Advancing Your Business Through Government Tenders...

Do you want to grow your business by dealing with customers that don't go broke - then consider bidding for government tenders. Since business conditions have become more difficult following the Global Financial Crisis I have had an increasing number of enquiries from companies that have always served the private sector but are now looking at government tenders as a means of maintaining revenues and growing their business. But why are companies making this change and what do they need to do to be successful with government tenders? Why Pursue Government Tenders? Government tenders are complex documents that are often riddled with legalese. They are also the end game of what is often a very long and formal sales process. So why are more companies wanting to move into this sector? Here are a few of the advantages of government tenders that might answer this question: The customer does not go broke: Yes, the system may be bureaucratic and you might need to wait 30 days or more but so far in Malaysia no government has gone absolutely broke - so you will get your money. This guaranteed payment aspect of government tenders is very attractive for companies that might have received 10 cents in the ringgit after a private company has called in the administrators. Three - five year contracts: The majority of government tenders have three year contracts attached which can stretch to five years or more once the options to extend are added. Such long term contracts can not only underpin a company's revenues, they also make longer term planning for equipment and staff more feasible. Government tenders are decided on merit. Because the government is spending public monies they have to abide by documented procurement guidelines and their decisions must be defensible and transparent. This means there can be a much higher degree of probity surrounding decisions on who wins and why than in the private sector. As a result the company that puts in the best tender usually wins in the vast majority of cases. What is needed to win government tenders? This is a very good question and one I am often asked. Here are a few tips: Have well organised documentation. Make sure your methodologies and procedures are well documented and that you have brief resumes of your key staff ready to go. You also want to have a series of case studies that show where you have done similar work before. Write with the Tender Evaluation Panel in mind. Most government tenders are evaluated by panels; a small cross section of staff that represent work areas that have an interest in the project's outcome. Some are technical experts and others are not. Do not assume they have the same level of understanding about your product or service as you do. Write your tender in a way that will be easy for all members of the evaluation panel to understand. Why? Because if they don't understand it they will not give you a high assessment score. Answer all aspects of the assessment criteria. The winner of a government tender is largely dependent on who best addresses the assessment criteria. Sometimes there can be a number of aspects to the criteria and many companies make the mistake of only focusing on one or two. Always follow the specified format in a government tender. The tender documents will often give you specific directions on how they want your tender to be structured. Some departments even set this out in a series of schedules. Government tenders are not the place to show you are difference by adopting a unique approach to your response. If you do not follow the format it makes the TEP's(Tender Evaluation Panel) job much harder which only tends to alienate them. This should be avoided as much as possible. Yes, government tenders are complex and the sales lead times are longer but there are also a number of key advantages. Is it difficult to win government tenders? Only if you are not well prepared. Follow the few tips I have provided in this article and you will be making a good start towards achieving the longer term stability that government tenders can bring to your business.