Elements of a Quality Bid Proposal for State Government An Overview in State of Michigan Procurement Practices and Procedu...
TRAINING AGENDA   <ul><li>A. Elements of a Quality Proposal </li></ul><ul><li>B. DMB Procurement Process </li></ul><ul><li...
Elements of a Quality Proposal <ul><li>Specifications/  Demonstrate  </li></ul><ul><li>Scope of Work compliance </li></ul>...
Forms:  Solicitation Documents RFQ:  Request for Quote ITB :  Invitation to Bid RFP :  Request for Proposal RFI :  Request...
Solicitation Documents:  RFQ <ul><li>Informal Competitive Bid, under $25,000 </li></ul><ul><li>Simple solicitation </li></...
Solicitation Documents: ITB <ul><li>Formal Competitive Bid </li></ul><ul><li>Low complexity </li></ul><ul><li>Low Bid or B...
Solicitation Document:  RFP <ul><li>Competitive Formal Proposal </li></ul><ul><li>A more complex purchase </li></ul><ul><l...
<ul><li>Two types: Pricing Research or Market Research </li></ul><ul><li>RFI’s can be formal or informal </li></ul><ul><li...
Solicitation Document:  Pre-Qualification Programs <ul><li>Advertised in same manner as RFP </li></ul><ul><li>Due date and...
Element #1:  ITB / RFP Components <ul><li>Article 1: Work Statement </li></ul><ul><li>Article 2: Terms and Conditions </li...
ITB / RFP Components:  Article 1 <ul><li>Project Title and Description </li></ul><ul><li>Specifications / Scope of Work </...
ITB / RFP Components:  Article 2 <ul><li>Standard Contractual Terms  </li></ul><ul><li>Important Terms Include (but are no...
ITB / RFP Components:  Article 3 <ul><li>Pre Bid Meetings and Q & A Period </li></ul><ul><li>Communication Rules </li></ul...
ITB / RFP Components:  Article 4 <ul><li>Company Information </li></ul><ul><li>Prior Experience </li></ul><ul><li>Staffing...
Element #2:  Specifications <ul><li>Article 1 Statement of Work </li></ul><ul><li>Many Different Types :  commodity specif...
Element #3:  Pricing <ul><li>Be competitive, submit your best price with your bid upfront </li></ul><ul><li>Negotiations v...
Element #4:  Pre-Bid Meetings <ul><li>May be Mandatory or Optional </li></ul><ul><li>Walk Through the Site(s) </li></ul><u...
Element #5:  Question and Answer Period <ul><li>Each Bid has a Q&A Period. </li></ul><ul><li>Due Date and Time for Questio...
Element #5:  Acknowledgements <ul><li>Bidders must acknowledge: </li></ul><ul><li>Understanding of the work to be done </l...
DMB Procurement Process <ul><li>Evaluation Period  </li></ul><ul><li>Clarifications </li></ul><ul><li>Internal Approvals <...
Evaluation Period:  Award Type <ul><li>Single Award-  Award entire contract to one vendor </li></ul><ul><li>Split Award–  ...
Protest <ul><li>Who can protest? </li></ul><ul><li>Responsive Bidder </li></ul><ul><li>Who cannot protest? </li></ul><ul><...
Contact Information Rebecca Nevai, Coordinator Phone:  517-373-8530 Email:   [email_address] Buy Michigan First Patrick Mu...
Contact Information Phone:  517-373-9559 Email: [email_address] DMB Real Estate State Headquarters  Phone:  616.331.7480 W...
Contact Information Michigan District Office Phone:  313- 226-6075  Website:  www.sba.gov Small Business Administration (S...
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Quality Proposal

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How to write a Quality Proposal
Presented by Tammi Hart

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  • How many of you think that the incumbent vendor always wins? Not true – why? They don’t come to this class! But seriously… Common issues – didn’t write a quality bid proposal, complete and thorough detail, responding to all sections Need to respond to each part of RFP as well as having a competitive price. Make sure that your bid responds to each aspect of all bid questions, frequent mistake. Gov’t bids have higher level of detail. Write your proposal assuming that you will not meet with the buyer, and any clarifications and negotiations will only be via email. Different process than private. Don’t need to meet with us in order to submit a bid. Bids are publicly posted and anyone can submit a response.
