17July 2012

Trevor Kitching B.Sc, Ph.D, FCIPS

                                                                                                         

The ABC of PQQs

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Who are ACS Supply Chain Consultancy ?

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What is a PQQ ?

Advertise

Advertise

PQQ Tender Award

Tender AwardOPEN

RESTRICTED

What is the Purpose of PQQ ?

The main purpose of a PQQ is to ensurethat all companies who are invited totender can meet the minimum financialand technical requirements to undertakethe advertised work.

When public sector organisations placeadvertisements for tenders and request expressions of interest, they may receive hundreds of responses. A PQQ is almost always used as a way to shortlist these responses.

Compliant

Compelling

What Do they Ask for in a PQQ ?

General Company Information

Technical Capability

Financial Information

Insurance

Statutory Information

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Why are They Different ?

They need to create a shortlist –can’t do this if everyone gets right answer to standard questions

Watch out for “Killer questions”

Standardised PQQs (eg SQUID) still have killer questions

Why do People Ask Silly Questions?

Have you ever been or are you now involved in espionage or sabotage; or in terrorist activities; or genocide; or between 1933 and 1945 were you involved, in any way, in persecutions associated with Nazi Germany or its allies?

(not from a PQQ but from US DHS ESTA form)

What is the correct answer ?

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What is the Correct Answer to these Questions ?

Do you have a :

Health and Safety Policy

Equal Opportunities Policy

Environmental Policy

http://www.hse.gov.uk/simple-health-safety/write.htm

[DOC] Equal Opportunities Policy – EXAMPLEwww.artscouncil-ni.org/award/forms/.../sample_equal_ops_policy.do...

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What is the Correct Answer to this Question ?

Does your organisation hold recognised and relevant quality management certifications ? For example ISO9000 ?

How Can I Demonstrate Technical Capability ?

Experience

Case Studies

References

Standards and competence of your staff in relation to this type of work

Registration, licenses or particular technologies that you may need to deliver the contract

What Financial Information is Required ?

Typically 3 years accounts, and if 3 years are not available, accounts for the period that you have been trading

Banker's references (usually just contact name)

Contract value/Turnover ratio

Credit rating

Levels of reserves and profit and loss accounts

Parent company accounts (if applicable)

What Level of Insurance is Required ?

Varies according to contract but typically:

• Public Liability – £10m• Employer’s Liability – £5m• Professional Indemnity (if applicable) - £2m

If higher than your current levels – promise to obtain on contract award – evidence helpful

How are PQQs Evaluated ?

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PQQ RESPONSE Scoring Criteria

Compliance and Completeness Pass/Fail

Good Standing Pass/Fail

Basic Company Details Information Only

Financial information Pass/Fail

Experience 40%

Case Studies 30%

Quality Certification 5%

Equal Opportunities 5%

Environmental/Sustainability 5%

Insurance 5%

Health & Safety 5%

Bribery Act 5%

EXAMPLE

How are PQQs Evaluated (2) ?

Health and Safety and equal opportunities (F1, F2 and F7) policy and training will be scored:

Comprehensive and realistic = 5

Partially complete = 3

No suitable documentation = 0

Health and Safety and Equal Opportunities prosecutions/compliance (F3, F4, F5, F6) will be scored

No Findings/breaches = 5

Minor breaches with adequate steps taken as a consequence = 4

Major breaches with adequate steps taken as a consequence = 3

Minor breaches with no steps taken as a consequence = 2

Major breaches with no steps taken as a consequence = 0

Major breaches with no steps taken as a consequence may result in exclusion

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EXAMPLE

How Can I get it Right ?

Consider the objectives of the buyer Why is the question there? What do they want to know? How can you evidence what you are saying?

Quality of the writing Is it logical, concise and grammatically correct? Is it easy to read? Have your followed the guidelines (word count)? Have you answered the question?

What Sort of Mistakes do People Make ?

Simple administrative failures such as not signing the document

Late delivery or delivery to the wrong place

Not following instructions

Not answering the questions

No evidence offered

Poor presentation

Is it Worth it ?

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Is it Worth it ?

£220 Billion spend

Prompt payment (typically 10 days)

Guaranteed payment

Enhanced client list

Loyal client – repeat business

Referrals to other public sector bodies

Increasing focus on social value

Opportunities to get in “under the radar”

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www.acssupplychain.co.uk 0780 329 047301527 451991

Trevor Kitching B.Sc, Ph.D, FCIPS

                                                                                                         

The ABC of PQQs

Questions ?