1. 1 Request for Proposals Fundamentals Division of State Services Bureau of Contracts Priscilla Cassidy Bob Fetterly Michelle Jackson Elizabeth Jaggers

2. 2 Stats FY 05/06 – 44,000 contract transactions were reviewed Totaling almost $54.5 billion 90% of these transactions were Approved!

3. 3 Agenda Best Value Defined RFP Planning RFP Components RFP Evaluation & Selection Process  Evaluation Criteria  Evaluation Instrument  Selection of Vendor Procurement Package

4. 4 What is Best Value?

5. 5 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. 6 RFP Planning

7. 7 Procurement Planning – Events Implementation Other Approvals as required OFT, Civil Service, AG, OSC Business Need Specification/ Requirement Development Release RFP Proposals Due Questions Due Respond to Questions Evaluation Begins Draft RFP Develop Evaluation Guide/Instrument Interviews Evaluation Complete Monitor/ Manage Contract Identify Evaluators Meet w/ Evaluators Internal Approvals Distribute Proposals to Evaluation Teams Develop Solicitation List Issue RFP Amendment if necessary CR Ad Meet w/ Evaluators Site Visit

8. 8 RFP Planning Develop a procurement strategy  Develop a timeline Conducting a procurement is a “Project” Identify the events of the procurement Effective planning/budgeting of time  Start with the end in mind

9. 9 RFP Planning Elements of the procurement process  Specifications Requirements Site visits Interviews Reference checks  Pool of Vendors  Funding stream(s)  Evaluation (Evaluators, Instructions, Execution)  Forms (e.g., Cost Sheet)  Procurement rules and regulations  Other special events Proposer’s Conference

10. 10 RFP Planning Procurement must appear in Contract Reporter at least 15 business days prior to the due date of proposals Develop solicitation list/letter  How can the RFP be obtained?  Designated contact person  Issue date, due date  Site Visit  Questions and Answers due

11. 11 RFP Components

12. 12 RFP Components Table of Contents Introduction  Statement of purpose Calendar of Events  Date of Issuance  Site Visit  Date Questions and Answers Due  Date Responses to Questions and Answers Due  Due Date of Proposals  Proposers’ Conference  Oral Presentation and Demonstrations Agency Mission  Statement about the duties of your Agency

13. 13 Calendar of Events Key Dates Publication in Contract Reporter8/30/04 Release RFP9/7/04 Submission of Written Questions10/1/04 Proposers’ Conference10/12/04 Distribution of Proposers’ Conference Minutes and Responses to Questions11/1/04 Proposal Submission Due Date11/29/04 Interviews/Reference Checks1/10/05 – 1/21/05 Finalist notified and Contract Negotiations begin2/21/05 Contractor Work Commences5/10/05 Note: Build in adequate time for internal/external approvals

14. 14 RFP Components Administrative process  Restate the timeline  Technical Proposal submission requirements  Cost Proposal submission requirements  Single award/multiple awards Criteria  Minimum qualifications  Specifications of services  Additional information  References  Contract terms and conditions

15. 15 RFP Components Procurement policies, statutes & disclosures  Appendix A  Vendor Responsibility (G-Bulletin 221)  Procurement Lobbying Law (G-Bulletin 224)  Consultant Disclosure Law (G-Bulletin 226)  Sales and Compensating Use Tax (G-Bulletin 222 & 222a)  Other (as applicable) HIPAA Agency specific appendices Prevailing Wage

16. 16 RFP Components Mandatory Contract Provisions Rationale  Concerns raised prior to bid submission  Avoid prolonged, fruitless negotiations  Save agency time and money  Prevent gaps in program/service delivery

17. 17 RFP Components Evaluation Criteria  Minimum qualifications (pass/fail)  Technical criteria  Cost Multiple years – define escalation (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Department of Labor.)  Relative weight – cost vs. technical RFP must disclose the relative weight RFP should identify if a particular criterion is weighted more heavily than others (e.g., 40 of 70 points will be assigned to experience)

18. 18 RFP Components 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 the number or “up to” number of awards to be made and how work will be allocated among the vendors MUST be determined prior to receipt of proposals and documented in the Evaluation Instrument

19. 19 RFP Components RFP language should:  Allow agency to reject any and all bids  Allow agency the right to request clarification and revisions  Allow agency to waive a mandatory If unmet by ALL proposers  Allow agency the right not to proceed with an award  Establish a minimum period of proposal validity (e.g., price firm for 180 days and/or proposal irrevocable for 30 days)

20. 20 RFP Evaluation & Selection Process

21. 21 Think Results! Assumptions  Technical/Cost ratio is 70/30  Minimum passing technical score is set at 49 70% of the technical points

