Procurement-the RFP By Warren J. McKeon, CPA, VCO

Methods of Procurement Small purchase, $50,000 or less Small purchase, $50,000 or less Emergency procurement Emergency procurement Sole source procurement Sole source procurement Competitive bid (IFB) > $50,000 Competitive bid (IFB) > $50,000 Competitive negotiation (RFP) > $50,000 Competitive negotiation (RFP) > $50,000 > $30,000 professional services

Small Purchase $5,000 or Less Single quotation is acceptable Single quotation is acceptable Verbal or in writing Verbal or in writing Document Document

 $5,000 Not Exceeding $15,000 Three quotations from a valid source Three quotations from a valid source Quotations may be written or verbal Quotations may be written or verbal Document the same as for $5,000 or less Document the same as for $5,000 or less

 $15,000 Not Exceeding $50,000, Not Exceeding $30,000 If Professional Service Four written quotations Four written quotations Request for quotation should include: Request for quotation should include: –What –When –Who –General and special terms

$15,000 Not Exceeding $50,000 Continued Receive quotations Receive quotations Tabulate quotations Tabulate quotations Determine Determine Responsive? Responsive? Responsible? Responsible? Post Post Execute Execute

Good and Non Professional Services > $50,000 Only two acceptable procurement methods Only two acceptable procurement methods –Competitive sealed bid (IFB) –Competitive negotiation (RFP)

Invitation To Bid Specifications Specifications All general and special terms and conditions All general and special terms and conditions Pricing scenario Pricing scenario Due date Due date Advertise and post for a minimum of 10 days Advertise and post for a minimum of 10 days Mail Mail Bidder solicitation list Bidder solicitation list

When the Bid Is Received Stamp Stamp Late bids Late bids

Opening Bids Open publicly Open publicly Read aloud Read aloud –Bidder –Price –Discount terms

Evaluation Responsive? Responsive? Determine the responsive bidder with the lowest price Determine the responsive bidder with the lowest price

Responsible Vendor Check Check Confirm Confirm Verify Verify Investigate Investigate

Award Lowest Lowest Post Post Issue Issue

Request for Proposal (RFP) Written Written Criteria Criteria Contractual terms and conditions Contractual terms and conditions Unique capabilities and qualifications required of the vendor Unique capabilities and qualifications required of the vendor

When to Use? Can’t use competitive sealed bidding Can’t use competitive sealed bidding For professional services For professional services

IFB or RFP ? Ombudsman reporting software Ombudsman reporting software Janitorial cleaning Janitorial cleaning Annual fiscal audit Annual fiscal audit Employee assistance program (using a clinical psychologist) Employee assistance program (using a clinical psychologist)

Virginia Public Procurement Act Public notice Public notice Multiple awards Multiple awards Award notice Award notice

RFP Procedure Determine the need Determine the need RFP justification RFP justification Create the RFP Create the RFP Evaluation committee Evaluation committee Pre-proposal conference Pre-proposal conference Evaluate Evaluate Award Award

Creating the RFP Timeframe Timeframe Background Background Statement of needs and deliverables Statement of needs and deliverables Specific proposal instructions Specific proposal instructions Evaluation criteria and weights Evaluation criteria and weights General terms and special conditions General terms and special conditions Method of payment Method of payment

Issue the RFP Public notice Public notice Post on the eVA website Post on the eVA website Mail Mail

Receipt of Proposals Deadline Deadline Late proposals Late proposals No public opening No public opening Check proposals for required information Check proposals for required information Distribute proposals to the evaluation committee Distribute proposals to the evaluation committee Committee meets as a group Committee meets as a group

Consensus Evaluation Individual review Individual review Responsible? Responsible? Consensus scoring sheet Consensus scoring sheet

Negotiation Select Select Negotiate Negotiate Re-score Re-score Intent to award Intent to award Prepare and execute contract Prepare and execute contract

RFP for Professional Service The RFP shall not request that offerors furnish estimates of man hours or cost for services. The RFP shall not request that offerors furnish estimates of man hours or cost for services. What can you ask for? What can you ask for?

Evaluation Proposals are ranked Proposals are ranked Negotiate with Offeror #1 Negotiate with Offeror #1 Award or Proceed to #2 Award or Proceed to #2 Award or Proceed to #3 Award or Proceed to #3 Award or reissue RFP Award or reissue RFP

Questions