1. Planning a Successful Management Procurement CalACT 2011 Spring Conference PLANNING A SUCCESSFUL MANAGEMENT PROCUREMENT CalACT Spring Conference April 20, 2011 Roy Glauthier Transportation Planning and Policy v/fax: 949.650.5956 Email: rglauthier@aol.com

2. Planning a Successful Management Procurement CalACT 2011 Spring Conference PLANNING A SUCCESSFUL MANAGEMENT PROCUREMENT Workshop Goal: To share tips, techniques and approaches that will improve your odds of carrying out a trouble-free procurement for contracted transit or paratransit management.

3. Planning a Successful Management Procurement CalACT 2011 Spring Conference Workshop Outline Overview of Procurement Process Sources of Procurement Guidance Terminology Contracting Market Should You Go To Bid? Setting a Realistic Procurement Timeline Expert Panel: Pitfalls and Problems

4. Planning a Successful Management Procurement CalACT 2011 Spring Conference Workshop Rules  Questions are welcome/encouraged.  No experts here, we’re all still learning, too. Any questions?

5. Planning a Successful Management Procurement CalACT 2011 Spring Conference Elements in the Procurement Process RFP development RFP release/publication Preproposal conference & question period Addenda/clarifications Proposal submission Evaluation Interviews BAFO/negotiations Selection/staff report Award Contract finalization Transition Start-up Month One Monitoring & management Repeat as needed

6. Planning a Successful Management Procurement CalACT 2011 Spring Conference Primary Sources for Procurement Guidance: Federal Transit Administration Best Practices Procurement Manual Available at: http://www.fta.dot.gov/funding/thirdpartyprocurement/grants_financing _6037.html [do not print…. 694pp] http://www.fta.dot.gov/funding/thirdpartyprocurement/grants_financing _6037.html FTA Triennial Review Workbook http://www.fta.dot.gov/funding/oversight/grants_financing_10924.html Your agency’s procurement policies.

7. Planning a Successful Management Procurement CalACT 2011 Spring Conference CalACT/RTAP Contracting Workshops 1-Day Workshops on Effective Contracting coming in July [Northern CA] and October [Southern CA] Webinar on Effective Contracting [3, 2-hour sessions, timing tbd]

8. Planning a Successful Management Procurement CalACT 2011 Spring Conference Critical Terminology Bid versus Competitive Procurement -- Bid requires very clear specifications -- Competitive Procurement is intended to permit competition on quality and other factors, as well as on price

9. Planning a Successful Management Procurement CalACT 2011 Spring Conference Critical Terminology Types of Procurements*:  Professional Services Agreement  Sole Source  Negotiated Procurement  Competitive Procurement *Depending on your agency’s procurement policies

10. Planning a Successful Management Procurement CalACT 2011 Spring Conference Overview of the Contracting Market Major National Firms Regional Firms Local Transportation Firms

11. Planning a Successful Management Procurement CalACT 2011 Spring Conference Overview of the Contracting Market Major National Firms Regional Firms Local Transportation Firms Focus on performance-based specifications Clearly indicate criteria for selection Seek broadest possible participation in process

12. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 1: Should you go to out to bid or not? What does your existing contract say about contract term and options? What objectives will be achieved by a competitive procurement? Could these be achieved through negotiations with existing contractor?

13. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline RFP development RFP release/publication Preproposal conference & question period Addenda/clarifications Proposal submission Evaluation Interviews BAFO/negotiations Selection/staff report Award Contract finalization Transition Start-up Month One Monitoring & management Repeat as needed

14. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  START OF SERVICEJanuary 1, 2012

15. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

16. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  Evaluation and InterviewsNovember 1-24, 2011  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

17. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  PROPOSALS DUE5:00 pm PDT October 29, 2011  Evaluation and InterviewsNovember 1-24, 2011  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

18. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  Addenda and Answers DistributedOctober 22, 2011  PROPOSALS DUE5:00 pm PDT October 29, 2011  Evaluation and InterviewsNovember 1-24, 2011  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

19. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  Deadline for Submission of QuestionsOctober 15, 2011  Addenda and Answers DistributedOctober 22, 2011  PROPOSALS DUE5:00 pm PDT October 29, 2011  Evaluation and InterviewsNovember 1-24, 2011  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

20. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  Voluntary Pre-proposal ConferenceOctober 13, 2011  Deadline for Submission of QuestionsOctober 15, 2011  Addenda and Answers DistributedOctober 22, 2011  PROPOSALS DUE5:00 pm PDT October 29, 2011  Evaluation and InterviewsNovember 1-24, 2011  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

21. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline  Request for Proposals IssuedOctober 1, 2011  Voluntary Pre-proposal ConferenceOctober 13, 2011  Deadline for Submission of QuestionsOctober 15, 2011  Addenda and Answers DistributedOctober 22, 2011  PROPOSALS DUE5:00 pm PDT October 29, 2011  Evaluation and InterviewsNovember 1-24, 2011  Contract AwardDecember 1, 2011  START OF SERVICEJanuary 1, 2012

22. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 2: Determining Your Procurement Timeline Critical Considerations in Setting Timeline:  Acquisition and Preparation of  Vehicles  Facilities  Computers and software, other equipment Internal City/Agency Reviews and Approvals  Review and approval of RFP document by management, legal counsel, risk management, etc.  Council/governing body approval of RFP, selection, award  Practical Considerations  Holiday periods  Governing Board meeting schedule  Coordinating contract timing to fiscal year  Others?

23. Planning a Successful Management Procurement CalACT 2011 Spring Conference Step 3: Fundamental Concepts of a Successful Procurement Process Guidelines: Transparency Define your process, then follow it Fairness, level playing field Establish Sole Point of Contact Win/Win/Win -- Agency, Contractor, Public

24. Planning a Successful Management Procurement CalACT 2011 Spring Conference Developing Your Request for Proposals Start with a good sample RFP… or several Why reinvent the wheel? Give yourself/your agency plenty of time Get outside review

25. Planning a Successful Management Procurement CalACT 2011 Spring Conference Major Parts of RFP Document Solicitation Terms of procurement, evaluation criteria and protest process, checklist of proposal contents Sample contract Scope of Work Attachments -- Anticipate bidders’ requests: Copies of monthly reports, present wage scales and benefits, fleet schedule and mileages, detail on provided equipment, facilities and furnishings

26. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Contract Document Term of contract and any option periods

27. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Contract Document Term of contract and any option periods Termination for cause and for convenience

28. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Contract Document Term of contract and any option periods Termination for cause and for convenience How compensation will be paid – Fixed Rate [per Rev Vehicle Hour, RVM, passenger] – Fixed and Variable – usually fixed payment per month for fixed cost reimbursement plus specified amount per hour or mile operated during billing period – Pass-through or Cost reimbursement – useful for cost items out of contractor’s control [e.g. fuel, facility rent, public phones]

29. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Contract Document Term of contract and any option periods Termination for cause and for convenience How compensation will be paid Insurance Requirements

30. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Contract Document Term of contract and any option periods Termination for cause and for convenience How compensation will be paid Insurance Requirements Emergency response: – Expected actions – Terms of compensation

31. Planning a Successful Management Procurement CalACT 2011 Spring Conference And, in case your project uses Federal funds…..

32. Planning a Successful Management Procurement CalACT 2011 Spring Conference Applicable Federal Clauses – See FTA Triennial Review Workbook http://www.fta.dot.gov/funding/oversight/grants_financing_10924.html Exhibit 6.1 A. Required Third-Party Contract Clauses B. Required Certifications, Reports and Forms C. Other Required Items Exhibit 6.2 Applicability of Third-Party Contract Clauses [breaks down applicability by type of procurement & dollar value]

33. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work Definitions Description of services to be operated [hours, days, routes, service levels, policies]

34. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work Definitions Description of services to be operated Performance standards, penalties/incentives, how defined and measured

35. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work Definitions Description of services to be operated Performance standards, penalties/incentives, how defined and measured Detailed Responsibilities of Agency and Contractor

36. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work Definitions Description of services to be operated Performance standards, penalties/incentives, how defined and measured Detailed Responsibilities of Agency and Contractor Staffing: key positions, qualifications, retention/replacement and approval

37. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work -- Continued Specifications for vehicles and equipment to be provided by contractor or supplied by agency

38. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work -- Continued Specifications for vehicles and equipment to be provided by contractor or supplied by agency If DAR, operating details

39. Planning a Successful Management Procurement CalACT 2011 Spring Conference Key Elements in Scope of Work -- Continued Specifications for vehicles and equipment to be provided by contractor or supplied by agency If DAR, operating details Fuel cost arrangements

40. Planning a Successful Management Procurement CalACT 2011 Spring Conference Working With Your Contractor Work to develop a partnership … both parties must succeed; Manage, don’t micro-manage; Don’t get between company and its employees; Strive for consistency and clear direction; and Be familiar with actual operations, employees, services.

41. Planning a Successful Management Procurement CalACT 2011 Spring Conference Expert Contracting Panel Dave Smith, MV Transportation Authority Sandi Schmidt, Transportation Concepts