Confirm your suitability for the supply contract: pre-qualification questionnaire

Business Essentials 2021年08月04日

The prequalification questionnaire (PQQ) is usually deployed in the early stages of the public procurement process. The company needs to prove that it is suitable for the bidding stage. How can you maximize your chances of gaining business through PQQ?

What is PQQ?


In simple terms, the Prequalification Questionnaire (PQQ) is a list of questions related to important criteria that suppliers must meet when applying for contracts. These documents are more common in the public sector than in the private sector, but are sometimes used to check the applicability of suppliers in private tendering arrangements.


When there are a large number of bidding applications, PQQ is usually used as an effective tool for screening suppliers. Suppliers that do not meet the required standards can be automatically ignored in this process, thus simplifying and efficient shortlisting.


Suppliers are rated based on their answers in PQQ, which may cover areas such as finance, appropriate experience, and company policies. Usually, the supplier with the highest score will be accepted.


PQQ: Proof of Ability


Don't be mistaken for thinking that PQQ is just a ticking exercise, passing obstacles to the bidding process. The smart way to view this document is actually a marketing campaign that gives you the opportunity to demonstrate your ability and suitability as a supplier.


This is an example of a PQQ document-but they may be different. It delves into different areas of your business, verifies that you understand your competitive advantages, and seeks to ensure that you have the credentials to achieve agreed goals.


When you have completed your response to PQQ, it is recommended that you arrange a dedicated team leader to manage the process and give them enough time to create a concise and relevant response. You want to communicate the strengths and benefits of your company in a clear way to show that you are confident in your corporate identity.


Organizational area usually described in PQQ


Specific PQQs in niche industries may require relevant specifications and credibility. However, most standard protocols will explore the following areas:


  • Status-complete details of your organization, from director history to subcontractor list and business supply agreement. Here, PQQ is exploring your structure and capabilities.

  • Finance-Cash flow and balance sheets are often used as indicators of organizational health and success. You may need to provide a recommendation letter from the bank and proof of insurance.

  • Quality-Ensuring that your company can complete the required contracts while meeting all relevant milestones, budgets, and schedules is critical. The best example is to have a quality management system, such as the internationally recognized ISO 9001, which is a key factor for many companies to win the bid.

  • Environmental policy-Many organizations promise to reduce their impact on the environment and need to work with suppliers who can share this responsibility. Similarly, the development of environmental management policies (such as ISO 14001) can help demonstrate continued commitment to green issues.

  • Competitive advantage-companies should be able to give sufficient reasons related to the suitability of their choices. What is your unique proposition? What value might you bring to relationships that other suppliers might lack? This is your chance to really push your company to become a strong contender for the contract.

  • Social Policy-Public sector organizations will hope to cooperate with companies that have a clear mission of equal opportunities, recognition of corporate responsibility, and a progressive mindset.

  • Health and safety-For some contracts, risk assessment and correct health and safety agreements are essential. Any company with more than five employees should have such a policy. Likewise, certification can provide a competitive advantage here. Companies that meet the OHSAS 18001 standard are expected to score high in this section.

  • Case studies and recommendations-can you prove that your organization is successful and effective in your chosen operating space? In terms of demonstrating proficiency and applicability to the contract, proof of previous performance can put you in a leading position in the game.


Excellent production


It is too easy to focus on completing the PQQ instead of ensuring that all the active parts come together to build a strong and compelling storyline. Take the time to properly organize all the assets required for each section and get feedback from each business function that needs to be entered in the document.


Maintain good progress by using checklists and milestones to mark critical tasks as they are completed. If you are hiring a team to produce together, then make sure to record all communications so everyone knows what has changed.


Using the main version of the PQQ document is also helpful, because for multiple people, there is a danger of creating multiple versions, which may mean that the final version will lose information. In these cases, using a central copy that everyone can access in the cloud is really helpful.


After PQQ

Following any PQQ, you should always reflect on how the process works within your company. If you are successful, what factors have helped you win the business, or if your application fails, what business areas have PQQ highlighted and possibly improved?


Also keep in mind that PQQ may not be the final stage of the process, and a high score does not always guarantee that you will receive preferential treatment during the bidding stage. If you are required to submit a bid, please ensure that you do not rely on the answers provided in PQQ. You still need to provide a strong reason to win business.



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