1. DIVISION OF STATE SERVICES BUREAU OF CONTRACTS
4/05/06

2. Developing Request for Proposals (RFP) & Evaluation Instrument
May 2006

3. Agenda Defining Best Value Planning Your RFP RFP Components
RFP Evaluation and Selection Process
Developing Clear Evaluation Instrument Instructions
The Evaluation Criteria
Sample Evaluation Criteria
Completing the Procurement Package

4. Agenda Participants will learn: The concept of “best value”
Steps in planning a Request for Proposal (RFP)
What should be included in an RFP
Developing clear instructions for proposal reviewers
Developing evaluation instrument to accompany RFP
Components of a complete procurement package

5. Best Value
Defined: §163
“A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts.”

6. So What Does Best Value Mean?

7. Planning Your RFP Develop a procurement strategy.
Start with the end in mind
Develop a timeline for the procurement, including deliverable need dates
Decide which elements of the procurement process will be utilized
Evaluation process (evaluators)
Other special circumstances that will need to be addressed
Identify latest procurement rules and regulations and ensure they are incorporated into RFP

8. What Should Be Included In RFP
Description of administrative process
A timeline
First page of RFP should include a “Calendar of Events”:
Date of RFP Issuance
Date Questions and Answers are due
Date Questions and Answers will be sent to bidders
Deadline for Receipt of Proposals

9. What Should Be Included In RFP
Description of agency mission
Requirements describing the services needed:
Minimum qualifications
Specifications of services to be provided
Additional information required to be included in proposal
References
Contract terms and conditions

10. What Should Be Included In RFP
Procurement Policies, Statutes & Disclosures
Appendix A
Executive Order 127 (G-Bulletin 219)
Vendor Responsibility (G-Bulletin 221)
Sales and Compensating Use Tax Documentation
(G-Bulletin 222)
Procurement Lobbying Law

11. What Should Be Included In RFP
We strongly recommend publishing your mandatory contract provisions (agency or procurement specific) in the RFP.
Rationale:
Allows potential bidders to raise concerns prior to submitting a bid
Eliminates vendors who are not willing to meet these mandatory provisions, thus:
Avoiding prolonged and fruitless contract negotiations
Saving agency time and money
Preventing gaps in program / service delivery

12. What Should Be Included In RFP
Evaluation criteria must state:
Minimum Qualifications (Pass / Fail)
Fee schedules for cost; if multiple years, should define how fees should be provided (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Dept. of Labor. Identify the specific index to be used).
Identification of technical criteria to be evaluated
Relative weight between technical and cost
Recommend developing the evaluation instrument at the same time as the RFP

13. What Should Be Included In RFP
It is strongly recommended to inform your bidding audience (in the RFP) if the weight (points assigned) of one particular technical criterion far outweighs the others (for example, 40 of 70 points are assigned to experience)
Why?
This helps to keep all bidders on an “even playing field” and results in “balanced” proposals
You want to award the contract to the “best” vendor, not simply to the vendor who “guessed” the best at what was important to you
Refer to Handout No. 1 “Example of Good Evaluation Language for Your RFP”

14. What Should Be Included In RFP
Method of Award
An example of clear language:
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, considering both cost and technical.

15. What Should Be Included In RFP
Method of Award
Multiple Awards:
RFP should reserve the right to make multiple awards. Where practical, the RFP should indicate the number of awards the agency expects to make. The RFP should also state how work will be assigned.
The number of awards to be made and the allocation of work must be determined prior to receipt of proposals and documented in the evaluation instrument.

16. What Should Be Included In RFP
Include RFP language which:
Allows agency to reject any and all bids
Allows agency the right to request clarification and revisions
Allows agency the right not to proceed with an award
Establishes a minimum period of proposal validity that the bidder agrees to (example – price firm for 180 days and/or proposal irrevocable for 30 days)

17. Other Tasks to Complete
Procurement must appear in Contract Reporter at least 15 business days prior to the due date of proposals
Develop solicitation list

18. Evaluation and Selection Process

19. Develop Clear Evaluation Instrument Instructions
All evaluation criteria must be established prior to the receipt of bids
Very important to be clear
Very important that relative weights match RFP weights

20. Develop Clear Evaluation Instrument Instructions
Establish the methodology to follow for evaluating all proposals:
Identify the number of personnel and roles involved in the process
Formalize the procedures to be followed
Provide the sequence of events (timeline)

21. Develop Clear Evaluation Instrument Instructions
For math calculations, the evaluation instrument should define:
How many decimal points the numbers will be extended
Whether the numbers will be rounded up or down

22. Develop Clear Evaluation Instrument Instructions
The evaluation instrument must reflect any modifications to specifications as a result of an amendment to the RFP.
For example, Q&A’s may necessitate a change to specifications.
Changes must be issued via an amendment to the RFP and reflected in the evaluation instrument

23. Develop Clear Evaluation Instrument Instructions
The mandatory requirements checklist will be completed to ensure each vendor’s responsiveness to the RFP requirements. The agency will attempt to cure minor omissions or irregularities with the vendors. However, material deviations will result in the bidder being removed from consideration.
Refer to Handout No. 2 “Proposal Checklist – Mandatory Requirements or Pass/Fail Portion”

24. Develop Clear Evaluation Instrument Instructions
Technical Evaluation Team:
Mandatory requirements to be evaluated on Pass/Fail basis
The breakdown of points assigned to each of your technical criteria must be in your evaluation instrument
The same panel of evaluators will score the same criteria for each proposal

25. Develop Clear Evaluation Instrument Instructions
Technical Evaluation Team:
If the technical evaluation requires the bidder to meet a minimum score in order to continue through the process, this information needs to be included in the evaluation instrument.

