Is it possible to win the tender? How to win in government procurement: tips

08.09.2014 18:59

Good afternoon, dear colleagues. We continue the series of articles devoted to GOST ORDERS, including the Federal Contract System. I would like to note that we receive a lot of negative comments on this topic; the attitude towards GOVERNMENT PROCUREMENT in society is clearly contradictory. My opinion on this issue is purely subjective: “This position is due to lack of knowledge and understanding of the Law on GOSTORGA, its essence, concepts and tasks.” Another problem is the lack of information about innovations and changes in this area. The mistake of many potential suppliers is the same approach to sales, both in the commercial and government spheres. But this is a completely “different monastery”, with its own rules and regulations, and this must be remembered. This, in fact, is my goal, to try to talk about this area in an accessible language, to clarify unclear or contradictory points, so to speak, to present information simply, talking about COMPLEX things. Topic of the article: " TOP 15 mistakes of newcomers in GOVERNMENT ORDERS or how to win the trading procedure and not be left without pants?

In order to win, for example, an auction, you need to clearly know the legislation in this area, namely all the features FCC(Federal contract system). The main regulatory act that regulates the activities of this area is the Federal Law RF 44-FZ “ON THE CONTRACT SYSTEM IN THE FIELD OF PURCHASING GOODS, WORKS, SERVICES TO PROVIDE STATE AND MUNICIPAL NEEDS” dated 04/05/2013.
I would like to note that theory alone will not be enough here, so I want to reveal the TOP 15 main mistakes that beginners make when participating in procurement procedures such as an electronic auction, an open tender, and a request for quotations. Some of the mistakes listed below were also made by me in my career. By the way, new procedures have appeared in the FCC format, such as a competition with limited participation, a two-stage competition, a closed auction, a closed competition, a request for proposals and some others. Accordingly, the list of major errors will grow, and we will definitely look at them together.
1. A fairly common mistake made by a participant in placing an order is preparing an “empty consent”. That is, the auction or tender documentation generated by the customer contains a requirement to perform a certain amount of work, criteria for the materials used and requirements for them. The participant in the first part of his application does not indicate trademarks and specific indicators of materials, but simply expresses his agreement with the requirements of the documentation. The result is disastrous - such an applicant and his auction or competitive application are rejected.
2. Insufficient specification of the technical characteristics of the product proposed for delivery. Let's give an example. An auction is being held. In the application, the customer indicated the need to use two-layer paper wallpaper with a thickness of 0.5 - 1 mm when carrying out the work, and the auction participant’s application contains only generalized indicators. Simply indicating the brand will not be enough; it is necessary to indicate in the application the thickness of the wallpaper, for example, 0.6 mm, that it will be two-layer and made of paper. That is, everything must be exactly as in the documentation for the trading procedure. The result is rejection of the proposal. When we were not yet experienced enough and participated in auctions, we were sometimes rejected due to the fact that the characteristics of the offered product were not accurately stated. I will definitely devote one of the articles to the topic “ Preparation of an auction application"and there we will look at the whole range of similar mistakes that suppliers make.
3. The following mistake is a consequence of inattentive reading of the requirements for applicants. This is a list of documents that are provided in the " second part of the application"if we are talking about an auction. For example, an open competition or auction is being held, and it is necessary to install a telephone exchange. The documentation states that a participant in an open competition must meet the requirements imposed by law on performers of this type of work. That is, we are talking about a license from the FSB. And if you win the auction and there is no license, the winner will lose the contract. You must understand that the bidder's application must meet all the requirements set by the Customer.
4. Recently, cases have become more frequent when applicants provide false bank guarantees. What could be the consequences? The customer can suspend the STATE ORDER and the execution of the contract (supply of goods or performance of work), or terminate the contract in court with payment only for the completed part (which means extra legal costs and additional expenses). I will also attribute here the mistake that guarantor banks began to make, namely, not entering the bank guarantee into the register of bank guarantees and, as a result, the Customer’s refusal to enter into a contract, the winner losing the application security, entering information about the winner into the register of unscrupulous suppliers, loss of reputation and impossibility participation in GOSTORGA for 2 years.
5. According to the law, when participating in a procedure such as electronic auctions, the participant provides two sections of his proposal, and in the first section the participant MANDATORY, WITHOUT EXCEPTIONS, for goods, indicate the manufacturer or place of origin of the goods. Some applicants forget to do this or confuse the manufacturer's name with the trademark. Such a proposal must clearly be rejected. Be careful!
6. There is such a procedure in PUBLIC PROCUREMENTS as a request for quotation - this is a method of selecting a supplier in which information about the purchased goods is communicated to an unlimited circle, that is, an application request for quotation is placed in a unified information system and the winner is the one who offered the minimum price. Without knowing the law, participants may indicate an inflated price in the offer, hoping for a subsequent price reduction. But this does not happen, since this procedure is not a tender and does not provide for step-by-step price reductions.
7. Notice of quotation must be placed by the customer no less than 4 working days before the deadline for submission of proposals. Practice shows that most often the quotation is up to 250 thousand, and it is this quotation that is posted for a period of at least 4 days, “hangs” on the GOVERNMENT PROCUREMENT website for 4 days and not a day more. No one notifies potential participants about the procurement, so you need to regularly monitor new purchases so as not to miss an interesting procedure.
8. Failure to submit a complete package of documents, especially in relation to an open competition. A very common mistake is not providing a “declaration of conformity”.
9. Errors in the submitted documents. It is necessary to clearly know what the “declaration of conformity of the participant” includes. There are two types - a declaration of the applicant’s compliance with the requirements of the law and a declaration of the participant’s belonging to small businesses (SMB).
10. Providing certificates, expired licenses.
11. Participants are often unaware that they have the right to request clarification of auction and tender documentation. That is, if there are inaccuracies in the technical specifications, any applicant has the right to submit a request, and the electronic trading platform will forward it to the customer. In my opinion, a “request for clarification” is one of the most effective mechanisms for the collapse of corruption documentation. Working further, in case of victory, with an adapted Technical Specification or a well-developed contract, is much easier than after signing, negotiating its terms and trying to change them.
12. We once took part in an auction and signed a contract immediately after being announced as the winner. But we didn’t know that there was also a period for appeal. That is, after the announcement of the winner before the conclusion of the contract, there is a deadline for filing a complaint and must be respected.
13. If the complaint to the FAS is recognized as justified, then the guilty person may even face criminal liability.
14. After the participant is declared the winner, within the prescribed period he must send the customer a draft contract signed on his part. If such a project is not directed by the participant, then he may be recognized as having evaded the contract. And this threatens to be included in the register of unscrupulous suppliers and exclusion from further participation in procurement. Federal contract system, strictly regulated Federal Law, which spells out every step of the participants, be it the Customer or the supplier, deadlines, regulations, actions in a particular case, and much more. The regulations of the Russian Federation supplement the law 44-FZ and a lot of information should be taken from there. Accordingly, you must strictly adhere to all deadlines specified in this area and all explanations like “I forgot, I didn’t have time, I couldn’t” will not even be considered.

