Tendering Report

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Beth Thompson

Resources for the events sector

Tendering report

Word Count: 2435

CONTENTS

1.0 TENDER PROCES …………………………………………………………………………………………..………………..1
1.1 Cartels …………………………………………………………………………………………………………………………1
1.2 Five rights of purchasing ……………………………………………………………………………………..………1

2.0 INVITATION TO TENDER …………………………………………………………...……………………………………1-3

3.0 EVALUATION ………………………………………………………………………………………………………….……….4-6

3.1 Healthy and Safety ………………………………………………………………………………………..……………..4

3.2 SIA ………………………………………………………………………………………………………………………………..4

3.3 Crowd management ……………………………………………………………………………………….……………4

3.4 Risk assessment ………………………………………………………………………………………..…………………..5

3.5 Sector experience ………………………………………………………………………………………………………….5

3.5i G4S…………………………………………………………………………………………………………………………….5

3.5ii Showsec ………………………………………………………………………………………………………………….5

3.5iii Comparison ………………………………………………………………………………………………………….…6

3.6 Additional requirements ………………………………………………………………………………………………….6

4.0 APPOINT …………………………………………………………………………………………………………………………….6

5.0 Reference list ……………………………………………………………………………………………………………………..7

6.0 Appendices ………………………………………………………………………………………………………………………..8

6.1 Showsec response ………………………………………………………………………………………………………….8-9

6.2 G4S response ………………………………………………………………………………………………………………...10-11

1.0 TENDER PROCESS

'A request for tenders is an invitation [to treat] and each tender is an offer. The requestor is free to accept or reject any tender to purchase goods, even if it is the highest bid.' (Poole 2008) The process of tendering is extremely important as it not only finds the most suitable candidates for the job; it is also a way of achieving fairness for the contractor and employer. The Enterprise Act 2002 was enforced by The Office of Fair Trading (OFT) to promote fair competition by banning Cartels. 'The Office of Fair Trading (OFT) is a non-ministerial government department of the United Kingdom, established by the Fair Trading Act 1973, which enforces both consumer protection and competition law, acting as the UK's economic regulator. The OFT's goal is to make markets work well for consumers, ensuring vigorous competition between fair-dealing businesses and prohibiting unfair practices such as rogue trading, scams and cartels. Its role was modified and its powers changed with the Enterprise Act 2002.' (Office of Fair Trading 2013)

1.1 Cartels
Cartels are agreements made by competing companies on aspects such as price; where they agree to charge the same to undercut other suppliers then raise prices once they have eliminated their competition, and output levels; meaning the time it takes to complete a job, which is important in terms of payment agreements. Also, the most important aspect in the events sector is an agreement on credit terms as small events usually need cash flow in the run up to the event as small festivals commonly rely on ticket revenue and bar sales to pay contractors. 'Cartels are a particularly damaging form of anti-competitive behaviour and are prohibited. Any business found to be a member of a cartel could be fined up to 10 per cent of its worldwide turnover. In addition, the Enterprise Act 2002 makes it a criminal offence for individuals to dishonestly take part in the most serious types of cartels. Anyone convicted of the offence could receive a maximum of five years imprisonment and/or an unlimited fine.' (Office of Fair Trading)

1.2 Five rights of purchasing
Another reason to tender for an event is to find suppliers that adhere to the ‘five rights of purchasing’ which Tum et al (2006) states as being the right cost; at the right time; of the right quality; in the right quantity; from the right source. If an event or company did not tender they would not be ensuring that the supplier can provide...
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