To Win New Tenders, Show Evidence of Similar Work Done
Most procuring entities require proof that your business has successfully done similar work either in terms of capacity or of a similar value.
During tendering, most procuring entities require you to provide evidence that your company has successfully done similar work. This can be both in terms of tenders of a similar nature done or tenders valued above a certain amount.
Proof of previous work done by your business can be asked for in different ways. Also, the same evidence can be presented in different structures and formats such as the following:
- Copies of previous contracts/agreements
- Copies of LPOs/LSOs
- Final project report showing the objectives and the deliverables
- Detailed case studies
- Links to or actual samples of the projects executed
- List of previous clients with either contact person details or letters of reference
Why do procuring entities ask for such evidence?
In procurement circles, this particular requirement is considered important for the following two reasons:
- Value for money. When it comes to the spending of taxpayers money, there are deliberate measures in place to ensure that the public gets value for money. So having satisfactorily executed a similar job provides some reassurance that you can do the work, if not even better.
- Show of capability. Let’s assume this is the first time that you are responding to a tender from a particular procuring entity. How are you be able to demonstrate you have the implementing capability that they are looking for? How can the tender committee objectively assess your capacity to deliver on the work if they have never worked with you before?
Legally, Section 71 of the PPRA Act (2015) articulates what is needed for the lawful Registration of Suppliers to work with the government. One of the key requirements is the ‘capability criteria that define necessary qualifications, experience, resources, equipment and facilities to provide what is being procured’.
What happens when a bidder fails to provide this proof?
Below is a Tender Evaluation report for the Provision of Consultancy Services. In it, one of the Mandatory Requirements was indicated as:
‘List of at least five current and/or past clients to whom similar services (recruitment of Chief Executive Officer) have been provided in the last five years. Reference letters should accompany the list from each of the clients.’
Well, two of the bidders failed to provide evidence of their experience in the Selection and Recruitment of Chief Executive Officer. This was a requirement by the KASNEB, the procuring entity. In evaluating the responsiveness of the bidders, the Procurement Committee posited that the two bidders were NON RESPONSIVE to the Mandatory Requirements. Hence their proposals did not proceed to the Technical Evaluation stage.
In the next Technical Evaluation, tenderers were expected to score a minimum of 70% to qualify for the Financial Evaluation. The proof of having performed works of similar nature and magnitude would have garnered the bidders a score of 40%! From the report, one of the two remaining bidders was only able to score 12%. This brought their total score to 59% hence getting disqualified from proceeding to the financial evaluation.
How about a digitized way of handling all your work evidence?
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…This article is part of the Common Tendering Mistakes blog series.