2012 value works A5d:Layout 1
5/12/08
12:00
Page 1
Be Inspired: How Northwest businesses can benefit from London 2012
November 2008
NWDA i11-29
2012 value works A5d:Layout 1
5/12/08
12:00
Page 3
contents Foreword
Pg 2
1
What are the oppportunities for the Northwest?
Pg 4
2
Who are the main organisations and buyers involved?
Pg 6
3
How do I find out what is being bought?
Pg 9
4
What will be the economic impact?
Pg 13
5
Timeline - When is it being bought?
Pg 15
6
How will goods and services be bought?
Pg 17
7
Where do I start?
Pg 20
8
Legacy & Sustainability
Pg 26
9
Top Ten Tips for successful tendering
Pg 29
10
Business Support Where to go for further assistance
1
Pg 31
2
2012 value works A5d:Layout 1
5/12/08
12:00
Page 5
Foreword
1
‘The great spectacle of the Beijing 2008 Olympics and Paralympics, allied to the phenomenal success of British athletes, have given us a taste of what we can expect in London 2012 when the UK plays host to the world. The difference is that the London 2012 Olympic and Paralympic Games will be taking place on our doorstep. The scale of impact of London 2012 will be like something we have never seen before in the UK. Hosting the Olympic and Paralympic Games is said to be equivalent to running 27 world championships concurrently’.
Delivering the London 2012 Olympic Games and Paralympic Games is a major undertaking for the UK, requiring products, services and works to be provided from almost every business sector, including; construction, manufacturing, professional services, tourism, communication, hospitality, sport, transport, retail, food and the digital and creative industries sectors.
Andy Worthington Chair, Northwest Steering Group for London 2012.
3
What are the opportunities for the Northwest?
London 2012 is predicted to generate 75,000 supply chain opportunities. A comparatively few number of these
contracts will be let by London 2012 to Tier One contractors with most opportunities for small and medium-sized enterprises (SMEs) likely to come from further down the supply chains. There will be a significant number of companies eager to exploit these opportunities and those who will be successful must triumph in a highly competitive process. To do this, businesses must differentiate themselves from the competition.
October 2008
4
2012 value works A5d:Layout 1
5/12/08
12:00
Page 7
2
Northwest companies have the opportunity to access new business that will be created from the London 2012 Olympic Games and Paralympic Games; leading up to, during and after this prestigious event. Businesses in the Northwest are no strangers to supplying major sporting events. The hosting of the 2002 Commonwealth Games in Manchester saw 250 businesses secure contracts worth £22m. This has helped the region develop a wealth of businesses with experience of supplying products and services to major events, including the ICC Cricket World Cup 2007, FINA World Swimming Championships 2008, 2010 FIFA World Cup, Athens 2004 and Beijing 2008. As of November 2008, the number of Northwest companies registered on CompeteFor has grown to over 2,350 and over 220 of these have been automatically referred to Business Link Northwest for business improvement support. Overall, at least 59 Northwest companies have already won London 2012 contracts, 28 via the Olympic Delivery Authority (ODA), 8 via other London 2012 buyers and 23 through the supply chain of a Tier 2 contractor.
5
Northwest companies that have been supplying the ODA include KOREC, a surveying and mapping company based in Crosby, which has supplied a 3D Trimble Laser Scanner for the survey of the Weymouth Pavilion and Ferry Terminal that will form part of the venue for the London 2012 sailing events. An early winner was Watson Steel Structures in Bolton, which has won a contract from Team MacAlpine to manufacture and fabricate steel structures for the main Olympic stadium.
Who are the main organisations and buyers involved?
Organisations supplying the Games must identify and satisfy the needs of the key organisations and buyers who are ultimately responsible for the delivery of the London 2012 Olympic and Paralympic Games, and who will drive the product or service requirements. It is essential that interested suppliers understand and demonstrate how they comply with the overarching aims and objectives of the event. There are two main organisations that are responsible for the organisation, policy, delivery and legacy of the Games - the London Organising Committee of the Olympic Games and Paralympic Games (LOCOG) and the Olympic Delivery Authority (ODA).
John Armitt CBE visits Watson Steel Structures, Bolton
Many other Northwest companies have won businesses supplying other London 2012 contractors. These include a Manchester-based solicitors’ firm, who advised two of the first three companies to sign up as Tier One sponsors of the London 2012 Olympic and Paralympic Games (Lloyds TSB and Adidas).
LOCOG is the private sector body responsible for preparing and staging the Games. It has a £2bn budget, with almost all of it being raised from the private sector. This commercial revenue will come from several sources, with LOCOG receiving income from the International Olympic Committee (IOC) as well as generating its own income from sales of tickets, merchandise and, most importantly, a domestic sponsorship programme. LOCOG will let most contracts for services to deliver and stage the Games themselves, covering goods and services from sports equipment to catering. Most of these contracts will be let from 2009 onwards.
LOCOG has currently signed seven Tier One sponsors; Adidas, British Airways, BP, BT, EDF Energy, Lloyds TSB and Nortel, and Deloitte and Cadbury as Tier Two sponsors. It is expected that other sponsors will be signed up. To keep up to date, visit www.london2012.com/getinvolved/sponsorship/ The ODA is the public body responsible for developing and building the venues and infrastructure for the Games. As a public sector body, the majority of contracts (all of those exceeding EU thresholds) will be subject to EU public procurement regulations, and advertised in “OJEU” (The Official Journal of the European Union). The ODA is funded by the Department for Culture, Media and Sport, the Greater London Authority, the London Development Agency and the Olympic Lottery Distributor. The ODA will let the majority of the contracts for the infrastructure, transport and construction of the venues for the 2012 Games.
