1. Request for Proposal Basics

2. Office of the State Comptroller
Presenters:
Nisha Thomas
Peter Vander Veer
Elizabeth Jaggers
Office of the State Comptroller
Bureau of Contracts

3. Stats FY 08/09 – ~35,142 contract transactions were reviewed
Totaling almost $33.8 billion
92% of these transactions were Approved!

4. Agenda
Best Value Defined
The Request for Proposal (RFP) Process

5. What is Best Value? 5

6. Best Value - Defined State Finance Law §163:
“A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts” 6

7. The RFP Process 7

8. Fail to plan, plan to fail Start with the end in mind
The RFP Process
Fail to plan, plan to fail
Start with the end in mind
Determine that a need exists for a particular service
Develop a timeline
Keep it updated as you move forward through the process
Remember that the evaluation strategy MUST be finalized and documented by the date that the bids are received in the agency
Define the service to be procured
If you can’t, consider a Request for Information (RFI) 8

9. The RFP Process Define your vendor pool Identify funding sources
Review any rules relative to those sources
Review applicable laws and procurement rules and regulations

10. The RFP Process
Identify all the people you will need to execute a successful procurement:
Who will write the technical sections?
Who will write the cost sections?
Who will write the administrative sections?
Who will proofread and edit the document before it goes out? 10

11. The RFP Process
Identify all the people you will need to execute a successful procurement:
Who will respond to vendor questions and distribute the responses being sure to document the process?
Who will receive the proposals and log them in?
Who will open the bids and create the certified bid tab? 11

12. The RFP Process
Identify all the people you will need to execute a successful procurement:
Who will manage the evaluation process?
Who will document the evaluation process?
Who will develop the criteria for the evaluation?

13. The RFP Process
Identify all the people you will need to execute a successful procurement:
Who will write instructions for evaluators?
Define decision parameters and explain expectations
Evaluate proposals against standards set in the RFP and not against other proposals

14. The RFP Process
Who will develop the scale to be used within each criterion?
5 points = exceeds all requirements
4 points = meets all requirements
3 points = meets most requirements
2 points = meets some requirements
1 point = meets few requirements

15. The RFP Process Who will your evaluators be? Expertise
Time to participate fully in the process
No conflict of interest
Different teams of evaluators can be used but the same evaluators must do any single criterion

16. The RFP Process Advertise the procurement
Who will manage advertising?
Advertise the procurement
The procurement must appear in the Contract Reporter at least 15 business days prior to the due date of proposals
Consider additional advertising 16

17. The RFP Process How to obtain the RFP
The advertisement should contain:
How to obtain the RFP
Designated contact person (Procurement Lobbying Act)
Due date
Date and time of Mandatory Site Visit or Pre-bid Conference 17

18. The RFP Process RFP Content Table of Contents Agency Mission
Overview of Procurement
Calendar of Events (for the vendor)

19. The RFP Process RFP Content Proposal Submission Requirements
Number of Copies
Labeling
Cost and Technical to be submitted in separate envelopes
Insurance Requirements
Bonding, Letters of Credit or other guarantees of performance

20. The RFP Process Contract Terms and Conditions Appendix A
Agency specific appendices
Questions & Answers
Give a due date for questions and an anticipated date for agency response
Issues raised may result in amendment to the RFP
Distribute to entire potential vendor pool
Review all evaluation criteria
Make any necessary changes
Re-advertise if there are significant changes

21. The RFP Process Every RFP should reserve the Agency’s right to:
Reject any and all bids
Request clarification and revisions
If they do not materially alter the proposal
If a vendor’s cost is extremely low to clarify that requirements of the proposal were understood by the vendor
Waive a mandatory if unmet by ALL proposers
Not proceed with an award
Require a minimum period of proposal validity (e.g., price firm for 180 days and/or proposal irrevocable for 30 days)

22. The RFP Process Other requirements HIPAA Prevailing Wage
Provide information about the Evaluation Process
The RFP must include the breakdown between technical and cost elements
More specific information about the evaluation process can be included

