DIVISION OF STATE SERVICES

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DIVISION OF STATE SERVICES

  1. 1. DIVISION OF STATE SERVICES BUREAU OF CONTRACTS 4/05/06
  2. 2. Developing Request for Proposals (RFP) & Evaluation Instrument May 2006
  3. 3. Agenda <ul><li>Defining Best Value </li></ul><ul><li>Planning Your RFP </li></ul><ul><li>RFP Components </li></ul><ul><li>RFP Evaluation and Selection Process </li></ul><ul><ul><li>Developing Clear Evaluation Instrument Instructions </li></ul></ul><ul><ul><li>The Evaluation Criteria </li></ul></ul><ul><ul><li>Sample Evaluation Criteria </li></ul></ul><ul><li>Completing the Procurement Package </li></ul>
  4. 4. Agenda <ul><li>Participants will learn: </li></ul><ul><ul><li>The concept of “best value” </li></ul></ul><ul><ul><li>Steps in planning a Request for Proposal (RFP) </li></ul></ul><ul><ul><li>What should be included in an RFP </li></ul></ul><ul><ul><li>Developing clear instructions for proposal reviewers </li></ul></ul><ul><ul><li>Developing evaluation instrument to accompany RFP </li></ul></ul><ul><ul><li>Components of a complete procurement package </li></ul></ul>
  5. 5. Best Value <ul><li>Defined: §163 </li></ul><ul><ul><li>“ A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts.” </li></ul></ul>
  6. 6. Best Value <ul><li>So What Does Best Value Mean? </li></ul>
  7. 7. Planning Your RFP <ul><li>Develop a procurement strategy. </li></ul><ul><ul><li>Start with the end in mind </li></ul></ul><ul><ul><li>Develop a timeline for the procurement, including deliverable need dates </li></ul></ul><ul><ul><li>Decide which elements of the procurement process will be utilized </li></ul></ul><ul><ul><ul><li>Evaluation process (evaluators) </li></ul></ul></ul><ul><ul><ul><li>Other special circumstances that will need to be addressed </li></ul></ul></ul><ul><ul><ul><li>Identify latest procurement rules and regulations and ensure they are incorporated into RFP </li></ul></ul></ul>
  8. 8. What Should Be Included In RFP <ul><li>Description of administrative process </li></ul><ul><li>A timeline </li></ul><ul><li>First page of RFP should include a “Calendar of Events”: </li></ul><ul><ul><li>Date of RFP Issuance </li></ul></ul><ul><ul><li>Date Questions and Answers are due </li></ul></ul><ul><ul><li>Date Questions and Answers will be sent to bidders </li></ul></ul><ul><ul><li>Deadline for Receipt of Proposals </li></ul></ul>
  9. 9. What Should Be Included In RFP <ul><li>Description of agency mission </li></ul><ul><li>Requirements describing the services needed: </li></ul><ul><ul><li>Minimum qualifications </li></ul></ul><ul><ul><li>Specifications of services to be provided </li></ul></ul><ul><ul><li>Additional information required to be included in proposal </li></ul></ul><ul><ul><li>References </li></ul></ul><ul><ul><li>Contract terms and conditions </li></ul></ul>
  10. 10. What Should Be Included In RFP <ul><li>Procurement Policies, Statutes & Disclosures </li></ul><ul><ul><li>Appendix A </li></ul></ul><ul><ul><li>Executive Order 127 (G-Bulletin 219) </li></ul></ul><ul><ul><li>Vendor Responsibility (G-Bulletin 221) </li></ul></ul><ul><ul><li>Sales and Compensating Use Tax Documentation </li></ul></ul><ul><ul><li> (G-Bulletin 222) </li></ul></ul><ul><ul><li>Procurement Lobbying Law </li></ul></ul>
  11. 11. What Should Be Included In RFP <ul><li>We strongly recommend publishing your mandatory contract provisions (agency or procurement specific) in the RFP. </li></ul><ul><li>Rationale: </li></ul><ul><ul><li>Allows potential bidders to raise concerns prior to submitting a bid </li></ul></ul><ul><ul><li>Eliminates vendors who are not willing to meet these mandatory provisions, thus: </li></ul></ul><ul><ul><ul><li>Avoiding prolonged and fruitless contract negotiations </li></ul></ul></ul><ul><ul><ul><li>Saving agency time and money </li></ul></ul></ul><ul><ul><ul><li>Preventing gaps in program / service delivery </li></ul></ul></ul>
