1. Click to add text Dealer Pre-Qualification Information Session STATE OF MICHIGAN Department of Technology, Management and Budget Purchasing Operations Wednesday, May 5, 2010 1:30 p.m.

2. State of Michigan Department of Technology, Management & Budget 2 2 WELCOME! Dealer Pre-Qualification Information Session

3. State of Michigan Department of Technology, Management & Budget 3 3 Vehicle Purchasing Process Who purchases vehicles from these contracts?  Michigan Department of Transportation (MDOT) Fleet Administration and Operations Division  MDOT Authorized Transit Authorities Bureau of Passenger Transportation Division  Local Units of Government (MiDEAL)

4. State of Michigan Department of Technology, Management & Budget 4 4 MiDEAL Program www.michigan.gov/mideal www.michigan.gov/mideal  MiDEAL = Michigan Delivering Extended Agreements Locally  Voluntary program that allows local units of government to buy off of State contracts  Typical contract = 1 vendor + 1 customer  MiDEAL contract = 1 vendor + 800 customers  Townships  Cities & Villages  Counties  Road Commissions  Non-profit Hospitals  Colleges  Universities  School Districts

5. State of Michigan Department of Technology, Management & Budget 5 5 Background - State Vehicle Contracts How are these customers different? CustomerSpecified Delivery Terms MDOT F.O.B. Destination (Include Delivery charges in bid price) MiDEAL (Includes Transit Agencies) F.O.B. Dealership (Delivery charges – maximum of $2 per mile)

6. State of Michigan Department of Technology, Management & Budget 6 6 Vehicle Purchasing Process What is the sales potential for YOU? (March 2008 – December 2009) *Does not include Cab and Chassis purchases (46 units for $4,200,000.) CustomerUnits Purchased Dollars Purchased MDOT209$4,100,000* MiDEAL (includes Transit) 314$8,100,000 TOTAL523$12,200,000

7. State of Michigan Department of Technology, Management & Budget 7 7 Previous –  3 year contracts  A lot of paperwork  Not flexible New –  Pre-qualify dealers  Quarterly bidding  Pricing for 1 model year (with option to “roll-over”)  Flexible to add new models  Delivery fee of $2.00 per mile (No free delivery) Vehicle Purchasing Process

8. State of Michigan Department of Technology, Management & Budget 8 8 Dealer Pre-Qualification Process Timeline May 14 th :  Pre-Qualification RFP released on Bid4Michigan.com  Interested dealers must read the document thoroughly May 14 - 24 th : Question and Answer Period  Submit questions via e-mail ONLY to Laura Gyorkos at gyorkosL@michigan.gov  Phone calls not accepted

9. State of Michigan Department of Technology, Management & Budget 9 9 Dealer Pre-Qualification Process Timeline On or before June 1 st  The State will post Questions and Answers on Bid4Michigan.com June 1st– 7th  Check Bid4Michigan.com for answers to questions received during Q & A period  Dealers to complete RFP response  Allow days for mail/courier response (Due on June 10 th )

10. State of Michigan Department of Technology, Management & Budget 10 Dealer Pre-Qualification Process Timeline On or before JUNE 10 th at 3:00 p.m.  SUBMIT HARDCOPY RESPONSE ON TIME! (To the appropriate address)  $1,000 cashier’s check is required  Use checklist  Follow Instructions on Bid4Michigan.com for registration  Allow ample time for mail and/or courier  LATE RESPONSES ARE NOT ACCEPTED!!

11. State of Michigan Department of Technology, Management & Budget 11 Dealer Pre-Qualification Process Timeline June 10 th – July 12 th State Evaluation Process:  Dealers evaluated on a Pass/Fail basis  Maximum of 10 dealers per manufacturer  Dealers agree to the terms and conditions July 12 th - 23rd  Notice to dealers of pre-qualification status  Pre-Qualified dealers receive contract for signature August 4 th :  Contracts are executed with Pre-Qualified dealers

12. State of Michigan Department of Technology, Management & Budget 12 Technology Requirements Prior to Sept 1 st :  Microsoft Office Suite for Excel  Access to scanner  Ability to Scan and save documents

13. State of Michigan Department of Technology, Management & Budget 13 QuarterRequest to Manufacturer Bid Release 1st Qtr: 10/1/10 – 12/31/10 August 2, 2010Sept 1, 2010 2nd Qtr: 1/1/11 – 3/31/11 November 1, 2010December 1, 2010 3rd Qtr: 4/1/11 – 6/30/11 February 1, 2011March 1, 2011 4th Qtr: 7/1/11 – 9/30/11 May 3, 2011June 1, 2011 Quarterly Bid Schedule (Price only)

