital to be aware of the specific requirements for each individual submission

Realise the costs you submit will form the basis for the price you intend charging for the tender – this means:

All costs need to be identified and addressed – for example, if you intend levying a management or administration fee for the contract then this needs to be listed as such

The client will use the costs you have supplied to determine the profit you expect from the contract – and they will look unfavourably on any set of figures which returns what they believe to be an ‘excessive’ profit or ROI




Maintain use of the Tender Team – to assist with:

Identifying the resources to be included in the costing

Researching and developing the relevant all-inclusive costs for each resource – ensuring that on-costs from suppliers are not over-looked and not factored into the final cost price for each resource.

Calculating the costs which will be included in the final submission

Double-check the figures you submit – this may require someone to:

Verify purchase prices from suppliers

Check quantities or volumes required

Confirm on-costs

Integrate special deals which have been negotiated

Re-calculate additions, extensions and other relevant statistical manipulation of the data

Highlight any cost items which you believe will provide:

A benefit, bonus or saving for the client – never assume the client will be identify savings you have provided for them

Represent excellent value-for-money

Are lower than what apply to the current or previous contracts

Explain any costs which you believe the client will identify as being excessive or too expensive:

Identifying where these charges are imposed by an external agency or authority and are simply being passed on, at cost

Attaching price lists and quotations from suppliers – to demonstrate source costs

Describing how prices from competitors have similarly increased

Ensure the costs are presented in the required currency unit – as identified in the RFT or as advised by the client.

Costs and prices may need to be given in:

$USD

The currency of the country in which the client Head Office is located

The currency of the country in which the contract is to be delivered

Avoid presenting ‘total’ figures without showing how these were arrived at – for example:

Show the unit cost

List the number of units required

Provide the final ‘total’ cost

Indicate where variable costing applies – for example:

Give indications of how cost per unit may drop if volumes rise – based on economies of scale or quantity purchasing discounts

How product costs can alter if different quality products or ingredients are used



The way labour costs can vary in different service options are used

Provide an overview of costs –where permitted by the submission guidelines:

While you will want to give plenty of detail in relation to individual cost elements it is always useful to present a single table or chart which gives a single view of the overall costs

Add statements indicating, as appropriate:

Costs are correct at time of submission

Costs are valid till XX/XX/XXXX

Costs are subject to inflation

Costs are inclusive of all relevant taxes and other charges

You are available to explain listed costs, as required

Indicate the charge out rate for certain costs – for example:

Labour costs may be XX per hour/day but you may want to charge this out to the client at XX+

Other costs may be charged out at a flat charge out rate of (for example) ‘Cost plus 25%’.

4.3 Outline operational details within submissionIntroduction

All tender submissions need to describe the operational details for implementing the products and services required by the contract.

This section explains the importance of this component of the submission and identifies operational details which may need to be addressed.

Importance of this component

It is important to provide full and proper details of how you intend discharging the requirements of the catering contract in order to:

Prove your capacity and competency to do the job – as opposed to what others may be offering or proposing

Convince the client of your ability – you need to give the client reasons to:

Long-list or short-list you

Select you as the successful applicant

Validate the costs you have listed as applying to the contract (see previous section) – in effect the operational details demonstrate how you will use and apply the resources identified

Provide evidence your planning has addressed all the required elements listed in the RFT document – thus demonstrating your:

Understanding of the contract

Ability to deliver what is required




Give the client faith in your ability – while the tender price is obviously an important consideration for all tenders it ALWAYS runs in tandem with other important factors/questions the client has, such as:

Can they trust your company to deliver what they have promised based on the figures and planning you have presented?

Will the price charged enable you to manage and operate the contract as required?

Does your submission fit with their interpretation of what is needed to provide the deliverables for the contract?

Operational details

Operational details required by the client:

Will vary between RFTs/contracts – some submissions need you to provide details not required in other submissions

Ask you to indicate how you plan to manage and implement the contract – on a practical basis.

Operational details may relate to:

StaffingThis may require you to provide:

Names of staff

Numbers and classifications of staff

Hours to be worked

Sample staff rosters

Curriculum Vitaes

Certification or qualifications of individuals and training provided

An organisational chart.