  12. 12. What Should Be Included In RFP <ul><li>Evaluation criteria must state: </li></ul><ul><ul><li>Minimum Qualifications (Pass / Fail) </li></ul></ul><ul><ul><li>Fee schedules for cost; if multiple years, should define how fees should be provided (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Dept. of Labor. Identify the specific index to be used). </li></ul></ul><ul><ul><li>Identification of technical criteria to be evaluated </li></ul></ul><ul><ul><li>Relative weight between technical and cost </li></ul></ul><ul><li>Recommend developing the evaluation instrument at the same time as the RFP </li></ul>
  13. 13. What Should Be Included In RFP <ul><ul><li>It is strongly recommended to inform your bidding audience (in the RFP) if the weight (points assigned) of one particular technical criterion far outweighs the others (for example, 40 of 70 points are assigned to experience) </li></ul></ul><ul><ul><li>Why? </li></ul></ul><ul><ul><ul><li>This helps to keep all bidders on an “even playing field” and results in “balanced” proposals </li></ul></ul></ul><ul><ul><ul><li>You want to award the contract to the “best” vendor, not simply to the vendor who “guessed” the best at what was important to you </li></ul></ul></ul><ul><ul><li>Refer to Handout No. 1 “Example of Good Evaluation Language for Your RFP” </li></ul></ul>
  14. 14. <ul><li>Method of Award </li></ul><ul><ul><li>An example of clear language: </li></ul></ul><ul><ul><ul><li>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, considering both cost and technical. </li></ul></ul></ul>What Should Be Included In RFP
  15. 15. <ul><li>Method of Award </li></ul><ul><ul><li>Multiple Awards: </li></ul></ul><ul><ul><ul><li>RFP should reserve the right to make multiple awards. Where practical, the RFP should indicate the number of awards the agency expects to make. The RFP should also state how work will be assigned. </li></ul></ul></ul><ul><ul><ul><li>The number of awards to be made and the allocation of work must be determined prior to receipt of proposals and documented in the evaluation instrument. </li></ul></ul></ul>What Should Be Included In RFP
  16. 16. What Should Be Included In RFP <ul><li>Include RFP language which: </li></ul><ul><ul><li>Allows agency to reject any and all bids </li></ul></ul><ul><ul><li>Allows agency the right to request clarification and revisions </li></ul></ul><ul><ul><li>Allows agency the right not to proceed with an award </li></ul></ul><ul><ul><li>Establishes a minimum period of proposal validity that the bidder agrees to (example – price firm for 180 days and/or proposal irrevocable for 30 days) </li></ul></ul>
  17. 17. <ul><li>Other Tasks to Complete </li></ul><ul><li>Procurement must appear in Contract Reporter at least 15 business days prior to the due date of proposals </li></ul><ul><li>Develop solicitation list </li></ul>
  18. 18. Evaluation and Selection Process
  19. 19. Develop Clear Evaluation Instrument Instructions <ul><ul><li>All evaluation criteria must be established prior to the receipt of bids </li></ul></ul><ul><ul><li>Very important to be clear </li></ul></ul><ul><ul><li>Very important that relative weights match RFP weights </li></ul></ul>
  20. 20. Develop Clear Evaluation Instrument Instructions <ul><li>Establish the methodology to follow for evaluating all proposals: </li></ul><ul><ul><ul><li>Identify the number of personnel and roles involved in the process </li></ul></ul></ul><ul><ul><ul><li>Formalize the procedures to be followed </li></ul></ul></ul><ul><ul><ul><li>Provide the sequence of events (timeline) </li></ul></ul></ul>
