Tackling public procurement can be a real lever for transformation for a small or medium-sized enterprise (SME). However, the process of monitoring and identifying opportunities, and especially that of drafting and submitting responses to calls for tender, can be complex and daunting. In this article, we offer five simple, actionable tips to help your SME win public contracts.
1. Demystify processes
Before you get started, it’s essential to understand the rules of the game, and to demystify them (you’ll see, it’s not that complicated).
It starts with simple questions:
– Are all public procurement contracts published? How do I find public contracts?
– Can an SME bid for all public procurement contracts?
– How do I bid on a public contract?
Each of these questions leads to fairly straightforward answers. For the former, there are publication thresholds above which a public purchaser is obliged to publish (see table below).
Once published, these invitations to tender are posted on a “buyer profile” (a sort of directory listing public procurement contracts). The only catch: there are a lot of directories out there! Don’t panic, there are plenty of software programs(Propizi, for example) to help you identify opportunities.
As for the question “Can an SME bid for a public procurement contract?”, the answer is a resounding YES! The government and public authorities are encouraging more and more SMEs to hold public contracts, so being an SME is a competitive advantage you can use in your bid (provided you can demonstrate your technical and financial capacity to take on the contract).
Finally, there’s the question of how to respond to a call for tenders. To keep things simple and concise, let’s just say that you need to put together a file, including a bid and an application. In most cases, the full list of documents to be supplied is given in the tender documents (RC). Feeling lost? Don’t panic, Prime Conseil’s teams are on hand to help.
In short, public procurement is a subject that needs taming, but which once tamed constitutes an oasis of opportunity.
2. Target and segment according to your value proposition
On the one hand, public procurement represents some 200 billion euros a year and hundreds of thousands of calls for tender.
On the other hand, public purchasers (who respond under the gentle name of contracting authority) may – depending on the market – receive numerous bids.
When you combine these factors (abundance of supply AND demand), you’ll realize that it can be risky and unprofitable to position yourself on too many calls for tender (at the very least to start with).
Based on your value proposition, your strengths and weaknesses (it’s time to bring your SWOT out of the closet), identify the market segments you want to position yourself in.
Once again, our teams are continuously analyzing the famous DECP (data essential to public procurement). This helps us to understand the behavior of public purchasers, so that you can make the best positioning decisions.
3. Build relationships with public purchasers and partners
Establishing relationships with public buyers can help you win contracts (legally).
To do this, take part in events, meet-ups and other networking conferences, or present the purchasing programs or plans of ministries, local authorities, etc., and make sure you follow up the contacts you meet.
More spontaneously, you can also ask to meet with public procurement managers to discuss your business and how you can help them achieve their objectives. Dialogue is possible as long as it takes place before publication of a contract notice.
Buyers aren’t the only stakeholders with whom building relationships is essential. In fact, building and maintaining relationships with an ecosystem of partners and subcontractors is just as essential if you are to be able to respond to significant calls for tender, for which you will be pooling resources, expertise and financial resources.
4. Think “problem-solution
Too many SMEs make the mistake of “flexing their muscles” when it comes to responding to invitations to tender.
But, as is often the case, the company that wins is not the one with the best solution, the best service offering or the best product, but the one that best meets a need!
Spend as much time as you need reading the DCE (dossier de consultation), which is generally packed with useful information (particularly in the RC, CCTP and sometimes BPU/DQE) to help you understand why the public purchaser is issuing a call for tenders.
In addition, always with the aim of providing the most appropriate response to a need, keep an eye on the evaluation criteria (technical/price) to know which elements of your offer to emphasize.
5. Get support!
We couldn’t end this article without telling you about our expertise and services!
To take your first steps in the bidding process, why not enlist the help of experienced consultants, who can help you ask the right questions and save you time and money in the response business.
Conclusion
By following these five tips, an SME can significantly increase its chances of winning public contracts.
Patience and perseverance are key virtues, but good news can come much faster than expected.
Whatever happens, use these response experiences to improve your positioning and your offer, capitalizing on the data collected during these procedures.