6
2012 value works A5d:Layout 1
5/12/08
12:00
Page 9
Case Study
Case Study
FINA 2008 World Swimming Championships
Learn Media illustrate how they satisfied the demands of the IOC, with their solution to the 2008 Beijing Olympics.
The World Swimming Championships 2008 Ltd (“WSC08”) was created in 2005 by public sector stakeholders as a time-limited organisation to plan and deliver the FINA 2008 World Swimming Championships event, however FINA was essentially the rights holder, and its vision had to be achieved. This had implications for tendering organisations as illustrated below;
VISION
IMPLICATIONS
SUPPLIER SOLUTION
FINA envisaged the event as
The challenge to suppliers was subsequently to demonstrate
Concept Staging, a Lancashire organisation provided
“Swimming like you’ve never seen it before”
Innovative qualities in service/product offerings in order to provide entertainment
black flooring around the pools. This provided a strong contrast with the water and televised well. It was the first time black flooring was used for FINA swimming events; and promoted the vision to take the event to a new level
Concept Staging, the chosen supplier, showed understanding and conformance to FINA aims in how its product could help FINA to deliver its vision for the event.
7
Learn Media, established in February 2008, is a new entity as a company, although the Directors have over 35 years experience managing businesses at a senior level between them, and possess a wealth of knowledge and resource. Working with some of the world’s leading companies, Learn Media provide corporate businesses with true blended solutions in training and consultancy, to improve performance. Learn Media have provided solutions to the 2006 Melbourne Commonwealth Games and to the Beijing Olympic Committee Organisational Group. The Beijing Organising Committee of the Olympic Games (“BOCOG”) was accountable for the on time, in budget procurement and delivery of the 2008 Beijing Olympic Games Facilities assuring minimal environmental and human impact. Attributable to the Athens experience, and the huge risks associated with Olympics procurement processes, the International Olympic Committee (“IOC”) necessitated that organising committees report on risk management procedures and practices. To combat these risks and satisfy reporting responsibilities, a Risk and Opportunity Management System “ROMS” was developed, by a team at Tsinghua
University in partnership with Martin Loosmore’s team in University of New South Wales, and with involvement from directors of both Learn Media and Cell Media. Through a series of workshops the main risks and opportunities associated with the Olympic projects were identified, evaluated and ranked in order to develop preconceived control strategies for their resolution. This resulted in a weighted analytical hierarchy map, which is a practical, learning and consultative tool. This user friendly web-based system can be used by project managers involved in each project. To assure its successful implementation and ongoing use, the system required a change in behaviour of the users and this was achieved by effective training. On the back of its successes, ROMS has recently been awarded The Chartered Institute of Building (“CIOB”) 2007/2008 International Innovation Award for research and development. For further information please see
www.risk-opportunity.com
8
2012 value works A5d:Layout 1
3
5/12/08
12:00
Page 11
How to find out what is being bought?
Contracts for London 2012 will comprise both direct opportunities whereby the supplier will engage directly with the Games’ supply chain and indirect opportunities; where businesses will use the wider opportunities associated with the Games, such as new infrastructure projects or increased tourism to leverage their current operations. London 2012 want to work with Northwest businesses to help deliver the venues and infrastructure required to deliver the Games and to create a lasting business legacy of fitter and stronger companies. The Northwest Regional Development Agency is providing £2 million of funding to support the delivery of the London 2012 Business Network in the Northwest and to provide help for businesses wanting to prepare to compete for London 2012 contracting opportunities. Amongst these opportunities will be those that you would expect, such as those relating to the infrastructure and services for the Games, as well as a multitude of other opportunities that may not initially spring to mind. In this respect, it is critical to think ‘outside of the box.’ Equally, it is vital to recognise that organisations are not only seeking hugely innovative offers, but that there is an immense requirement for the most commonplace of products and services.
It is important to think laterally when considering the opportunities; • Welfare, logistics, catering and creative services will be required not only for The Games, but also for the construction teams involved with the preparation and building of the Olympic Park. • Test events will be held in many of the venues being used for London 2012, most likely during 2011. • Not all requirements will be in London or the South East – London 2012 venues will be situated in other regions of the UK as will potentially Pre Games Training Camps. Other activities linked to the Cultural Olympiad, Torch Relay and locally organised activities will be organised outside London. • Not only will visitors to The Games require accommodation, food and transport but they will also be spending money on souvenirs and entertainment. • In addition to The Games themselves, suppliers should consider the opportunities arising from the Cultural Olympiad, a nationwide programme of events taking place between 2008 and 2012.
• The regional cultural programme, WE PLAY to be launched in spring 2009 will see a whole series of events around three themes: - Body and Economy: Engaging people in debate through film and digital culture; - Play and Space: Providing adventures through outdoor events and street arts; - Routes and Trails: Connecting people, cultures and locations. The WE PLAY project utilising the £3m funding from the Legacy Trust UK for the Northwest, will form part of the Legacy Trust UK national programme and complements the regional contribution to the Cultural Olympiad. Many of these events will need to procure goods and services procured as these events go into production covering areas such as design, project management, production, technical staff, research, marketing and creative services.
included for Olympic and Paralympic sports (67 and 25 respectively). This includes facilities from each sub-region and is one of the highest representations from across the UK, demonstrating the strength of the region’s sporting facilities, its track record of hosting major sporting events and its excellent communications infrastructure. The Pre Games Training Camp Guide was launched at the Beijing 2008 Olympic and Paralympic Games and can be viewed online at: www.london2012.com/trainingcamps • Major Sport Events - It is also expected that London 2012 could also be a catalyst for generating growth in the wider sport sector. For example, it is anticipated that London 2012 could increase the number of major sporting events attracted to the UK, in the lead up to and post 2012, thereby generating even more business opportunities for Northwest companies.
