Agenda <ul><li>Best Value Defined </li></ul><ul><li>RFP Planning </li></ul><ul><li>RFP Components </li></ul><ul><li>RFP Ev...
What is Best Value?
Best Value - Defined <ul><li>State Finance Law  §163 : </li></ul><ul><ul><ul><li>“ A best value award is one which optimiz...
RFP Planning Implementation Other Approvals as required OFT, Civil Service, AG, OSC  Business Need Specification/ Requirem...
RFP Planning <ul><li>Develop a procurement strategy </li></ul><ul><ul><li>Develop a timeline </li></ul></ul><ul><ul><ul><l...
RFP Planning <ul><li>Procurement must appear in  Contract Reporter  at least 15 business days prior to the due date of pro...
RFP Components <ul><li>Table of Contents </li></ul><ul><li>Introduction </li></ul><ul><ul><li>Statement of purpose </li></...
RFP Components <ul><li>Administrative Process </li></ul><ul><ul><li>Restate the timeline </li></ul></ul><ul><ul><li>Techni...
RFP Components <ul><li>Procurement policies, statutes & disclosures </li></ul><ul><ul><li>Appendix A </li></ul></ul><ul><u...
RFP Components <ul><li>Mandatory Contract Provisions </li></ul><ul><li>Rationale </li></ul><ul><ul><li>Concerns raised pri...
RFP Components <ul><li>Evaluation Criteria </li></ul><ul><ul><li>Minimum qualifications (pass/fail) </li></ul></ul><ul><ul...
RFP Components <ul><li>Method of Award </li></ul><ul><ul><li>Single Award </li></ul></ul><ul><ul><ul><li>Upon completion o...
RFP Components <ul><li>RFP language should: </li></ul><ul><ul><li>Allow agency to reject any and all bids </li></ul></ul><...
RFP Evaluation and Selection Process <ul><li>Steps in developing your evaluation strategy </li></ul><ul><ul><li>Set the Te...
RFP Evaluation and Selection Process <ul><li>Questions & Answers </li></ul><ul><ul><li>Issues raised may result in the iss...
RFP Evaluation and Selection Process <ul><li>Ties </li></ul><ul><ul><li>If two offers’ Composite scores are tied, price sh...
Technical Evaluation Strategy <ul><li>Develop the criteria while developing the RFP </li></ul><ul><ul><li>Must be clearly ...
Technical Evaluation Strategy <ul><li>Technical evaluation forms must: </li></ul><ul><ul><li>Identify the vendor </li></ul...
Cost Evaluation Strategy <ul><li>RFP should have a cost form </li></ul><ul><ul><li>Must be able to do an equivalent cost c...
Cost Evaluation Strategy <ul><li>Developing a Cost Form </li></ul><ul><ul><li>Examples:  Job Titles and Hourly rates, Deli...
Cost Evaluation Strategy <ul><li>Cost score is a calculation </li></ul><ul><li>Not an analysis! </li></ul><ul><li>Check th...
Cost Evaluation Strategy <ul><li>Options for Cost Score </li></ul><ul><ul><li>Recommended formula </li></ul></ul><ul><ul><...
Cost Evaluation Strategy <ul><li>Do  NOT  score cost proposals based on a key (as below).  Formula should show a relations...
Evaluation Strategy <ul><li>Who should be an evaluator? </li></ul><ul><ul><li>Expertise </li></ul></ul><ul><ul><li>Time to...
Evaluation Strategy <ul><li>Instructions to evaluators must: </li></ul><ul><ul><li>Be submitted to OSC with procurement pa...
Evaluation Strategy <ul><li>Check your math! </li></ul><ul><li>Use decimals and rounding consistently </li></ul><ul><li>Su...
Evaluation Strategy <ul><li>Do not short list until cost has been included  </li></ul><ul><li>Determine purpose and proces...
References <ul><li>OSC Internet Site  http://www.osc.state.ny.us/ </li></ul><ul><li>Vendor Responsibility  G-Bulletin   22...
