The Coordinator-General
LVRC
“Improving Opportunities”
May 2017
Presented by: John Gillespie
Aims for Today
Top 10 Tips to improve outcomes
• Know where to find opportunities
• Know how to submit a conforming tender
• Understand how to maximise your chance of winning
• Know about the available programs and service
offerings which may assist your business
Capability & Capacity
• Know your business
• Aspire to be a top 20% business
2
2
Tip 1: Work Smarter Not Harder
Supplier Registration
Lockyer Valley RC
https://www.vendorpanel.com.au/
ETenders Website
www.qld.gov.au/qtenders
QLD Government
http://www.qld.gov.au
Other Local Government
www.lgtenderbox.com.au
www.brisbane.qld.gov.au
Federal Government
www.austender.gov.au
Top Tip 2: Pre-Qualifying for Opportunities
Department of Housing & Public Works (HPW)
•
•
•
•
Prequalified Contractors –
www.hpw.qld.gov.au/construction/PrequalificationBuildingSuppliers/BuildingContractors/
Prequalified Consultants –
www.hpw.qld.gov.au/construction/PrequalificationBuildingSuppliers/BuildingConsultants/
Companies competing and winning work –
www.hpw.qld.gov.au/bas/etender/
Industry Guide –
www.hpw.qld.gov.au/construction/Projects/Pages/BuildingProjectsIndustryGuide.aspx
Building and Asset Services (BAS), HPW
•
http://www.hpw.qld.gov.au/Procurement/Suppliers/PartneringBuildingAssetServices/Pages/PartneringwithBAS.aspx
Department of Transport and Main Roads (DTMR)
•
Prequalified Contractors –
http://www.tmr.qld.gov.au/business-industry/Technical-standards-publications/Main-Roads-projectdeliverysystem.aspx#nps
Prequalified Consultants –
www.tmr.qld.gov.au/Business-industry/Technical-standards-publications/Consultants-for-engineering-projects.aspx
Department of Education, Training and Employment (DETE)
•
Users Choice Prequalification
http://training.qld.gov.au/training-organisations/user-choice/index.html
Government Information Technology Contracting (GITC), HPW
•
http://www.hpw.qld.gov.au/Procurement/Suppliers/ICandOTCategory/GITCFramework/Pages/Accreditation.aspx
Principles of LVRC Procurement
• Principle 1: Council is committed to ensuring its procurement is carried out in
accordance with the relevant probity and accountability obligations set out in
legislation
• Principle 2: We act as ‘one Council’, to assist it in meeting statutory
procurement obligations
• Principle 3: We apply the ethics principles of integrity and impartiality, promoting
the public good, commitment to the system of government, and accountability
and transparency
• Principle 4: We use our procurement to advance the local communities
economic, environmental and social objectives and support the long-term
wellbeing of our community
• Principle 5: We apply sound contracting practices when making contracts to
carry out work, supply goods or services, or dispose of non-current assets.
• Principle 6: We undertake our procurement to advance Lockyer Valley Regional
www.hpw.qld.gov.au/Procurement/Buyers/HowToBuy/PolicyAndGuidance/Pages/
Council’s
priorities, achieve value for money, and ensure probity and
QldProcurementPolicy.aspx
accountability for outcomes.
Principles of Qld Government Procurement
• Principle 1: We drive value for money in Procurement
• Principle 2: We act as ‘one government’, working together across agency
boundaries to achieve savings and benefits
• Principle 3: We are leaders in procurement practice – we understand our needs,
the market, our suppliers and have the capability to delivery better outcomes
• Principle 4: We use our procurement to advance the government’s economic,
environmental and social objectives and support the long-term wellbeing of our
community
• Principle 5: We have the confidence of stakeholders and the community in the
government’s management of procurement
• Principle 6: We undertake our procurement with integrity, ensuring
accountability for outcomes
www.hpw.qld.gov.au/Procurement/Buyers/HowToBuy/PolicyAndGuidance/Pages/
QldProcurementPolicy.aspx
Top Tip 3: Know what the Government wants
• We want a supplier that can deliver to our
needs
• We want it Delivered In-Full and On Time!
