Posted on 13-01-2011 at 09:00
Tender Writing and Value for Money
The tender writing experts web site has produced this blog which we feel is so good we have repeated it here. Value for money is a term that creates much debate and many people really don't understand it. This article does not attempt ot explain it but merely highlight its importance.
Value for Money (VFM) has long been considered a buzz word in the tender writing world. It is one way of standing out from the competition and ensuring your tender submission a chance in public procurement, where Value for Money is one of the key factors in buying decisions.
The current economic climate and resulting cuts to both the public sector and the private mean that more than ever, buyers are seeking out the best value for money when procuring goods and services from private organisations. In fact, forget buzz-word, VFM is the new magic acronym in the tender writing world.
It is not enough to pay lip service to offering value for money through your tender submissions. You may offer more for less because you have an efficient operation or your costs are lower because you have generous supplier agreements in place. This is all well and good, but may no longer be enough. Buyers will be looking for real value for money in the coming years – aka something for free, or at least the perception of getting something for free.
Public spending will be focussed on job creation. A number of ‘schemes’ are beginning to sprout up around the country that aims to use public procurement as a vehicle for local job creation via contract conditions. Companies that can offer employment in the local area will be seen to be offering real value for money.
To our new government, the way forward for our crumbling economy is the private sector. It will, it is foreseen, take over the burden of the displaced public sector worker once the redundancy notices go out. To many, this was assumed to be a natural transition. It appears that, in effect, it is to be forced upon the private sector by more rigorous procurement processes.
To some extent, it is inevitable that the private sector will shoulder some of the burden of providing public services. Jobs, training and to some extent, possible subsidisation will all become conventional ways of offering value for money when tendering for public contracts.
In reality, both sides benefit enormously. Times are hard and contracts are harder to come by than they have been for decades. The public sector can no longer afford to be the ‘cash cow’ it was hitherto seen to be.
The key to writing winning tenders in the current environment is to write your tenders with a new outlook on value for money. Try to look at the current economic environment, understand the new direction from which the public sector is procuring and clearly demonstrate in your tender how you can relieve some of the burden that the public sector is facing.
Value for Money (VFM) has long been considered a buzz word in the tender writing world. It is one way of standing out from the competition and ensuring your tender submission a chance in public procurement, where Value for Money is one of the key factors in buying decisions.
The current economic climate and resulting cuts to both the public sector and the private mean that more than ever, buyers are seeking out the best value for money when procuring goods and services from private organisations. In fact, forget buzz-word, VFM is the new magic acronym in the tender writing world.
It is not enough to pay lip service to offering value for money through your tender submissions. You may offer more for less because you have an efficient operation or your costs are lower because you have generous supplier agreements in place. This is all well and good, but may no longer be enough. Buyers will be looking for real value for money in the coming years – aka something for free, or at least the perception of getting something for free.
Public spending will be focussed on job creation. A number of ‘schemes’ are beginning to sprout up around the country that aims to use public procurement as a vehicle for local job creation via contract conditions. Companies that can offer employment in the local area will be seen to be offering real value for money.
To our new government, the way forward for our crumbling economy is the private sector. It will, it is foreseen, take over the burden of the displaced public sector worker once the redundancy notices go out. To many, this was assumed to be a natural transition. It appears that, in effect, it is to be forced upon the private sector by more rigorous procurement processes.
To some extent, it is inevitable that the private sector will shoulder some of the burden of providing public services. Jobs, training and to some extent, possible subsidisation will all become conventional ways of offering value for money when tendering for public contracts.
In reality, both sides benefit enormously. Times are hard and contracts are harder to come by than they have been for decades. The public sector can no longer afford to be the ‘cash cow’ it was hitherto seen to be.
The key to writing winning tenders in the current environment is to write your tenders with a new outlook on value for money. Try to look at the current economic environment, understand the new direction from which the public sector is procuring and clearly demonstrate in your tender how you can relieve some of the burden that the public sector is facing.