  21. 21. Develop Clear Evaluation Instrument Instructions <ul><ul><li>For math calculations, the evaluation instrument should define: </li></ul></ul><ul><ul><li>How many decimal points the numbers will be extended </li></ul></ul><ul><ul><li>Whether the numbers will be rounded up or down </li></ul></ul>
  22. 22. Develop Clear Evaluation Instrument Instructions <ul><li>The evaluation instrument must reflect any modifications to specifications as a result of an amendment to the RFP. </li></ul><ul><ul><li>For example, Q&A’s may necessitate a change to specifications. </li></ul></ul><ul><ul><li>Changes must be issued via an amendment to the RFP and reflected in the evaluation instrument </li></ul></ul>
  23. 23. Develop Clear Evaluation Instrument Instructions <ul><ul><li>The mandatory requirements checklist will be completed to ensure each vendor’s responsiveness to the RFP requirements. The agency will attempt to cure minor omissions or irregularities with the vendors. However, material deviations will result in the bidder being removed from consideration. </li></ul></ul><ul><ul><li>Refer to Handout No. 2 “Proposal Checklist – Mandatory Requirements or Pass/Fail Portion” </li></ul></ul>
  24. 24. Develop Clear Evaluation Instrument Instructions <ul><li>Technical Evaluation Team: </li></ul><ul><ul><li>Mandatory requirements to be evaluated on Pass/Fail basis </li></ul></ul><ul><ul><li>The breakdown of points assigned to each of your technical criteria must be in your evaluation instrument </li></ul></ul><ul><ul><li>The same panel of evaluators will score the same criteria for each proposal </li></ul></ul>
  25. 25. Develop Clear Evaluation Instrument Instructions <ul><li>Technical Evaluation Team: </li></ul><ul><ul><li>If the technical evaluation requires the bidder to meet a minimum score in order to continue through the process, this information needs to be included in the evaluation instrument. </li></ul></ul>
  26. 26. Develop Clear Evaluation Instrument Instructions <ul><li>Technical Evaluation Team: </li></ul><ul><ul><li>Multiple Awards – The agency needs to define the basis for how this decision will be made in ADVANCE OF RECEIPT of the bids. </li></ul></ul><ul><ul><ul><li>Example: Award will be made to the three firms with the highest composite score. </li></ul></ul></ul><ul><ul><ul><li>Example: Award will be made to the highest scoring firm for each region. </li></ul></ul></ul><ul><ul><li>Prior to making this decision, the agency will need to defend the need for multiple awards. </li></ul></ul><ul><ul><li>This information should be dated and secured throughout the evaluation process. </li></ul></ul>
  27. 27. The Evaluation Instrument <ul><li>Individual Technical Evaluation Form </li></ul><ul><li>The following should be included: </li></ul><ul><ul><li>Key indicating how to apply the points within the individual criteria </li></ul></ul><ul><ul><li>Designation of firm being evaluated </li></ul></ul><ul><ul><li>Evaluator designation </li></ul></ul>
  28. 28. The Evaluation Instrument <ul><li>Individual Technical Evaluation Form (2) </li></ul><ul><li>The following should be included: </li></ul><ul><ul><li>Technical criteria and weight of the specific criteria </li></ul></ul><ul><ul><li>Space for evaluators to place comments / notes </li></ul></ul><ul><ul><li>Initials of individual evaluator and date completed </li></ul></ul>
  29. 29. Develop Clear Evaluation Instrument Instructions <ul><li>Financial Proposal Evaluation “Team” </li></ul><ul><ul><li>The basis for the financial proposal evaluation rankings will be the total price offer received from each offeror. The total price offers will be ranked with the low bid awarded the maximum points available. The remaining bids will be assigned scores based on the following formula: </li></ul></ul><ul><ul><ul><li>Low bid divided by bid being evaluated times the maximum number of points available </li></ul></ul></ul>