Questions and Answers ?
Presenters’ Contact Information Priscilla Cassidy Bureau of Contracts Office of the State Comptroller [email_address] (518...
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  1. 2. Agenda <ul><li>Best Value Defined </li></ul><ul><li>RFP Planning </li></ul><ul><li>RFP Components </li></ul><ul><li>RFP Evaluation & Selection Process </li></ul><ul><ul><li>Evaluation Criteria </li></ul></ul><ul><ul><li>Evaluation Instrument </li></ul></ul><ul><ul><li>Selection of Vendor </li></ul></ul>
  2. 3. What is Best Value?
  3. 4. Best Value - Defined <ul><li>State Finance Law §163 : </li></ul><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></ul>
  4. 5. RFP Planning Implementation Other Approvals as required OFT, Civil Service, AG, OSC Business Need 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 CR Ad Meet w/ Evaluators Site Visit
  5. 6. RFP Planning <ul><li>Develop a procurement strategy </li></ul><ul><ul><li>Develop a timeline </li></ul></ul><ul><ul><ul><li>Conducting a procurement is a “Project” </li></ul></ul></ul><ul><ul><ul><li>Identify the events of the procurement </li></ul></ul></ul><ul><ul><ul><li>Effective planning/budgeting of time </li></ul></ul></ul><ul><ul><li>Start with the end in mind </li></ul></ul>
  6. 7. RFP Planning <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/letter </li></ul><ul><ul><li>How can the RFP be obtained? </li></ul></ul><ul><ul><li>Designated contact person </li></ul></ul><ul><ul><li>Issue date, due date </li></ul></ul><ul><ul><li>Site Visit </li></ul></ul><ul><ul><li>Questions and Answers due </li></ul></ul>
  7. 8. RFP Components <ul><li>Table of Contents </li></ul><ul><li>Introduction </li></ul><ul><ul><li>Statement of purpose </li></ul></ul><ul><li>Calendar of Events </li></ul><ul><ul><li>Date of Issuance </li></ul></ul><ul><ul><li>Proposers’ Conference </li></ul></ul><ul><ul><li>Site Visit </li></ul></ul><ul><ul><li>Date Questions and Answers Due </li></ul></ul><ul><ul><li>Date Responses to Questions and Answers Due </li></ul></ul><ul><ul><li>Due Date of Proposals </li></ul></ul><ul><ul><li>Oral Presentation and Demonstrations </li></ul></ul><ul><li>Agency Mission </li></ul><ul><ul><li>Statement about the duties of your Agency </li></ul></ul>
  8. 9. RFP Components <ul><li>Administrative Process </li></ul><ul><ul><li>Restate the timeline </li></ul></ul><ul><ul><li>Technical Proposal submission requirements </li></ul></ul><ul><ul><li>Cost Proposal submission requirements </li></ul></ul><ul><ul><li>Single award/multiple awards </li></ul></ul><ul><li>Criteria </li></ul><ul><ul><li>Minimum qualifications </li></ul></ul><ul><ul><li>Specifications of services </li></ul></ul><ul><ul><li>Additional information </li></ul></ul><ul><ul><li>References </li></ul></ul><ul><li>Contract Terms and Conditions </li></ul><ul><li>Questions & Answers </li></ul><ul><ul><li>Issues raised may result in the issuance of an amendment to the RFP </li></ul></ul><ul><ul><ul><li>Make any necessary change(s) </li></ul></ul></ul><ul><ul><ul><li>Distribute to potential vendor pool </li></ul></ul></ul>
  9. 10. RFP Components <ul><li>Procurement policies, statutes & disclosures </li></ul><ul><ul><li>Appendix A </li></ul></ul><ul><ul><li>Vendor Responsibility ( G-Bulletin 221 ) </li></ul></ul><ul><ul><li>Procurement Lobbying Law ( G-Bulletin 224 ) </li></ul></ul><ul><ul><li>Consultant Disclosure Law ( G-Bulletin 226 ) </li></ul></ul><ul><ul><li>Sales and Compensating Use Tax ( G-Bulletin 222 & 222a ) </li></ul></ul><ul><ul><li>Other (as applicable) </li></ul></ul><ul><ul><ul><li>HIPAA </li></ul></ul></ul><ul><ul><ul><li>Agency specific appendices </li></ul></ul></ul><ul><ul><ul><li>Prevailing Wage </li></ul></ul></ul>