• Pre Games training facilities in the Northwest - In Spring 2008, LOCOG announced the list of facilities to be included in the official London 2012 Pre Games Training Camp Guide. In total, 92 facilities from the Northwest have been
Cultural Olympiad - Neon Attractors
9
10
2012 value works A5d:Layout 1
5/12/08
12:00
Page 13
Case Study
Major Events in the Northwest The Northwest has been successful in winning major national and international events, which contributes to an improved image of the region, as well as generating economic benefits. Since 2004, events supported by the NWDA have generated £98.4m for the regional economy. The following events are planned in the Northwest over the coming years: Future events • UCI Track Cycling World Cup Classic 2008, 2009 and 2010, Manchester • Liverpool Biennial 2008, 2010 and 2012 • Manchester International Festival 2009, 2011 and 2013 • LEN Women’s European Water Polo 2009, Manchester • Great North Swim 2009 and 2010, Windermere • World Netball Series 2009, 2010 and 2011, Manchester • European Mixed Team Championships 2009, Liverpool • European Badminton Championships 2010, Manchester • World Men’s Lacrosse Championships 2010, Manchester • Open Golf Championships 2012, Royal Lytham & St Annes In addition, businesses that are successful in supplying London 2012 will be well-placed to benefit from upcoming national and international sporting events. • Glasgow 2014 Commonwealth Games 2014
www.glasgow2014.com
• 2010 Commonwealth Games – Delhi
www.commonwealthgames2010.com
• 2010 FIFA World Cup – South Africa
www.fifa.com/worldcup
• 2010 Winter Olympic Games and Paralympic Games – Vancouver
www.vancouver2010.com
• 2014 Winter Olympic Games and Paralympic Games – Sochi -
www.sochi2014.com
11
Byrom Plc Byrom PLC is a Northwest business with expertise in providing ticketing, IT solutions, hospitality and ground transportation for major sporting events. Byrom have a key relationship with FIFA. Having operated the largest International Tour Operations for the 1986 and 1990 FIFA World Cups™, they were retained by the Local Organising Committee for the 1994 FIFA World Cup USA™, charged with handling all the accommodation requirements for the event. By the creation of bespoke software, Byrom managed the largest accommodation resource ever assembled, with over 3.2 million room nights in over 600 hotels. The relationship with FIFA has developed into other operational areas, including ticketing, IT solutions, hospitality and ground transportation. Through its subsidiary MATCH Services AG, Byrom has secured a contract to provide the turnkey solutions in ticketing, accommodation, Tour Operator programme and IT solution for all FIFA events through to 2015. Running parallel to their long term relationship with FIFA, Byrom has enjoyed working with Organising Committees of over thirty major sporting events, including Commonwealth Games, Pan American Games, Asian Games, Asian Cup and notably golf’s pre-eminent team competition The Ryder Cup. Byrom’s current contract for the Ryder Cup has recently been extended until 2014. Their previous experience in hosting major events on an international scale placed Byrom in a strong position to tender for accommodation and ground transport for the FINA World Swimming Championship in Manchester. Byrom began by identifying the business opportunity, which was advertised on the Manchester City Council website.
Although Byrom has not previously supplied to a major swimming event or even competed in a public tender there was a close fit between the services they offer, their capabilities and the requirements for the FINA event. The event proved to be bigger and more popular than originally anticipated, however Byrom’s experience of managing FIFA World Cups and other major events ensured that they had the infrastructure, systems and processes in place to successfully manage the project. John Parker, director at Byrom was pleased to find that the 2002 Commonwealth Games had left a legacy of retained knowledge and experience within the Northwest. Consequently local hoteliers, and transport providers already had familiarity of event, specific requirements, including athletes food plans and training and preparations prior to the event. Byrom has delivered a major programme of hotel accommodation and transport to the World Swimming Championships in Manchester, generating significant business opportunities for its suppliers in the region. The 9th FINA World Swimming Championships was an opportunity for Byrom to exploit previous experience and provide complementary services to the event. This will provide a valuable reference point when bidding for future opportunities, demonstrating their ability to use transferable skills, processes and systems. Further information please see
www.byrom.plc.uk 12
2012 value works A5d:Layout 1
4
5/12/08
12:00
Page 15
What will be the economic impact?
According to Lloyds TSB’s Chief Economist, Trevor Williams, the Games will result in a “boost to UK businesses of £21bn once all peripheral activity, infrastructure improvements and additional tourism are taken into account”. • South East - £8.6bn • North and Northwest - £4.4bn.
The ‘Beijing Effect’ The Beijing 2008 Olympics and Paralympics has given us a taste of what we can expect in London 2012 when the UK plays host to the world. Over 70 athletes born or currently living and training in the Northwest competed in the Beijing Olympics and Paralympics, and it is important to acknowledge and celebrate their achievements.
• Midlands - £3.2bn • South West - £1.7bn • Scotland - £1.7bn The economic impact of the Games is vast and combines both direct and indirect opportunities. When Sydney staged the 2000 Olympic Games and Paralympic Games, businesses in New South Wales won the equivalent of £400m worth of contracts, 55,000 people received employment related training and by 2001 Sydney had made over £2bn from Games-related tourism.
