Request for Proposals (RFPs)

for

Personal Service Contracts (PSCs)

KRS 45A. 690 – 725

FAP 111-43-00

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Requests for Proposalsfor

Personal Service Contracts

Finance and Administration CabinetOffice of Procurement Services

2012

KRS 45A – Model Procurement Code

45A.010 Purposes and Policies

 (2) The underlying purposes and policies of this code shall be: •  (a) To simplify, clarify, and modernize the law governing purchasing by

the Commonwealth; • (b) To permit the continued development of purchasing policies and

practices; • (c) To make as consistent as possible the purchasing laws among the

various states; • (d) To provide for increased public confidence in the procedures followed

in public procurement; • (e) To insure the fair and equitable treatment of all persons who deal with

the procurement system of the Commonwealth; • (f) To provide increased economy in state procurement activities by

fostering effective competition; and • (g) To provide safeguards for the maintenance of a procurement system

of quality and integrity.2

KRS 45A – Model Procurement Code

 45A.015 General provisions of law applicable -- Obligation of good faith.

 (2) Every contract or duty under this code shall impose an obligation of good faith in its performance or enforcement. "Good faith" shall mean honesty in fact in the conduct or transaction concerned and the observance of reasonable commercial standards of fair dealing.

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OBJECTIVES

By the end of this session…• Distinguish professional vs non professional service• Develop a good Statement of Work• Determine who should be on the evaluation team• Develop good evaluation criteria• Successfully evaluate an RFP• Effectively document evaluation process• Identify and recommend the best proposal

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AGENDA

• PSC Determination• Issuance/Approvals/Posting• Statement of Work• Schedule of RFP Activities• Vendor Conference• Scoring Structure• Handling of Proposals• Responsiveness

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AGENDA

• Open Records• Role of the Buyer• Evaluation• Oral Presentation• Evaluation Process Documentation• Negotiation• Determination and Finding• Contract Award

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PSC or Not??

• KRS 45A.690(g) defines a Personal Service Contract as “an agreement whereby an individual, firm, partnership, or corporation is to perform certain services requiring professional skill or professional judgment”

• Professional services include, but are not limited to:– Legal Services– Medical Services– Auditing Services– Consulting Services– Training Services

Contact OPS for assistance to determine if a service is considered Professional

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RFP is required for PSCs

45A.695(3)Adequate notice of the need for a personal service contract shall be given by the contracting body through a request for proposals. The request for proposals shall describe the services required, list the type of information and data required of each offeror, state the relative importance of particular qualifications, and include the reciprocal preference for resident bidders required by KRS 45A.494

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FAC Approval to Issue RFP

Agency shall issue the RFP in the state’s procurement system, currently eMARS. Prior to issuance of the RFP, EO1/LOI approval is required.

State agencies needing to purchase eligible services by PSC that are = > $10,000, must file a Letter of Intent to contract (LOI) with the FAC in eMARS on the EO1 form. The LOI should be filed at least two (2) weeks prior to the intended date for the issuance of the RFP.

PSC’s < $10,000 are not required to file a LOI (unless a request for competitive exemption is requested) but must have internal EO1 approval.

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FAC Review Required

An RFP is required for a PSC in any amount, unless an exemption from competitive exemption is requested and approved on an EO1/LOI.

Upon approval of the EO1/LOI requesting approval to issue an RFP, the RFP must be submitted to the FAC Office of Procurement Services for review and approval prior to posting to the Vendor Self Service website. The RFP should be submitted at least one (1) week prior to the intended date for the issuance of the RFP.

Vendor Self Service

Following approval from FAC, the RFP shall be posted to the Commonwealth’s eProcurement (VSS) website for a minimum of seven (7) days.

RFP posts automatically pursuant to the Let Date entered in eMARS.

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Vendor Notification

Email notices of the RFP availability are sent to all vendors who are registered for the selected commodity code. It is imperative that agencies select the correct code. Do not select miscellaneous codes.

Agencies may choose multiple commodity codes so that as many vendors as possible are notified of the RFP.

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Vendor Notification

If the agency is aware of potential vendors, DO NOT enter them under the Vendor Tab. This prevents the automatic email notification process.

Any suggested vendors must be entered on the free form vendor tab.

Always include the incumbent vendor if the RFP is a re-bid of a current service.

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Confidentiality

All questions related to the RFP must be directed to the Buyer assigned to the RFP. The Buyer is the Sole point of contract throughout the RFP process.

All information related to the RFP must remain confidential until the contract is awarded.

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Confidentiality

Failure to maintain confidentiality throughout the process and prior to the award may:

– Result in vendor disqualification– Slow the procurement process– Delay contract award– Require termination of the RFP– Result in a protest

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Statement of Work

The quality of responses received from the RFP is directly related to the quality and completeness of the RFP, particularly the Statement of Work (SOW).