  10. 11. RFP Components <ul><li>Mandatory Contract Provisions </li></ul><ul><li>Rationale </li></ul><ul><ul><li>Concerns raised prior to bid submission </li></ul></ul><ul><ul><li>Avoid prolonged, fruitless negotiations </li></ul></ul><ul><ul><li>Save agency time and money </li></ul></ul><ul><ul><li>Prevent gaps in program/service delivery </li></ul></ul>
  11. 12. RFP Components <ul><li>Evaluation Criteria </li></ul><ul><ul><li>Minimum qualifications (pass/fail) </li></ul></ul><ul><ul><li>Technical criteria </li></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>Multiple years – define escalation (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Department of Labor.) </li></ul></ul></ul><ul><ul><li>Relative weight – cost vs. technical </li></ul></ul><ul><ul><ul><li>RFP must disclose the relative weight </li></ul></ul></ul><ul><ul><ul><li>RFP should identify if a particular criterion is weighted more heavily than others (e.g., 40 of 70 points will be assigned to experience) </li></ul></ul></ul>
  12. 13. RFP Components <ul><li>Method of Award </li></ul><ul><ul><li>Single Award </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, inclusive of both cost and technical </li></ul></ul></ul><ul><ul><li>Multiple Award </li></ul></ul><ul><ul><ul><li>RFP should reserve the right to make multiple awards </li></ul></ul></ul><ul><ul><ul><li>RFP should state the number or “up to” number of awards to be made and how work will be allocated among the vendors </li></ul></ul></ul><ul><ul><ul><li>MUST be determined prior to receipt of proposals and documented in the Evaluation Instrument </li></ul></ul></ul>
  13. 14. RFP Components <ul><li>RFP language should: </li></ul><ul><ul><li>Allow agency to reject any and all bids </li></ul></ul><ul><ul><li>Allow agency the right to request clarification and revisions </li></ul></ul><ul><ul><li>Allow agency to waive a mandatory </li></ul></ul><ul><ul><ul><li>If unmet by ALL proposers and non-material </li></ul></ul></ul><ul><ul><li>Allow agency the right not to proceed with an award </li></ul></ul><ul><ul><li>Establish a minimum period of proposal validity (e.g., price firm for 180 days and/or proposal irrevocable for 60 days) </li></ul></ul>
  14. 15. RFP Evaluation and Selection Process <ul><li>Steps in developing your evaluation strategy </li></ul><ul><ul><li>Set the Technical/Cost ratio </li></ul></ul><ul><ul><li>Define the criteria – Mandatory (pass/fail) vs. Desirable (scored) </li></ul></ul><ul><ul><li>Determine distribution of points among criteria </li></ul></ul><ul><ul><li>Create key for assigning points within criteria </li></ul></ul>Critical Steps
  15. 16. RFP Evaluation and Selection Process <ul><li>Questions & Answers </li></ul><ul><ul><li>Issues raised may result in the issuance of an </li></ul></ul><ul><ul><li>amendment to the RFP </li></ul></ul><ul><ul><ul><li>Review all evaluation criteria </li></ul></ul></ul><ul><ul><ul><li>Make any necessary change(s) in </li></ul></ul></ul><ul><ul><ul><li>Instructions, Instrument, Score Sheets </li></ul></ul></ul><ul><li>Clarifications </li></ul><ul><ul><li>Must reserve the right in the RFP </li></ul></ul><ul><ul><li>Cannot result in a material change to the bid </li></ul></ul><ul><ul><li>If cost proposal is extremely low, agency can </li></ul></ul><ul><ul><li>seek verification from the vendor that they </li></ul></ul><ul><ul><li>understood the intent of the RFP </li></ul></ul>
