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SQ Tender Part 1 - What is required to pass?
Part 1 requires the vendor to provide their contact information, legal status, VAT number, company number, person of significant control, parent company, professional registration etc.
Where a vendor relies on a consortium and/or sub-vendor(s) (to deliver goods and/or services on its behalf, and/or the inclusion of the sub-vendor’s capacity, and professional credentials is necessary to win the contract), the sub-vendors contact information will also be required in Part 1 of the SQ Tender.
The buyer can also request that both SQ Tender Part 1 and Part 2 be completed by both the vendor and each consortium member/sub-vendor(s).
This means the submission of multiple SQ Tenders to remain compliant.
How to pass Part 1 of the SQ Tender process
SQ Tender Part 2 - What is required to pass?
If any sub-vendor/consortium member fails to provide the adequate self-declaration for the grounds for mandatory exclusion they must be replaced. Otherwise, the bid may fail.
If the vendor (a Director/sub-vendor(s)) has been found guilty of any one of the grounds for mandatory exclusion, the lead vendor will automatically fail the SQ tender and be excluded from a the tender process.
Discretionary exclusions are for the buyer to determine if the offence warrants a fail.
The buyer has the option to pass or fail the vendor based on the supporting evidence they provide with their SQ Tender response.
How to pass Part 2 of the SQ Tender process
1 - Confirm none of the mandatory exclusion grounds apply.
2 - Confirm none of the discretionary exclusion grounds apply.
OR
2 - Confirm one or more discretionary exclusion grounds apply and provide evidence relating to discretionary exclusion grounds that the buyer deems acceptable.
SQ Tender Part 3 - What is required to pass?
The following questions are relevant to every tender process and will always be included in Part 3 of the SQ Tender:
Economic & Financial Standing
If a vendor does not have 2 years financial accounts (e.g. they are a start up) they can provide other forms of financial evidence such as: balance sheets, bank reference etc.
A turnover of twice the annual contract value is acceptable as a pass/fail criteria as is a minimum credit rating score.
Vendors who fail the financial assessment are usually permitted a guarantor, (who must also pass a financial assessment) to guarantee all liabilities for the duration of the contract term.
Central government authorities may choose to supplement the SQ Tender with a Financial Viability and Risk Assessment (FVRA).
How to pass Economic & Financial Standing
Technical & Professional Ability
The two most common ways of evidencing this are:
1 - Provision of 3 references for 3 awarded contracts.
2 - Provision of sales ledger and/or invoice data.
How to pass Technical & Professional Ability
However, if you are a new start up and don't have previous experience for this reason, this can be relayed to the buyer for their consideration.
Modern Slavery Statement
This applies to vendors who are a relevant commercial organisation, as defined by section 54 ("Transparency in supply chains etc.") of the Modern Slavery Act 2015 ("the Act").
A copy of the Selection Questionnaire can be found here.
How to pass the Modern Slavery Statement
- Update your modern slavery statement every year, within 6 months of your organisations financial year end.
- Your modern slavery statement must include board/members approval and be signed by a company director or equivalent.
- Your modern slavery statement must be in a prominent place on your UK website.
However, many buyers now ask for a Modern Slavery statement regardless, so it's worth having a modern slavery statement prepared just in case.
Insurance
Insurance levels vary, but £5 -10 million employee liability, £5 -10 million professional/ product liability and £5 -10 million public liability are frequently used in the SQ Tender.
Vendors will be advised of the exact levels of insurance required in the SQ Tender.
How to pass insurance
This means there is no need (unless explicitly stated in the SQ Tender) to increase your insurance levels BEFORE you are awarded a contract.
Data Protection
The additional level of information required from vendors will be dependent on the subject matter of the contract.
For example, a contract that requires a large amount of personal data processing would require a Cyber Security Certificate, ISO 27001 accreditation and additional industry specific accreditations and assurances.
How to pass Data Protection
You must ensure all certificates, policies and procedures are up to date when you submit your tender and ideally will still be in date when the contract is awarded.
SQ Tender Part 3 - What else can be included
- Health & Safety
- Prompt Payment Systems
- Carbon Reduction Strategies
- Skills and Apprenticeships
- Steel in Major Projects
- Suppliers Past Performance
- Tackling Modern Slavery in Supply Chains
About The Author
Naomi Clews is a UK based public procurement consultant with 18 years UK tendering experience and a proven 6 year track record of helping clients to complete the SQ Tender process. Find out more here. |
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