It is the foundation of the contract resulting from the RFP.

It must provide potential offerors a clear understanding of the requirements, evaluation criteria information and instructions on how to submit the proposal.

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A good SOW….

• Clearly describes the required services.• Makes a clear cut division of responsibility

between government and contractors• Allows for maximum competition.• Contributes to obtaining the required services

at the lowest possible cost using a fair, equitable and transparent contract award process.

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Schedule of RFP Activities

Presents the major activities associated with the RFP distribution, written questions and proposal submission.

While there is no guaranteed date of award, an anticipated date of award may be provided.

The Commonwealth reserves the right at its sole discretion to change the Schedule of Activities, including the associated dates and times.

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Schedule of RFP Activities

Release of RFP Date

Written Questions due by _______ P.M. (optional) Date

Anticipated Commonwealth Response to Written Questions Date

Vendor Conference (optional) Date

Anticipated Commonwealth Response to Vendor Conference Questions Date

Proposals Due by ______ P.M. Date

Anticipated Date of Award (optional) Date

Anticipated Contract Effective Date (optional) Date

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Vendor Conference

Vendor Conference is Optional. • Sign In sheets required for all in attendance.• Conducted by the Buyer • Information on the Meeting Process• Questions are recorded and answers posted

in the form of an addendum to the solicitation.

• Attendees advised that any answers provided at the meeting are not binding.

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Scoring Structure

PREFERENCE

The scoring of bids/proposals is subject to Reciprocal preference for Kentucky resident bidders and Preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries.

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Scoring Structure

• Cost shall be a primary factor in award, whenever appropriate – typically 40% minimum.

• Points should be on a scale of at least 1000 due to the many factors in scoring a technical proposal.

• All vendors need to be made aware that technical score is ____ points and cost score is ____ points.

• Agency may need to provide a breakdown as in the following examples:

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Scoring Structure Example 1

Technical Evaluation Criteria are as follows:• Previous Experience - 250 points

Vendor shall include a summary of the

organizations’ background, history and

experience with similar projects.

• Expertise and Qualifications - 350 points

Vendor shall include a list of staff who

shall complete the study. List must

include name, qualifications and hourly

rate charged for services.

• Total Points Possible for Technical Proposal 600 points

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Scoring Structure Example 1

Cost Evaluation Criteria are as follows:• The Proposal with the lowest Price receives the maximum score. The

Proposal with the next lowest Price receives points by dividing the lowest Price by the next lowest price and multiplying that percentage by the available points.

• For example: Assume 400 points is allocated to the lowest Price criteria for this procurement. Proposal “A” bids $30,000 as the lowest price and receives the maximum 400 points ($30,000/$30,000) = 1.00 x 400 = 400).

• Assume Proposal “B” is the next lowest Price at $40,000. Then “B” receives 300 points. ($30,000/$40,000) = .75 x 400 = 300).

• Total Points Possible for Cost Proposal 400

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Scoring Structure Example 1

Total Points Possible for Proposal:

Criteria Points Possible

Technical Proposal 600 Points

Cost Proposal 400 Points

Total Points Possible 1000 Points

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Scoring Structure Example 2Evaluation Criteria are as follows:• Experience - 800 points

Please detail respondent’s experience in handling litigation involving

construction projects and/or the invocation of bonds. Please also

specifically detail any past experience that your firm posesses in

representing the Commonwealth. Your response should include but not

be limited to the type of representation in which you are typically involved

(plaintiff/defendant), percentage of your practice concentrated in this area,

litigation and trial experience, prior clients representedin related cases,

successful outcomes, and any other factor that you deem relevant for the

Cabinet’s consideration.• Organizational Capability- 200 points

Please describe your legal entity’s ability to manage complex litigation.

In your response, please include but not necessarily limit yourself to the\

following items: the number of employees at respondent’s place of

business, the names of the individuals expected to perform the legal services

on this matter and a brief statement of the role and the experience of each

individual expected to perform said work.

TOTAL POINTS POSSIBLE FOR PROPOSAL 1000 POINTS

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Scoring Structure Example 2

FEE SCHEDULE

The Cabinet follows the fee guidelines set out by the Legislative

Research Commission. The rates are as follows:

$125.00/hour – Partner;

$90.00/hour – Associate;

$40.00/hour – Paralegal.

The Cabinet may reimburse certain expenses. These expenses and other expense related issues will be addressed in a contract between the parties.

*reimbursement may not be more than the state rate & travel may not be reimbursed if the hourly rate is paid while in travel status

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Handling of Proposals

Receipt

Proposals received by the purchasing agency in response to a solicitation should be stamped with the date and time immediately upon receipt.

Proposals that are not sealed should not be accepted by the purchasing agency.