• We want value for money for the taxpayer
dollar
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Top Tip 3: Know what the Government wants
Achieving Value for Money
Price is not the only indicator of value!!!
• Value for money is more than just the cheapest price
• Value for money assessment should include:
– Overall objective and outcome being sought
– Cost factors:
• Up-front price, whole-of-life costs, transaction costs associated with
acquisition, use, holding, maintenance and disposal
– Non-cost factors
• Fitness for purpose, quality, delivery, service support, and
sustainability impacts
Top Tip 4: Procurement Methods
How Does Government Purchase:
– LVRC Process
– Open offer process (“Public Tender”)
– Selective offer process
• Only suppliers who meet preestablished criteria are invited
– Limited offer process
• Agency invites suppliers of its
choice
– Direct Purchasing (“Direct Sourcing”)
Top Tip 5: Answer all the questions
Golden Rule #1
ANSWER ALL THE
QUESTIONS
Especially on the Specifications
“Oh my aching fingers how many times do I have to
repeat myself”
Top Tip 5: Answer all the questions
Golden Rule #2
•
Fill in all the forms and address all the WILLs,
SHALLs and MUSTs
(this gives you a conforming tender and consideration)
Golden Rule #3
•
Answer the evaluation criteria and address
the WOULDs, SHOULDs, COULDs or
MAYs
(this improves your chances of winning the work)
Top Tip 6: Write a quality response
• Emphasise your strengths (not your competitions’ negatives)
• Highlight the benefits of using a local supplier
– Readily available spare parts, service and support
– Shorter supply lines
– Easier contract administration
– Employment
– Economic support for the local community
• Contact your referees
now and we can only assess what you write down!
Top Tip 7: Be visible
• Update/customise your Capability Statement
– Tailor to your tender
– Highlight your key benefits for client - essential
– Provide examples of relevant past work
• Update/Refine your Company Website
Vendor panel Registration
Vendorpanel Marketplace Registration
Vendor panel Market Place
https://www.vendorpanel.com.au/
Top Tip 8: Where to find opportunities
Lockyer Valley Regional Council
Queensland Contracts Directory
Queensland Government standing offer arrangements
http://qcd.hpw.qld.gov.au/Pages/home.aspx
Local Government opportunities
https://www.lgtenderbox.com.au/index.do
Federal Government opportunities
https://www.tenders.gov.au/
ICN Gateway
https://gateway.icn.org.au/
ICN GATEWAY
Top Tip 9: Seek more information
The Business and Industry portal
https://www.business.qld.gov.au/
Top Tip 9: Seek more information
AusIndustry
www.business.gov.au
Department of State Development (previously
DSDIP)
 Access Supply Chain Opportunities
 Tendering for Government Business workshop
www.business.qld.gov.au/business/support-toolsgrants/support/workshops- seminars

Top Tip 10: Remember the first 9 tips
Remember the first 9 tips
Summary – the top ten tips
1. Register on Relevant tendering sites
2. Get prequalified
3. Know what Government wants
4. Understand procurement methods
5. Answer all the questions
6. Write a quality response
7. Be visible
8. Where to find opportunities
9. Seek more information
10. Remember the first 9 tips
Next Step:- Know your business Environment
Know Your Business
• Understand Risk
• Know the market
• A competitive pricing process
• Establish a quality brand
• Plan Strategically
Risk Hierarchy
Strategic Strategic Risk: Those events that will impact on your business for a
planning horizon of 3 to 5 years or more.
Tactical
Operational
Tactical Risk: Those events which normally apply to a project
or supply arrangement.
Operational Risk: Those events which are associated
with the day-to-day operational aspects of the
business.
Tactical is something you’re willing to change to meet local conditions and Strategic is
something you won’t change to meet local conditions.
