Brown Bag February 6, 2008. Objectives From this class the leaner will be able to: Identify appropriate situations for using the RFP Develop an RFP Advertise

Brown Bag February 6, 2008Brown Bag February 6, 2008

ObjectivesObjectivesFrom this class the leaner will be able to:

Identify appropriate situations for using the RFP

Develop an RFP

Advertise an RFP in accordance with Texas statues and other rules

Conduct a pre-proposal conference

Evaluate and Score responses

Notify appropriate parties of contract award

Identify basic contract administration duties

What is an RFP?What is an RFP?

An RFP is a formal invitation for a vendor to submit a proposal to provide a good or service to

the State.

When is an RFP Used?When is an RFP Used?

Price is not the primary concern

Respondents are expected to provide the best solution

Respondents are evaluated on a variety of criteria

Specifications are not clearly defined

Basic structureBasic structure

Section I: General

Section II: Statement of Work

Section III: Proposal Information

Section IV: Contract Terms and Conditions

Exhibit A: HUB Subcontracting Plan

Exhibit B: Execution of Proposal

Exhibit C: Compensation and Fees

Writing and Organizing TipsWriting and Organizing Tips

Remember the FACCS:Flexible

The solicitation allows for innovative solutions.Accurate

The solicitation will result in an acquisition that meets the needs of the end user.

ClearAvoid jargon and confusing terms.

CompetitiveThe solicitation allows for multiple parties to respond. It is not

written with one provider in mind.Simple

Say only what you need to say. Avoid unneeded explanations or background information.

Sectional overview and Sectional overview and DescriptionDescription

Introduction and OverviewLegal Citations

The authorizing legislation can be found in the TGC2156.121-124; TAC Title 34, Part I, Ch. 20.37, and other statutes specific to the type of procurement/contract. (i.e. TGC2166.2533)

Project Description This section summarizes the reason for the

procurement.

Sectional overview and Sectional overview and Description Description

BackgroundOnly relevant information regarding the

procurement should be included. Examples of relevant information can be:State or Federal mandatesChanges to an existing department/program

A brief program description might be necessary


Scope of Work In this section, first provide a summary of

the work that is to be done. Then, detail each item the contractor is

responsible for completing by describing the required services, deliverables, and delivery deadlines.


Contract TermAmount of time covered by the initial

contract term (e.g., three years.)

Possible Extensions or Renewal PeriodsAs a general rule, the total contract term (initial

contract term plus renewals or extensions) should not exceed four (4) years if state funded, and five (5) years if federally funded.


DefinitionsWords will retain their most common

meaning unless otherwise specifiedDefine acronyms that will be used

throughout the document.

Example:“CPA” means the Comptroller of Public Accounts. “AIS” means automated information system.

Statement of WorkStatement of Work

The statement of work is the written expression of

the end of a project before the work has

begun.

This section is the core of the RFP.

Statement of WorkStatement of Work

Agency DutiesIn short, it is the primary responsibility of

the agency to thoroughly define their expectations.This can be in terms of deliverables,

communication, invoicing, and any other relevant items.

Contractor Duties The contract is responsible for

demonstrating how they expect to fulfill the expectations expressed by the agency.

Proposal informationProposal information

Schedule of EventsIn this section, include all critical procurement

dates up to the contract start date. Also, provide a summary or outline of the project

timeline, beginning with the contract start date. Include due dates for all major contract milestones. It is often helpful to tie due dates to the contract start date

(e.g. “deliverable is due 90 days after contract execution”) instead of a set date (e.g. “September 1, 2006”) to account for possible project delays.


Revision to the ScheduleOutlines the procedure for informing

parties of revisions to the schedule.

Pre-proposal conferenceThe date of the conference should be

listed in the schedule of events.This conference can be mandatory or

optional. Either case must be stated in the RFP.

Proposal informationProposal informationProposal Requirements/Content

Expand on the summary provided in the schedule of events. Define deliverables attached to the specified dates

Describe how the agency will measure and evaluate the contractor’s performance under the contract. Define expected levels of performance List industry standardsList remedies if standards aren’t met

Include a list of required documents that need to be submitted by the respondent in order to be considered responsive to the proposal.


Proposal SubmissionRFP Opening Date and all compliance

requirements

Delivery of ProposalsInclude submission deadlines and valid

submission addresses, email addresses, and/or fax numbers.

Proposal Opening WhenWherePublic OpeningPublic Notice

Proposal requirementsProposal requirementsProposal Evaluation and Award

For a purchase made through competitive sealed proposals, agency making the purchase: (1) must specify in the RFP the known factors other

than price that the agency will consider in determining which proposal offers the best value for the state; and

(2) may concurrently inform each vendor that made a proposal on the contract of any additional factors the agency will consider in determining which proposal offers the best value for the state

if the agency determines after opening the proposals that additional factors not previously covered are relevant in determining which proposal offers the best value for the state.

Gov’t Code § 2155.075

Contract Terms and ConditionsContract Terms and Conditions

CustomizationEven though each agency might have

standard terms and conditions, it is important that they are reviewed every time they are to be included as part of the contracting document.