15. Companies that want to seriously engage in government contracts must have on their staff such an employee as a qualified tender specialist who will deal with them. Many people think that these are just additional costs. But, as practice shows, having a highly qualified specialist on staff who regularly undergoes training in tenders completely covers the costs (salary, etc.). By the way, one of my webinars: “ Effective participation in public procurement ”, just examines this issue in more detail and each manager receives an answer to the question: “What should a tender specialist be like?”

Thus, if you want not only to participate in government procurement, but also to win it, then I recommend that you follow our practice. That is, thoroughly study the legislation and comprehend this “art” in practice.
I wish you success! And see you again.

Do you want to win GOSTORGI? Do you want to see your company among the winners of the tender? Contact us and you will learn to earn much more at GOSTORGA and become a qualified tender specialist! You can study without leaving your home, in accordance with all laws regulating PUBLIC PROCUREMENT. Highly qualified teachers and a welcoming atmosphere will make learning simple and very effective. During the training process, the latest software is used, which allows you to see perfectly, hear perfectly, and make adjustments to presentations. The teacher uses the latest versions of teaching materials from the Ministry of Economic Development and the Federal Antimonopoly Service of Russia. Our courses have the highest density of material delivery in relation to other training centers. As a professional, you will leave everyone behind you !

tender is a market procedure familiar to everyone, a kind of competition, based on the results of which a company is determined that fully meets the customer’s requirements. This company must be ready to fulfill the contract not only with the highest quality and speed, but also at an affordable price.

Conducting tenders is aimed at ensuring that the contractor and the customer can find each other as soon as possible. Winning a tender can be extremely difficult. In Europe and North America, winning tenders is an extremely valuable corporate sales skill. If we are talking about tenders organized by government organizations, then almost all procedures are formalized, so it can be extremely difficult to present your own company in the most favorable light possible.

