SMEs and PQQs

Despite the Government’s pledge to simplify the tender process for SMEs, an increasing number of small to medium sized businesses are still struggling to get to grips with Pre-Qualification Questionnaires. This situation is leaving many suitably qualified SMEs disillusioned and frustrated in their attempts to secure lucrative public sector contracts.

Having written in excess of 1,200 PQQs ourselves, we are still sometimes left shaking our heads at some of the irrelevant or ambiguous questions that are contained within some tender documents. This unfortunately is par for the course and all we can do is clarify these issues with the buyer.

Some SMEs feel this is just the tip of the ice-berg and sometimes see PQQs as either an over-elaborate exercise in bureaucracy or an attempt to shut out the SMEs from competing with the larger organisations. I believe that the latter is most certainly a myth as it really isn’t in their best interests to do this.

The issue of over complex PQQs is a tricky one. The aim of them is an attempt by the contracting authority to make absolutely sure that anyone who is looking to supply them are suitably qualified to do so and can demonstrate that they are a ‘safe pair of hands’. After all, it is taxpayers’ money that is used to procure these goods and services so it is only right that they are diligent in their selection. Unfortunately this can be to the supplier’s detriment as PQQs can be extremely time consuming, with a vast amount of information being requested, information that may not even be documented anywhere.

Until a long-term solution is found, the very least SMEs can expect are PQQs that are clear in what they are asking for and are relevant to that specific contract, rather than just another template. This may come at extra expense but in the long run they will receive more interest from SMEs who will provide them with true value for money, which is after all what the whole process is designed to do!

Although PQQs can seem complicated and quite daunting, the best way to manage them is to be methodical in your approach and use common sense. If you are serious about winning public sector contracts then you must dedicate sufficient time to them – so clear your desk! The more experience you have of doing them the easier it gets as you begin to build up a library of information, much of which will be all in one place next time.

Below are tips for SMEs for how to tackle a PQQ. These can be read and implemented in conjunction with our ‘How to Complete a PQQ’ and ‘Quick Tips for Tendering’ sections of the site.

SME Tips for Managing PQQs

• Register your interest and obtain the documents at the earliest opportunity, utilising all of the time available.

• Identify contract requirements, ensuring your suitability and capability in terms of being successful.

• Read through documents and create an Action Plan, working backwards from the deadline date, with timescales for each task. Consider the following:
  • What is the deadline and what are the instructions for submitting the response? (Postal, online or email?)
  • What information do I need to provide?
  • Do I have that information? If so where is it? If not, where do I get it from?
  • Who do I need to involve in the bid? (Internally or externally)
  • Who will manage the bid?
  • What aspects require urgent attention? (e.g. Creating policies, obtaining accounts)
  • Consider the evaluation criteria to see what questions are worth the most marks and allocate sufficient time to them.
  • Allow sufficient time for proofreading and formatting.
  • Be positive and see the exercise a real chance to show what you can do for the buyer.
• Complete submission in line with your Action Plan and tick off completed tasks as you go along.

• After you have proofread your response, ask somebody else to cast a critical eye over it and be open to criticism (constructive hopefully!).

Creating and sticking to a plan can be tough but if winning new business is a priority then you must take it seriously. As stated previously, the more experience you have of the process the more information you will have at your disposal next time. In addition you will have all of that information in one place and that in itself will make it easier and less time consuming. Getting feedback (good or bad) is vital as it allows you think about where and what you can improve, implementing the necessary changes next time.