Key elements to putting together a successful, comprehensive bid
RESPONSIBLE & RESPONSIVE BIDDING
Have you ever…
Submitted a bid late?
Forgotten to sign the bid forms?
Not included all the required attachments?
Lost money because your bid did not include all costs?
THE EDUCATED BIDDING PROCESS
Breaking the mass of data down to manageable parts with a systematic approach.
WHO CAN BID?
Any business that sells a product or service and is:
ResponsibleCompetitivePatientWill invest the resources to market their businessTechnologically proficient
RESPONSIBLE
Has the financial and physical resources to start the project on time,
Has the appropriate registrations or licenses
Meet timelines and deadlines with the work and necessary reporting,
Finish on budget and on time.
OTHER BIDDER CRITERIA
You may be asked to provide proof of:• Compliance with all applicable laws pertaining to the
solicitation, including Prevailing Wage Act / Davis Bacon Act• Federal E I N or Social Security Number• Equal Employment Opportunity Policy• Certificates of Insurance on Workmen’s Comp, General
Liability, Errors & Omissions, Professional Liability, Product Liability
• License to work in that city, county or state• Minority & Women Business Enterprise Participation
COMPETITIVE
Understand competitors
Understand the client
Understand the market
Offer value as well as competitive price
PATIENCE AND MARKETING
Be able to bid and endure the bidding process.
Bidding is a form of marketing
Bidding takes time and money to prepare the bid
You may win 3 out of 10 bids submitted
TECHNICALLY SAVVY
Download solicitation material from online sourcesPlace business on registration lists
Industry-specific organizationsPA UCPSystem for Award Management (SAM)
Search for bid opportunities onlineeMarketplaceFedBizOps
Maintain databases of informationMore offerors are requiring electronic bidding
TYPES OF SOLICITATIONS
IFB (Invitation to Bid)
Bid package is considered completePrice is a major consideration
RFQ (Request for Quote or Request for Qualification)
Request for information on pricingNot a binding contractContract will come out of a purchase order
RFP (Request for Proposal)
Project details are not complete / owner is looking for someone to help them complete the design and details of the projectEvaluated on Technical Proposal, Cost and DBE participation
Any process for evaluating and responding to a request for pricing, opportunity to bid or invitation to qualify as a vendor will require equal diligence in order to win bids and make a profit.
EACH SOLICITATION IS UNIQUE
Read very carefully.
Then READ IT AGAIN
Everything you need to know about doing the job should be in the solicitation document(s).
FIRST LOOK FOR…
1. Scope of Work: Does it fit with what your company does?
2. Specifications: Have you ever bid this scope with these specifications or conditions?
3. Resources: Do you have the physical and financial ability to perform this contract?
SPECIFICATIONS
Manufacturers and Suppliers:Technical specifications / drawings / patternsPackaging and delivery requirementsBid formsPayment terms
Service ProvidersWhat you will deliverHow you will deliver itBid formsPayment terms
SPECIFICATIONS (Project Manual)
General Conditions
Instructions to Bidders
Scope of work
Wage Rates
Bid Forms
Addenda/Bulletins
Special Conditions
Payment Terms
Construction Projects
BLUEPRINTS, DRAWINGS, TECHNICAL SPECIFICATIONS
Any solicitation may have
Layout / Scale
Notes
Symbols
Abbreviations
MANDATORY REQUIREMENTS
Common to many solicitationsForms Units of Quantities / Measure / PricingSchedule
Start dateIntermediate timelinesFinish date
Other required documentsBonds / InsuranceLicenses / PermitsMWBE percentage participation
ADDITIONAL INFORMATION
Construction ProjectsGeo-technical reportsHazardous Waste ConditionsAlternates
Manufacturers, Suppliers, Service Providers
AlternatesContract extensions
PRE-BID MEETINGS
Primarily Construction but can apply to other goods and servicesAdditional information from project personnel.
Affords all bidders a chance to ask questions
A networking opportunity between Primes and Subs for this and future projects
Provide for a walk-through of the site
WALK-THROUGH (actual)
Also known as a “Site Visit” in Construction
Ask for a site visit if one is not offered
Use a check list on every walk-through
Make sketches if necessary
Take pictures if allowed.
WALK THROUGH (virtual)
Consultants
Visit the offeror’s website
Research offeror’s competitors
Visit the offeror’s place of business
Check out the facility
Get a feel for the company climate
WALK THROUGH (virtual)
Manufacturers / Suppliers
Visit the offeror’s website
Obtain a sample of previous parts or supplies from past contracts
ASK QUESTIONS
Follow the procedure set up in the bidding documents.
Use a Query List to compose all your questions from any source of informationCompile questions into one request for information if possibleSend your questions in writing to the contact listed in the solicitation. If your question and answer are not in writing, you do not have an answer.
REVIEW
You’ve read and understood the solicitation
Questions have been asked and answered
You are now ready to start putting the bid together
MANAGING THE BID PROCESS
POINT OF TRANSITION
The solicitation (generated by the owner/ offeror/client) is owned by the offerorOnce you process the paperwork into a bid it becomes your bid and will be a part of your contract when you win. You will be bound by your offer (bid).
BID DOCUMENTS ELEMENTS
Prioritize
Use your research to craft the bid
Allocate tasks to analyze the bid documents and prepare the estimate
Take-offs
Pricing
Review and Reconciliation
CALCULATING THE ESTIMATE
Be accurate with figures: Expenses that are your responsibility MaterialLaborEquipmentFeesOverhead and Profit
CALCULATING THE ESTIMATE
You don’t get a “do over” if you miss something or add incorrectly. You hurt yourself when you get a contract based on your figures and they are wrong.
PROCESSING THE FORMS
Review the forms as part of your beginning process, not at the end
Questions about the forms should have been asked during the Q & A.
Use the forms supplied
Do not improvise
FORMS
You don’t get a “do over” if you do not fill out the forms correctly or omit something. All of your work can be for nothing if the forms are missing anything.
PACKAGING THE BID
Cover letter
Estimate
Required forms
Required Attachments
Bid submission
DUE DATES AND TIMES
Deliver your bids on time and to the right place
If possible, secure proof of timely bid submittal
One minute late, and the whole exercise was a waste of time and money.
CONDITIONAL BIDS
An easy way to get your bid tossed
Definition: a bid with exceptionsDifferent materials
Different terms
Different conditions
DON’T DO THEM!
AFTER THE BID GOES IN…
Keep track of datesBid Opening
Award
File for future reference:Estimating work sheets
Research of the project/solicitation
MORE INFORMATION
WebsitesIndustry Specific
Competitors
Industry Related Associations
Books and Industry-related publicationsAmazon
Trade Association magazines
QUESTIONS?
COMMENTS?COMMENTS?
Presented by
Elizabeth Bowers Corporate Small Business Liaison Officer
One PPG Place, 27th FloorPittsburgh, PA 15222