Here in the Northwest, anecdotal evidence suggests that the impact of British athletes’ success in Beijing has resulted in a huge spike in sporting interest and activity, for example: • A major supermarket reported that sales of swimsuits and goggles rocketed by 135% in August 2008 and sales of horse-riding-related products jumped by more than 130% (Source: The Independent). • Sales of official adidas London 2012 branded merchandise exceeded all expectations in the first week of Handover, with sell-out items in the adidas Sports Performance Store in London. • Sporting venues and facilities in Manchester have reported a rise in user numbers, with visitors to Manchester Aquatics Centre 30% higher compared to August 2007. Use of Manchester Velodrome is at an all time high and whole track hire is fully booked until spring 2009.
• Liverpool Victoria, Warrington, Runcorn and Agecroft Rowing Clubs have all seen a notable increase in membership applications. • Google searches for sports clubs peaked compared with previous years. The Agecroft Rowing Club and Manchester Wheelers Cycle Club, for example, found the number of visitors to their website rose by 50% compared to August 2007. • Liverpool University gym membership has increased by around 50% this year. The sports team has received more enquiries than ever about judo and canoeing clubs. • Kendal Judo Club, a London 2012 Pre Games Training Camp Guide venue, reported an increase of 20% in bookings for its autumn programme, compared to 2007.
14
2012 value works A5d:Layout 1
5
5/12/08
12:00
Page 17
Timeline - When is it being bought?
Over the course of the next 4 years, contract opportunities will arise at different times in the lead up to 2012. Contract opportunities will be communicated at: www.london2012.com/business. This information, in conjunction with understanding of industry procurement processes, will enable them to predict requirements. The key is not to be complacent, act now!
2012 value works A5d:Layout 1
6
5/12/08
12:00
Page 19
How will goods and services be bought?
London 2012 contracts will be broken down into various sizes across different tiers. Tier one will comprise of; main contractors, Tier two; suppliers, Tier three; suppliers of more niche goods, and so on. These tiers will involve other subcontractors. Major contractors are required to make available a proportion of their supply chain, and publish these contracts to the benefit of SMEs - do not be afraid to contact them for this purpose. The benefits from showcasing yourself to these organisations, leveraging opportunities, and the new relationships forged could be immense. CompeteFor is the chosen website of London 2012 for the publication of Gamesrelated contract opportunities. Once published on CompeteFor businesses will automatically receive news of future tender opportunities. It acts as a brokerage service between buyers throughout the London 2012 supply chain, and potential suppliers. CompeteFor also provides access to business support services; building skills and capacity to ensure that businesses across the UK can access opportunities linked to the hosting of the London 2012 Olympic and Paralympic Games. Up to 20% of London 2012 supply chain opportunities are expected to go through CompeteFor. The ODA and LOCOG will advertise their direct contract opportunities online through CompeteFor and direct London 2012 contractors appointed will also be encouraged to advertise their contracts on CompeteFor.
Do I meet the minimum requirements for CompeteFor? All suppliers registering on CompeteFor should, as a minimum, meet the following business readiness criteria and have in place: • A Health and Safety policy (if more than 5 people are employed); • A Quality Management Statement. This need not be a formal accreditation such as ISO9001, but businesses will need to document processes and policies demonstrating how they ensure consistency in quality; and • An Equality and Diversity policy. In addition, suppliers should also have insurances for public liability and employer’s liability. Professional indemnity insurance may also be required, depending upon the services you provide.
Other public sector procurement? Tendering for public sector contracts can be an extremely rewarding process, and there are several ways in which organisations can prepare, and build on experience to improve their chance of success. This is demonstrated by the experience of FT Finley overleaf. The Chest is the Northwest's public sector procurement portal and has been created with funding from the North West Centre of Excellence. It will help local authorities and other organisations in the public sector to get better value from their buying, and provide suppliers with easier access to new business opportunities and contracts. Suppliers can register on The Chest via the Suppliers’ Area. Registering is simple and means that suppliers will receive email updates on new contract opportunities issued by public sector organisations (who have also registered) that match their capabilities. There are a number of websites and business tools providing links to public sector tender opportunities, and which can provide detailed guidance on how to proceed. Further information can be found at Section 10.
It is likely that the majority of tendering will be done electronically. Contracts will be awarded to businesses that reflect London 2012’s procurement policies and values. The ODA’s procurement policy can be downloaded from www.london2012.com/business 17
18
2012 value works A5d:Layout 1
5/12/08
12:00
Page 21
7 Case Study
There are several key steps that you can be followed to help businesses capitalise on the opportunities being generated as illustrated below;
FT Finley FT Finley, a small family run business specialising in planned maintenance and refurbishment in the Greater Manchester area, has achieved great success in public sector tendering. Established in 1976, and now employing 45 staff, FT Finley realised their first ‘big win’ with their place on a GM Procure framework. GM Procure is a consortium of social housing providers with stock primarily in the North West, who aim to generate efficiencies and impact local labour markets by working together to jointly procure a wide range of goods and services. The opportunity was discovered by FT Finley through local research and networking. They found the restricted two stage tender process, which was published in OJEU quite time consuming. It involved the completion of a Pre-Qualification Questionnaire, and an invitation to tender for those successful.
Where do I start?
