Choosing the Right Solicitation Alan A. Phillips, CPPB CTPM Texas Southern University Summer 2012

Facilities Institute July , 2012 Houston, Texas Agenda Solicitation Methods Specifications Statement of Work General Terms and Conditions Pre bid/proposal conference Addenda Opening/Closing for bids/proposals Evaluations

Facilities Institute July , 2012 Houston, Texas 1.Request for Information (RFI) 2.Verbal Quote 3.Request for Quote (RFQ) 4.Invitation to Bid (IFB) 5.Sole Source 6.Request for Qualification (RFQ) 7.Request for Proposal (RFP) Solicitation Methods

Facilities Institute July , 2012 Houston, Texas Request for Information (RFI) Used to obtain general information Informal Not binding Estimate for Budget

Facilities Institute July , 2012 Houston, Texas Verbal Quote When to use What to include o Quantity o Description o Delivery time and method o Price o Extra charges Can be confirmed o PO acknowledgment o Fax o

Facilities Institute July , 2012 Houston, Texas Request for Quote (RFQ) Gain supplier commitment for specific terms Price, quantity, delivery, services Does not obligate the purchaser Supplier hold requirements firm for a specific period of time Used when requirements are clearly identifiable

Facilities Institute July , 2012 Houston, Texas Invitation to Bid Requirements are specific Used primarily for commodities and general services Binding on both supplier and purchaser Strict Control o Bid Opening o Basis for award

Facilities Institute July , 2012 Houston, Texas Sole Source Sole Source is only allowable when it is the only known provider (not distributor) for a commodity or service. Almost non-existent Can occur with manufacturer direct products Through examination of specifications and scope of work When in doubt, bid it out!

Facilities Institute July , 2012 Houston, Texas Request for Qualifications (RFQ) Allows qualification of suppliers/vendors based on criteria Criteria includes professional experience, service, capability, personnel, licenses, references After meeting qualifications, can be used for responses to solicit RFP OR After qualification review, selection of professional service provider (may occur)

Facilities Institute July , 2012 Houston, Texas Request for Proposal (RFP) Requirement is not clearly defined Statement of work vs. specification Used to locate solutions and sources Clear evaluation criteria with weights Not exclusively price based

Facilities Institute July , 2012 Houston, Texas Specification Writing Work with the requestor Performance/Technical Specifications/ Material & Method of Manufacture Request needs clarification Specifications have to be clear and concise Know what you are buying Know how or where it will be used

Facilities Institute July , 2012 Houston, Texas Specification Writing (continued) Work to clarify issues Increased costs to fix later Reduces number of bidders Might cause poor supplier selection Lost time

Facilities Institute July , 2012 Houston, Texas Boilerplate Documents Contains standard language: o General Terms and Conditions o Institution Background o General RFP language (due date, submission of proposals, etc) Saves time during each solicitation, only inserting specifications, pricing, and changing minimal information that applies to each situation

Facilities Institute July , 2012 Houston, Texas Terms & Conditions and Specifications Invoices/ Terms of Payment Payment Warranties/Maintenance Acceptance Ownership of Intellectual Property Indemnity Insurance Changes in Work Specifications, plans, and drawings Delays due to Force Majeure Delivery

Facilities Institute July , 2012 Houston, Texas Default Termination Renewals/Escalation Compliance with laws Permits and licenses Patent, Copyright, and Trademark Confidential Information Records and right to audit Taxes Hazardous Materials Assignment and Subcontracting Unemployment insurance taxes, contribution, and assessments Terms & Conditions and Specifications (cont’d)

Facilities Institute July , 2012 Houston, Texas Terms & Conditions and Specifications (cont’d) Inspection and expediting Passage of title and risk of loss Safety Entirety Miscellaneous  Governing law  Non-waiver of rights  Severability  Publicity  Independent contractor  Affiliate pricing  Notices

Facilities Institute July , 2012 Houston, Texas Pre-Proposal/Bidder’s Conference Why? When? Advantages o All suppliers receive same information o Questions can be asked and answered by the experts o Level playing field o Better ideas can be explored by all

Facilities Institute July , 2012 Houston, Texas Addenda Addenda should be issued when there has been an integral change to the proposal o Change in due date and time o Change in specification or scope of work o Additional information that suppliers will need to respond Ensure all suppliers receive the addenda Should be clarified whether any issued addenda is to be included in the response to the original proposal

Facilities Institute July , 2012 Houston, Texas Opening and Closing Bids open and Request for Proposals close Bids o Opened publicly at designated place, date, and time o Names and pricing is read aloud Request for Proposals o Close at set date and time o Only information released is the name of the suppliers submitting a proposal All documents should be date and time stamped for proof of receipt prior to open or close

Facilities Institute July , 2012 Houston, Texas Evaluation Methods Request for Information Verbal Quote Request for Quote Invitation for Bid Sole Source Request for Qualifications Request for Proposals

Facilities Institute July , 2012 Houston, Texas Questions?