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In since the late 90s and occasionally
revised, the watchwords for the public
sector buyer in local authorities are
"Best Value
Initiative".
The Best Value Initiative is as much to do
with public bodies themselves as with
potential suppliers like your company. It
demands that councils continuously improve
value for money in the services provided, as
well as quality.
Councils have to review how they work
constantly to make sure they are
continuously improving. One example of this
is tha they actually have to challenge some
of their own functions for validity against
other councils and against the expectations
of the citizens living within the
authority's boundaries.
It was brought in after Compulsory
Competitive Tendering was abandoned due to
unforeseen side effects. The former method
of choosing contractors was very much
price-driven with only a small focus on
after-sales. Contractors would submit very
low bids to get the work, be successful in
winning the tender but then find it
impossible to live up to the standards
promised because of the wafer-thin margins.
What makes the Best Value Initiative better
than the old system? |
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So, it's still
about price, but it's also about
after-sales support, flexibility
and innovation. And it's
after-sales, flexibility and
innovation where SMEs have an
immediate advantage over their
bigger competitors - one major
reason why the number of SMEs
supplying councils has soared.
Of course, that
doesn't mean you can bid way
over the odds promising all
types of after-support and get
the tender. Where it does work
for you is that the council will
look at all tenders and consider
the cost over term of contract.
So, if someone puts
a bid in massively below you but
the council, having sat down and
worked everything out, can't see
who that supplier can possibly
do everything they've promised,
they won't win the tender.
When submitting your
bid for business, they'll look
for your ability to meet your
promises within the timescales
and financial targets set. Be
realistic, then focus on the
value-added side to your
proposition. |
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