Although FT Finley already had the basic policies and processes in place at the time of tendering, they have used the experience gained as a platform to work towards the internationally recognised “ISO” standards, and are currently seeking to achieve Investors In People Standard (“IIP”). Jason believes that achieving these standards may enable them to get a “leg up to the next level.” The business has experienced better payment terms, and more steady workload; amongst other benefits of working for public sector customers. Winning this contract has enabled FT Finley to progressively increase their client portfolio, experience, gain references for further work, and win further public sector contracts. They have experienced a growth of 30% over the time that they have been on the framework. For further information please see www.ftfinley.co.uk
Jason Finley, Operations Manager at FT Finley, would advise companies tendering for contracts of this nature to be prepared for the amount of work involved, and act early. He says that they should leave plenty of time to complete the questionnaire and pricing tender, making certain that they ask questions early on in the process to ensure time to respond appropriately.
19
20
2012 value works A5d:Layout 1
5/12/08
12:00
Page 23
How do I find and identify the opportunities? Research the market and the opportunities available: Understanding your market, buyers and position is imperative. Internet research of published business reports, national press and trade associations form a good basis. Register for CompeteFor and on other portals: There are a number of online portals that can assist you in finding opportunities; • CompeteFor www.london2012.com/business • OJEU: The Official Journal of the European Union (“OJEU”, formerly known as OJEC) is the portal through which all public sector contracts valued above a certain threshold must be published. There are different threshold values depending on whether contracts relate to supplies, services or works, and their categorisation in OJEU. Further information can be found at www.ojec.com. • Other portals: Including Tenders Direct, Supply to Gov, and Tenders Electronic Daily.
7. Visit CompeteFor regularly – new opportunities are being posted on the site on a regular basis and sometimes the business criteria matching may not match your business exactly.
Further Help - If you need assistance contact the CompeteFor Help Desk via the website or by calling 0845 217 7804 (Mon-Fri 9am-5pm).
Implement a process to frequently check for new opportunities: Be proactive; new information is being released daily, and it is critical to avoid missing anything as tender periods can be short. Since the launch of CompeteFor in January 2008, over 600 contracts have been advertised on CompeteFor. Identify when opportunities are likely to arise on procurement timelines; nominate one person in your organisation to regularly review key information sources, and keep an eye on the press.
Businesses registering on CompeteFor should follow these easy steps: 1. Log on to www.london2012.com/business and register for CompeteFor. 2. Registering – after entering basic company information, any interested business can view the opportunities advertised. 3. Complete your Business Profile – by answering a series of simple questions, to be able to compete for opportunities. 4. Publish Your Business Profile – proceed to the Publish tab and click the publish button. If you meet the CompeteFor business readiness criteria your profile will be published immediately, if not Business Link Northwest will get in contact to offer you support. • A company’s business profile is automatically tested against a small number of minimum standards – does your company have a health & safety policy, equality policy and quality management statement? If these requirements are not met the company is automatically referred to tailored, local business support provided by Business Link Northwest. 5. Select your email preferences – after publishing, set up your email preferences to ensure that you are kept informed of new Opportunities that match your Business Categories. Select Email Alerts from the left hand menu to set your preferences. 6. Applying for Buying Opportunities – companies published on CompeteFor will be automatically matched to opportunities according to the business categories selected and invited, by email, to apply for them by filling out a short, tailored application form. • The buyer advertising the contract then selects a shortlist of companies and invites them to formally tender through the buyer’s own procurement system. Details of the winning bidder(s) are published on CompeteFor and unsuccessful bidders receive feedback from the buyer. Throughout the process Business Link Northwest are on hand to help companies maximise their chances of success. 21
Contact major suppliers and those who have been, or are likely to be awarded business: You may be able to act as a lower tier supplier or seek advice from those who have succeeded in previous events. Use CompeteFor to identify companies that have already been successful in winning work, and identifying potential new customers. A review of current and historic customers may highlight further opportunities. Consider not only the needs of London 2012, but also the specific needs and aspirations of the major suppliers in order to determine whether you share the same ethos and business approach and whether your processes are compatible. Some major design and construction contracts have already been awarded via the London 2012 Business Network. Details of the contractors appointed can be found at: www.london2012.com/business A list of companies who have been awarded contracts to supply direct to the ODA can be found at; http://www.london2012.com/get-involved/business-network/odasuppliers/index.php Network with your buyers – attend ODA industry days: Attendance at these events is essential as they are the primary opportunity for the ODA to provide valuable information regarding their supplier requirements. These events provide an excellent opportunity to gain contract information and ask valuable questions which may be advantageous to your tender. Bidders must register with the ODA directly to express their interest in attending these events. Further information on the ODA events can be found at section 10.
22
2012 value works A5d:Layout 1
5/12/08
12:00
Page 25
What are the key areas that I need to consider? The following are generic tender requirements that you can prepare in advance; they may help you to stand out and achieve a higher tender score. Processes & Policies: Prove not only their existence, but their effectiveness in practice. Show forward planning, risk mitigation, contingency plans, monitoring processes and escalation procedures. Explain also how these processes are communicated and managed. Demonstrate your environmental policy, and describe how you meet the current and future needs of your workforce. Review and understand the implications of the Terms and Conditions of the buyer that you will be contracting with. Capacity: Demonstrate capacity to meet the buying organisation’s requirements. This should be in terms of staff, finance, workload, and geography. Consider other bids that you are tendering for, and the impact on resource should you win more than one. If you do not currently have the required capacity, progressively grow your business with smaller contracts prior to the Games. Establishing local presence and knowledge through local offices and staff may be appropriate in order to meet client needs. Byrom PLC, who is providing ticketing and accommodation services to the FIFA 2010 World Cup, has set up an events offices in South Africa to deliver the project. Capability: Prove you are capable of satisfying the needs of the tender by promoting the relevant skills and experience of your organisation. Illustrate with customer references and your proposed staffing structure (including staff qualifications). If you require further skills, invest in training, whilst considering the future implications. A possible solution could be to up-skill your core staff, and take on part time/temporary employees to meet the increase in demand. Finance: Verify your financial stability. Buyers will seek assurance that you have sufficient working capital available to fund the contract, and that your business is not at risk from over-dependence on a small number of clients. Ensure that your banking facilities are sufficient to meet future working capital demands and that you can adequately fund any additional resource/capital expenditure.
