Smaller lab equipment suppliers can be overawed by the bid process for public sector contracts. They needn’t be, suggests Jason Cooney.
The public sector is a key player in the laboratory equipment supply industry across the United Kingdom and internationally. The long-term nature of public sector contracts are excellent for business stability and certainty. Many small and medium-sized enterprises (SMEs) find the tender process for government and institutional contracts – from NHS trusts to university research labs – challenging and complicated.
While larger corporations have in-house bid teams and a range of existing content, SMEs often possess the very innovation and agility that public buyers need. The key to unlocking these opportunities lies not in replicating a large competitor’s structure, but in mastering challenges that define laboratory equipment procurement.
Overcoming scale and scope
The core challenge for SMEs is demonstrating you have resources, processes and capabilities to deliver. Public equipment supply tenders frequently demand extensive documentation, substantial financial warranties, and proof of a large-scale track record – all criteria which many SMEs don’t have in place.
Strategies to overcome this challenge include:
Development of a bid library: This resource should contain pre-approved standard company details, quality certifications (like ISO 9001 and ISO 13485 for medical devices), standard insurance details and polished responses to common boilerplate questions (e.g., social value, environmental policy). By treating bid writing as an assembly process rather than a creation process, you will have more time to focus on the value proposition.
Demonstrating your specialisation and operational maturity: Laboratory equipment supply is generally a specialised area that lends itself to specialised suppliers. Large-scale suppliers that distribute laboratory equipment as part of their product range may have higher turnover, physical presence and human resources that specialist suppliers lack. However, a specialist provider may in fact have larger turnover and more specialised personnel when you refer to laboratory products only.
Public equipment supply tenders frequently demand extensive documentation, substantial financial warranties, and proof of a large-scale track record – all criteria which many SMEs don’t have in place
You need to clearly spell this out in your bid and ensure you address any potential peaks in demand head-on by detailing a scalable plan – perhaps leveraging strategic partnerships or pre-agreed manufacturing contracts – to prove that a sudden, largevolume order is manageable.
Quality assurance and inventory management
A successful bid must provide concrete assurances on the logistical and quality control specific to laboratory equipment supply. Stating compliance and providing a generic QMS system is generally insufficient. You need to detail the process (tailored to the specific contract), including protocols for pre-delivery verification, full traceability of components, rigorous calibration schedules and alignment with regulatory bodies (such as UKAS or relevant national standards).
You also need to detail a robust inventory management plan. The laboratory environment often sees sporadic, high-demand events – such as unexpected public health crises or the opening of a new research facility. The bid response should outline a modern inventory model, and you need to explain the benefits of the model.
These may include the use of the real-time inventory data, First-In, First-Out (FIFO) system to manage consumables directto- lab logistics models. A detailed response to spare parts availability and any insights into forecasting demand is also required for high-scoring response. Leverage on and communicate your sector knowledge in order to demonstrate to the procurement team that you are an industry specialist SME who can foresee issues and mitigate them.
Going global
International equipment supply bids – as well as writing bids in the UK when you are an overseas-based business, generally has its own unique set of challenges including exchange rate risk and lack of local presence. This also applies to UK-based SMEs bidding for international contracts in Europe and the Middle East. For example, a multi-year public sector contract priced in local currency exposes the overseas supplier to significant financial risk if the home currency fluctuates. This risk can turn a profitable contract into a loss-making one. In addition, the UK government and other public sector trusts and buyers are generally wary of offshore suppliers.
Larger corporations have in-house bid teams and a range of existing content, SMEs often possess the very innovation and agility that public buyers need
SMEs can overcome these challenges by transparently addressing and explaining FX in your pricing and risk management strategy. This involves offering a detailed plan on how the risk is mitigated, such as using forward contracts (hedging) or including contractual clauses that allow for payment indexation or formal currency reviews if exchange rates move outside an agreed on bandwidth.
Also, by demonstrating a tangible local footprint. This can be achieved through a strategic partnership with a certified local service agent, establishing a regional technical support hub, or working through a distribution arrangement with a local equipment supply business. You also need to put forward a practical and well thought out local engagement strategy that includes using local suppliers such as freight businesses and packaging businesses.
Ultimately, winning public sector laboratory contracts is not just about having the best equipment; it is about writing a bid that demonstrates you have the operational experience and processes (including quality control) to enable you to deliver on the contract over the long term.
Jason Cooney is director of Londonbased bid writers Tsaks Consultancy
