1. Two-Tier Contracting Presented by Bart Potter Marci Disken Scott Geist Oct. 30, 2013

2. Two-tier contracting process A procurement within a procurement –The first tier is similar to a typical master contract and (usually) results in a competitively pre-qualified vendor pool –The second tier involves separate competition, conducted by you, the customer, for specific work as needed, similar to a typical single contract

3. First tier vs. second tier Tier 1 High-level requirements Objective Specific metrics May include ‘not to exceed’ pricing (no evaluation) Licenses Certifications Vendor profile and contacts General terms and conditions Tier 2 Specific statement of work Objective criteria Subjective criteria Pricing is evaluated References Resumes Interviews Site visits

4. When might the state consider two-tier contracts? –When the scope of work varies significantly from project to project –When the vendor community and/or the service or commodity is rapidly changing –When it offers savings to the state Why two tiers?

5. Take a look at the original RFP or IFB before you begin writing your second-tier solicitation Don’t duplicate what has been done for you already Second tier time-saving tip:

6. Every two-tier contract is a little different, but there is one common denominator:  All two-tier contracts require a second-tier competitive process Second tier process

7. You cannot just pick your vendor from the qualified vendor pool *. All vendors in the pool must be given an opportunity to win your business. * DES is considering options to allow customers to choose from a pre-qualified list if the project falls under the direct-buy limit. Point to remember

8. Procurement reform is changing the look of two-tier contracts. MCC and its customers recognized the first-tier process has been lengthy for customers. Proposed changes include : The first tier will not require customers to help evaluate bids. Customers will be asked to help develop the mandatory requirements (“checklist”) for a solicitation Changes to two-tier contracting

9. Changes we’ve already made: In the second tier: –Customers identify specifications and scope of work for their specific project or purchase –Customers design their own evaluation criteria, which can include references and work histories, interviews, resumes, terms and conditions, etc. Changes to two-tier contracting

10. Proposed changes include: Vendor pools will have open enrollment several times a year to add established vendors to the pool Changes under consideration:

11. Thank you Any questions? For follow-up questions: Bart Potter bart.potter@des.wa.govbart.potter@des.wa.gov Marci Disken marci.disken@des.wa.govmarci.disken@des.wa.gov Scott Geist scott.geist@des.wa.govscott.geist@des.wa.gov