23
Positioning – The opportunity looks right, how do I gain the interest of the buyer? Once you have identified a potential opportunity, you will need a marketing strategy. It is essential to identify and understand your potential customers, know their characteristics, and identify how you will satisfy these through the unique selling points of your product and/or service. This will ensure that your offering is priced, positioned and promoted correctly, targeting the right audience in the right way, at the right place and time, to sell your offering. How do I make myself known? An effective, focussed communications strategy is imperative to promote your product and/or service. There are many ways to communicate with your audience to generate business, such as; direct marketing (letter drops), PR, Networking, Trade fairs and online marketing. What qualities should I focus on? Identify what will appeal to your target audience, consider; • What the buyer wants; • What you do well (strengths); • What you do better than your competitors; Surveys, product testing and attendance at trade fairs can help gauge attitudes towards your offering. The Royal mail website shows success rates of various communications http://www.royalmail.com/portal/rm/content1?mediaId=600089&catId=400098.
Tendering – What if I don’t win? Not everyone can win every tender they apply for. The experience should be used to your advantage. You should seek feedback following every unsuccessful (and successful) bid and use this to assess your strengths and weaknesses to improve your position to secure future bids.
Finding a Partner ...Case Studies To increase capacity, or to enhance your offer, businesses may benefit from collaborative bids with other organisations. It is beneficial to allow your partnership time to develop and if possible, gain experience working on other projects together to develop your track record. It is advantageous to demonstrate how you work collectively and manage communications effectively to deliver on time and on budget.
24
2012 value works A5d:Layout 1
5/12/08
12:00
Page 27
8 Case Study
Legacy & Sustainability
London 2012 and Sustainability
Made in Manchester and Dinosaur Made In Manchester Productions; a media company, and Dinosaur; an advertising, branding and design agency who were both relatively small at time of bidding for the FINA 2008 World Swimming Championships, reaped the benefits of joining forces to provide an unrivalled, integrated PR, communications and design solution. Made in Manchester Productions, is a Manchester based media company; working across radio, television, new media and PR, with commissions and contracts across a whole range of sectors. The company was set up in May 2005 by James Hickman (World Swimming Champion) and broadcaster and journalist Ashley Byrne. The wider team is made up of highly experienced in-house and associated freelance professionals.
Dinosaur was set up in 1999 with a vision for an agency that wasn’t run under a stuffy hierarchy but which was instead, more organic and innovative. Dinosaur first made an impact with an iconic campaign for Selfridges and today the agency provides the advertising, branding and design for an increasingly diverse range of clients spanning sectors including retail, food, energy, FMCG, entertainment, sport & leisure and property.
As well as being an international sportsman, James also has strong media links including associations with the BBC and ITV. As a result of his vast involvement in international swimming, James knew about the 9th F.I.N.A. World Swimming Championships in advance, and was alerted to the opportunity through his repertoire of established media contacts. Subsequently James was well positioned to effectively plan and prepare his organisation for the prospect. Made In Manchester and Dinosaur, existing business acquaintances; established a business alliance solely for the purpose of this contract. Due to their strengths, and experience each organisation was incredibly interested in, and determined, to capitalise on this opportunity, despite neither being able to satisfy all of the contract requirements independently. The two organisations successfully worked together, resourcefully pooling each other’s strengths, to produce an integrated bid, satisfying all of the contract requirements. Dinosaur provided design expertise, experience of working for Manchester City Council events, running full below the line campaigns, and familiarity of such tendering processes. Made In Manchester, amongst a wealth of other things, was able to offer a comprehensive knowledge of the sporting and media aspects. Together, they had an unrivalled understanding of all fields, and a local Manchester base, which consequently resulted in a highly competitive proposal to the council. Through bidding together, they were even more desirable to the client who would have to spend less time handling the communication and management of multiple contracts. Both companies have used their success in this event to promote their business and subsequently to win further contracts.
London 2012 share a commitment to maximise sustainability through all phases of the Games - building the venues and infrastructure, staging the Games themselves and then long into the future. Further information on London 2012 policies can be found at: www.london2012.com/sustainability
Sustainability – How do I achieve this, and what does it mean to me? Sustainable development and resource efficiency can be achieved by your business through managing the economic, social, and environmental impacts of the Games. Each of these mutually beneficial factors occurs for the same four motives; • Profit • Politics • Legislation • Social
Efforts can be as small as waste management through the recycling of paper and packaging, or as large as capital investments and process changes. A simple methodology (in order of preference) is; Avoid, Reduce, Replace, Return, Reuse, and Recycle. Responsible sourcing and ethical supply chain management are critical factors influencing procurement for the Games. All suppliers should be aware of the BS 8901:2007 ‘Specification for a Sustainable
Improving the sustainability and resource efficiency of your organisation, demonstrates compliance with legal requirements, and generates financial profit by reducing the cost of waste. Furthermore your public image will improve, generating social benefits and further financial gain from buyer preferences towards responsible suppliers.
