RFP vs. IFB A BASIC APPROACH TO THE BID PROCESS – WHEN RFPs or IFBs ARE USED 2010 AASBO Spring Pre-Conference Workshop Rosa Saenz, PGPC, Inc. Bill Munch, Mesa Public Schools

Today We Will Be Discussing Today We Will Be Discussing :  When to Use the Invitation For Bid (IFB) Process  When to Use the Request For Proposals (RFP) Process  What must be included in each of the type of Process  Evaluation Methods  Differences  Dangers of Using RFPs  Protests

USING IFBs IFBs are used for pricing on material, various services, and for construction projects.* The majority of opportunities will be here. Examples: classroom furniture, cleaning supplies, replacing doors and hardware, repaving the parking lots

*  Districts can use the Requests for Qualifications (RFQ) for Construction Manager at Risk Design Build or Job Order Contracting (JOC) method for their construction projects.  The RFQ process is another session!

USING RFPs  Request for proposals are used when sealed bidding is either not practicable or not advantageous to the school district.  The Governing Board or Designee must authorize each RFP or they can make a class determination to use the RFP process.  RFP method may not be used for construction contracts  Examples: Consultants, legal services, and software

RFP DETERMINATION RFPs may be used if it is determined in writing that it is necessary to: Use a contract other than a fixed-price type Conduct oral or written discussions with Offerors Afford Offerors an opportunity to revise their proposals

Determination Con’t. Compare the different price, quality, and contractual factors of the proposals submitted; or Award a contract in which price is not the determining factor.

IFBs SHALL INCLUDE THE FOLLOWING:  Specific instructions and information concerning bid submission, time and date of bid opening, address where the bids will be received, the contract term, and any other special information  Purchase description, specifications, delivery or performance schedule, inspection, and acceptance requirements.  The factors to be used in the bid evaluation

IFBs Con’t.  Bid price cannot be changed after bid opening date.  Brand names and “or equal” clause.  Protest procedures.  Anticompetitive/non collusion clause  Price sheet with specific information requested to provide pricing.

RFPs SHALL INCLUDE THE FOLLOWING:  The type of service required and a description of the work involved  The type of contract to be used  An estimated duration that the service will be required  That cost and/or pricing data is required

RFP Con’t.  Offerors may designate as proprietary portions of the proposals (not cost)  Discussions may be conducted  Minimum information that a proposal shall contain  Closing time and date of receipt of proposals

RFP Con’t.  The relative importance of price and the other evaluation factors  Usually no proposal cost sheet is attached. The Offeror submits its proposal with all information on qualifications and pricing.

Evaluation of IFBs  The contract shall be awarded to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and evaluation criteria set forth in the Invitation for Bids (IFB).  No criteria may be used in bid evaluation that are not set forth in the invitation for bid.

IFBs Con’t.  Tax is not a consideration if competing bidder is located outside of state.  A product acceptability evaluation shall be conducted solely to determine whether a bidder’s product is acceptable to the requirement specified in the bid.  Bids will be evaluated to determined which bidder submits the lowest cost meeting all specifications in the bid.

IFBs Con’t.  Award cannot be made to a bidder submitting a higher quality item than specified, unless the vendor is also the lowest bidder.  Tied bids will be awarded by drawing lots or toss of a coin, and documented  Written notice of bid award shall be sent to the successful bidder.

Evaluation of RFPs  The relative importance of price and the other evaluation factors  Specific numerical weighting can be used  Discussions may be conducted with responsible Offerors  Letters to disqualified Offerors are sent before the Best and Final requests are issued  Best and Final Offers

DIFFERENCES IFBs  Request specific pricing  Awards based on lowest cost of responsive/responsible bidder  Bids are opened in front of public viewing  Pricing is fixed and cannot be adjusted or changed after bid opening RFPs  Request proposal information for specialized services, qualifications of company and duration of services  Awards are based on specific numeric weighting (qualifications, background, experience, and cost)  RFPs are not opened for public screening  Best and Final can be made

Dangers of Using Only RFPs  Discredits True Competition – Potential Offerors may assume that award will be made to all Offerors that submit a proposal May allow too much “wiggle room” in the decision process  May not be in the District’s best interest Harder to cover all the issues Harder to find the hidden costs  Requires more work on both sides

PROTESTS REMEMBER:  JUST BECAUSE YOU DON’T AGREE WITH THE DISTRICT’S DECISION IS NOT GROUNDS FOR A PROTEST! Legal and actual grounds must be detailed in writing including copies of relevant documents where the District erred in the solicitation. REMEMBER: JJUST BECAUSE YOU DON’T AGREE WITH THE DISTRICT’S DECISION IS NOT GROUNDS FOR A PROTEST! Legal and actual grounds must be detailed in writing including copies of relevant documents where the District erred in the solicitation.

QUESTIONS? THANK YOU!!! Rosa and Munch