Understanding Public Procurement

Understanding Public Procurement

It’s an affirmation that will not surprise anyone: Public procurements take up a huge slice of share from the GDP of any country, in European Union alone it is almost to the tunes of 16% every year and has seen only an upward trajectory most times. Public procurements is a way for Government authorities as well as state-owned organizations to offer contracts for fulfilling their requirements such as public works, purchasing of goods and services to get the best resources at the best price. Construction sector is the biggest procurement market, followed by Pharmaceutical, Telecom, etc.

Many markets have sluggish periods, which can deter any smooth running business, but in case of working with the Government, one can rest assured that they will have enough work. Though the process of getting awarded a public work is tedious, the payoff makes total sense.

Just having a big fancy proposal may not help you sail through a bidding process, having strong relationships in the business fraternity plays a key role.
How can you increase the chances of your bid getting selected?
By preparing well, one can certainly increase the chances of winning lucrative government contracts. It is a painstakingly long process and a very competitive one at that but that need not de-motivate a business.

It’s a misconception that Governments only prefer large corporations, the truth says otherwise. Hence, it is important to thoroughly research and understand public procurements, figure out the specific target market for your product, and make yourself visible to the government agencies by registering on appropriate Government websites. Understanding the field helps to maximize the chances.

Once research is done, next a business would need to make sure it has all its documents in place such as the ISO:9001 and ISO: 14001 which help to create a positive image of the business.

Businesses can also hire help to identify local or specific projects and even generate an attractive bid. As in the personal life, this first impression is decisive.

Understanding the field helps to maximize the chances.

Be consistent
Surveys suggest that being consistent is the only factor that pays off in public procurements. Businesses need to consistently locate opportunities and bid, which sometimes takes as long as two years, before they finally land a project.

Build relations
The number one factor where business is concerned is networking – building and creating relationships. It’s no different in case of procurements either. Just having a big fancy proposal may not help you sail through a bidding process, having strong relationships in the business fraternity plays a key role. One must invest enough time in making relationships and sustaining those. Being in the good books of procurement officers and sharing a good rapport with other contractors surely has its advantages.

Even after all that effort, if you do end up with a rejected bid you can seek feedback which will give you insights into what went wrong with your bid and eventually prepare you for future tenders.

Considering the size of the budgets that such procurements undertake, it becomes crucial to keep the quality of services sought top quality as it’s the tax payer’s money that is being used to provide services such as roads, schools, hospitals, transport, etc. Governments are increasingly creating opportunities for SME’s by not just tendering large projects but splitting larger projects into smaller ones. By bringing in transparency and e-procurement SME’s now have a better chance at winning government projects.

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