Event Management System’. Buyers will seek suppliers who have considered the legacy, ethics and sustainability of their product/service. You can illustrate this with environmental and sustainability management systems, equality and diversity policies, and workforce development programmes. Show that you are aware of the issues relating to sustainability, that you appreciate their importance and that you behave responsibly. In order to differentiate yourself to buyers, go beyond the minimum expectations and show consideration of local social and economic benefits relating to your bid.
For further information please see www.madeinmanchester.tv and www.dinosaur.co.uk
25
26
2012 value works A5d:Layout 1
5/12/08
12:00
Page 29
Case Study Manchester International Festival Manchester International Festival (“MIF”) - which is the world’s first international festival of original, new work - was held between 28 June and 15 July 2007, and took into great consideration the issue of sustainability. Since sustainability, is a huge current concern, and will impact the legacy of the event; MIF forged a number of allegiances with sustainability experts, including Organise This, a Manchester based company producing events designed to positively impact the environment and surrounding communities. From this commitment, it was decided to trial the implementation of BS 8901:2007, a new specification for a sustainable event management system. BS 8901:2007 sets out the requirements for planning and managing sustainable events of all sizes and types, supplemented by guidance on how to meet, and surpass, these requirements. It is aimed at event organisers, venues and organisations, and/or individuals in the supply chain. The standard guides towards realisation of a sustainable event, and requires time, education and commitment to implement. These efforts however can be more than compensated by the environmental, social, and economic benefits to be gained, regardless of the size of the organisation. For organisations wishing to use the guidance, there are a number of resources available to assist and advise them. MIF carried out a small scale trial of the standard across 4 different MIF events. For each event MIF followed three stages to effect the requirements; pre-event planning, event monitoring and post-event development. Prior to the start of the Festival, a Sustainable Development Policy was formulated through a number of meetings, whereby key objectives and performance measurements were established in respect of each activity, to measure and monitor, the social, economic and environmental impacts.
There are huge improvements that can be made both environmentally and for the business itself, regardless of the size of business in question. The case of Manchester Rusk Company below provides a significant illustration
Case Study Manchester Rusk Co Ltd Manchester Rusk Company (“MRC”) is a premier supplier of high quality glazes, marinades, coatings, seasonings and sauces for use in the food industry. Established for over 30 years, MRC is a privately owned Manchester based family business which employs 35 people. MRC has significantly improved the impact of its operations on the environment through several key initiatives; this has been aided using government grants, obtained with the assistance of ENWORKS; a unique business support programme co-ordinating environmental advice, training and support to businesses throughout the Northwest of England. When relocating to new purpose built premises, MRC capitalised on the opportunity to implement a number of environmental improvements which have reduced their carbon emissions, lowered operating costs, and increased productivity. This was achieved predominantly by installing insulated ceilings, double glazing, a bespoke energy management system controlling gas consumption, a water meter, and electronic timers on all water heating and cooler units to control usage. Waste management has also been significantly improved by MRC following an energy efficiency project, through; segregating recyclable wastes at source, and installing a twin chamber baler. As a result, MRC has achieved the following; • 12 tonnes p.a reduction in carbon emissions • 95% reduction in the amount of waste sent to landfill • Reduced costs of waste handling and utilities; • 75% reduction in the number of waste collection vehicles entering and leaving site resulting in £10,000 p.a cost savings, including a 50% decrease on fuel costs; • 60% reduction in energy costs;
Throughout the events, levels and causes of; waste, community involvement, energy, economic impact, and carbon emissions were recorded, relating to venue, accommodation, food and drink, transport, marketing, communications, and back office. The trial was audited, to ensure adherence to BS 8901 requirements. Following the event, recommendations were formulated based upon lessons learned, to benefit and improve sustainability at future MIF events. Since no other country has yet established a comparable standard, those adhering to the requirements on top of the environmental, social, and economic gains, may achieve competitive advantages, and benefit from buyer preferences.
David Wheeler, Production Manager at Manchester Rusk Company says “Good environmental practices should be at the heart of everything a business does - both in terms of environmental impact and cost reduction.” For further information please see www.mrcflava.co.uk
For further information please see www.manchesterinternationalfestival.com
27
28
2012 value works A5d:Layout 1
9
5/12/08
12:00
Page 31
Top Ten Tips for successful tendering
1.
Identify tendering opportunities; Register and publish your business profile on CompeteFor and other tender alert services.
2.
Be prepared. Establish policies and procedures, determine technical and financial standing.
3.
Express an interest in the tender; Contact the contracting authority to express your interest and to receive tender documents.
4.
Read all tender documentation in full; understand the information requested, and identify the evaluation criteria; If uncertain, contact the client - details are usually provided in the tender advertisement.
7.
- Emphasise your unique selling points - what can you do better than your competitors?
8.
- Focus on the evaluation criteria - this must be disclosed for EU tenders, and allows tenderers to understand client areas of key focus, to tailor their response specifically to the project.
5.
- When considering tendering, calculate the cost to your business of submitting the tender and only bid where the resources that you need to invest correspond to the likelihood of success albeit never under estimating your business. - Contracts are unlikely to be awarded if they represent more than 20-25% annual turnover of an organisation. Consider the contract value before submitting a bid.
6.
Attend contractor / supplier information events; These may be hosted prior to the closing date and can provide a valuable opportunity to gain additional information about client requirements.