  16. 17. RFP Evaluation and Selection Process <ul><li>Ties </li></ul><ul><ul><li>If two offers’ Composite scores are tied, price shall be the determining factor </li></ul></ul><ul><ul><li>If Technical and Cost scores are both the same, agency must have a pre-defined tie-breaking mechanism. May have different mechanisms for different types of procurements. </li></ul></ul>
  17. 18. Technical Evaluation Strategy <ul><li>Develop the criteria while developing the RFP </li></ul><ul><ul><li>Must be clearly stated in the RFP </li></ul></ul><ul><ul><li>Must be important to the result you are seeking </li></ul></ul><ul><ul><li>Must be measurable </li></ul></ul><ul><ul><ul><li>Pass/Fail </li></ul></ul></ul><ul><ul><ul><li>Scale </li></ul></ul></ul><ul><li>Mandatory Qualifications Checklist </li></ul><ul><ul><li>Pass/Fail – Yes/No </li></ul></ul><ul><ul><li>If not met, disqualify </li></ul></ul><ul><ul><li>Disqualified proposals </li></ul></ul><ul><ul><ul><li>Both Technical and Cost proposals must be submitted to OSC for all disqualified vendors </li></ul></ul></ul>
  18. 19. Technical Evaluation Strategy <ul><li>Technical evaluation forms must: </li></ul><ul><ul><li>Identify the vendor </li></ul></ul><ul><ul><li>Identify the evaluator </li></ul></ul><ul><ul><li>Have a reference list of points and meanings </li></ul></ul><ul><ul><ul><li>5 points = exceeds all requirements </li></ul></ul></ul><ul><ul><ul><li>4 points = meets all requirements </li></ul></ul></ul><ul><ul><ul><li>3 points = meets most requirements </li></ul></ul></ul><ul><ul><ul><li>2 points = meets some requirements </li></ul></ul></ul><ul><ul><ul><li>1 point = meets few requirements </li></ul></ul></ul><ul><ul><li>Have a space for the evaluator to enter </li></ul></ul><ul><ul><li>his/her rating </li></ul></ul><ul><ul><li>Have adequate space for comments </li></ul></ul>
  19. 20. Cost Evaluation Strategy <ul><li>RFP should have a cost form </li></ul><ul><ul><li>Must be able to do an equivalent cost comparison </li></ul></ul><ul><ul><li>Costs submitted should be complete </li></ul></ul><ul><ul><li>Costs submitted should be meaningful </li></ul></ul><ul><li>Financial Standing of a Company </li></ul><ul><ul><li>Technical Evaluation </li></ul></ul><ul><ul><li>Scored or pass/fail </li></ul></ul>
  20. 21. Cost Evaluation Strategy <ul><li>Developing a Cost Form </li></ul><ul><ul><li>Examples: Job Titles and Hourly rates, Deliverable based, Unit Price, Categories (ie: SW, Training, Support) </li></ul></ul><ul><ul><li>Understand what you are really asking for </li></ul></ul><ul><ul><ul><li>(ie: what is a page? a sheet? a document?) </li></ul></ul></ul><ul><ul><li>Capture the cost of all major components </li></ul></ul><ul><ul><li>Capture the accumulated costs of all minor components </li></ul></ul>
  21. 22. Cost Evaluation Strategy <ul><li>Cost score is a calculation </li></ul><ul><li>Not an analysis! </li></ul><ul><li>Check the Math </li></ul><ul><ul><li>Check it AGAIN! </li></ul></ul><ul><ul><li>Have a second person check it! </li></ul></ul>