  • SPECS – be complete, respond to each aspect with requested detail. PRICE - Why best price first? (Not like automotive.) To model a business relationship that is most efficient, on behalf of the taxpayer. PRE-BID – review each bid for one, and whether it is mandatory PRE-QUAL – normally you must complete this step before you bid, or the bid is posted. Q&amp;A – submit via email to the buyer by the Q&amp;A due date and time ACKNOWLEDGE – statement accepting T’s&amp;C’s, bid incorporates all addendums and attachments FORMS – review each bid, complete as stated RULES – can be disqualified
  • Review our “jargon”
  • Respond by the due date and time. If Fed Ex delivers late, it’s late. Only considered if no other bids are received. Don’t wait until the last day to submit.
  • Respond by the due date and time. If Fed Ex delivers late, it’s late. Only considered if no other bids are received. Don’t wait until the last day to submit.
  • Have a due date and time If you have questions before submitting a response, email the assigned buyer.
  • ANY QUESTIONS ON THE TYPES OF PURCHASES?
  • WHY ARE STATE BIDS SO LONG? Two key differences from private sector that are to vendor’s benefit. Must publish terms and conditions and bid process and evaluation criteria with bid. Article 4 is in the process of being removed from bid documents, and made part of the on-line bid4michigan vendor registration process. Cuts 10% off of bid doc. These sections may get renumbered when Article 4 is removed, so look for that. Article 6 is new, and will only be included in bids that use Recovery Act funds.
  • Requires a response from vendor in many sections. Respond to or acknowledge all of the details within each section. Not the place for marketing fluff or what you did for someone else. Describe how your company will do this work for us. Good idea to maintain the outline format to make sure you hit all the details – COMMON INCUMBENT MISTAKE NOT TO. If you have additional info to include, put it at the end of your response sub-sections, after the detailed bid response.
  • In the vendor’s favor that we publish up front. Review and ask questions. Buyer may revise a section like Insurance through Q&amp;A, and that would directly affect price. Standard terms for each division (Services, Commodities, and IT). Once you bid repeatedly you’ll see that these remain similar with a few customizations. Standard Contract Term is 3 base years plus two optional renewal years, customized by bid.
  • Keep in mind that until the bid is due you should keep checking it regularly for new addendums, like Q&amp;A. That is how we would communicate any information to bidders. Will state the due date and time for Q&amp;A. Bid bonds are not commonly included for goods and services.
  • Company information includes sales volume for each of the last several years. Can be used to estimate financial capability. This is the place for prior experience narratives, not Article 1. Prior Experience – COMMON AREA FOR MISTAKES. Requested details are listed in paragraph format, make sure to include everything! You may include more prior work experience descriptions than requested, if you like. If this project represents a “step up” in the type of projects you’ve been doing compared to the bid scope, acknowledge that. Explain in detail how your company will be taking steps to accommodate this “step up” and how your prior experience has prepared you for this. Can’t say how a future bid would be scored, but will certainly instill more confidence that your company has thought this out. COMMON MISTAKE not to do this. Staffing – be thorough, like Prior Experience. Consider MiDEAL, we’ll talk more about later on.
  • Do not expect any face to face meetings for bid clarifications or negotiations. Negotiation emails will have a response due date and time. Email the buyer if you have questions before submitting your response. May have short time window for negotiations. BAFO – read definition in bid, it does not refer to your last and best price . It is we clarify our bid specifications, and ask all vendors to consider the change and respond. May not occur.
  • Bid may ask vendor to propose the best solution, such as what type of security camera for a room? Central mount, corner pan and tilt? Pre-bid may be mandatory so that all bidders have viewed the room to submit a good response. Site visits valuable for janitorial bids. See some floor tile is damaged. Ask in Q&amp;A if it will be fixed before contract start date. Prebids are an excellent time for subs to network with primes.
