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1
Request for Proposals Fundamentals
Division of State ServicesBureau of Contracts
Priscilla Cassidy Bob Fetterly
Michelle Jackson Elizabeth Jaggers
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Stats
FY 05/06 – 44,000 contract transactions were reviewed
Totaling almost $54.5 billion
90% of these transactions were Approved!
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Agenda
Best Value Defined RFP Planning RFP Components RFP Evaluation & Selection Process
Evaluation Criteria Evaluation InstrumentSelection of Vendor
Procurement Package
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What isBest Value?
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Best Value - Defined
State Finance Law §163:
“A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts”
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RFP Planning
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Procurement Planning – Events
Implementation
Other Approvals as required OFT, Civil Service,
AG, OSC
BusinessNeed
Specification/ Requirement Development
Release RFP Proposals
Due
Questions Due
Respond to Questions
Evaluation Begins
Draft RFP
Develop Evaluation Guide/Instrument
Interviews
Evaluation Complete
Monitor/ Manage Contract
Identify Evaluators
Meet w/ Evaluators
Internal Approvals
Distribute Proposals to Evaluation
Teams
Develop Solicitation
List
Issue RFP Amendment if necessary
CRAd
Meet w/ Evaluators
SiteVisit
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RFP Planning Develop a procurement strategy
Develop a timeline Conducting a procurement is a “Project” Identify the events of the procurement Effective planning/budgeting of time
Start with the end in mind
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RFP Planning Elements of the procurement process
Specifications Requirements Site visits Interviews Reference checks
Pool of Vendors Funding stream(s) Evaluation (Evaluators, Instructions, Execution) Forms (e.g., Cost Sheet) Procurement rules and regulations Other special events
Proposer’s Conference
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RFP Planning Procurement must appear in Contract Reporter
at least 15 business days prior to the due date of proposals
Develop solicitation list/letter How can the RFP be obtained? Designated contact person Issue date, due date Site Visit Questions and Answers due
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RFP Components
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RFP Components Table of Contents
Introduction Statement of purpose
Calendar of Events Date of Issuance Site Visit Date Questions and Answers Due Date Responses to Questions and Answers Due Due Date of Proposals Proposers’ Conference Oral Presentation and Demonstrations
Agency Mission Statement about the duties of your Agency
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Calendar of EventsCalendar of Events Key Dates
Publication in Contract Reporter 8/30/04
Release RFP 9/7/04
Submission of Written Questions 10/1/04
Proposers’ Conference 10/12/04
Distribution of Proposers’ Conference Minutes and Responses to Questions 11/1/04
Proposal Submission Due Date 11/29/04
Interviews/Reference Checks 1/10/05 – 1/21/05
Finalist notified and Contract Negotiations begin 2/21/05
Contractor Work Commences 5/10/05
Note: Build in adequate time for internal/external approvals
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RFP Components Administrative process
Restate the timeline Technical Proposal submission requirements Cost Proposal submission requirements Single award/multiple awards
Criteria Minimum qualifications Specifications of services Additional information References Contract terms and conditions
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RFP Components Procurement policies, statutes & disclosures
Appendix A Vendor Responsibility (G-Bulletin 221) Procurement Lobbying Law (G-Bulletin 224) Consultant Disclosure Law (G-Bulletin 226) Sales and Compensating Use Tax (G-Bulletin 222 & 222a) Other (as applicable)
HIPAA Agency specific appendices Prevailing Wage
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RFP Components
Mandatory Contract Provisions
RationaleConcerns raised prior to bid submissionAvoid prolonged, fruitless negotiationsSave agency time and moneyPrevent gaps in program/service delivery
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RFP Components Evaluation Criteria
Minimum qualifications (pass/fail) Technical criteria Cost
Multiple years – define escalation (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Department of Labor.)
