Scoring better on public tenders
Part 4 of masterclass "Scoring better on public tenders" was held on 9 November 2017 at KIVI in The Hague: The tenderer's perspective.
Introduction Bart van Emden - Van Emden Marketing Consultancy BV
The relationship between contractor and client can be compared to marriage: it is give and take.
A lively discussion ensued on the two stimulating propositions.
- there is a growing need the government to select on quality when tendering.
- the customers of the government play an increasingly important role in assessing that quality.
Marc Unger - Director Procurement Schiphol
Marc is originally a civil engineer and has previously held various positions from project leader to new business development. The relationship between contractor and client has always been fascinating to him.
How important suppliers are to Schiphol is shown in the film Supplier Event
- Vanderlande Industries; baggage handling system; dealing flexibly with changing customer demand during the construction period of several years). Also: maintaining employment in baggage handling and meanwhile increasing capacity by using robots.
- KWS Infra: maintenance of platforms; it's about availability at the lowest possible cost; focused on performance.
- Geistreich: changes due to digitalisation: relevant information for the traveller = knowing customers' needs.
Ambition: leading procurement department = directly derived from Schiphol's objectives.
Reflections:
- Nice, such a mission and ambition, but does it succeed?
Succeeds amazingly well. - What disappointments and what points for improvement?
Implementing changes is (too) slow.
Points for improvement: really implement well and let new change wait until that implementation is successful.
How do we shape the market vision in a tender?
Innovate: e.g. facial recognition "Happy Flow" Supplier gets three years head start
Not just a nice plan but also proof that it will work; thinking along: how are you going to organise it? Parties must also earn from it
Examples: Heijmans, Happy Flow, Light as a service, Electric bus
Halved joint approach
How can it be shorter and at the same time cost-effective
From "stump connecting" to connection = process; without taking longer
For full details: KIVI-CI Masterclass Public Procurement 9 November 2017.pdf
Designerthon
- The selected candidates meet with Contracting Authority (and its consultants) on 1 day.
- On this day, all candidates are given the same case based on the PoA.
- All candidates make a vision, a POC, an offer.
- These are presented individually to the Contracting Authority one by one at the end of the day.
- The Contracting Authority makes a choice at the end of the day.
- This choice is immediately communicated to the candidates.
- This is followed by formal communication plus the possibility of objections and appeals.
Theses
We are now in the post-construction fraud era. The cramp is over.
ca 65% against so 35% in favour
- i don't know the previous era
- it has been sooooo long; however, the distrust has not gone away;
- strange sector: much in the public domain but carried out by private organisations; how do you get your margin = how do you guarantee the continuity of your company; in the beginning you don't earn a damn, at the latest a lot
- images are shifting but not enough yet
Factor power
client: especially just before tendering; in execution it lies with the executing party
Developing a joint market vision helps give direction to the procurement and tendering policy of (semi)-public clients.
ca 80% for; 20% against
- you have to start somewhere; development helps enormously
- separate interests: clients cramp up if the contractor comes up with a different solution (e.g. innovation); you don't get to the essence of the solution. Often disagree among themselves at the client too. Tough to implement: make it negotiable.
Afterwards, there was considerable discussion over drinks. Many thanks to everyone for participating!
Description
Introduction
Both clients and contractors have an interest in a high-quality procurement process: no one benefits when performance and expectations are out of sync. Partly as a result of the construction fraud, the focus is often on price rather than quality.
Fortunately, this is gradually changing: Economically Most Advantageous Tender (EMVI), Best Value (BV) and Past Performance (PP) are a few terms that illustrate this trend. As a result, there is an increasing need on the contracting side to give well-performing market players more opportunities based on measurable data.
But how do you do such a thing? On this topic, KIVI is organising a series of master classes. The aim of this series is to bring both contracting parties and market players closer together. Some of the questions that will be addressed in master classes are:
- How do you make EMVI, BV and PP objectively measurable?
- What are best practices?
- What are the most current developments?
- How can you, as a market party, anticipate these developments?
- How can market parties increase their chances?
Target group
This series of master classes is intended for everyone who is active in the tendering phase of public construction projects. For both clients and contractors and other people involved in tendering processes.
Masterclasses on 9 November from the client: ProRail and Royal Schiphol Group and on 9 January 2018 from the contractor: BAM.
Programme
The cycle consists of 4 Masterclasses in which 2x a market party and 2x a tendering party will take centre stage. The programme will be put together by business-to-business marketer Bart van Emden (www.linkedin.com/in/bartvanemden) in cooperation with engineering firm Antea Group (www.anteagroup.nl).
Marc Unger (director Corporate Procurement) will outline the perspective of both the procurer and the tenderer: the significance of good contracting at strategic level.
And, of course, the new tendering methods developed at Schiphol Group in recent years.
Designerthon: after a public pre-selection, companies from the creative sector go through the entire awarding phase specifications, approach, proposal, pitch, assessment and decision in one full day.
Halved joint approach: the next step after Best Value in which five advantages can be achieved:
- Early involvement of the contractor.
- Best EMVI score is directly incorporated into the design.
- Risk reduction on the part of both the Contracting Authority and the tenderers.
- Substantially shorter tender than Best Value.
- Relatively low cost for tenderers.
Two stage approach: new developments in the UK; trust has been reduced in the tender and contract execution time.
Ir Marc Unger (1968) has worked in the role of Chief Procurement Officer (CPO) for over six years. From 2011 to 2014 at ProRail and since 2014 at Royal Schiphol Group
Speaker(s)
For about the same length of time, he has been a guest lecturer on "Procurement Strategies and Tendering" at UT. His interest in contracting arose from his perspective as a project manager in the construction and infrastructure sector, where he became fascinated by how to use tendering as an effective tool to achieve project goals and mitigate risks.
Around 2002, from the then Royal Haskoning and in cooperation with the then PwC Consulting, he conducted a major study on the procurement practices of the central government.
As a project manager, Marc has managed many projects in the construction and infrastructure sector both at home and abroad. The most notable is the realisation of Utrecht Central Station.
He has also held various managerial positions, such as head of Royal Haskoning Architects in Amsterdam, head of project management and Manager Stations & Transfer at ProRail, thus responsible for all projects on and around stations in the Netherlands,
including the New Key projects.
In addition to his work as CPO, he holds various ancillary positions in the field of innovation, safety and strategy.
Location
Prinsessegracht 23, 2514 AP The Hague
Organiser
Commercial Engineer
Name and contact details for information
KIVI Department of Commercial Engineering