Pitch perfect procurement

Competition is fierce when it comes to winning cleaning contracts, but by following the correct procurement processes and ensuring you cover all the bases, success can be achieved, as Tony O’Shea, operations director at KGB Cleaning & Support Services, explains.

Cleaning – like any other business – has its challenges. Changes in legislation, economic influences, new technology, the list goes on. But perhaps one of the most significant tests for any cleaning business is winning contracts, and subsequently retaining them. The procurement of medium to large cleaning and maintenance contracts has developed to a point where certain procedures and processes have become the norm, turning the traditional ‘pitch’ into something more comprehensive and specific. However, as long as you are prepared to be thorough in your research, honest in your claims, and meticulous in your attention to detail, the process can be a rewarding exercise.

Finding new business

Tendering is a formalised process of bidding for work or contracts, and it has become such an important part of the cleaning and FM industries that companies are now investing in in-house teams that are dedicated to finding, writing and submitting tenders. When it comes to public sector contracts over a certain value, the primary source for new opportunities is the daily supplement to the Official Journal of the European Union (OJEU). Public sector contracts worth over £10,000 with the UK government and its agencies can be found at www.gov.uk/contracts-finder. Other tender portals exist where you can register your company’s interest in being considered, and in some cases you may receive an Invitation To Tender (ITT), which could come from a public or private sector organisation. This will usually outline the background, rules of tender, contract specification, questions or information required, and a draft contract.

This is where the work really begins. It is crucial that you review the documents and honestly assess your company’s ability to provide the service required in light of the information provided. This usually includes:

• Staffing information for the organisation/location
• Specifications for the service/contract
• Length of contract
• Machinery requirements
• Other services
• Any impending legislation that will come into force during the life of the contract

This last point is an important one as many contracts run over several years. If you are offering a fixed price for the length of the contract you need to be mindful of any regulations that will come into force while the contract is underway. The changes to UK pension legislation, which came into force for some employers in October last year, are a case in point. If your company is due to start offering staff workplace pensions within the life of the contract this will affect your bottom line, so it needs to be considered at the start of the tendering process.

Look at every tender opportunity realistically. Is the location easily accessible to your staff, with good road and public transport? Does the business or service provision of the potential client require specialist skills or qualifications when it comes to the cleaning required? This is particularly relevant if façade maintenance is part of the contract, as cleaning at height regulations need to be adhered to. Healthcare environments, schools and colleges, and leisure centres are also examples of locations where specialist cleaning or equipment might be needed to deal with different types of surfaces – such as safety flooring – or particular areas, such as kitchens or hospital wards where hygiene issues are particularly important.

Tips for tendering

Although many tenders may have similarities when it comes to structure and the type of information requested, don’t fall into the trap of cutting and pasting general information from a ‘tender template’. Every tender needs to be treated as an individual case. The potential client wants to see proof that you understand their individual needs and have the capability to deliver.

By doing some thorough research into the client’s history and aims, you can show that you have a good knowledge of their corporate objectives, and can demonstrate how your own company will help them achieve these objectives through the services you can provide. Always make sure that you answer every single question fully and thoroughly, as unanswered questions or responses that are too brief may make the difference between your company reaching the shortlist or not.

Providing evidence of your company’s capabilities in the form of case studies, industry accreditations, testimonials or awards, can make you stand out from your competitors. Referencing work or contracts already completed, or underway, for clients in a similar market sector or physical location gives the organisation to which you are tendering concrete examples of how you work, and that you have experience that is particularly relevant to them. It’s also wise to ensure that you include information about any specialist services that you can offer, and how they can benefit the potential client. Graffiti or chewing gum removal and marble restoration are not ‘run of the mill’ cleaning services, so if you can supply something ‘out of the ordinary’ make sure this is communicated as part of your pitch.

Although it sounds obvious, my final tip is to make sure you proof read your tender. It’s a basic step – but so important. A submission that contains grammatical and spelling errors is totally unacceptable, so make sure it is checked thoroughly before you press the send button.

Budget pressures

The cleaning industry is not immune to the financial pressures presented by our ‘age of austerity’, and clients are increasingly looking to their suppliers and service providers to help them keep costs down while still providing the highest possible standards.

One solution that suits some clients is to switch from full-time to part-time cleaning operatives. This could mean, for example, changing from one operative working eight-hour shifts to more operatives working shorter shifts. This cuts down on National Insurance costs, a saving that can be passed on to the client, but it can also have other benefits. By having more operatives working for shorter periods of time, productivity can be increased as employees are less tired, and fresh pairs of eyes coming on shift more often helps with monitoring and service delivery. Part-time cleaning posts can also be more convenient and flexible for students, who can fit work around their studies, and people with caring responsibilities for children or other family members.

Another aspect to think about is when the cleaning takes place. A switch to daytime cleaning can result in cost savings, as clients are not having to pay the ‘premium’ associated with night-time cleaning, which is effectively an ‘out of hours’ service. However, close consideration should be given as to how appropriate daytime cleaning is for the client or location in question. Employees may not welcome cleaning taking place while they are trying to work, and there are both noise and health and safety issues which could influence whether this is a viable option for your client.

Pay issues and staff motivation

The Mayor of London, Boris Johnson, announced a new rate for the London Living Wage in November last year, which saw it rise from £8.30 to £8.55 per hour. At KGB, we have found that the London Living Wage has helped us, not only to retain valuable, skilled and experienced staff, but also to recruit a better calibre of staff to strengthen our workforce and offer an even more professional service to our clients.

Keeping staff turnover to a minimum benefits contract cleaning companies and their clients, so providing the right motivation and support is crucial. Paying a decent, living wage helps to increase loyalty, and as staff stay longer, so their knowledge and skills grow. They also develop a strong association with the organisations they clean for, creating an affinity, both with their direct employer – the contract cleaning company – and the end user (client).

Some tender wins will mean that you inherit cleaning operatives from that particular location or organisation. These people bring valuable expertise and specific know-how to the contract so retaining them is in the contract cleaner’s best interests. Paying a fair, living wage is just one part of the equation – being open and honest with your employees, giving them opportunities to progress, and providing adequate training will ensure that you have a workforce that’s fit to deliver the best possible service to your clients.

Going through the processes I have described – even if you don’t win every bit of business you tender or pitch for – is a worthwhile exercise. It gives you a chance to learn more about the tendering system, and how you can make a better submission next time. If offered, always take the opportunity to obtain feedback on your proposal as this will enable you to measure your submission effectively. Once contracts have been secured keep the lines of communication open, and provide regular opportunities to review progress and service delivery. Only by truly working in partnership with your client, and your staff, will success be guaranteed – both now and in the future.

For more information about KGB Cleaning & Support Services call 020 8980 2222, email enquiries@kgbcleaning.co.uk or visit www.kgbcleaning.co.uk

Published in Cleaning Hygiene Today – February 2013   Pitch Perfect Procurement