Relative weight – cost vs. technical RFP must disclose the relative weight RFP should identify if a particular criterion is weighted more
heavily than others (e.g., 40 of 70 points will be assigned to experience)
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RFP Components Method of Award
Single award Upon completion of the evaluation process, a contract will be
awarded to the proposer whose proposal met all mandatory requirements and obtained the highest composite score, inclusive of both cost and technical
Multiple Award RFP should reserve the right to make multiple awards RFP should state the number or “up to” number of awards to
be made and how work will be allocated among the vendors MUST be determined prior to receipt of proposals and
documented in the Evaluation Instrument
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RFP Components RFP language should:
Allow agency to reject any and all bids Allow agency the right to request clarification and
revisions Allow agency to waive a mandatory
If unmet by ALL proposers Allow agency the right not to proceed with an award Establish a minimum period of proposal validity (e.g.,
price firm for 180 days and/or proposal irrevocable for 30 days)
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RFP Evaluation & Selection Process
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Think Results!
Assumptions
Technical/Cost ratio is 70/30Minimum passing technical score is set at 49
70% of the technical points
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Think Results!Technical
Points CostCost
Points Total
Scores
ABC Corp. 70 3,500,000 12.9 82.9DEF Corp. 54 4,000,000 11.3 65.3
GHI, LLC 52 3,750,000 12.0 64.0
JKL Industries 50.5 4,250,000 10.6 61.1
MNO Inc. 52 1,500,000 30.0 82.0
ABC Corp. 69 3,500,000 12.9 81.9
DEF Corp. 54 4,000,000 11.3 65.3
GHI, LLC 52 3,750,000 12.0 64.0
JKL Industries 50.5 4,250,000 10.6 61.1
MNO Inc. 52 1,500,000 30.0 82.0
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Think Results!
TechnicalPoints Cost
CostPoints
Total Scores
ABC Corp 70 3,740,000 12.0 82.0
DEF Corp 54 3,250,000 13.8 67.8
GHI, LLC 52 3,750,000 12.0 64.0
JKL Industries 50.5 4,250,000 10.6 61.1
MNO Inc. 52 1,500,000 30.0 82.0
A tie! The award must go to the lowest cost
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TechnicalPoints Cost
CostPoints
Total Scores
ABC Corp 70 4,200,000 23.1 93.1 #1
DEF Corp 64 3,425,000 28.4 92.4 #3
GHI LLC 60 3,300,000 29.5 89.5
JKL Industries 60 3,280,000 29.6 89.6
MNO Inc. 63 3,240,000 30.0 93.0 #2
Think Results!
$960,000 for 7 technical points!
$137,142.86 for each point!
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Evaluation Instrument All evaluation criteria MUST be established prior to
the receipt of proposals
Be clear/concise
Ensure relative weights match RFP weights
Evaluation information should be documented, dated and secured throughout the evaluation process
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Evaluation Instrument
Establish methodology
Identify the number of individuals and rolesFormalize and document the proceduresProvide the sequence of events (timeline)
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Evaluation Instrument Mandatory Requirements Checklist
Ensure each proposer’s responsiveness to the requirements
Identify minor omissions or irregularities Agency may attempt to cure
Identify material deviations Proposer will be removed from further consideration
All REJECTED proposals must be submitted in their entirety Agency may waive if unmet by ALL proposers
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Evaluation Instrument Technical Evaluation
Specifications to be evaluated should reflect the agency’s requirements as defined in the RFP
Mandatory requirements evaluated on a pass/fail basis Breakdown of points MUST be defined Evaluate the need for a minimum technical score Evaluators will score the same criteria for each
proposal
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Evaluation Instrument
Technical Evaluation
If the technical evaluation requires the proposer to meet a minimum score in order to continue through the process, this information MUST be included in the evaluation instrument
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Evaluation Instrument
Technical Evaluation – Multiple AwardsDefine how they will be awarded in the RFP Example:
Award will be made to the three firms with the highest composite score
Award will be made to the highest scoring firm for each region
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Evaluation Instrument Individual Technical Evaluation Form
Key indicating how to apply the points within the specified criteria
Designation of firm being evaluated Name of evaluator Technical criteria and associated weight Evaluator comments/notes Initials of evaluator and date completed
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Evaluation Instrument
Cost Proposal EvaluationCost evaluation should be independent of
technical evaluation team
Recommended formula for evaluating cost: (Low bid / bid being evaluated) x maximum
number of points available The formula used in calculating cost scores should
be identified
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Evaluation Instrument Calculations must be accurate
Will decimals be used? How many places will it be extended? Will the points be rounded – Up/Down?
