Commission funds bid management tool to increase SME participation and reduce costs
For small and medium sized enterprises (SMEs), bidding for large contracts is often made difficult due to their focus on a particular element of the proposed service or product, and the subsequent need to form complex partnerships with other specialist suppliers. One method of overcoming this problem lies in the use of intermediaries, who will bid for the contract individually, then fulfil it by subcontracting numerous specialist companies. This method, however, usually results in a higher overall cost to the contracting authority, and a reduced income for SMEs. In order to provide smaller suppliers with an alternative option, the Commission has funded a project aimed at producing a methodology and technological tool that will enable SMEs to document their competences and prepare integrated bids without the need for an intermediary. The BIDMED (cooperative bidding in the medical sector) project brings together partners within the biomedical sector from Italy, France and Hungary, and is funded under the IST section of the Fifth Framework Programme. Stefano Malatesta, from CNA Modena and project manager for BIDMED, told CORDIS News: 'BIDMED is important because there currently exists no bidding methodologies or tools specifically focussed towards SMEs in the biomedical sector. BIDMED will allow small enterprises to participate in large scale calls for tender. After an initial needs analysis study, the consortium set out to create a bidding architecture on two levels. The first level represents a long term consortium of SMEs interested in cooperating in large tenders, and provides an online catalogue of all their various products and competences whilst protecting their intellectual property rights. The second level, referred to as the dynamic 'smart bidding organisation' (SBO), focuses on bringing together a particular group of SMEs in response to a particular call for tender, creating a partner team and managing the relevant documentation such as consortium agreements. Finally, a selected representative from the consortium, known as the 'bid manager', acts as a unique interface with the contracting customer, coordinating the activities of the SBO and supporting the activities of the participating SMEs. Having developed the tools and documented the methodology, the BIDMED system was put to the test when the Italian province of Modena issued a mock but realistic call for tenders based on the catalogue of products produced by the consortium. Despite a few minor documentary changes that were necessary, the bid was analysed by the customer and 'accepted'. Mr Malatesta expects the fist real consortium bid using BIDMED to be made within a year, and is hopeful that the system will deliver benefits for all parties: 'Some estimates show that the use of intermediary organisations in large scale bids increases the cost by 20 to 30 per cent. With BIDMED, this money can be split by offering the customer significant savings and SMEs an increased profit, which will ultimately increase the number of SMEs in the sector and boost the market as a whole.'
Countries
France, Hungary, Italy