Whether you’re operating a business, in a partnership, a sole trader, or a contractor, engaging in the tendering process can be a time-consuming endeavour. However, it can also yield significant rewards. It is crucial to approach this process with careful consideration before, during, and after. Identifying suitable opportunities, undertaking thorough preparation, and maintaining a determined approach during the tendering process will enhance your prospects of securing contracts.
What is tendering?
Tendering involves submitting a response to an RFx*—a request from a prospective client for information, a proposal, or a quote. If you or your business provides goods or services to other businesses or the public sector, this process holds significant importance for securing work opportunities.
Submitting a tender — New Zealand Government Procurement
Tip
RFx* is a comprehensive term meaning Request for ___, that encompasses various types of requests, such as:
- Request for Information (RFI)
- Request for Quote (RFQ)
- Request for Proposal (RFP)
- Request for Tender (RFT)
To tender or not to tender
An RFx can take various shapes and forms. If it’s for a small amount of work, it will be quite straightforward. However, when it comes to applying for larger and/or long-term contracts, a considerable amount of time, thought, and resources will be needed to complete the process. When deciding which tenders to respond to, it’s important to be strategic.
Be realistic about your capabilities
Pursuing every RFx you encounter is a futile use of time and energy in New Zealand. If you are self-employed, you might need to hire someone to manage your business while you focus on an RFx.
Your chances of success will be higher if you only respond to RFxs that align with your current services and expertise.
Even if the contract is relevant to your business or skills, it is important to consider the amount of preparation required for the application process and whether your business can sustain that effort, especially as winning the contract is not guaranteed.
Opportunities and risks of losing and winning an RFx
Losing a tender can be disappointing, but it can also present a valuable business opportunity. It is crucial to always request feedback from the buyer regarding the reasons behind your unsuccessful application. This feedback can serve as a learning experience, guiding you on what to do and what to avoid in future applications.
Winning a tender can open doors to exciting prospects and business expansion. However, it is important to consider the overall impact on your business, both in the day-to-day operations and long-term prospects.
Planning to tender — New Zealand Government Procurement
Tips to make your application successful
Once you make the decision to apply, you should:
Read the RFx
Gain a comprehensive understanding of the requirements and evaluation criteria before commencing the application process.
Understand the buyer
To craft a winning proposal, it is crucial to research the buyer’s specific needs. If possible, arrange a meeting with the buyer to gain a deeper understanding of their requirements. Additionally, engaging in conversations with the buyer’s existing suppliers and customers can provide valuable insights.
The more you know about the buyer, the better equipped you will be to showcase how you can fulfil their needs and address their challenges.
Answer all the questions
Examine the evaluation criteria and tailor your responses accordingly when preparing your proposal in New Zealand. Adhere to all instructions and page limits, ensuring that you provide clear responses to each question.
It is important that your final proposal is well-organised and presented using the specified RFx format. Prioritise proofreading to avoid losing out due to sloppy formatting or typos.
Be compelling and demonstrate your unique selling point
It is essential to persuade the buyer that you or your team are the ideal choice for the job. Rather than simply listing everything your business offers, concentrate on the buyer’s specific needs and emphasise how you are uniquely equipped to fulfil them.
Gaining an understanding of your potential competitors is valuable during the tendering process. It is important to assess their advantages, market positions, strengths, and weaknesses. By doing so, you can identify what sets you apart and makes you stand out above them.
Tips on developing your unique selling point
Submitting a tender — New Zealand Government Procurement
How to find opportunities
Networking and relationship-building
Building strong relationships with existing customers and establishing connections with potential customers is crucial for staying updated on new contract opportunities and gaining a competitive edge in New Zealand. This may involve maintaining contact with your employment agency and key individuals you have collaborated with if you’re contracting.
Subscribe to the Government Electronic Tenders Service (GETS)
GETS is a cost-free service specifically developed to encourage transparent and equitable competition for contract opportunities with the New Zealand Government. Explore the current tenders available on GETS.
Subscribe to Industry Capabilities Network (ICN) Gateway
This extensive online system encompasses approximately $319 billion worth of projects and over 70,000 listed suppliers, spanning across Australia and New Zealand.
Subscribe to TenderLink
This electronic procurement system ranks among the largest in the Southern Hemisphere. Serving as a central gateway for Australasia, it facilitates the advertisement and management of tenders and various business opportunities.
How to win when you lose a tender
Experiencing disappointment from not winning a tender is common, but leveraging the insights gained from your post-tender debrief can transform a single loss into a string of future victories. To help you effectively utilise buyer feedback as a competitive advantage, here are three quick tips.
Tip #1: Know what to expect in a debrief
Whether you succeed or not in the tender process, it is possible to request a debrief from the buyer. The purpose of this debrief is to gain insights from the buyer’s perspective on areas where your solution can be improved. By understanding your capabilities, credibility, and value-added components better, you can increase your chances of winning more business in the future.
Debriefs can be conducted via phone, email, letter, or face-to-face, and typically cover the following aspects:
- An explanation of how the buyer reached their final decision.
- An explanation of the reasons why your tender was selected or not.
- Constructive feedback regarding the strengths and weaknesses in your tender proposal.
Tip #2: Ask questions to maximise your feedback
It is crucial to ask questions during your debrief. If any aspects mentioned earlier are not fully addressed, seek additional details. If there are any points in the debrief that are unclear, request clarification. Here are additional questions you can ask:
During your debrief, it is essential to ask questions to gather more information. If the topics mentioned earlier are not fully addressed, request additional details. Seek clarification on any aspects that are unclear. You can also consider asking the following questions:
- How did my proposal rank compared to others in terms of technical merits and price? While buyers may not disclose the exact winning bid price, they can provide insights on how your price compared to others.
- Who was awarded the tender? It is acceptable to ask for this information, as it allows you to compare your operations with those of the successful supplier and identify points of differentiation.
- How could my ideas have been better presented? If there are any issues with the way you structure and articulate your proposals, it is valuable to learn about them.
- How can my company enhance our offerings to meet your future requirements? Use this opportunity to promote your business and fostering relationship development.
Tip #3: Be prepared to give the buyer feedback
If the buyer is a government agency, they may request your feedback on the procurement process. They might inquire about the aspects of the request and tendering process that worked well or could be improved. Offering valuable feedback to the buyer is a potent way to strengthen your relationship with them.
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