How to pass the SQ tender process

SQ Tender FAQ

Independent government procurement consultant Naomi Clews answers your burning questions: 

What is the SQ Tender? How do I pass the SQ Tender process? Do my sub-vendors have to complete an SQ Tender process too? 

What is SQ an acronym for? 
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SQ is similar to the acronym for square but it is the procurement acronym for Selection Questionnaire. 

What is the SQ Tender?

The SQ Tender is a procurement tool used to determine if a vendor has passed or failed the minimum criteria required to deliver a contract on behalf of the UK government. 

The SQ Tender consists of 3 parts.

Part 1, Part 2 and Part 3 of the SQ Tender are discussed in more detail below. 

SQ Tender Part 1 - What is required to pass?
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SQ Tender Part 1 is straight forward to complete.

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
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Part 1 of the SQ Tender is easy to pass as you are simply required to provide your company information and that of any other parties you rely on to deliver the contract. 

SQ Tender Part 2 -  What is required to pass?
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SQ Tender Part 2 contains the Mandatory and Discretionary Exclusion Grounds. 

​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.
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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 

To pass Part 2 of the SQ Tender you must: 

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?
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SQ Tender Part 3 requires the buyer to apply some common sense. For example, to save confusion, only include the question about steel if it is relevant to the contract. 

The following questions are relevant to every tender process and will always be included in Part 3 of the SQ Tender: ​

Economic & Financial Standing 
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It is normal to expect vendors to provide at least 2 years financial accounts and to pass a credit check. 

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 
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You pass the Economic & Financial Standing Part 3 of the SQ Tender by providing the financial information you have available to you, and provide the reasons why you cannot share any information requested. 

Technical & Professional Ability
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Vendors  are usually asked to demonstrate that they have previous experience of delivering a similar contract. 

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
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You pass the technical & professional ability Part 3 of the SQ Tender by providing the requested proof of previous contracts delivered.

​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
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The SQ Tender requires vendors to confirm they have published a modern slavery and human trafficking statement that meets the requirements of Section 54 of the Modern Slavery Act 2015. 

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"). 

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A copy of the Selection Questionnaire can be found here. ​

How to pass the Modern Slavery Statement 
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If your annual turnover is £36 million or more the legal requirement of Section 54 of the Modern Slavery Act 2015 will apply and you must: 

1. Update your modern slavery statement every year, within 6 months of your organisations financial year end.
2. Your modern slavery statement must include board/members approval and be signed by a company director or equivalent. 
3. 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
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Vendors are required to self certify that they either have, do not have, or will have (upon contract award), the appropriate level of 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
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The SQ Tender will usually require you to self certify that IF you are successful you will have the required insurance in place at the start of the contract. 

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 
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The minimum requirement is to have a Data Protection Policy. Every organisation should already have one of these. 

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
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To pass data protection you must provide all information requested in the SQ Tender.

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 
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The inclusion of the following sections in an SQ Tender is dependent on the buying organisation and the subject matter and scope of the contract: 

• Health & Safety
• Prompt Payment Systems 
• Carbon Reduction Strategies 
• Skills and Apprenticeships 
• Steel in Major Projects 
• Suppliers Past Performance 
• Tackling Modern Slavery in Supply Chains 

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About The Author
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Naomi Clews

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.