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PREPARE TENDERS FOR CATERING CONTRACTS

D1.HCA.CL3.06. PREPARE TENDERS FOR CATERING CONTRACTS. Prepare tenders for catering contracts. This Unit comprises four Elements: Identify tender requirements Determine ability to meet tender requirements and conditions Estimate costs Prepare submission for management. Assessment.

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PREPARE TENDERS FOR CATERING CONTRACTS

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  1. D1.HCA.CL3.06 PREPARE TENDERS FOR CATERING CONTRACTS

  2. Prepare tenders for catering contracts This Unit comprises four Elements: • Identify tender requirements • Determine ability to meet tender requirements and conditions • Estimate costs • Prepare submission for management

  3. Assessment Assessment for this unit may include: • Oral questions • Written questions • Work projects • Workplace observation of practical skills • Practical exercises • Formal report from employer/supervisor

  4. Identify tender requirements Performance Criteria for this Element are : • Clarify key objectives and or requirements of tender in consultation with management • Analyse fixed and variable costing elements in consultation with management • Identify and analyse tendering criteria and conditions

  5. Clarify key objectives and requirements A Tender: • Is a formal offer to do work/provide products &services for someone or a business • Becomes a legally-binding contract when the offer is accepted

  6. Clarify key objectives and requirements An RFT is: • Request for Tender’ • A document from a person or business asking you to tender for the provision of identified products and services

  7. Clarify key objectives and requirements The tendering process comprises several stages: • Identify tender opportunity • Obtain RFT documentation • Identify and clarify key objectives and requirements • Determine ability and capacity to meet tender requirements (Continued)

  8. Clarify key objectives and requirements • Assess feasibility or viability of tendering • Determine resources required • Calculate cost • Prepare submission documentation • Submit tender • Make presentation, if required

  9. Clarify key objectives and requirements Why do organisations issue RFTs? • They believe it is the most effective way to choose a provider • The process gives them the best price • They have found tendering out work provides them with new ideas and concepts • The process readily identifies what different caterers have to offer • They may be obliged to do so

  10. Clarify key objectives and requirements Reasons you may respond to an RFT: • Increase market share • Grow the business • Increase revenue • Raise profit • Enhance business viability • Grow the reputation of the business in the marketplace

  11. Clarify key objectives and requirements Catering contracts may be offered for: • Schools and Hospitals • Prisons • Work sites • Hospitality venues • Sporting and entertainment venues • Transport • One-off jobs (sub-contracting)

  12. Clarify key objectives and requirements Ways to identify a tendering opportunity exists: • Register with government agencies • Search the internet • Check printed media (Continued)

  13. Clarify key objectives and requirements • Receive direct notification from client: • By telephone • Via email • In person • Using the services of a Tender Information Service

  14. Clarify key objectives and requirements Obtaining RFT documentation may: • Occur when client contacts you • Require you to register and download them from the internet • Require you to telephone a nominated person • Require you to collect a copy from an address/business • Require you to attend an information session • Involve paying a fee

  15. Clarify key objectives and requirements You must involve management in order to: • Benefit from their experience and expertise • Determine if the business is interested in tendering or not • Advise of the potential opportunity available to the business • Authorise necessary work which needs doing • Ensure the contract price will reflect the position and needs of the business

  16. Clarify key objectives and requirements When considering key objectives and requirements for an RFT: • Realise every RFT is different • It is critical to understand the specifics of each RFT • Make sure you have all sections of the RFT documentation

  17. Clarify key objectives and requirements Techniques to identify and clarify RFT objectives and requirements: • Form a ‘Tender Team’ • Re-read and re-read the RFT documentation • Contact and question the client

  18. Clarify key objectives and requirements Key objectives and requirements contained in an RFT: • Give the focus for, and an overview of the contract • Are listed under various headings in the RFT: • Objectives • Scope of work • Job/contract specifications • Provide an opportunity to identify ‘knock out’ questions or issues

  19. Clarify key objectives and requirements ‘Knock out’ questions or issues: • Are requirements under the RFT which you cannot meet • They stop you being eligible for the contract • Must be identified very early – to avoid wasting time and money

  20. Clarify key objectives and requirements Tender team should comprise: • Management representative • Tender manager • Admin representative • Head chef • Other cooking staff • Beverage manager

  21. Clarify key objectives and requirements Communicating with the client: • Telephone them • Get to know them • Get to know their organisation, their problems, their situation and develop a ‘feel’ for them • Meet face-to-face with them

  22. Clarify key objectives and requirements RFT documentation may comprise several individual documents and or sections – for example: • Cover document • Conditions • Evaluation criteria • Application document to use for the submission

  23. Clarify key objectives and requirements Visiting the contract site: • Always try to visit the site where the catering contract is to be implemented • May be a requirement/pre-requisite for applying • May require arrangements to be made with the client contact person • May be undertaken ‘covertly’

  24. Clarify key objectives and requirements Reasons to visit ‘the site’: • Speak to staff at the location • Inspect plant, equipment and facilities • Observe operations and evaluate food and beverage being offered • Talk to those who consume products provided

  25. Analyse costing elements Involve management and tender team at this stage to: • Provide advice based on experience • Perform costing calculations • Assist with research • Identify costs to be included • Approve, modify or reject proposed costs • Determine ability of the organisation to obtain required resources

  26. Analyse costing elements Fixed costs: • Costs which remain constant regardless of production volumes: • Contract management • Insurance, venue hire and security • Permanent staff • Maintenance agreements • Membership of organisations and associations

  27. Analyse costing elements Variable costs: • Costs associated with expenditure which varies with levels/volume of production: • Food and beverage • Transportation • Power and other utilities • Some labour expenses • Laundry

