Sample Bid Evals and Best Practices Step 2: Bid Evaluations

We have… PROCESS CHECK Posted the FCC Form 470 Waited 28 days Kept process “open, fair, and competitive” by posting Q&A and other related RFP docs: No secrets Every potential bidder has the same info at the same time All’s fair in love and competitive bidding.. Restarted 28 day clock for any substantive changes.

We need to… PROCESS CHECK Consider all bids Document non-responsive bids Evaluate responsive bids Notify winning bidder Document all related forms Document compliance with cost-effectiveness

PLAN FCC 470 EVALS CONTRACT ADMIN WINDOW FCC 471 PIA FCC 486 INVOICE

BID EVALS Before you evaluate YOU MUST: Consider ALL bids. Follow process defined in RFP and/ or 470. Document and keep ALL bids. Document non-responsive bids and why. Document applicable state/local rules. Document all meeting (minutes) sign-in sheets, and/or meeting agendas where evaluation was discussed.

BID EVALS Defining a responsive/ non-responsive bid Bid “responsiveness” requirements should be clearly stated on the FCC Form 470, and if present, the RFP. The two should match. Automated responses from vendors that do not meet the requirements outlined in the solicitation are not considered responsive bids. No 470 referenced. No detail relevant to your procurement. *REMEMBER TO DOCUMENT NON RESPONSIVE BIDS*

“To evaluate the bids you receive, you must construct an evaluation” BID EVALS Why is a “bid matrix” necessary? IS it necessary? “To evaluate the bids you receive, you must construct an evaluation” http://usac.org/sl/applicants/step02/default.aspx

CONSTRUCTING A MATRIX Evaluating Price Tech Neutral Language Criteria Heavily weighted vs highest weighted? Tech Neutral Language 470 and RFP (or equivalent..) Tech solution Criteria Subjective or objective? May be scored on range

CONSTRUCTING A MATRIX You have options Multi Tier Single Tier Two stage process (can be more) First Round: “This tier may be evaluated on a pass-fail basis or it may be scored numerically, where a minimum score is required to advance to the next phase of the evaluation process.” Second Round: “Applicants may use the second tier of the evaluation process to examine price and other criteria.” Single Tier Multi Tier Evals https://apps.fcc.gov/edocs_public/attachmatch/DA-11-1368A1.pdf

MATRIX EXAMPLE Single Tier Points Eligible Price 60 Ineligible Price 20 Experience with Vendor 100 Can also use a point system. Follow any local or state procurement laws. Inform all potential bidders of scoring criteria.

MATRIX EXAMPLE Single Tier POINTS Vendor A Vendor B Vendor C Eligible Price 60 50 40 Ineligible Price 20 15 Experience 5 10 100 80 90

MATRIX EXAMPLE Single Tier Points Eligible Price 50 Ineligible Price 10 Tech Solution 40 100

MATRIX EXAMPLE Single Tier POINTS Vendor A Vendor B Vendor C Eligible Price 50 40 25 Ineligible Price 10 5 Tech Solution 30 80 60 70

MATRIX EXAMPLE Multi-Tier ROUND ONE YES/NO Meets Technical Requirements ? Provides SPI Invoicing Mode Responsive Bid Is Vendor on Red Light status ROUND TWO Points Eligible Price 50 Ineligible Price 10 Tech Solution 40 100 VENDOR #1

MATRIX EXAMPLE Multi-Tier ROUND ONE YES/NO Meets Technical Requirements YES Provides SPI Invoicing Mode NO Responsive Bid Is Vendor on Red Light status ROUND TWO Points Eligible Price Ineligible Price Tech Solution VENDOR #1 = Disqualified due to not providing SPI Invoicing

AFTER THE EVAL… Document losing bid and why Memorialize winning bid Notify winning vendor Document cost-effectiveness, if necessary. If possible, enter into legally binding agreement

WHAT IF…? Only one bid is received? No bids are received? Keep a written record of this fact. This will help to document that you did not just keep only the winning bid. You may consider an incumbent or state master contract. No bids are received? Follow applicable laws and rules Optional: Re-start procurement. Consider state master contract or incumbent contract. Contact service providers to solicit bids and can then review and evaluate any bids received as a result. You have a tie? If one bid, make sure who did “research” to determine cost effectiveness (a point made in the last USAC training)

RULES & BEST PRACTICES Do not discuss current, open solicitations. Record negotiation strategy sessions and meetings. Use an evaluation process and criteria defined in your FCC Form 470 or/and in the RFP documents. Wait the minimum concurrent 28 days.

RULES & BEST PRACTICES Document everything. Track and keep copies of all correspondence and bids. Ensure all meeting minutes, discussions, and participants are documented. Document that there are no conflicts of interest. Document award to winning bidder both internally and through correspondence with selected provider.

AUDIT PREVENTION COMPETITIVE BIDDING, VENDOR EVALUATION & CONTRACTS FCC Form 470 & delivery confirmations Form 470 Receipt Notification Letter (RNL) State and Local Procurement Regulations (printout or website reference) RFP/ Public Notice/ Advertisement All Vendor responses & Bids received (winning and losing)

AUDIT PREVENTION COMPETITIVE BIDDING, VENDOR EVALUATION & CONTRACTS Bid Evaluation criteria, Evaluation Matrix & Bid ratings Notice of Award letters Miscellaneous documents (memorandums, board minutes, notes to file) Signed and Dated Contracts/ Service Agreements/ Notice of Award Letters Contract Amendments/Addendums/Extensions State Master Contracts (printout or website reference) Vendor Correspondence Universal Service Order Competitive bidding, LCP, Discount Matrix, NSLP, eligibility, resale. http://www.universalservice.org/_res/documents/about/pdf/fcc-orders/1997-fcc-orders/FCC-97-157.pdf Memorialization Date Clarifies that, in the future, in order to facilitate the application review process, it is advisable for applicants that choose to renew a pre-existing service after a bidding process to memorialize that decision after the bidding process is complete and record the date of this memorialization as the relevant contract award date in their submitted application for discounts. http://www.universalservice.org/_res/documents/about/pdf/fcc-orders/2002-fcc-orders/DA-02-2975.pdf One bidder (Winston-Salem Order) ; FCC rules require applicants to seek competitive bids; they do not require an applicant to have competing bidders where none appear. While the FCC finds it unusual, given the size of Winston-Salem’s proposed project, that no other entity submitted a bid, this alone, without more, cannot be the basis for denying Winston-Salem’s request for review. https://www.usac.org/_res/documents/about/pdf/fcc-orders/FCC-USF-Orders-Schools_Libraries.pdf Multi Tier Evals we find that Baltimore's and Cobb's multi-tiered competitive bidding processes did not violate E-rate program rules. Consistent with precedent, each petitioner submitted documentation to USAC detailing the competitive bidding process, including bid requests, bid proposals, and cost evaluation criteria. https://apps.fcc.gov/edocs_public/attachmatch/DA-11-1368A1.pdf