Bid Trends in 2016

What Bid Trends are we likely to see in 2016? This article will help you to be aware of 5 important developments, some sector specific, that will impact the bidding process in 2016. As with all trends, the earlier you are aware of the direction of travel, the more time you have to bring your bids in alignment with those trends and be successful.

  1. Lower Thresholds

What does this mean for your business?  Simply put, the minimum values of public sector contracts that require to be tendered is reducing.  This means that more contracts will exceed these minimum values and now be available for your business to bid for.  The reductions in thresholds for both works and services are fairly sizeable.

  1. Construction Sector 

If your business works within the construction sector you should be excited as it is expected to grow by 3.8% in 2016.  Some of that growth will come from both private housing and public housing starts.  Further, infrastructure output is also forecasting an increase.  Growth will present increased bidding opportunities.  Is your business ready to grow with the sector?

  1. Social Value Act 

Although the Social Value Act came into effect in 2013, the impact of that legislation continues to gain momentum.  In effect, this legislation enables the public sector client to say, “If we invest in your business, what will you give back to our local communities?”  They are looking for apprenticeships, training, sponsorship and volunteering opportunities.  The evaluators of bids will be looking for fresh approaches to social investment and not a mere regurgitation of what your company is already doing.

  1. Evaluation Criteria

Gone are the days when public sector awards were based almost wholly on quality criteria.  There is now an emphasis on price weightings that continues to gain pace as public budgets become tighter.  Often the public sector will use the Pre-Qualification Questionnaire (PQQ) stage to give them the reassurance they need on the experience and fitness of potential bidders.  At tender stage, they are then looking for well thought out solutions that combine a keen price with quality service / products.  The public sector may at times pay slightly more for a considerably better service or product but you will need to make a compelling case for this.

  1. Water Industry 

The English water industry is gearing up for market opening in April 2017 when 1.2 million non-domestic customers will have the opportunity of switching their supplier of water and waste water services.  These changes will likely have a similar effect as when the energy markets opened.  Although the market opens in April 2017, there will be a soft launch in the market in autumn 2016.  There is no doubt that many public and private sector organisations will begin their procurement processes well ahead of April 2017.  This will help them to be ready at market opening to realise both cost the benefits and the efficiencies from exposing their incumbent supplier(s) to competition.

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