  • Split Award – janitorial supplies Multiple Source Award – Temporary Staffing Contracts (may need multiple sources to ensure enough nurses) Regional Award – Fuel Oil delivery
  • Quality Proposal

    1. 1. Elements of a Quality Bid Proposal for State Government An Overview in State of Michigan Procurement Practices and Procedures Jennifer M. Granholm, Governor Phyllis Mellon, Acting Director
    2. 2. TRAINING AGENDA <ul><li>A. Elements of a Quality Proposal </li></ul><ul><li>B. DMB Procurement Process </li></ul><ul><li>C. Contact Information </li></ul>
    3. 3. Elements of a Quality Proposal <ul><li>Specifications/ Demonstrate </li></ul><ul><li>Scope of Work compliance </li></ul><ul><li>Pricing: Competitive – best price first </li></ul><ul><li>Pre-Bid Meetings: Participate </li></ul><ul><li>Pre- Qualification: Complete in advance </li></ul><ul><li>Q&A: </li></ul><ul><li>Acknowledge: Addendums/Terms </li></ul><ul><li>Forms: Read & complete </li></ul><ul><li>Follow communication rules </li></ul>
    4. 4. Forms: Solicitation Documents RFQ: Request for Quote ITB : Invitation to Bid RFP : Request for Proposal RFI : Request for Information Prequalification Program
    5. 5. Solicitation Documents: RFQ <ul><li>Informal Competitive Bid, under $25,000 </li></ul><ul><li>Simple solicitation </li></ul><ul><li>(mail, fax, e-mail, phone, etc.) </li></ul><ul><li>Price is usually the primary evaluation factor </li></ul><ul><li>Lower cost commodities with non-complex specifications. </li></ul>
    6. 6. Solicitation Documents: ITB <ul><li>Formal Competitive Bid </li></ul><ul><li>Low complexity </li></ul><ul><li>Low Bid or Best Value - Price is one of the main evaluation criteria </li></ul><ul><li>Defined bid due date & time. </li></ul><ul><li>No Public Bid Openings. </li></ul><ul><li>(Except Design & Construction) </li></ul>
    7. 7. Solicitation Document: RFP <ul><li>Competitive Formal Proposal </li></ul><ul><li>A more complex purchase </li></ul><ul><li>Best Value - Price is only one of many evaluation criteria </li></ul><ul><li>Highly technical commodities like IT and professional services </li></ul><ul><li>Defined bid due date & time. </li></ul>
    8. 8. <ul><li>Two types: Pricing Research or Market Research </li></ul><ul><li>RFI’s can be formal or informal </li></ul><ul><li>RFI response content may be used to develop an RFP </li></ul>Solicitation Documents: RFI
    9. 9. Solicitation Document: Pre-Qualification Programs <ul><li>Advertised in same manner as RFP </li></ul><ul><li>Due date and time for response </li></ul><ul><li>Requirements vary per program </li></ul><ul><li>Exist for a certain period of time </li></ul><ul><li>May allow entry on a yearly basis </li></ul><ul><li>Does not guarantee a contract or sales </li></ul><ul><li>May just be a list of licensed or certified businesses </li></ul>
    10. 10. Element #1: ITB / RFP Components <ul><li>Article 1: Work Statement </li></ul><ul><li>Article 2: Terms and Conditions </li></ul><ul><li>Article 3: Bid Process and Evaluation Criteria </li></ul><ul><li>Article 4: Required Bidder Information </li></ul><ul><li>Article 5: Recovery Act Terms and Conditions </li></ul>
    11. 11. ITB / RFP Components: Article 1 <ul><li>Project Title and Description </li></ul><ul><li>Specifications / Scope of Work </li></ul><ul><li>Required Service & Delivery Capabilities </li></ul><ul><li>Reporting Requirements </li></ul><ul><li>Minimum Order / Palletizing </li></ul><ul><li>Proposal Pricing </li></ul><ul><li>Special Terms & Conditions </li></ul>
    12. 12. ITB / RFP Components: Article 2 <ul><li>Standard Contractual Terms </li></ul><ul><li>Important Terms Include (but are not limited to): </li></ul><ul><ul><li>Insurance </li></ul></ul><ul><ul><li>Payment Information </li></ul></ul><ul><ul><li>Cancellation </li></ul></ul><ul><ul><li>Contract Term / Optional Renewal Years </li></ul></ul>
    13. 13. ITB / RFP Components: Article 3 <ul><li>Pre Bid Meetings and Q & A Period </li></ul><ul><li>Communication Rules </li></ul><ul><li>Award Process </li></ul><ul><li>Evaluation Criteria </li></ul><ul><li>Proposal Format Details </li></ul><ul><li>Bid Submission Instructions </li></ul><ul><li>Bid Bond Requirements (If Any) </li></ul>