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Handling of Proposals

Receipt

Proposals not clearly marked as such may be opened for identification purposes, and shall be appropriately identified with reference to the particular procurement and resealed until the time for opening proposals. The envelope should indicate that it had to be opened to identify the solicitation response and it will not be considered for award.

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Handling of Proposals

Receipt

All written proposals received by the purchasing agency in response to a solicitation shall be kept secure and unopened in a locked box or safe until the date and hour set for opening the proposals.

Proposals are not opened publicly.

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Handling of Proposals

Closing DateAll proposals received by the closing time on

the closing date shall be transmitted to the buyer for the procurement for opening.

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Handling of Proposals

Review by the Buyer

The buyer shall examine each written proposal received for general conformity with the terms of the procurement.

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Responsiveness

Proposals which conform to the requirements of the RFP are deemed Responsive by the Buyer.

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Non-Responsive Proposal Examples

Generally proposals will be *deemed non-responsive if they:

• Substitute their terms & conditions for those included in the RFP

• Qualify their prices in such a manner that the proposal price cannot be determined

• Limit the rights of the contracting authority under any contract clause

*There may be other reasons not listed here that a proposal may be deemed non-responsive.

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Open Records

Proposals shall not be subject to public inspection until negotiations between the purchasing agency and all offerors have been concluded and a contract awarded to the responsible offeror submitting the proposal determined by the buyer in writing to be the most advantageous to the Commonwealth, based upon the price and the evaluation factors set forth in the solicitation.

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Role of the Buyer in the Evaluation Process

• Provide Structure and Ensure that all Evaluators Participate and Contribute to the Process

• Ensure Evaluators Focus Strictly on the Evaluation Criteria

• Keep the Team Focused• Obtain all Necessary Clarification• Conduct Reference Checks• Calculate Cost Score• Calculate Final Scores and Rankings• Document Evaluation Process

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How to Successfully Evaluate an RFP

• Choose the Right Evaluation Team• Define your Evaluation Criteria as you

Prepare or Review the Scope of Work• Develop Scoring Mechanisms that are

Conducive to Project Goals• Use Oral Presentations when Appropriate• Document your findings and results• Be Familiar with Governing Policy and

Procedures

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Evaluation Team

The agency shall nominate a technical evaluation committee. The committee shall be comprised of members who are state employees, unless approval for appointment of non-state employees is granted by the secretary of the Finance and Administration Cabinet, or designee. Non-state employees may not score proposals but may serve as technical advisors if approved. Generally, there should be 3 – 5 scorers.

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Evaluation Team

• Who should be on the team?– Subject Matter Experts, agency leaders

• What do they need to be effective?– SOW, Solicitation, Project schedule

• When do we get them involved?– Team meeting before RFP issuance

• Where should they do their review?– Buyer will coordinate

• Why is this important to them?– Convey the importance of their role

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Evaluation Team Members must…

Have sufficient time to dedicate in order to effectively evaluate the proposals.– Such time is dedicated to reading all proposal

related materials extensively– Attend all Evaluation-related Meetings: Training,

Evaluation Sessions, Oral Presentations, Criteria Planning

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Evaluation Team Members shall…

• Sign non-disclosure and confidentiality statements prior to viewing responses.

• Maintain confidentiality and professional conduct throughout the evaluation process.

• Conduct a fair and reasonable review of proposals based on the Evaluation Criteria.

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Types of Evaluation Criteria

SUBJECTIVE• Requires the evaluator to

make judgment calls about the performance of the proponent being evaluated.

• May be influenced by objective facts, however, the evaluator evaluates the performance according to his/her personal perspective.

OBJECTIVE• The evaluator does not

make any judgments. • The evaluator does not

make a judgment call about whether the response/approach is right or wrong

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Benefits and Limitations

SUBJECTIVE

Benefits• Allows Evaluators to place

emphasis on what they think is most important

Limitations• Subjective evaluations are

open to interpretation, so one evaluator may be very different from another

OBJECTIVE

Benefits• Evaluator's views and

biases do not affect the evaluation

Limitations • While objective evaluations

may be fair and free of biases, they can be overly simple

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Evaluation Criteria

• Define "what matters" about the decision, drive the search for creative alternatives, and become the framework for comparing alternatives.

• Must be established prior to the issuance of the RFP and included in the RFP

• Should be clearly linked to desirable outcomes• Use clear and concise language to avoid confusion

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Developing Evaluation Criteria

• Identify Minimum Qualifications• Define Criteria

– Develop SOW– Decide importance of Oral Presentations– Develop Reference Check Questions– Decide importance of Vendor Conferences

• Distribute points among each criteria

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Good Evaluation Criteria Is…

• Measurable and Consistently applied• Understandable

– Consequences and trade-offs can be understood• Practical

Information can be practically obtained to assess them (i.e. data, models, etc.)