Respond fully to the requirements of the tender; - Fully respond to all questions within the tender or you will not achieve maximum marks. Even if you have worked with the client previously you still need to answer questions and fully demonstrate your capability and experience. You will be scored solely on the information you provide rather than previous performance with the client. - Some clients may issue a Pre-Qualification Questionnaire (PQQ) which is used to short-list suppliers. If bidders fail to submit all the information required then they may not be shortlisted to the tendering stage. - Check your tender for accuracy – use spell check, read thoroughly and avoid any cut and paste errors.
Establish the fit with your business strategy and capabilities; Identify what the buyer wants, and how you are positioned to satisfy these requirements. Apply only for what you can deliver and can do better than your competitors; you’re more likely to be successful if you are realistic, sell yourself well and exceed expectations. - Determine the fit with your company aims, vision, growth plans, core capabilities, values, overall strategy and existing products / services.
Demonstrate any added value or unique elements of your business relative to the tender specifics; If your business offers products or services that are of additional value to the client then state them within your bid submission to generate additional marks.
- Ensure that your tender is in an easy to read format, or the format specified by the client.
9. 10.
Use any templates provided by the client; Some clients require tenderers to use an envelope template or other specific formats, such as electronic tenders when submitting their tender. Failure to do so can result in disqualification. Submit your tender on time; Ensure you know the tender deadline, that you have sufficient time to submit your tender and that you will be ready for the project start. - The closing date is usually clearly identified, including the time and place of delivery. Late tenders will not be considered. - Following your tender submission you may receive requests for tender clarifications. Ensure that you respond to any such requests promptly and in full.
Business Link provides a wealth of information on how to successfully prepare, and tender for contracts, this can be found at: www.businesslink.gov.uk
29
30
2012 value works A5d:Layout 1
10
5/12/08
12:00
Page 33
Business Support Where to go for further assistance? Information Source
Advice, assistance, guides and business resources
Business Events
London 2012 Publications
Contact
Business Link Northwest
• Call 0845 00 66 888 • Email games@businesslinknw.co.uk • Visit www.businesslink.gov.uk/northwest
NWDA
www.nwda.co.uk
London 2012 Business Centre
Information Source
Policies
www.london2012.com/business
www.ted.europa.eu
Supply 2gov
www.supply2.gov.uk
Consortia
www.lupc.procurement.ac.uk www.procurementcontractsscotland.gov.uk
Geographical
www.nwda.co.uk
London 2012 contracts
www.competefor.co.uk
• A list of additional events can be found at; www.london2012.com/get-involved
Third Party Websites
www.achilles.com/Group/Services/default.htm www.constructionline.co.uk
www.london2012.com/news
OJEC
www.ojec.com
http://www.london2012.com/about
FREE Northwest Local Authority Tendering portal
www.thechest.nwce.gov.uk
Information regarding the use of the London 2012 brand
List of suppliers to the ODA
www.london2012.com/get-involved
London 2012 branding information on London 2012 no marketing rights for suppliers
www.london2012.com/about
ODA Procurement status
http://www.london2012.com/documents
London 2012 tenders CompeteFor
Visit www.competefor.com Call Helpdesk on 0845 2177804
London 2012 Pre-Games Training
http://www.trainingcamps.london2012.com
Tendering for public sector contracts
http://www.supply2.gov.uk/pdfs/file39469.pdf
Office of Government Commerce
www.ogc.gov.uk
Environment Connect
www.environmentconnect.co.uk FREE diagnosis available by calling 0845 00 66 888
Sustainable Event Management - new British Standard
http://www.bsi-global.com/en/Standards-andPublications/IndustrySectors/Environment/more-products/BS-8901/
Learndirect courses
www.learndirect-business.com
Regional business events
www.businesseventsfor2012.co.uk
ODA Industry Days
• Register on CompeteFor to receive further information, and invitations to these events.
Link to all London 2012 publications
Identifying Opportunities
www.london2012.com/documents
Cultural Olympiad national and regional activities
http://www.london2012.com/get-involved
ODA Procurement Policy
www.london2012.com/business
Sustainability
www.london2012.com/sustainability
Procurement and Tendering Support
Sustainability Support
Training
31
Tenders Electronic Daily (Official Journal of the European Union)
(public sector opportunities below EU thresholds)
London 2012 Branding
London 2012 Pre-Games Training Camps and regional activities
Contact
32
2012 value works A5d:Layout 1
5/12/08
12:00
Page 35
Further Information For more information please see the following: Publications: Be Inspired – Northwest Legacy Framework for the 2012 Games www.nwda.co.uk/publications Websites: For information on the London 2012 Olympic Games and Paralympic Games: www.london2012.com For information on Northwest specific information: www.london2012.com/inyourarea For information on how the Northwest is engaging with the London 2012 Olympic Games and Paralympic Games: www.nwbeinspired.com For information on the London 2012 Business Network: www.london2012.com/business For information on CompeteFor: www.competefor.com For help in preparing your business for London 2012 business opportunities: www.businesslink.gov.uk/northwest To register for regional London 2012 business events: www.businesseventsfor2012.co.uk For information on Pre Games Training Camps: www.london2012.com/trainingcamps For information on the Government’s Legacy Action Plan - ‘Before, During & After’ : www.culture.gov.uk Contact details: enquiries@nwbeinspired.com northwest@london2012.com
This document is available in large print, braille, audio tape and the following languages; Bengali, Chinese, Gujarati, Somali, Urdu and Hindi. Please contact the Marketing Department on 01925 400100
33
34