  22. 23. Cost Evaluation Strategy <ul><li>Options for Cost Score </li></ul><ul><ul><li>Recommended formula </li></ul></ul><ul><ul><li>Max Points * (Low Bid ÷ Bid Being Evaluated) </li></ul></ul><ul><ul><li>Procurement Council formula </li></ul></ul><ul><ul><li>Max Point * [1 - [(Bid being Evaluated – Low Bid) ÷ Highest Bid]] </li></ul></ul><ul><ul><li>Other – check with us before you commit </li></ul></ul>
  23. 24. Cost Evaluation Strategy <ul><li>Do NOT score cost proposals based on a key (as below). Formula should show a relationship among the bids. </li></ul><ul><ul><li>$10,000 = 30 points </li></ul></ul><ul><ul><li>$10,100 = 25 points </li></ul></ul><ul><ul><li>$18,500 = 20 points </li></ul></ul><ul><ul><li>$18,501 = 15 points </li></ul></ul><ul><ul><li>$21,700 = 10 points </li></ul></ul><ul><ul><li>$21,725 = 5 points </li></ul></ul><ul><ul><li>$21,750, $25,000 and $31,622 = 0 points </li></ul></ul>
  24. 25. Evaluation Strategy <ul><li>Who should be an evaluator? </li></ul><ul><ul><li>Expertise </li></ul></ul><ul><ul><li>Time to participate fully in the process </li></ul></ul><ul><ul><li>No conflict of interest </li></ul></ul><ul><ul><li>Different teams of evaluators can be used for different criteria but the same evaluators must do any single criterion for all bidders </li></ul></ul>
  25. 26. Evaluation Strategy <ul><li>Instructions to evaluators must: </li></ul><ul><ul><li>Be submitted to OSC with procurement package </li></ul></ul><ul><ul><li>Define decision parameters and explain expectations </li></ul></ul><ul><ul><li>Evaluate proposals against standards set in the RFP </li></ul></ul><ul><ul><li>Define the use of decimals if they will be allowed </li></ul></ul>
  26. 27. Evaluation Strategy <ul><li>Check your math! </li></ul><ul><li>Use decimals and rounding consistently </li></ul><ul><li>Submit evaluator notes </li></ul><ul><li>Only one proposal received </li></ul><ul><ul><li>Must evaluate it </li></ul></ul><ul><ul><li>Submit justification of cost </li></ul></ul><ul><ul><li>Justify limited response </li></ul></ul><ul><ul><ul><li>Canvass non-responding vendors </li></ul></ul></ul>Important Reminders
  27. 28. Evaluation Strategy <ul><li>Do not short list until cost has been included </li></ul><ul><li>Determine purpose and process for interviews prior to RFP release </li></ul><ul><ul><li>Use a script </li></ul></ul><ul><li>Document the process </li></ul><ul><ul><li>Each evaluator should document his/her score and explain with comments </li></ul></ul>Important Reminders
  28. 29. References <ul><li>OSC Internet Site http://www.osc.state.ny.us/ </li></ul><ul><li>Vendor Responsibility G-Bulletin 221 </li></ul><ul><ul><li>Procurement Lobbying Law G-Bulletin 224 </li></ul></ul><ul><ul><ul><li>Advisory Council on Procurement Lobbying Model Forms/Language http://www.ogs.state.ny.us/aboutogs/regulations/advisoryCouncil/ModelLang.html </li></ul></ul></ul><ul><ul><li>Sales and Compensating Use Tax G-Bulletin 222 & 222a </li></ul></ul><ul><ul><ul><li>NYS Department of Taxation and Finance http://www.tax.state.ny.us </li></ul></ul></ul><ul><li>Consultant Disclosure Law G-Bulletin 226 </li></ul><ul><ul><li>O*NET OnLine http://online.onetcenter.org/ </li></ul></ul><ul><li>Procurement Guidelines http://www.ogs.state.ny.us/purchase/AboutPSG.asp </li></ul>
  29. 30. Questions and Answers ?
  30. 31. Presenters’ Contact Information Priscilla Cassidy Bureau of Contracts Office of the State Comptroller [email_address] (518) 474-0039 OSC Website: www.osc.state.ny.us Kathy Heffernan Bureau of Contracts Office of the State Comptroller [email_address] (518) 486-6231

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