23. The RFP Process Single award Multiple award
Must inform vendors about the method of award
Single award
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, inclusive of both cost and technical
Multiple award
RFP should reserve the right to make multiple awards
RFP should state if awards will be divided among geographic areas, regions, etc.
RFP should state the number or “up to” number of awards to be made
RFP should state how work will be distributed among vendors selected for award

24. The RFP Process Technical Portion
Write the Statement of Work, Project Definition, or Specifications
Must clearly state all mandatory qualifications
Must be pass/fail
Be sure the qualification is really mandatory for the performance of the effort and can be defended if challenged
Create a mandatory qualifications checklist
Pass/Fail – Yes/No
If not met, disqualify
Disqualified proposals
Both cost and technical proposals must be submitted to OSC for all disqualified vendors

25. The RFP Process Synchronize the Evaluation Instrument to the RFP
Review your RFP, statement of work and project definition
Choose elements to score that are important to the result you are seeking
Requirements to be scored must be clearly stated in the RFP
If some requirements are particularly important, disclose this information to the vendors in the RFP
Must be measurable
Sync the evaluation instrument to the RFP, as you make changes to the RFP, make the necessary changes to the instrument

26. The RFP Process Be sure the requirements are clearly stated
“I know you think you understood what I said, but what you heard is not what I meant”
Fritz Perls
Be sure that what you are asking for is what you need
Ask for what you need, do not use representative measures
Define your minimum needs and evaluate for meeting and exceeding needs

27. The RFP Process References
Be clear about how many references you will contact
Be clear about the consequences of being unable to contact the required number of references
One person should check all references
Use a script if possible

28. The RFP Process Interviews Be clear about the purpose of the interview
State if the interview must be in person or if it can it be conducted by telephone
If you do not intend to interview every responsive and responsible candidate, tell the vendor community the process for determining the candidates to be interviewed

29. The RFP Process Product demonstrations or other selection method
What will be expected?
When will the event take place?
How will participants be evaluated?

30. The RFP Process Technical evaluation forms must: Identify the vendor
Identify the evaluator
Have a space for the evaluator to enter his/her rating
Have adequate space for comments

31. Cost score is a calculation
The RFP Process
Cost score is a calculation
Not an analysis!

32. The RFP Process Cost Any cost you ask for must be evaluated
What weight will be given to cost?
Should cost elements be subdivided?
Gasoline and other petroleum based products
Elements that will only come into play if contract is renewed
Escalation – CPI or other appropriate index
De-escalation
Cost Evaluation Form
Create standard form for all vendors to complete
How detailed should the form be?
Will you need backup information to understand a simpler form?
Will the cost be based on hourly rates? 32

33. The RFP Process Pick a formula for evaluation of cost OSC formula
Procurement Council formula
Other (check with OSC before you use an alternative)
Do not include non-cost elements in the cost section

34. Important Reminders Check your math Use decimals consistently
Do not short list until cost has been included
Determine purpose for interviews prior to RFP release
Use a script if you can
Document the process
Each evaluator should document his/her score and explain with comments
Submit evaluator notes

35. Evaluation Documentation
Required Evaluation Documents to be Submitted to OSC:
Instructions to evaluators
Blank cost form
Blank Individual Technical Score Sheet (ITSS)
Blank Mandatory Requirements Checklist (MRC)
Completed MRC for each vendor
Completed Summary cost score sheet
Completed ITSS for each evaluator for each vendor
Summary of Technical Score for all vendors
Technical/Cost matrix with points and rankings

36. Danger Areas! Minimum passing score
Specification change as a result of Q & A
Distorted cost relationships – understand your chosen formula
Short listing
Technical evaluation form
Cost evaluation form
Using Excel? – Check your formulas/number transpositions
Mandatory requirement – make sure you NEED it 36

37. Thank You!

38. Office of the State Comptroller
Presenter Contact Information
Nisha Thomas
(518)
Peter Vander Veer
(518)
Elizabeth Jaggers
(518)
Request for Proposals
Office of the State Comptroller