  30. 30. Refer to Handouts <ul><li>Number 3 “Price Offer Proposal Form </li></ul><ul><li>A” and </li></ul><ul><li>Number 4 “Examples of Evaluation </li></ul><ul><li>Criteria and Some Recommended </li></ul><ul><li>Relative Weights to Use” </li></ul>
  31. 31. What’s Wrong With This Picture? Evaluation Summary Matrix 37 53 41 Total Technical (60 pts) 77 78 69 Total Composite Score 40 25 28 Cost (40 pts) 7 19 12 References (20 Points) 12 16 16 Approach (20 Points) 18 18 13 Experience (20 Points) Bidder C Bidder B Bidder A All Available Points Half Available Points Zero Points Excellent Good Unacceptable Enter Points as follows:
  32. 32. What’s Wrong With This Picture? (cont’d) <ul><li>Range of points assigned were not allowed by the scoring matrix. Re-bid may not be necessary if agency can rescore proposals in accordance with the evaluation instrument. </li></ul>
  33. 33. Who Should Get the Award???? Technical 70% / Cost 30% State Finance Law S163, Paragraph 10a 84 84 Total 54 60 Technical Score 30 24 Cost Score $80,000 $100,000 Proposed Price Bidder B Bidder A
  34. 34. Who Should Get the Award???? State Finance Law S163, Paragraph 10a <ul><li>If both cost and technical scores are identical, who should get the award? </li></ul><ul><li>“ When price and other factors are found to be substantially equivalent, the determination of the commissioner or agency head to award a contract to one or more of such bidders shall be final. The basis for determining the award shall be documented in the procurement record.” </li></ul>
  35. 35. What’s Wrong With This Evaluation?? Technical = 60 pts / Cost = 40 pts Winning Bid 81.1 75.4 N/A 80.5 TOTAL SCORE 54.0 45.0 N/A 46.0 Technical Score 27.1 30.4 40.0 34.5 Cost Score (OSC Recommended Formula $140,000 $125,000 $95,000 $110,000 Proposed Price Pass Pass Fail Pass Mandatory (Pass/Fail) Bidder 4 Bidder 3 Bidder 2 Bidder 1
  36. 36. What’s Wrong With This Evaluation?? Technical = 60 pts / Cost = 40 pts ** Bids which fail to meet mandatory requirements must be excluded from the evaluation process** Winning Bid 85.4 80.2 N/A 86.0 TOTAL SCORE 54.0 45.0 N/A 46.0 Technical Score 31.4 35.2 N/A 40.0 Cost Score (OSC Recommended Formula $140,000 $125,000 $95,000 $110,000 Proposed Price Pass Pass Fail Pass Mandatory (Pass/Fail) Bidder 4 Bidder 3 Bidder 2 Bidder 1
  37. 37. Very Important Reminders <ul><li>Document evaluation notes and basis for assigning scores – assists in debriefing bidders </li></ul><ul><li>A determination of vendor responsibility must also be performed </li></ul>
  38. 38. Very Important Reminders <ul><li>After award decision is made, don’t forget to issue intent to award / non-award letters. </li></ul>
  39. 39. Elements of a Fully Documented Procurement Package <ul><li>Copy of RFP and any amendments to RFP </li></ul><ul><li>Solicitation list </li></ul><ul><li>Certified Bid Tab </li></ul><ul><li>Contract Reporter advertisement / evidence of exemption </li></ul><ul><li>Evaluation instrument and matrix of scores and/or individual scoring sheets </li></ul>
  40. 40. Elements of a Fully Documented Procurement Package (2) <ul><li>Copy of notice of intent to award / non-award letters </li></ul><ul><li>Copy of winning proposal (cost and technical) </li></ul><ul><li>Copies of all rejected proposals (cost and technical) </li></ul><ul><li>Copies of all cost proposals for responsive bidders </li></ul>
  41. 41. Elements of a Fully Documented Procurement Package (3) <ul><li>Civil Service approval for contracts with individuals </li></ul><ul><li>Completed Procurement Record Checklist </li></ul><ul><li>Memo of transaction </li></ul><ul><li>Debriefing Notes </li></ul>
  42. 42. THANK YOU! Any questions and please don’t forget to fill out the evaluation forms!!!!

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