Understanding Procurement
With Hamat B. Bah
Government is the biggest and the most reliable buyer. Government continues even when there is a change in administration.
Government buys goods, services and work in high volumes. Therefore, becoming a government supplier can be a great opportunity both in terms of economic growth and capacity. Government is a stable client, contracts are often huge and long-term, and payment risk is generally lower compared to other buyers. However, the process becoming a government supplier is structured and competitive. As such, businesses intending to join to process organise their structure, get the required documentations and equipe themselves with a lot of competitive advantages.
Below is a clear step-by-step guide to help you get started:
- Register Your Business Properly
Before approaching government buyers, make sure:
- Your business is legally registered
- You have a tax identification number
- You are compliant with tax filings
- You have required licenses and certifications
- Your financial records are organized
- You have the finances for pre-financing
- Register with The Gambia Public Procurement Authority (GPPA)
The GPPA is the government oversight body established by an Act of parliament with the mandate to oversee and regulate public procurement. It is this same Act that requires businesses intending to do business with government to register with the Authority. Without a valid GPPA registration you cannot get a contract from government.
- Understand Procurement Categories
Government procurements are categorised as follows?
- Goods (equipment, office supplies, vehicles, IT hardware)
- Services (consulting, construction, maintenance, IT services)
- Works (infrastructure, public works projects, small works/repairs)
Find which category matches your offering and align your business description accordingly. Your registration with GPPA would indicate your business category. For example: you will be registered as a Vendor for goods, Consultancy, Contractor, Catering services etc.
It is important to note that you can only offer for the category you are registered for. For example if you are registered as a vendor, you can only offer for the supply of goods not works, consultancy or catering services.
- Get Required Certifications (If Applicable)
Even though it may not be a common practice in The Gambia, some tenders favour or require:
- Small business certification
- Minority Group/women-owned business certification
- ISO certification
- Authorisations
- Environmental compliance certificates
These can in some instances give you a competitive edge.
- Monitor Tender advertisements Regularly
As you intend to do business with government, in addition to understanding the government procurement terminologies, you should pay attention to advertisements
Government contracts of high volume are published as:
- RFQ (Request for Quotation)
- RFP (Request for Proposal)
- ITB (Invitation to Bid/ Tender)
- EOI (Expression of Interest)
To avoid missing business opportunities, always monitor advertisements on the print media or on online platforms.
- Learn How to Prepare Winning Bids
Never take for granted, never overlook, never assume the client knows what is not explained, be brief, clear and avoid ambiguity.
Give all requested information. Use common or generic terms where necessary. Submit all requested documents.
Government bids require:
- Detailed technical proposal. Follow the given instruction in providing your technical specifications.
- Pricing breakdown. Unless a lumpsum price is requested, breakdown your cost.
- Company profile. Give a brief and realistic summary of your company/ business
- Past performance references. If requested, provide reference to your past performance. These may be certificates of completion or recommendations from past clients. Do not forge these documents
- Compliance documents such bid security, insurance, manufacturer’s authorisation, warranty etc
Tips:
- Follow instructions exactly. Read every bit of whatever document the buyer provides you with.
- Address every requirement. All requirements are important and ignoring them may affect your offer.
- Be clear and structured. Government buying is time bound and it is also guided by law.
- Avoid generic proposals. Be specific with your proposal.
- Price competitively but sustainably. Price may not be the contract winning determinant factor. Lowering your price to win a contract is risky. You may not be able fulfil your contract obligations. This can result to a breach of contract.
- Submit your bid on or before the deadline for submission.
- Start Small and Grow
As a new entrant do the following:
- Target small contracts first. This will help you learn and hence gather more experience
- Look for local opportunities. May be within your Local Government Area.
- Consider subcontracting under larger firms. If you are offering for the Work category, you can begin by accepting subcontracts from bigger contractors.
- Build a good performance history. Government buyers are a Network and they conduct due diligence on suppliers.
- Network Strategically
Operating in isolation is risky. Always:
- Attend government-vendor outreach meeting/events
- Join industry associations
- Partner with experienced contractors
- Familiarise yourself with GPPA guidelines.
Relationship-building improves visibility and can create opportunities
- Maintain Compliance and Performance
After winning a contract no matter what the volume is ensure the following:
- Deliver on time
- Meet specifications/ no deviation from agreed standards
- Maintain documentation. Have copies of all the documents you submitted to the buyer.
- Stay compliant with reporting requirements
- Pay your tax obligations
Good contract performance is essential for growth. It can yield you new and bigger contracts.