5 questions to ask at a tender debrief on "sharpen your pencil" feedback
You have attended a tender debrief because you lost your last bid and the main feedback from the tender assessment panel is to “sharpen your pencil”.
We all know the idiom….. the client wants to see you make a better offer, at a lower price the next time you tender.
How do you manage that kind of feedback in a debrief? It can be a big blow when you or your sales team have tirelessly worked away on a tender. You’ve crunched the numbers and put in your best possible bid. But have you? Did you miss something in the request for tender? Did the winning tenderer “buy the contract”? Panic sets in and your defence shackles rise.
The reality is there is no need to panic or become defensive. It is actually good news to hear this feedback. Why? Because it opens the dialogue for you to question the tender assessment panel on how you can improve on your bid next time.
Your tender debrief is actually about the buyer and not you. Remember this as the singular focus when attending a debrief so you can better understand what your buyer is looking for.
Remember…the buyer wants a competitive tender process now and into the future.
So how do you get the best possible advice from the debrief when it comes down to pricing?
Firstly, acknowledge you got your offer wrong and learn from it by asking questions. Secondly, don’t ask any specific questions relating to the winning bidder or make comments or remarks about competitors in your debrief.
Start with “Thank you for the feedback today, we greatly appreciate you opening the dialogue that our offer was not priced competitively.”
Follow this with a series of questions so you can better understand where you can improve and highlight the areas of your offer that were off the mark.
“In our schedule of rates (or lump sum price breakdown) was there a specific area of our offer that was significantly higher or lower that we should review?”
This question should provide overall feedback and pinpoint where your pricing was out. If not, continue asking further questions.“Were you aware that our offer included X, Y, and Z?”
It is quite possible that you have priced your bid to include products or services that were not specified and you have not clearly addressed this value in your bid. Or you have simply not addressed that your prices are higher because you have a better-quality product or service that may provide long term cost benefits and value for money to the buyer. Feedback in this area will determine whether or not you clearly defined your offer in your bid or not.“Was there an area of our bid that did not provide value for money for (buyer’s name)?”
Sometimes, sharpening your pencil isn’t just about the dollar figure. Value for money is a key buying factor and unless you understand the buyer’s intent your offer may not provide what they are looking for. If you are tendering to government agencies it is a good idea to become familiar with their procurement policies and rules for value for money.“How can we improve so our offer is attractive and provides value for money for (buyer’s name)?”
The buyer may or may not disclose this to you but you should still ask this question as any feedback given is better than no feedback.“Did the whole of life costs impact on our offer at all”
The whole of life costs can impact on a buyer’s decision-making process. Your competitor may have offered an alternative solution or your offer simply did not compete. Sometimes the buyer cannot justify a purchase if maintenance or operating costs are significantly higher. Ask this question so you can gauge if this was an area that impacted your bid.
Constructive feedback from tender debriefs should be viewed as an opportunity for improvement. Acknowledging and redefining your offer to align with what your buyer is looking for can help position you competitively in the future.
If you have other suggestions, we would love to hear them below in the comments.
Value for Money Government Policies
Some information on “value for money” procurement rules for Australian Government tendering can be found via the following links. Be sure to check what “value for money” policies are in place in your local state, territory, or council as they may differ. They may also slightly differ between government agencies.
Commonwealth Government Department of Finance
Commonwealth Government Procurement Rules
Department of Foreign Affairs and Trade
When you need to win your next tender submission, let’s have a confidential discussion about your tendering needs and explain how my experience and approach can help you win your next bid.