2008 State Purchasing Forum Request for Proposals Fundamentals Office of the State Comptroller Office of Operations Bureau of Contracts Priscilla Cassidy Kathy Heffernan

2008 Purchasing Forum – Request for Proposals Fundamentals Agenda Best Value Defined RFP Planning RFP Components RFP Evaluation & Selection Process  Evaluation Criteria  Evaluation Instrument  Selection of Vendor

2008 Purchasing Forum – Request for Proposals Fundamentals What is Best Value?

2008 Purchasing Forum – Request for Proposals Fundamentals Best Value - Defined State Finance Law §163 : “A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts”

2008 Purchasing Forum – Request for Proposals Fundamentals 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 RFP Planning

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Planning Develop a procurement strategy – Develop a timeline Conducting a procurement is a “Project” Identify the events of the procurement Effective planning/budgeting of time – Start with the end in mind

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Planning Procurement must appear in Contract Reporter at least 15 business days prior to the due date of proposals Develop solicitation list/letter – How can the RFP be obtained? – Designated contact person – Issue date, due date – Site Visit – Questions and Answers due

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components Table of Contents Introduction – Statement of purpose Calendar of Events – Date of Issuance – Proposers’ Conference – Site Visit – Date Questions and Answers Due – Date Responses to Questions and Answers Due – Due Date of Proposals – Oral Presentation and Demonstrations Agency Mission – Statement about the duties of your Agency

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components Administrative Process –Restate the timeline –Technical Proposal submission requirements –Cost Proposal submission requirements –Single award/multiple awards Criteria –Minimum qualifications –Specifications of services –Additional information –References Contract Terms and Conditions Questions & Answers –Issues raised may result in the issuance of an amendment to the RFP Make any necessary change(s) Distribute to potential vendor pool

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components Procurement policies, statutes & disclosures –Appendix A –Vendor Responsibility (G-Bulletin 221) –Procurement Lobbying Law (G-Bulletin 224) –Consultant Disclosure Law (G-Bulletin 226) –Sales and Compensating Use Tax (G-Bulletin 222 & 222a) –Other (as applicable) HIPAA Agency specific appendices Prevailing Wage

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components Mandatory Contract Provisions Rationale –Concerns raised prior to bid submission –Avoid prolonged, fruitless negotiations –Save agency time and money –Prevent gaps in program/service delivery

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components Evaluation Criteria –Minimum qualifications (pass/fail) –Technical criteria –Cost Multiple years – define escalation (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Department of Labor.) –Relative weight – cost vs. technical RFP must disclose the relative weight RFP should identify if a particular criterion is weighted more heavily than others (e.g., 40 of 70 points will be assigned to experience)

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components Method of Award –Single Award 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 –Multiple Award RFP should reserve the right to make multiple awards RFP should state the number or “up to” number of awards to be made and how work will be allocated among the vendors MUST be determined prior to receipt of proposals and documented in the Evaluation Instrument

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Components RFP language should: –Allow agency to reject any and all bids –Allow agency the right to request clarification and revisions –Allow agency to waive a mandatory If unmet by ALL proposers and non-material –Allow agency the right not to proceed with an award –Establish a minimum period of proposal validity (e.g., price firm for 180 days and/or proposal irrevocable for 60 days)

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Evaluation and Selection Process Steps in developing your evaluation strategy –Set the Technical/Cost ratio –Define the criteria – Mandatory (pass/fail) vs. Desirable (scored) –Determine distribution of points among criteria –Create key for assigning points within criteria Critical Steps

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Evaluation and Selection Process Questions & Answers – Issues raised may result in the issuance of an amendment to the RFP Review all evaluation criteria Make any necessary change(s) in Instructions, Instrument, Score Sheets Clarifications – Must reserve the right in the RFP – Cannot result in a material change to the bid – If cost proposal is extremely low, agency can seek verification from the vendor that they understood the intent of the RFP

2008 Purchasing Forum – Request for Proposals Fundamentals RFP Evaluation and Selection Process Ties –If two offers’ Composite scores are tied, price shall be the determining factor –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.