    14. 14. ITB / RFP Components: Article 4 <ul><li>Company Information </li></ul><ul><li>Prior Experience </li></ul><ul><li>Staffing </li></ul><ul><li>Past Performance </li></ul><ul><li>Contract Performance </li></ul><ul><li>Place of Performance </li></ul><ul><li>Disclosure of Litigation </li></ul><ul><li>MIDEAL - Extended Purchasing </li></ul><ul><li>Article 4.doc </li></ul>
    15. 15. Element #2: Specifications <ul><li>Article 1 Statement of Work </li></ul><ul><li>Many Different Types : commodity specifications, services scope of work, design, installation requirements etc. </li></ul><ul><li>Alternate Brands: Commodity bids may have a reference brand, indicating equivalent alternates are acceptable. Bidders can submit multiple options. </li></ul><ul><li>Exceptions: Some exceptions are found to be acceptable. Bidders should submit a question in the Q&A period to determine which may be acceptable before submitting their bid. </li></ul>
    16. 16. Element #3: Pricing <ul><li>Be competitive, submit your best price with your bid upfront </li></ul><ul><li>Negotiations via email </li></ul><ul><li>BAFO: Best and Final Offer </li></ul><ul><li>Discount Delivery Terms </li></ul><ul><li>Discount Schedules </li></ul><ul><li>Multi Unit Discounts </li></ul>
    17. 17. Element #4: Pre-Bid Meetings <ul><li>May be Mandatory or Optional </li></ul><ul><li>Walk Through the Site(s) </li></ul><ul><li>Provide Clarification of Visual Layout </li></ul><ul><li>Prompt Vendors to Ask Questions </li></ul>
    18. 18. Element #5: Question and Answer Period <ul><li>Each Bid has a Q&A Period. </li></ul><ul><li>Due Date and Time for Questions </li></ul><ul><li>Buyer will post Q&A as an addendum to the bid. </li></ul><ul><li>Q&A may revise the bid requirements </li></ul><ul><li>Bidders are strongly encouraged to email in as many questions needed to submit your best proposal. </li></ul>
    19. 19. Element #5: Acknowledgements <ul><li>Bidders must acknowledge: </li></ul><ul><li>Understanding of the work to be done </li></ul><ul><li>Addendums, including Q&A </li></ul><ul><li>Requirements of Bid Package </li></ul><ul><li>Questions asked in the Bid </li></ul><ul><li>Have successfully completed pre-qualification, if applicable </li></ul><ul><li>Statement of Agreement to Terms and Conditions </li></ul><ul><li>Complete additional RFP forms, if any </li></ul>
    20. 20. DMB Procurement Process <ul><li>Evaluation Period </li></ul><ul><li>Clarifications </li></ul><ul><li>Internal Approvals </li></ul><ul><li>Award Notification </li></ul><ul><li>5. Debrief </li></ul><ul><li>6. FOIA </li></ul><ul><li>7. Protest </li></ul>
    21. 21. Evaluation Period: Award Type <ul><li>Single Award- Award entire contract to one vendor </li></ul><ul><li>Split Award– Award by item, or group of items, split among multiple vendors. </li></ul><ul><li>Multiple source awards– Award to multiple vendors among multiple responses. </li></ul><ul><li>Regional or Zone awards– Award by region or zone </li></ul>
    22. 22. Protest <ul><li>Who can protest? </li></ul><ul><li>Responsive Bidder </li></ul><ul><li>Who cannot protest? </li></ul><ul><li>Bidders who “No Bid” </li></ul><ul><li>Manufacturers or suppliers selling through distributors, or businesses listed as subcontractors in a vendor's proposal. </li></ul>
    23. 23. Contact Information Rebecca Nevai, Coordinator Phone: 517-373-8530 Email: [email_address] Buy Michigan First Patrick Mullen Phone: 517-373-0967 Email: [email_address] DMB Facilities Administration Tammi Hart, Coordinator Phone: 517-335-4770 Email: [email_address] Supplier Diversity General Email: [email_address] Buy Michigan First Business Development Unit
    24. 24. Contact Information Phone: 517-373-9559 Email: [email_address] DMB Real Estate State Headquarters Phone: 616.331.7480 Website: www.misbtdc.org Michigan Small Business & Technology Development Centers (SBTDC) Regional PTAC Phone: 734-362-3477 Website: www.ptacsofmichigan.org Procurement Technical Assistance Centers Of Michigan (PTAC) General Information Phone: 517-373-9808 Website: [email_address] Michigan Economic Development Corporation (MEDC)
    25. 25. Contact Information Michigan District Office Phone: 313- 226-6075 Website: www.sba.gov Small Business Administration (SBA) Nancy Taylor - Williams Phone: 517- 241-5952 http://www.michigan.gov/msi Michigan State Industries (MSI) Ann Williams Phone: 248- 967-0570 ext 211 http://www.michigan.gov/mdot Michigan Department of Transportation (MDOT)

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