26. Develop Clear Evaluation Instrument Instructions
Technical Evaluation Team:
Multiple Awards – The agency needs to define the basis for how this decision will be made in ADVANCE OF RECEIPT of the bids.
Example: Award will be made to the three firms with the highest composite score.
Example: Award will be made to the highest scoring firm for each region.
Prior to making this decision, the agency will need to defend the need for multiple awards.
This information should be dated and secured throughout the evaluation process.

27. The Evaluation Instrument
Individual Technical Evaluation Form
The following should be included:
Key indicating how to apply the points within the individual criteria
Designation of firm being evaluated
Evaluator designation

28. The Evaluation Instrument
Individual Technical Evaluation Form (2)
The following should be included:
Technical criteria and weight of the specific criteria
Space for evaluators to place comments / notes
Initials of individual evaluator and date completed

29. Develop Clear Evaluation Instrument Instructions
Financial Proposal Evaluation “Team”
The basis for the financial proposal evaluation rankings will be the total price offer received from each offeror. The total price offers will be ranked with the low bid awarded the maximum points available. The remaining bids will be assigned scores based on the following formula:
Low bid divided by bid being evaluated times the maximum number of points available

30. Refer to Handouts Number 3 “Price Offer Proposal Form A” and
Number 4 “Examples of Evaluation
Criteria and Some Recommended
Relative Weights to Use”

31. What’s Wrong With This Picture?
Enter Points as follows:
Excellent
Good
Unacceptable
All Available Points
Half Available Points
Zero Points
Evaluation Summary Matrix
Bidder A
Bidder B
Bidder C
Experience (20 Points) 13 18
Approach (20 Points) 16 12
References (20 Points) 19 7
Total Technical (60 pts) 41 53 37
Cost (40 pts) 28 25 40
Total Composite Score 69 78 77

32. What’s Wrong With This Picture? (cont’d)
Range of points assigned were not allowed by the scoring matrix. Re-bid may not be necessary if agency can rescore proposals in accordance with the evaluation instrument.

33. Who Should Get the Award???? Technical 70% / Cost 30%
Bidder A
Bidder B
Proposed Price
$100,000
$80,000
Cost Score 24 30
Technical Score 60 54
Total 84
State Finance Law S163, Paragraph 10a

34. Who Should Get the Award????
If both cost and technical scores are identical, who should get the award?
“When price and other factors are found to be substantially equivalent, the determination of the commissioner or agency head to award a contract to one or more of such bidders shall be final. The basis for determining the award shall be documented in the procurement record.”
State Finance Law S163, Paragraph 10a

35. What’s Wrong With This Evaluation?? Technical = 60 pts / Cost = 40 pts
Bidder 1
Bidder 2
Bidder 3
Bidder 4
Mandatory (Pass/Fail)
Pass
Fail
Proposed Price
$110,000
$95,000
$125,000
$140,000
Cost Score (OSC Recommended Formula
34.5
40.0
30.4
27.1
Technical Score
46.0
N/A
45.0
54.0
TOTAL SCORE
80.5
75.4
81.1
Winning Bid

36. What’s Wrong With This Evaluation?? Technical = 60 pts / Cost = 40 pts
Bidder 1
Bidder 2
Bidder 3
Bidder 4
Mandatory (Pass/Fail)
Pass
Fail
Proposed Price
$110,000
$95,000
$125,000
$140,000
Cost Score (OSC Recommended Formula
40.0
N/A
35.2
31.4
Technical Score
46.0
45.0
54.0
TOTAL SCORE
86.0
80.2
85.4
Winning Bid
** Bids which fail to meet mandatory requirements must be excluded from the evaluation process**

37. Very Important Reminders
Document evaluation notes and basis for assigning scores – assists in debriefing bidders
A determination of vendor responsibility must also be performed

38. Very Important Reminders
After award decision is made, don’t forget to issue intent to award / non-award letters.

39. Elements of a Fully Documented Procurement Package
Copy of RFP and any amendments to RFP
Solicitation list
Certified Bid Tab
Contract Reporter advertisement / evidence of exemption
Evaluation instrument and matrix of scores and/or individual scoring sheets

40. Elements of a Fully Documented Procurement Package (2)
Copy of notice of intent to award / non-award letters
Copy of winning proposal (cost and technical)
Copies of all rejected proposals (cost and technical)
Copies of all cost proposals for responsive bidders

41. Elements of a Fully Documented Procurement Package (3)
Civil Service approval for contracts with individuals
Completed Procurement Record Checklist
Memo of transaction
Debriefing Notes

42. THANK YOU!
Any questions and please don’t forget to fill out the evaluation forms!!!!