Ensure evaluation instrument reflects any modifications to specifications Questions & answers result in a specification change Amendment issued
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Evaluation Instrument
Five steps in developing evaluation methodologyDefine the criteriaSet the cost/technical ratioDetermine minimum passing score, if anyDetermine distribution of points among criteriaDefine distribution of points within each criterion
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Evaluation Instrument
Requirements of a Complete Technical Evaluation Individual evaluator’s score sheetsSummary of technical scoresWorksheet showing cost calculationsCombined cost/technical score sheet
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Important Reminders
Document notes and basis for assigning scores
Issue intent to award/non-award letters
1 Proposal – Evaluation still required
Reference/Interview Scripts
Site visit sign-in sheet
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Procurement Package
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Concepts
This is a paper world!
Mailrooms
Math
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Procurement PackagePart One - Identification
Batch Control Listing & AC340
Procurement Record Checklist with Contact Information
Cover Letter/Memorandum Explanation of transaction
Table of Contents (large procurements)
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Contract, Amendment, Purchase Order, Summary & Affidavit, etc. APPENDIX A
Request for Proposal or Project Definition RFP Amendment – if applicable Questions and Answers
including proof of transmittal to proposers
Winning Proposal – Technical and Cost
Rejected Proposals – Technical and Cost Those disqualified for not meeting minimum requirements
Cost Proposals of responsive proposers
Procurement PackagePart Two – The Contract
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Procurement PackagePart Three – The Vendor Community
Contract Reporter advertisement/evidence of exemption
Solicitation list
Notice of intent to award/non-award letters
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Less than three bids Explanation of limited competition Justification of reasonableness of cost
Single or sole source Copy of OSC approval letter Cost justification
Preferred Source
Procurement PackagePart Three – The Vendor Community
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Procurement PackagePart Four – The Evaluation
Certified bid tab
Evaluation Instructions
Blank Technical Evaluation Form
Individual Technical Evaluation score sheets
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Technical Evaluation Matrix Preliminary and Final
Cost scoring matrix
Total final score (technical and cost)
Evaluation correspondence and notes
Procurement PackagePart Four – The Evaluation
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Procurement PackagePart Five – The 5 Sisters
EO 127
Vendor Responsibility Questionnaire Profile Certification
Sales and Compensating Use Tax ST-220-CA
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Procurement PackagePart Five – The 5 Sisters
Procurement LobbyingGovernmental Entity Representation FormAffirmation of understandingPrior non-responsibility determinationsCertification – complete, true and accurateTermination clause
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Procurement PackagePart Five – The 5 Sisters
Consultant DisclosureForm A – The estimate
Appropriate titles from O*NETForm B – The annual report
If applicable:OFT technology purchase approvalCivil Service approvalOGS approval
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49
Procurement PackagePart Six – Control Agencies
Attorney General – Contract Approval Attorney General – Outside Counsel OFT – Technology Procurements Civil Service – Personal Service OGS – Piggybacks Division of the Budget – Financing
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Procurement PackagePart Seven – Protests
Original protest letter
Internal memoranda
Correspondence
Decision Letter
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Procurement Package – Specials
Revenue Contracts
Purchase Orders
Contract Assignments
Piggy-backs
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Advice
Think speed
Call Us!
The Fifth Day
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References OSC Internet Site http://www.osc.state.ny.us/
Vendor Responsibility G-Bulletin 221 Procurement Lobbying Law G-Bulletin 224
Advisory Council on Procurement Lobbying Model Forms/Language
http://www.ogs.state.ny.us/aboutogs/regulations/advisoryCouncil/ModelLang.html Sales and Compensating Use Tax G-Bulletin 222 & 222a
NYS Department of Taxation and Finance http://www.tax.state.ny.us
Consultant Disclosure Law G-Bulletin 226 O*NET OnLine http://online.onetcenter.org/
Procurement Guidelineshttp://www.ogs.state.ny.us/purchase/AboutPSG.asp
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Questions?