However, there were many issues raised by this Breakfast, chaired by Simon Scholl and speakers Kevin Davey (Director of incubation, The Innovatory, responsible for supporting East End businesses wanting to secure 2012-related contracts), Tina Fegent (Procurement marketing specialist and expert in filling in tender applications) and Richard Williams (Principal, Williams Murray Hamm). We were also joined by Anna Liu of Tonkin Liu which has just been shortlisted for an ODA project to provide bridges and underpasses
"There is a disconnect between publicity surrounding tendering process and the reality of designers’ experience"
To date, designers’ experience of tendering for public sector contracts, including Olympic contracts, is dispiriting. They are frustrated by the publicity which suggests that the Olympic Delivery authorities are keen to work with them and which suggests that the tendering process will be easy (i.e. the high profile advertising of the £170 million). Their experience is that it is anything but – public sector tenders take several days to fill in, are bureaucratic and usually result in rejection. Tina Fegent, the procurement specialist who attended the event, told of one Government body that had put its PR out to tender and received 2,000 applications. It decided to pursue three of them. With statistics like these, most small design companies are very reluctant to apply. Our audience felt that whatever the ODA (Olympic Delivery Authority) and others say, the tendering system will inevitably 'self-select' to the larger design agencies with the procurement expertise, and the resource, to 'tick the boxes'. Conclusion: More realism from the authorities please.
"Publicity doesn’t encourage suppliers to think about innovative ways to tender"
The procurement people suggest that the best way for small design businesses to get contracts is for them to partner with SMEs supplying other services (e.g. catering, security, even toilets). However, the publicity doesn’t exactly shout about this. Nonetheless it’s a way for small design businesses to get their ‘feet in the door’ and develop the all important track record that will help them go on to bigger and better public sector contracts. However, small design businesses think that there should also be routes in to the regular marketing contracts, too – that they shouldn’t default to bigger agencies.
"Much frustration that procurement executives don’t understand what they’re buying when it comes to marketing"
Procurement Executives should understand better who they are buying from and what they are buying - and accept
a) that, since it is creative skill that they are buying, they should evaluate on the basis of that skill
b) that they should allow design agencies to prove their creativity
c) that the nature of the industry is that it is often the small agencies that are the most creative. Procurement people should give proper, thought-through feedback: without this, the agencies cannot come to understand the procurement viewpoint and criteria sets. They should also be aware of the strain lengthy tender applications put on small businesses and how the process favours bigger agencies. Conclusion: There is room for a body/learning process which can help procurement people to understand how to evaluate design.
"HOWEVER... Small design agencies need to understand procurement people, too"
Designers need to accept that if they want this kind of work, they will have to 'go half way' and understand the process, as well as knowing the criteria by which they will be judged (business ratios, KPIs etc). They will have to prove that their businesses are a commercial success and.
* will also have to have a 'change of heart' and work in sympathy with the procurement system - i.e. suppress their natural 'default-mode' hostility!
* must accept that they won't win out unless they REALLY want to do it.
* should evaluate carefully what their objectives for applying are: eg accept that it may not be profitable, but that the prestige alone is the prize
"A forum for forming consortia"
As a group small design businesses need to find a forum for forming consortia that will increase their chance of winning vs. the global groups. This vehicle needs a) to be able to give sound guidance and advice, and b) to act as a broker for different companies to make contact with each other to form consortia
Conclusion, everyone needs come out of their silos/compartments and start talking