Style of serviceThis may require you to identify:

Service locations Description of styles being offered at each service location identified in the RFT –

styles may include: Race or queue system

Buffet style, self-service Service to tables, cells, wards:

– Management at the site– Workers

– Members of the public



Take away service options Travel packs

Provision of special events and function service.

TransportDetailing, as appropriate:

How materials and ingredients will be transported to the contracted worksite

How staff will be transported to remote sites

How staff will be accommodated at remote sites.

Stock controlStock control is an important aspect of submissions for catering contracts as there is a need to explain how you will apply stock control procedures to support the safe handling and storage of food.

This may require you to provide details of your overall stock management system in relation to:

Stock purchasing and product acquisition

Protocols for inspecting and checking food on delivery into the venue

Correct storage of fresh, refrigerated and frozen food

Stock rotation procedures – using FIFO procedures

Inspection of foodstuffs.

Equipment and resourcesThis will commonly require you to (as appropriate to the RFT):

Give an overview of the plant, equipment and resources to be used

Indicate what specific items will be used for

Prove the submission you have prepared guarantees:

All required resources have been identified

There are sufficient resources to do the job

Describe maintenance and service requirements

Verify your equipment and resources will:

Integrate with items which exist at the contract worksite

Integrate with systems/technology being used by the client




Security In terms of security you may be asked to:

Identify security staff to be utilised

Define the roles of security staff

List the technology and systems you will use to provide security.

Describe protocols to prevent security breaches – in terms of:

Internal staff

External customers

Suppliers, delivery drivers and service technicians

Site visitors

Other potential offenders.

Emergency managementThis may require you to provide details of:

Risk analysis relating to possible emergencies at the worksite

Specific emergency management plans to be used to respond to situations such as fire, gas leaks, robberies, adverse weather and a range of other emergency situations commonly addressed by EMPs

Drills which will be conducted to underpin emergency procedures

Equipment and resources to support emergency responses

Staff training in emergency management and responses.

Facilities managementThis requirement can ask you to detail:

Operating policies and procedures for the site

Planned preventative maintenance arrangements

Plans for refurbishment and or updating of the venue

Technology and systems which will be used to control or monitor the workplace

Internal reporting protocols

Document management.



Environmental issuesThis is likely to require attention to:

Compliance with local laws regarding noise, pollution, energy and water use

Sustainability and lowering the impact of the facility on the environment

Minimisation of energy and water usage

Responsible purchasing – such as purchases from ‘Green’ suppliers and organisations which support ‘local’ growers and communities.

Waste disposalOperational requirements may ask you to address:

Waste minimisation protocols

Waste management and disposal procedures – detailing:

Amounts and types of waste expected

On-site storage to minimise pest infestation

Plans for recycling of waste

Waste contractors who will be used.

Management

This will traditionally require:

Identification of the off-site management team

Identification of the on-site management team

Allocation of roles and responsibilities

Statements regarding demonstrated experience

Specification of:

Authorities

Accountabilities

Reporting requirements for each position

Sample management-related policies – such as:

Staff performance appraisal policy

Industrial relations policy

Staff discipline policy.




Other topics listed in the RFT

In addition to the operational details listed above there can be specific additional requirements identified in the RFT document which may need to be addressed.

These will usually relate to your intended approach in relation to dealing with and managing:

Nominated challenges raised in the RFT document

Local conditions

Local laws

Identified changes expected, by the client, to impact on operations, such as:

Business expansion

Down-turn in trade

Reduction in supplies

Economic conditions.

4.4 Outline proposed products and outcomes required to meet tender requirementsIntroduction

Another essential component to be included in your submission must be presentation of the actual products and services your offer will deliver for the client.

This section identifies issues for consideration.

Context

The deliverables identified in the RFT document must form the basis of the proposed products and outcomes you outline in your submission.