  28. Analyse costing elements When analysing fixed costs: • Ensure all costs have been identified • Calculate ‘actual’ cost for each item based on quotations, current prices, negotiations with suppliers and price comparisons • Determine how costs will be defrayed and or incorporated into final submission

  29. Analyse costing elements Options for analysing variable costs: • Identifying all variable costs for the tender • Quantifying volumes or amounts • Determining base cost prices for each item • Conducting CVP analysis • Considering ‘required’ selling prices identified in RFT, if applicable (Continued)

  30. Analyse costing elements • Developing cost pricing strategy • Undertaking CBA • Identifying deals from suppliers • Identifying alternatives • Considering budget implications • Predicting contribution margins • Determining individual costs as percentage of expected revenue

  31. Analyse costing elements ‘Full cost recovery’: • May apply to some services you provide to the client • Generally does not apply to products • Means you only charge the client what it cost you to provide the service • You do not show a profit on what you provide • Shows ‘goodwill’ if you elect to provide services on this basis

  32. Analyse costing elements ‘Cost plus’ pricing: • May be an alternative to full cost recovery • You charge the client what it cost you plus: • A nominated percentage of that cost or • A set fee per transaction

  33. Identify and analyse tendering criteria and conditions Identifying and analysing tender criteria and conditions must be done to be certain about: • Products and services required • Timing of service delivery • Location of the contract site • Service protocols for food and beverage • Limitations as well as mandatory requirements • Compulsory submission requirements for the tender application • Date and time application must be submitted

  34. Identify and analyse tendering criteria and conditions Ways to identify RFT criteria and conditions: • Read the RFT documentation • Attend tender meetings provided by client • Seek clarification direct from nominated contact person

  35. Identify and analyse tendering criteria and conditions Tender criteria = standards and specifications relating to products and services which must be met in your tender submission to qualify you for consideration as a legitimate tendered: • Food safety • Catering to be provided • Quantities required • Types of food to be provided • Specification of diet types • Quality-related criteria (Continued)

  36. Identify and analyse tendering criteria and conditions • Pricing • Cooking and preparation methods • Cooking styles • Service styles • Liquor service • Contract management team (Continued)

  37. Identify and analyse tendering criteria and conditions • Need to cater for specified customs, religions or cultural requirements • Ancillary requirements: • Condiments • Crockery, cutlery, glassware • Napery

  38. Identify and analyse tendering criteria and conditions Tender conditions = requirements you must accept as part of the process of making a tender submission for this contract with this client at this time: • Using facilities and equipment which exist at the contract site • Being prepared to provide additional equipment ‘at own cost’ • Providing nominated equipment • Demanding the use of certain items (by type or brand) for certain processes (Continued)

  39. Identify and analyse tendering criteria and conditions • Agreeing to stated payment schedule • Agreeing to a range of other requirements identified in the RFT documentation which may address: • Making a presentation to explain the submission • Changes to agreed requirements

  40. Identify and analyse tendering criteria and conditions Analysing tender criteria and conditions requires asking a series of questions on topics such as: • Do you have the necessary experience required? • Can you provide the required products and services? • What staff do you have who can deliver the tender requirements? • Does the tender enable the business to align with its plans and achieve its strategic and other goals? • What money needs to be spent, what does it need to be spent on and when does it need to be spent? (Continued)

  41. Identify and analyse tendering criteria and conditions • Is there a match between existing business systems and technology at the contract site – in terms of: • HR? • Stock management? • Recording and reporting? • Internal communications? • Assessing financial performance? • Cash controls? (Continued)

  42. Identify and analyse tendering criteria and conditions • Do you need a joint-venture partner? • What are country-specific legal and compliance requirements? • Are you prepared to disclose organisational information which may be ‘sensitive’ and normally regarded as ‘commercial-in-confidence’? (Continued)

  43. Identify and analyse tendering criteria and conditions • Are you prepared to comply with stipulated conditions – for example: • Insurance coverage? • Delivery schedules? • Business type, status and registration? • Nominated eligibility criteria? • Identified limitations and constraints? • Conflict of interest provisions?

  44. Identify and analyse tendering criteria and conditions Standard practices relating to information generated for use in a tender submission include: • Create files to secure information • Share all the information with the tender team

  45. Identify and analyse tendering criteria and conditions Information to file and share includes: • Copies of all RFT documents – plus: • Amendments and updates • Responses from the client to questions asked • Personal comments/notes, questions and identified issues: • From reading the RFT and inspecting the site • Talking to the client • Research undertaken (Continued)

  46. Identify and analyse tendering criteria and conditions • Feedback obtained from other relevant stakeholders: • Previous contractors • Government agencies • Copies of any other documentation relevant to the submission: • Floor plans • Menus • Quotations

  47. Summary – Element 1 When identifying tender elements: • Actively seek out tender opportunities and obtain RFT documentation • Read, identify and analyse the requirements of the RFT • Create a tender team to assist with tendering • Identify ‘knock out’ requirements as soon as possible • Involve management in identifying tender requirements (Continued)

  48. Summary – Element 1 • Make contact with the client to ask questions, clarify issues and arrange a meeting • Try to visit and inspect the venue where the work is to be carried out • Identify all fixed and variable costing elements • Request administration or management to analyse identified costing elements • Ask lots of questions (Continued)

  49. Summary – Element 1 • Identify and analyse all tendering criteria and conditions listed in the RFT • Continue involvement of management and the tender team throughout the initial analysis and identification processes • Identify the evaluation criteria which will be used to judge the tender submission • File all tender-relevant information and documents • Share all information openly with tender team

  50. Determine ability to meet tender requirements and conditions Performance Criteria for this Element are: • Assess ability to provide catering services specified in the tender • Assess viability of tendering for the provision of catering services • Identify unique requirements of tender

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