Project Bid in Competitive Markets

The project bid process incorporates an ecosystem of players including government agencies, private employers, NGO’s, vendors, and recruiters. Submitting a project bid can thus occur at multiple points including directly to the buyer or through secondary networks who will manage the contract.

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Bid Route

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When submitting directly (such as through BCBid) the contract owner receives more benefits but is also required to carry out more contract administration requirements.

When submitting indirectly (such as through recruiters or other vendors) the supplier gets to focus on project delivery with the contract owner handling the administrative end.

The symbiotic relationship is exchanged for part of the contract’s value which is usually determined the type of contract, scope of work, expertise required, and the project’s deliverables.

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Direct or Indirect Bidding

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A close review of the statement of work is needed to decide if the contract allows for the contract owner to supply a separately hired contractor to deliver the project. In cases where this is permitted an entire industry of recruitment innovation has surfaced with company profits driven by the number of secondary contractors placed.

Recruitment of contractors often specializes in a specific industry such as technology, construction, software, healthcare, tourism, banking, or other services.

An advantage of working with a recruiter involves having access to their networks, experience in the industry, being able to leverage their brand and business reputation in the project bid, and their help to complete the bid package. Advantages to submitting bids directly involves the possibility for higher compensation and having increased access to both opportunity and the network of buyers.

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Project Bid Opportunities

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If pursuing the direct bid route the contractor will often sign up for an account such as BCBid and identify what types of projects they are interested in. Most bid platforms also include a pre-qualification process to decide what types of projects a contractor is qualified to bid on.

Depending on the type of account the contractor can then identify how they want to be notified of new opportunities.

If submitting project bids indirectly through a recruitment agency or vendor the notification, and evaluation of opportunities for fit with the candidate’s background, is coordinated through these nodes.

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The Statement of Work (SoW)

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The statement of work provided with each notification outlines:

• Who is the buyer

Vancouver area recruiters to work with (and candidate experience rating)

Level of Expertise Required

Start date

End date

Budget

Deliverables, and

How to submit the bid

The project bid often requires duplicate copies and will clarify the routes available for submission. This includes email, postage mail, fax, or use of a digital drop box. Understanding what routes are available is crucial as some routes may not be available for all bids.

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Bid Evaluation

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Project bids are evaluated based on:

• Experience
• Training
• Price
• Reputation, and
• Approach

If submitting a bid as a secondary contractor the evaluation process described above is essentially duplicated with both the primary contracting agency (recruitment, vendor, etc.) evaluating the candidate against the criterion before submitting the bid.

This two tier process helps distribute the workload for developing the bid package but can also create a bottleneck that limits access to opportunities.

The indirect process thus effectively includes an additional evaluation process. Understanding this is crucial towards deciding whether to submit bids directly or indirectly.

The buyer’s process for evaluating project bids is often available on request. BCBid, for example, and written and video content available and explains the evaluation process. Public sector processes for evaluation are also spelled out in legislation in order to support consistency, fairness, transparency, and precision. Additional evaluation tiers should be monitored closely as the process can be less consistent.

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Competitive Advantages

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Creating a competitive advantage in the bidding process is crucial. Establishing your unique value proposition can help to distinguish you from competitors. Many consulting companies establish their unique value proposition by offering a larger array of services and products to the project, potentially simplifying the project oversight and coordination process. Individual contractors struggle to compete against such a large presence.

Don’t be afraid to ask the tough questions during the contract negotiation process. Poor project to environment fit can impact future opportunities and need to be evaluated carefully.

Creating a competitive advantage begins by focusing on the evaluation process above, and the criterion spelled out in the statement of work (SoW), but also needs to emphasize your approach to delivering the project. This includes the:

• Processes
• Strategies
• Tools, and
• Resources

The project approach also needs to fit the business culture. Understanding the specific tools, processes, and models used by the buyer can create a significant competitive advantage. Buyers will often focus on specific industry experience for just this reason although the contractor should also be aware of the buyer’s unique approach as well.

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Strategy

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Not all projects are equal. As a result, it is crucial to evaluate the statement of work carefully in order to determine if the project scope and deliverables are:

Project fit also becomes crucial as difficulties delivering on requirements can impact future opportunities. The more nodes in the network between seller and buyer the more difficult it can be to establish clear guidelines between projects pursued and those that are rejected.

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Conclusion

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The best projects are a win-win for both the buyer and the seller. The process for bidding on projects becomes more complicated as additional stakeholders are introduced but this can also help lessen the workload. Don’t hesitate to ask follow-up questions to ensure expectations regarding project scope, requirements, and compensation is accurately captured in the planning and contract documents. If it’s not documented there probably is not consensus on the item.

Understanding the pros & cons of both direct and indirect bidding can help your team establish its presence within a new market OR reinforce the image of the company’s brand and expertise. There is no ‘one size fits all’ approach to project bidding and so a certain level of subjectivity is inevitable. The first step is to create your competitive advantage and then explore what routes help your team to increase its visibility.

What is your team’s approach to project bidding? How does your team stand out in the crowd? Share your comments below.

Resource:

Ministry of Technology Innovation and Citizens Services. (2017, August 23). Vendor Information: Submission Evaluations and Debriefs. Retrieved February 20, 2018, from https://www2.gov.bc.ca/gov/content/employment-business/business/business-government/respond-to-opportunities/submission-evaluation-debrief