Conditions for winning the tender

First, you need to thoroughly study the regulations (rules) for conducting a particular tender. This is an extremely important stage. By taking part in a particular tender, the potential contractor agrees to a number of conditions put forward by the customer. If a potential contractor still has any questions after studying the regulations for participation in the tender, he needs to get answers to them as soon as possible. Otherwise, serious problems may arise in the very near future.
Before submitting your application, which must be properly completed, you must ensure that all resources are available. Usually, implementing a project requires a lot of effort. Quite often, some companies significantly overestimate their own strengths, and therefore are not able to cope with the implementation of the won tender.
It is necessary to pay as much attention as possible to such an item as filling out an application, otherwise even the smallest errors can be considered as gross defects. This may lead to the customer refusing even during the selection process. It is possible to avoid such an unpleasant development of events only if you double-check all documents at least several times before submitting an application. It is incorrectly completed documentation that in many cases becomes the reason for refusal. Some participants spend a lot of time on the proposal itself, but lose sight of the documents. As a result, they do not even pass pre-selection. That’s why it’s so important to hire a competent lawyer who will help you draw up all the documents as accurately as possible.

tender documentation

Tender Documents are all the documents required to submit a bid. The set of documents varies depending on the field of activity or sector of the economy. If a tender participant would like to increase his chances of winning, then he needs to prepare all the papers at least 3 days before the end of the tender. Only in this case will he be able to eliminate various errors.

How often do you need to take part in tenders?

Only regular participation in tenders can provide an opportunity to gain valuable skills and experience. It will be easier to participate in the tender each time. Experience is the key to success in almost any business. After just a few months of regular participation in tenders, the contractor will learn to quickly draw up documentation and prepare a better and more interesting proposal for a potential customer. It is best to learn how to take part in tenders for minor orders that are of little interest to the contractor. They will be an excellent “testing ground” for practicing all your skills.

Key rules for winning a tender (using the example of the IT sector)

The first stage involves finding employees who are best suited for the role. Some people don't know how to get along with others. The problem is that many managers appoint the best employees to be responsible for participating in tenders, but it is not a fact that the most qualified programmer will be a competent negotiator with a potential customer. Sometimes companies specifically hire a qualified specialist for just a couple of days to negotiate with an important client.
You should be wary of tenders that are conducted differently than others. If a tender proposal can only be submitted in writing, then such a tender cannot in any way be called fair or objective. Most likely, the winner of such a competition is appointed in advance. This is what some unscrupulous private companies and corrupt managers of state-owned enterprises do.
The main question that concerns every tender participant is what information needs to be collected? You should find the contact details of those who make the final decision, as well as those responsible for conducting the tender. Then you should find out the structure of the competition, as well as the timing of decision-making. It wouldn't hurt to study your competitors as well. Each bidder should know as much as possible about the others. This can become an undeniable advantage that can be used to win. It is also necessary to study the experience of tender participants in previous years. It is possible that some people are willing to share their own experiences. This information can be used to increase your chances of winning.
Participation in government tenders is a separate topic for discussion. Such competitions require conversations with responsible persons. Most often, ordinary employees of a particular enterprise are responsible for conducting state tenders. They can share useful information that will also help you win the competition. Particular attention should be paid to decision makers. They can be influenced in many ways. Most often, this requires a private conversation.
Some tenders are held in several stages. In this case, it is recommended to set aside at least a small percentage for bargaining, but offering a price below the market price is also not worth it. Regular customers may find out about this. In this case, participation in the tender can lead to the most unpredictable consequences.
Many customers want to communicate with a potential performer in person, which is why it is so important to work out your speech in advance. Appearance is no less important. He must be quite presentable.

Third Party Help

The assistance of qualified specialists who can increase the chances of success in a tender is especially important for companies operating in the IT sector. In recent years, there has been an extremely high level of competition in this area, so winning a tender can be extremely difficult. A service such as tender support is an excellent option for newly emerging companies. The main goal of this service is to create all the conditions necessary for the client-participant to win the tender. This service will be especially relevant if we are talking about a particularly important tender. Also, third-party assistance may be required by companies that do not want to take risks or do not have experience participating in tenders. Usually, the most qualified lawyers provide support for tenders. They will be able to protect the company from numerous errors that could affect the results of the competition.

How to win a closed tender

Closed tenders are of greatest interest to companies. They are usually held after the customer company has invited the best (in its opinion) participants to participate in advance. The choice of participants may depend on characteristics such as rating, reputation, work experience and much more. It is because of this that many companies try to devote as much effort and attention as possible to self-promotion in the media. Some state-owned enterprises and private firms often take part in exhibitions of various kinds. All this is done to increase recognition of your own name and brand. Only renowned and reputable companies are invited to participate in closed tenders. Usually the list of participants in a closed tender is not disclosed. This is done in order to prevent collusion between tender participants. Only 3-6 companies are invited to participate in such a tender.