In addition, listing your proposed products and outcomes provides an opportunity for you to:

Differentiate your submission from those made by others you believe to be also submitting an application

Demonstrate the value-for-money your application presents to the client

Influence the client by presenting a series of ‘Wow factors’ relevant to the requirements but which were not specified in the RFT documents but which have arisen as a result of:

Your discussions with the client

Your understanding of the issues/challenges facing the client



Your inspections of the workplace

Your discussions with those who will be the recipients of the food and beverages which form the heart of the contract

Emphasise the extent to which your application meets the objectives, criteria, conditions and other requirements of the client

Highlight the USPs for your tender – for example:

Pointing to instances where your tender actually exceeds the stated requirements – such as:

– Being able to provide ‘more product in less time’ or ‘serve more people in less time’

– Situations where you will or can provide more or longer service times than those requested in the RFT

– Dishes where you use better quality ingredients than those required as a minimum in the tender documentation

– Where you can achieve better financial results than what has been specified

– Situations where you can generate better productivity levels or deliver superior quality to what is needed

Provide a range of options to the client so they may select one which best suits their needs – for example, your submission must, of course, meet the tender requirements but you may within these parameters present, for example:

A basic version at a basic price

An enhanced or upgraded version at a more expensive price

A superior option at the most expensive price

List additional products and or services which you are available to provide – to enhance the stated requirements of the RFT, on:

A gratuitous basis – listing free products and services you are able and willing to provide to add value to your offer

A fee-for-service basis – identifying other expertise you have (for example) in associated areas such as market research of users, product development and testing, provision of other catering products and services at different sectors you know the client operates in

Demonstrate innovation in the way you intend:

Managing the project

Producing and serving the food and beverages

Working collaboratively with the client for mutual benefit

Identify the range of experts your organisation has access to in order to provide advice, guidance and input to relevant issues such as:

Food safety

Costing and pricing

Product development




Operational performance analysis

Marketing

Procurement

International trade

Describe your engagement with various bodies and organisations relevant to the requirements of the tender – these may include:

Government authorities and agencies

Professional bodies

Industry associations

Business groups

Advisory groups or boards

Training providers

Demonstrate your track record as a responsible and ‘good’ corporate citizen – by listing:

Donations of money and products made to charities

Scholarships given

Sponsorship provided.

Describing products and outcomes

The exact nature of the products and outcomes which need to be addressed in your submission will always depend on the nature and type of the contract being offered.

The client will require different deliverables for different worksites and at different prices they are prepared to pay for services.

You must always remember your submissions must be tailor-made to suit the precise needs of each, individual tender.

Never believe you can develop a ‘standard’ tender application which can be used (or ‘fine-tuned’) for every submission you make.

You may describe the products and outcomes you intend delivering in the following ways:

Providing sample recipes and food and beverage menus for all the outlets which need to be catered for

Including visual images of food and beverages you have stated you can/will deliver – this may be achieved through:

Use of photographs in the submission

Including a DVD as part of the submission package

Supplying (retail) price lists for all items which are to be sold to customers, workers, and other purchasers



Identifying payment options you will be prepared to accept from purchasers at different outlets – such as:

Cash

Electronic funds

Payment on account

Offering to present taste testing of products – if required

Attaching specifications you will give to your suppliers for the provision of ingredients, food and beverages – to ensure they provide products of a certain quality and standard

Giving examples of your service protocols – for, as appropriate:

Greeting customers

Displaying food

Holding hot and cold food

Plating food

Delivering food

Complaint handling and resolution procedures

Generating customer feedback and gauging customer (patrons, patients, inmates, others as appropriate) satisfaction levels with food and beverages provided, service, prices, cleanliness and hygiene, plus other relevant factors

Including testimonials – from:

Previous clients for whom you have worked

Consumers of food and beverages at sites where you have delivered food and beverages

Suppliers – attesting to the quality of the food you have purchased from them

Government agencies and authorities – stating your level of compliance with legislated requirements

Generating sample set-up plans for events – which should indicate and describe:

Table plans and seating arrangements

Décor and decoration – appropriate to special events and or themed occasions

Rosters and staffing costs used for these events

Menus used – food and beverages

Including images and coverage of previous events you have been involved with – this can take the form of:

Photographs

DVD

Media coverage.





