By Kate Burrows, Managing Director, Tender Training College
My first major tender was a $9 billion Defence contract for new Air Warfare Destroyers in Adelaide.
There was a large international team of specialists working together for many months, long into the night, to get the very best outcome.
I was part of the editing team. Even though I was a professional writer, I had very little experience in tendering and even less knowledge about warships!
However, I sat in the editing chair, day after day, week after week, to help get the thousands of pages in the box on time.
And the best news – I survived the process and the company won the tender!
Looking back now, with 15 years’ tendering experience under my belt, I realise the win was no accident. This was a very well-planned and executed tender.
There are several elements I now know from that tender are essential for a similarly successful outcome – whether you are working on a $9 billion, $900,000 or $90,000 tender:
- Teamwork is essential
There is definitely no “i” in a tender team. And to use another coined phrase: “the whole is greater than the sum of its parts”.
Regardless of the size of your team, the way it is managed and functions can make or break the tender. Strong teamwork is essential.
Here are several characteristics of a well-functioning tender team that I witnessed:
- Communicative – teammates talk regularly with one another and as a group, and raise any concerns or issues so they can be resolved early
- Considerate – colleagues consider one another and display positive behaviours
- Consistent – you follow through and do what you say
- Cooperative – colleagues support one another to get the job done, particularly through the tough times
- Collaborative – teammates work together to get the best possible price and outcome.
- Process is key
A team without a tender management process is like a rudderless ship.
Having a robust tender process is crucial to keep things on track to meet the deadline. This will also ensure you meet the submission date in the most efficient and effective way.
Key elements of the tender management process include:
- Program – to outline who is doing what, by when
- Budget – to keep your tender expenditure on track
- Scheduled drafts and reviews – to improve the tender response, you need draft and review processes at key dates throughout the tender period
- Tools – to ensure you have the right systems, templates, and checklists in place
- Rules/guidelines – to guide the team on how to submit and control documents, meet deadlines, and develop the core elements of the response.
- Develop a competitive price and approach
Every bidder should meet the minimum requirements of the tender, or, what is the point of them bidding?
What differentiates the various tender responses is the “how” – how each party demonstrates their approach for meeting the tender requirements and their price for doing so.
You need to set yourself apart from the other tenderers in a way that most benefits the client.
The right approach or solution only comes after concerted effort of integrating the following elements:
- Identifying what is of value or importance to the client who has issued the tender
- Understanding the client’s areas of concern or risk
- Fully understanding the tender requirements and how you are going to meet them
- Knowing who your competitors are, and their strengths and weaknesses
- Knowing your own company’s strengths and weaknesses, and its unique points of difference.
The final element is developing a robust and competitive price that fully reflects your approach and delivers a sustainable profit margin.
Kate Burrows is the Founder of the Tender Training College. Kate was inspired to start the Tender Training College to help businesses and professionals secure their futures by providing quality tender training courses.
If your business needs assistance with incorporating the above best practice elements into its tendering, please contact kate@tendertrainingcollege.com.au