How to win an open tender

In this case, the customer is happy to accept any bidder. It is for this reason that information about such a tender is disseminated through the media, official websites, communities on social networks, newsletters, and so on. The same applies to competition documentation. It should contain all the important information about the upcoming event. This type of bidding allows participants to study their competitors. This is a very valuable experience that can be used for a variety of purposes. In the IT sector, this is extremely important, because many companies are not well aware of the advantages and disadvantages of their competitors.

Specialized tenders

Such tenders are of particular interest to companies that have been selected by the auction organizers. The probability of winning in such a tender is higher than in a regular open tender. Typically, participation in such tenders is strictly limited by any rules. Most often we are talking about citizens of a certain state.

How to win a government tender

It is important to note that commercial tenders differ greatly from government tenders in cost. For example, private companies are often extremely careless in preparing tender documentation. This may lead to “private traders” adding coefficients for so-called “unforeseen expenses”. In some cases, this has a significant impact on the price. If we are talking about government tenders, then such liberties with them are simply unacceptable.

What you should pay attention to to increase your chances of winning the tender

Official papers about the company. Usually all documents about the performer are checked most carefully. This is done by the security service (if we are talking about a large customer). This is why it is so important to provide only verified and valid information. If fraud is discovered at the verification stage, then there will be no talk of any victory.
Having experience. Nobody likes to engage companies that do not have extensive experience for serious work. You can gain work experience even with small projects.
Availability of recommendations from other clients. This will be especially important if these are famous and reputable clients. Their opinion is valuable, so a positive review from such a client will come in handy. This will be another convincing argument in favor of the company.
Availability of qualified specialists and appropriate resources. It will be strange if a company that does not have a single designer or programmer on staff takes on the development of a computer game.
Portfolio of similar projects. This is an extremely important advantage that should not be underestimated.
No debt. Any debt is always a drawback that discourages cooperation.
Stable financial situation. If the team regularly experiences delays in wages, then it will be natural if employees do not work efficiently enough.

The most important stage is the presentation

Most often, after the application has been recognized by the competition organizers as worthy of attention, the company is invited to a personal meeting with the customer. The presentation stage can be called key. You need to prepare slides, text and much more in advance. The presentation should never be too long or dry. There is an opinion that winning a tender is impossible without “connections.” Actually this is not true. Most often, customers pay attention to the cost of services, the company’s reputation and work experience. It is enough to spend a little time and effort to prepare for the tender in advance. Then the chances of winning will be much higher. Good luck!

Participation in tenders brings good dividends to any company. Firstly, this is a kind of potential victory. Secondly, this process is an excellent way for a business entity to express itself, as well as find reliable business partners. Therefore, the answer to the question: “How to win a tender?” - is quite relevant for any self-respecting company manager.

However, it must be taken into account that participation in the tender requires the fulfillment of a certain number of requirements, which may cause some difficulties when various stages of the competition occur. Only trained specialists can resolve them.

The army will always need high quality uniforms, and kindergartens will always need milk and dairy products. Therefore, the relevant authorities are forced to hold government tenders. During the process, one of the candidates is selected.

How to win a tender? Provide the most suitable ratio of quality and price. These competitive events mainly take place at the state, international, municipal, regional and city levels.

Participants providing documents for state registration. tenders must be aware of the following basic rules:

Equal rights and responsibilities for all participants;

The organizer must communicate with participants only in writing (in particular, this applies to the mechanism for submitting and confirming applications for participation);

About the start of tenders, relevant information is published in the media with duplication on the Internet;

A candidate company wishing to take part in this competition submits an application;

The organizer must send all registered candidates a package approved by the relevant Federal Law;

During the established time, the candidate completes the preparation of his data, indicating the necessary information;

If a participant has questions about the competition documentation, he can contact the organizer in writing, who will also answer him in writing;

As a result of consideration, analysis and verification of submitted applications, the winner of the tender is determined, who receives an offer of cooperation in the form of a contract;

The results of the tender are published in the media, as well as on tender portals on the Internet.

Thus, participants can understand how to win the tender only by submitting a correctly executed, complete package of documents within the established time frame.

Unfortunately, not all the legal subtleties of this procedure are clearly spelled out in the relevant regulations. Therefore, only specially trained professionals can tell you how to win a tender. Especially if they have solid experience in this field, and they are armed with the latest digital equipment that will allow them to analyze the proposal of the candidate company. And based on its results, recommendations are made to eliminate all identified deficiencies in accordance with the requirements of current legislation.