2008 Purchasing Forum – Request for Proposals Fundamentals Technical Evaluation Strategy Develop the criteria while developing the RFP –Must be clearly stated in the RFP –Must be important to the result you are seeking –Must be measurable Pass/Fail Scale Mandatory Qualifications Checklist –Pass/Fail – Yes/No –If not met, disqualify –Disqualified proposals Both Technical and Cost proposals must be submitted to OSC for all disqualified vendors

2008 Purchasing Forum – Request for Proposals Fundamentals Technical Evaluation Strategy Technical evaluation forms must: – Identify the vendor – Identify the evaluator – Have a reference list of points and meanings 5 points = exceeds all requirements 4 points = meets all requirements 3 points = meets most requirements 2 points = meets some requirements 1 point = meets few requirements – Have a space for the evaluator to enter his/her rating – Have adequate space for comments

2008 Purchasing Forum – Request for Proposals Fundamentals Cost Evaluation Strategy RFP should have a cost form –Must be able to do an equivalent cost comparison –Costs submitted should be complete –Costs submitted should be meaningful Financial Standing of a Company –Technical Evaluation –Scored or pass/fail

2008 Purchasing Forum – Request for Proposals Fundamentals Cost Evaluation Strategy Developing a Cost Form –Examples: Job Titles and Hourly rates, Deliverable based, Unit Price, Categories (ie: SW, Training, Support) –Understand what you are really asking for (ie: what is a page? a sheet? a document?) –Capture the cost of all major components –Capture the accumulated costs of all minor components

2008 Purchasing Forum – Request for Proposals Fundamentals Cost Evaluation Strategy Cost score is a calculation Not an analysis! Check the Math – Check it AGAIN! – Have a second person check it!

2008 Purchasing Forum – Request for Proposals Fundamentals Cost Evaluation Strategy Options for Cost Score –Recommended formula –Max Points * (Low Bid ÷ Bid Being Evaluated) –Procurement Council formula –Max Point * [1 - [(Bid being Evaluated – Low Bid) ÷ Highest Bid]] –Other – check with us before you commit

2008 Purchasing Forum – Request for Proposals Fundamentals Cost Evaluation Strategy Do NOT score cost proposals based on a key (as below). Formula should show a relationship among the bids. $10,000 = 30 points $10,100 = 25 points $18,500 = 20 points $18,501 = 15 points $21,700 = 10 points $21,725 = 5 points $21,750, $25,000 and $31,622 = 0 points

2008 Purchasing Forum – Request for Proposals Fundamentals Evaluation Strategy Who should be an evaluator? –Expertise –Time to participate fully in the process –No conflict of interest –Different teams of evaluators can be used for different criteria but the same evaluators must do any single criterion for all bidders

2008 Purchasing Forum – Request for Proposals Fundamentals Evaluation Strategy Instructions to evaluators must: –Be submitted to OSC with procurement package –Define decision parameters and explain expectations –Evaluate proposals against standards set in the RFP –Define the use of decimals if they will be allowed

2008 Purchasing Forum – Request for Proposals Fundamentals Evaluation Strategy Check your math! Use decimals and rounding consistently Submit evaluator notes Only one proposal received –Must evaluate it –Submit justification of cost –Justify limited response Canvass non-responding vendors Important Reminders

2008 Purchasing Forum – Request for Proposals Fundamentals Evaluation Strategy Do not short list until cost has been included Determine purpose and process for interviews prior to RFP release –Use a script Document the process –Each evaluator should document his/her score and explain with comments Important Reminders

2008 Purchasing Forum – Request for Proposals Fundamentals References OSC Internet Site Vendor Responsibility G-Bulletin 221 –Procurement Lobbying Law G-Bulletin 224 Advisory Council on Procurement Lobbying Model Forms/Language ryCouncil/ModelLang.html ryCouncil/ModelLang.html –Sales and Compensating Use Tax G-Bulletin 222 & 222a NYS Department of Taxation and Finance Consultant Disclosure Law G-Bulletin 226 –O*NET OnLine Procurement Guidelines

2008 Purchasing Forum – Request for Proposals Fundamentals Questions and Answers ?

2008 Purchasing Forum – Request for Proposals Fundamentals Presenters’ Contact Information Priscilla Cassidy Bureau of Contracts Office of the State Comptroller (518) OSC Website: Kathy Heffernan Bureau of Contracts Office of the State Comptroller (518)