4.1 Using the RFT which formed the basis of your response to Work Project 1.1, 2.1 and 3.1 prepare a hard-copy tender submission which:

Outlines required resources and capacity

Outlines cost estimates

Outlines operational details

Outlines proposed products and outcomes to meet tender requirements.



SummaryPrepare submission for management

When preparing submission for management:

Ensure you fully understand all the tender application requirements which must be covered in your submission before you start

Determine the exact requirements for submitting the application Use designated submission documentation provided in the RFT, if applicable Clarify any unclear requirements with the client Realise failing to meet submission requirements for the tender can render your tender

ineligible for consideration User the Tender Team to assist Accept people will infer competency from the nature, type and quality of your submission Outline all the required resources as part of the application Detail cost estimates for nominated elements Describe management and operational plans for the contract Outline all products and services to be provided Strive to distinguish your submission from others Never be shy about ‘selling the benefits’ of your submission.



Presentation of written work

Presentation of written work1. IntroductionIt is important for students to present carefully prepared written work. Written presentation in industry must be professional in appearance and accurate in content. If students develop good writing skills whilst studying, they are able to easily transfer those skills to the workplace.

2. StyleStudents should write in a style that is simple and concise. Short sentences and paragraphs are easier to read and understand. It helps to write a plan and at least one draft of the written work so that the final product will be well organized. The points presented will then follow a logical sequence and be relevant. Students should frequently refer to the question asked, to keep ‘on track’. Teachers recognize and are critical of work that does not answer the question, or is ‘padded’ with irrelevant material. In summary, remember to:

Plan ahead

Be clear and concise

Answer the question

Proofread the final draft.

3. Presenting Written WorkTypes of written work

Students may be asked to write:

Short and long reports

Essays

Records of interviews

Questionnaires

Business letters

Resumes.

Format

All written work should be presented on A4 paper, single-sided with a left-hand margin. If work is word-processed, one-and-a-half or double spacing should be used. Handwritten work must be legible and should also be well spaced to allow for ease of reading. New paragraphs should not be indented but should be separated by a space. Pages must be numbered. If headings are also to be numbered, students should use a logical and sequential system of numbering.



Presentation of written work

Cover Sheet

All written work should be submitted with a cover sheet stapled to the front that contains:

The student’s name and student number

The name of the class/unit

The due date of the work

The title of the work

The teacher’s name

A signed declaration that the work does not involve plagiarism.

Keeping a Copy

Students must keep a copy of the written work in case it is lost. This rarely happens but it can be disastrous if a copy has not been kept.

Inclusive language

This means language that includes every section of the population. For instance, if a student were to write ‘A nurse is responsible for the patients in her care at all times’ it would be implying that all nurses are female and would be excluding male nurses.

Examples of appropriate language are shown on the right:

Mankind Humankind

Barman/maid Bar attendant

Host/hostess Host

Waiter/waitress Waiter or waiting staff


Recommended reading

Recommended readingAustralian Tender Centre Pty Ltd; 2002 (2nd edition); Complete guide to tendering: learn how to prepare that winning tender!; Australian Tender Centre Pty Ltd

Dennett, Philip; 2012; How to win more tenders convincing skeptical evaluators; Mulga Partners

Jaques, Emma; 2013; The winning bid: a practical guide to successful bid management; Kogan Page Ltd

Lewis, Harold; 2012 (4th edition); Bids, tenders & proposals: winning business through best practice; Kogan Page

Roberts, Jean (Jean Edna) & Roberts Management Concepts; 1997; Competitive tendering: how to write a competitive tender; Roberts Management Concepts

Scanlon, Nancy Loman; 2013 (4th edition); Catering management; Wiley

Shiring, Stephen B; 2014; Professional catering: the modern caterer's complete guide to success; Delmar

Thomas, Chris & Hansen, Bill & Hansen, Bill; 2013 (3rd edition); Off-premise catering management; Wiley

Walker, John R; 2013 (4th edition); Introduction to hospitality management; Pearson



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