• Defendable

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Evaluation Criteria - Cost

• Agencies shall make cost the primary evaluation factor in the awarding of the contract, whenever appropriate.

• 40% of total available points should be assigned to Cost for most RFP’s

• Cost score is calculated by the Buyer.• Evaluation Team does not see Cost until after

the Technical Evaluation is completed.

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Evaluation Process

• Evaluation Team independently reviews Technical proposals based upon the specific evaluation criteria, then meets to determine a consensus score.

• Proposals are reviewed in alphabetical order.• Do not compare Proposals.• Technical scores are assigned applying the

designated evaluation criteria and recorded by the Buyer.

* Score agreed upon by the team based on review of the criteria

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Evaluation Process

• If Team cannot agree on a score, the remainder of the proposal is evaluated, then

the Criteria is re-visited. If Team still cannot agree, an average is used for the score.

• After Technical Evaluation is complete, Buyer combines Technical and Cost Scores to determine the Total Score.

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Oral Presentations

• Purpose is to obtain additional information to enable the Evaluation Team to determine or clarify the offeror’s qualifications.

• Set in the RFP. If an agency fails to address the need for oral presentations they may not go back and require Orals after the solicitation has closed.

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Oral Presentations

Limit the number of vendors using such language as:

“The Commonwealth reserves the right to require Oral Presentations/Demonstrations to verify or expand on the Technical or Cost Proposals. The top ___ highest ranking vendors may be required to provide oral presentations and demonstrations to answer questions or to clarify the understanding of the evaluation committee in accordance with the requirements of this RFP.”

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Oral Presentation

“The oral presentations shall be scheduled at the discretion of the Commonwealth. The Commonwealth reserves the right to not require oral presentations/demonstrations if they do not affect the final rankings. Oral presentations, if required, shall have a maximum available points value of ______”

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Oral Presentations

• Vendors may not alter or supplement their proposals

• Are attended by the Evaluation Team and Buyer ONLY

• Evaluation Team shall not disclose information regarding proposals submitted by other offerors.

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Oral Presentations

• Define the rules

• Evaluators collaborate on needs for clarification

• Provide questions to vendors in advance

• Schedule presentations allowing for travel

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Evaluation Process Documentation

NOT the same as a Determination & Finding

• Summary of Reference Check Results• Technical Evaluation Scores • Cost Evaluation Scores (signed by Buyer)• Oral Presentation Scores (if applicable)• Total Final Score Matrix (signed by Evaluators)• Evaluation Session Notes by Facilitator

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Evaluation Process Documentation

Evaluation Session Notes by Facilitator

• Provide adequate justification to support scores.• Include strengths/weakness to support scores.• Reference sections relevant to the comments.• Build a solid case for vendor selection.

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Negotiation

The head of the contracting body or designee may conduct discussions with any offeror who has submitted a proposal to determine the offeror’s qualifications for future consideration. Discussions shall not disclose any information derived from proposals submitted by other offerors.

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Determination & Finding (D&F)

A Determination & Finding is a written justification of the reasons for making the award to the selected vendor. All determinations of the qualification rankings of offerors based on evaluation factors set forth in the request for proposals shall be made in writing.

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D&F Example

Determination & Finding

RFP Title

Solicitation : RFP 758 110000000

Name of Buyer

Commonwealth Buyer

Vendor A, Vendor B, Vendor C, Vendor D submitted responsive proposals to the above referenced Request for Proposal (RFP).

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D&F Example

EVALUATION PROCESS

1) Technical Proposal (maximum pts = 1,300)

The Technical Proposals were evaluated and scored by an evaluation team. The scoring and evaluation were conducted pursuant to Section 60 of the RFP and were based on the consensus scoring method.

2) Cost Proposal (maximum pts – 1,200)

The Cost Proposals were evaluated and scored by the Buyer. The scoring and evaluation were conducted pursuant to Section 70 of the RFP.

3) Oral Presentation (maximum pts = 250)

The Commonwealth did not conduct Oral Presentations/Demonstrations

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D&F Example

4) Negotiation

Pursuant to Section 90 of the RFP, negotiations were conducted with the top ranked vendor, Vendor A. Successful negotiations were completed and a personal service contract was awarded to Vendor A.

For detailed evaluation & scoring justification, refer to the Technical Proposal, Cost Proposal evaluation/scoring documents.

Commonwealth Buyer:

Name of Buyer

(Buyer signature and date)

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Contract Award

Award shall be made to the offeror determined by the head of the contracting body, or his or her designee, to be the best qualified of all offerors based on the evaluation factors set forth in the RFP and the negotiation of fair

and reasonable compensation.

   

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QUESTIONS ???

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