The Why Gross Domestic Product (GDP)
GDP % Change per Q 1986 to 2015
4.0
3.0
% change
2.0
1.0
% Change per quarter
Linear (% Change per quarter)
0.0
-1.0
-2.0
-3.0
Reasons for Business Failure
ASIC reports on corporate insolvencies
Top 3 nominated causes of failure
2014
2013
2012
1
Inadequate cash flow or
high cash use (4,031 or
41% of reports)
Poor strategic management
of business (3,908 or 42% of
reports)
Poor strategic management
of business (4,449 or 44% of
reports)
2
Poor strategic management
Trading losses (2,989 or 32%
of business (3,975 or 37%
of reports
of reports)
Inadequate cash flow or
high cash use (4,048 or 40%
of reports)
3
Trading losses (3,078 or
33% of reports
Inadequate cash flow or high
Trading losses (3,326 or
cash use (3,829 or 41% of
33% of reports)
reports)
The Customer:-Value Proposition
Understanding:
• What are you selling (Benefits vs Features)
• Are you meeting your customers needs
• Differentiate between Needs vs Wants
• Assessment
– Jobs/product/Service
– Customer
 Offer Solutions
 Provide Benefits
– Does product provide solutions/Benefits
Looking Forward
Learning from the Past,
Looking to the future…
Competitive Estimating
• A business can calculate a competitive estimate
• By:
•
•
•
•
•
•
•
Understanding what drives decision makers
Understanding financial ratio’s
Understand where the ratio’s impact on profitability
Using available information e.g. ATO benchmark data
Become cost management focused
Target:- to be top 20% least cost supplier
Use Ratio’s to manage competitiveness
Bell Curve Analysis
34%
23%
55%
39%
• Analysis of Distribution
• ATO Cost of Sales
• 34% - 23%
• Total Overheads
• 55% - 39%
Business Systems
They are set of documents that map the policies and
procedures that frames how a business trades,
maintains consistency across all departments of the
business, and reduces RISK.
What Will a System Look Like
• It will outline the objectives
• Identify roles responsibilities and reporting processes
with measurable outcomes (KPI’s)
• Procedures will be clearly identified
• Processes to deliver a product/service will be clearly
articulated (flow charts area simple way to identify
process), and
• How issues/faults will be rectified and continuous
improvement embedded into the objectives
Operational System (Swim Lanes)
What is Resource Management?
Resource management is how a business utilises all the
resources at their disposal to complete a project on budget
on time or deliver a product/service.
They include all tangible and in-tangible resources that are
available to a business.
Objective of Strategic Planning
• Longer Term Plan for the Future (5-10 years)
• Reduce Risk
• Meet needs of customers
• Map internal skills and capital needs
• Maximise the Money
• Provide direction for operational planning
• Business sustainability and continuity
Planning
Strategic
Operational
• Define Vision/Mission
• Budget Forecasts
• Set Goals
• Allocate Resources
• Define Actions
• Implement Strategic Plan
• Allocate Responsibility
• Operational Management
Addressing the issue – Benchmarking performance
Best Practice: Benchmarking
Focus on:
• Identifying what you can measure
• Record
• Analyse
• Report
• Against your peers
• Internally over time
The competence to identify comparative operations and benchmark
against key performance indicators
SEQ West Workshops
• Tendering for Government Workshop
• Capability Statement Development
• Is Your Business Ready (improving competitive advantage)
• Strategic Planning
• Business Systems
• Enterprise Risk Management (ISO:31000)
• Business Decision Making Tools
Still Think You Need Help
Regional Economic Development
Department of State Development
John Gillespie
Principal Economic Development Officer
Level 4 117 Brisbane St Ipswich
Regional Services South
Tel: 07 3432 2417
Email: [email protected]
Sarah Prest
Senior Economic Development Officer
Level 4 117 Brisbane St Ipswich
Regional Services South
Tel: 07 3432 2418
Email: [email protected]