14. State of Michigan Department of Technology, Management & Budget 14 Quarterly Bids Timeline Sept 1 st :  Pricing bid released on Bid4Michigan.com  Download and save blank pricing spreadsheet Sept 1 st – 22nd:  Review Specification Book for options  Enter in pricing in electronic format (using Excel)  Enter in discount for options on spreadsheet  Complete and scan truck questionnaire forms  Scan vehicle order confirmation sheets

15. State of Michigan Department of Technology, Management & Budget 15 Quarterly Bids Timeline On or before Sept 22nd at 3:00 p.m. SUBMIT YOUR PRICING BIDS!  Refer to electronic submittal instructions on Bid4Michigan  Allow time to navigate on Bid4Michigan.com!  Bid4Michigan.com will not accept late bids!  Submit completed pricing Excel spreadsheet  Submit scanned truck questionnaire forms  Submit scanned vehicle order confirmation sheets

16. State of Michigan Department of Technology, Management & Budget 16 Quarterly Bids Timeline Sept 22nd – 30th State Evaluation Process:  Combination of meeting specifications and lowest price of the vehicle  Options will be based on dealer invoice from Kelley Blue Book (Consistent with current contracts)  Delivery fee will not be evaluated – maximum of $2.00 per mile for Mideal members  The State reserves the right to award by region if deemed in the best interest of the State

17. State of Michigan Department of Technology, Management & Budget 17 Quarterly Bids Timeline Oct 1 st :  Publish pricing schedule (excel spreadsheet) with awarded dealers.  Quarterly pricing is a change notice to dealer’s contract.  Pricing is valid for one model year with option to “roll-over” for additional model years.  Model year is defined as the current model year at the time of the bid release.  Dealers are obligated to provide the vehicle at the bid price as long as that model year is produced.

18. State of Michigan Department of Technology, Management & Budget 18 Questions The question and answer period is from: May 14 -24, 2010. You can submit your questions in writing to: Laura Gyorkos: gyorkosL@michigan.govgyorkosL@michigan.gov

19. State of Michigan Department of Technology, Management & Budget 19 Preparation Steps Register Online: (This is new for everyone – even dealers with current contracts) By May 14 th www.Bid4Michigan.com  Optional fee for e-mail notifications or check website yourself for free  THIS IS WHERE ALL BID INFORMATION WILL BE POSTED!!  No longer using any other website to post bid solicitations  Posting of Request for Proposal (RFP) for Pre-qualification --Questionnaire for Dealers  Posting of Request for Quote (RFQ) for quarterly vehicle pricing bids  Use instructional hand-out for reference after today’s session  Keep records of passwords for future access  Helpdesk available (800) 677-1997 The Request for Proposal (RFP) for Pre-Qualification will be released on Bid4Michigan.com on Friday, May 14th

20. State of Michigan Department of Technology, Management & Budget 20 Preparation Steps By July 1 st : Register as a vendor with the State of MI (Dealers with current contracts don’t need to worry about this step) www.michigan.gov/BuyMichiganFirst -Click on “Vendor Information” on left side of screen -Registration required in order to receive payment -All dealers must be EFT compliant -2 Week process -Keep records of passwords for future access -Help Desk Available (888) 734-9749

21. State of Michigan Department of Technology, Management & Budget 21 Register as a Vendor

22. State of Michigan Department of Technology, Management & Budget 22 Vehicle Program Summary  Dealer Pre-Qualification Process  Current contracts expiring 9/30/10  Pre-qualification cycle only every 5-7 years  Pre-qualification responses will be submitted hardcopy  Quarterly Pricing Bids  Available only for Pre-qualified dealers  Electronic response (Excel) submitted via Bid4Michigan.com  Pricing good for one model year with option to “roll-over”  Delivery fee is capped at $2.00 per mile  Register On-line  http://www.michigan.gov/buymichiganfirst http://www.michigan.gov/buymichiganfirst  www.Bid4Michigan.com

23. State of Michigan Department of Technology, Management & Budget 23 Dealer Checklist Dealer Participation Checklist Pre-Qualification Process Prior to May 14 Register on-line at Bid4Michigan.com May 14 Pre-Qualification RFP released on Bid4Michigan.com May 14-24 Questions and Answer Period June 10 Dealer Responses to RFP -Pre-Qualification Questionnaire Due July 1 Register as a vendor on www.michigan.gov/buymichiganfirst

24. State of Michigan Department of Technology, Management & Budget 24 Dealer Checklist Dealer Participation Checklist Quarterly Bids August 4 Contracts w/ Pre-Qualified Dealers Begin Sept 1 First Quarterly Bid released on Bid4Michigan.com Sept 22 Dealers Submit Pricing Bids Electronically via Bid4Michigan.com October 1 Effective date of new pricing

25. State of Michigan Department of Technology, Management & Budget 25 THANK YOU!