Contract Terms and ConditionsContract Terms and Conditions

Essential Contract Clauses

The State of Texas Contract Management Guide lists the following as essential contract clauses:Some of the clauses might be reflected in the RFP

Dispute Resolution Contractor Responsibilities Indemnification/Damage Claims Abandonment or Default Right to Audit Force Majeure Ownership/Intellectual Property

IntroductionScope of WorkTerm of ContractConsideration/PriceSpecificationsFunding Out ClauseAntitrust

Essential documentsEssential documents

HUB Subcontracting PlanAsses the project (if over $100,000.00) for

possible sub-contracting opportunitiesExamples might include painting or carpeting for a

construction project.

If an HSP is requested and not submitted, the respondent is to be considered non-responsive

Essential DocumentsEssential Documents

Execution of ProposalMakes the respondent legally responsible

for adhering to any contract formed as a result of the RFP

Renewal OptionsNo contract should be automatically

renewed unless otherwise stated. Outline a renewal procedure and the

length of any renewal or extension periods

Essential DocumentsEssential Documents

Compensation and FeesList fees that the state is not obligated to

pay.Taxes

List fees that should be non-recurring.Tooling

List a compensation schedule.Will compensation be tied to performanceLevel of EffortActual Deliverable

Solicitation Advertising Solicitation Advertising RequirementsRequirements

Centralized Master Bidder’s ListList of vendors who are interested in doing

business with the state of TexasIf you are issuing a competitive

solicitation, vendors on the list that provide commodity codes that apply to the project must be notified.


Electronic State Business DailyAn electronic platform where the State

announces new contracting opportunitiesProcurements over $25,000 must be

posted to the ESBD.Posting requirements vary depending on

the amount of information posted regarding the opportunity.


Notification Requirements for Major ContractsMajor Contract is defined as a contract

whose value exceeds $1 million dollars during the ORIGINAL term of the contractThis does not include any extension or renewal

periods.

Contract Advisory Team (CAT) Notification

Pre-Solicitation ConferencePre-Solicitation Conference

PurposeClarification

GuidelinesState of Texas Contract Management Guide

FormatOpeningIntroductionSolicitation Overview/ReviewClosing Summary

RFP OPENINGRFP OPENING

Opening DayThis is the day (as stated in the RFP) that

responses are no longer accepted.All that is read at the RFP opening is the

name of the respondents.

Evaluating ResponsesEvaluating ResponsesEvaluation Criteria

Proposals can only be evaluated against the criteria stated in the RFP

Criteria to Consider Company Information

Financial History Proposed Services

Technical Support, Training on new equipment Experience and Qualifications

Years in industry, Similar projects Compensation and Fees

Lifecycle costs, tooling, discounts References

Evaluating responsesEvaluating responsesAlthough price and conformance to specifications are

the most important best value considerations, Texas Government Code § 2155.074 lists other relevant factors that may be considered.

installation costs; life cycle costs; the quality and reliability of the goods and services; the delivery terms; indicators of probable vendor performance the cost of employee training associated with a

purchase; the effect of a purchase on agency productivity; the vendor's anticipated economic impact to the state

or a subdivision of the state

Evaluating ResponsesEvaluating Responses

The Evaluation ProcessResponsive

The respondent has responded to the RFP by the appropriate time with all requested information

HSPFinancial StatementsExecution of Offer

ResponsibleThe contractor is capable of performing the

demands of the RFP at the time requested.

Score TabulationScore Tabulation

Scoring Methodologies

Qualitative Comparing proposal elements against criteria and

assigning a non-numerical score

QuantitativeComparing proposal elements against criteria and

assigning a numerical score

Score tabulationScore tabulation

Interviews and Oral Presentations If oral presentations and interviews are

anticipated, information relevant to the process should be included.

If not anticipated, all respondents should be given an equal opportunity to participate.

Original proposals cannot be changed during oral presentations or interviews

Vendor Award and NotificationVendor Award and Notification

NegotiationsDefined as the process whereby multiple

parties with competing interest bargain for an advantage with the aim of coming to a mutual agreement.

A key advantage to using the RFP method of solicitation is the ability to negotiate .


Best and Final Offer (BAFO)After negotiations, the evaluation team can

decide that they would like to receive a best and final offer from each respondent.

If one respondent is allowed to submit a BAFO, then all respondents must be afforded the same opportunity.


NotificationElectronic State Business Daily

After an award determination has been made by the evaluation team and confirmed by executive management, and the vendor notified, it is then time to post notice of award on the ESBD.

Legislative Budget BoardThis body must be notified of certain contracts in

as little as 10 days after contract award has been made

Contract AdministrationContract Administration

Vendor Performance Tracking SystemReport vendor performance on

procurements over $25,000.00System is 100% input reliant, which means

it is depended upon timely and accurate feedback.

Reports can be made during the contract if the term is lengthy, or upon contract completion


Contract Extension and Renewal

Contracts can be renewed or extended if the terms are outlined in the RFP and/or contract.

Any options to renew or extend MUST be exercised before the termination date of the original agreement.


Contract CloseoutEnsure that all deliverables have been

received.Resolve all outstanding invoices.Provide contractor with letter stating that

the contract has ended.Collect all relevant documentation as part

of the contract file.Formally close the contract file.