22. 22 Think Results! Technical PointsCost Points Total Scores ABC Corp.703,500,00012.9 82.9 DEF Corp.544,000,00011.365.3 GHI, LLC523,750,00012.064.0 JKL Industries50.54,250,00010.661.1 MNO Inc.521,500,00030.082.0 ABC Corp.693,500,00012.981.9 DEF Corp.544,000,00011.365.3 GHI, LLC523,750,00012.064.0 JKL Industries50.54,250,00010.661.1 MNO Inc.521,500,00030.0 82.0

23. 23 Think Results! Technical PointsCost Points Total Scores ABC Corp703,740,00012.0 82.0 DEF Corp543,250,00013.867.8 GHI, LLC523,750,00012.064.0 JKL Industries50.54,250,00010.661.1 MNO Inc.521,500,00030.0 82.0 A tie! The award must go to the lowest cost

24. 24 Technical PointsCost Points Total Scores ABC Corp70 4,200,000 23.1 93.1#1 DEF Corp643,425,00028.492.4 #3 GHI LLC603,300,00029.589.5 JKL Industries603,280,00029.689.6 MNO Inc.63 3,240,000 30.093.0 #2 Think Results! $960,000 for 7 technical points! $137,142.86 for each point!

25. 25 Evaluation Instrument All evaluation criteria MUST be established prior to the receipt of proposals Be clear/concise Ensure relative weights match RFP weights Evaluation information should be documented, dated and secured throughout the evaluation process

26. 26 Evaluation Instrument Establish methodology  Identify the number of individuals and roles  Formalize and document the procedures  Provide the sequence of events (timeline)

27. 27 Evaluation Instrument Mandatory Requirements Checklist  Ensure each proposer’s responsiveness to the requirements  Identify minor omissions or irregularities Agency may attempt to cure  Identify material deviations Proposer will be removed from further consideration  All REJECTED proposals must be submitted in their entirety Agency may waive if unmet by ALL proposers

28. 28 Evaluation Instrument Technical Evaluation  Specifications to be evaluated should reflect the agency’s requirements as defined in the RFP  Mandatory requirements evaluated on a pass/fail basis  Breakdown of points MUST be defined  Evaluate the need for a minimum technical score  Evaluators will score the same criteria for each proposal

29. 29 Evaluation Instrument Technical Evaluation  If the technical evaluation requires the proposer to meet a minimum score in order to continue through the process, this information MUST be included in the evaluation instrument

30. 30 Evaluation Instrument Technical Evaluation – Multiple Awards  Define how they will be awarded in the RFP Example: Award will be made to the three firms with the highest composite score Award will be made to the highest scoring firm for each region

31. 31 Evaluation Instrument Individual Technical Evaluation Form  Key indicating how to apply the points within the specified criteria  Designation of firm being evaluated  Name of evaluator  Technical criteria and associated weight  Evaluator comments/notes  Initials of evaluator and date completed

32. 32 Evaluation Instrument Cost Proposal Evaluation  Cost evaluation should be independent of technical evaluation team  Recommended formula for evaluating cost: (Low bid / bid being evaluated) x maximum number of points available The formula used in calculating cost scores should be identified

33. 33 Evaluation Instrument Calculations must be accurate  Will decimals be used?  How many places will it be extended?  Will the points be rounded – Up/Down? Ensure evaluation instrument reflects any modifications to specifications  Questions & answers result in a specification change  Amendment issued

34. 34 Evaluation Instrument Five steps in developing evaluation methodology  Define the criteria  Set the cost/technical ratio  Determine minimum passing score, if any  Determine distribution of points among criteria  Define distribution of points within each criterion

35. 35 Evaluation Instrument Requirements of a Complete Technical Evaluation  Individual evaluator’s score sheets  Summary of technical scores  Worksheet showing cost calculations  Combined cost/technical score sheet

36. 36 Important Reminders Document notes and basis for assigning scores Issue intent to award/non-award letters 1 Proposal – Evaluation still required Reference/Interview Scripts Site visit sign-in sheet

37. 37 Procurement Package

38. 38 Concepts This is a paper world! Mailrooms Math

39. 39 Procurement Package Part One - Identification Batch Control Listing & AC340 Procurement Record Checklist with Contact Information Cover Letter/Memorandum  Explanation of transaction Table of Contents (large procurements)

40. 40 Contract, Amendment, Purchase Order, Summary & Affidavit, etc.  APPENDIX A Request for Proposal or Project Definition  RFP Amendment – if applicable  Questions and Answers including proof of transmittal to proposers Winning Proposal – Technical and Cost Rejected Proposals – Technical and Cost  Those disqualified for not meeting minimum requirements Cost Proposals of responsive proposers Procurement Package Part Two – The Contract

41. 41 Procurement Package Part Three – The Vendor Community Contract Reporter advertisement/evidence of exemption Solicitation list Notice of intent to award/non-award letters

42. 42 Less than three bids  Explanation of limited competition  Justification of reasonableness of cost Single or sole source Copy of OSC approval letter Cost justification Preferred Source Procurement Package Part Three – The Vendor Community

43. 43 Procurement Package Part Four – The Evaluation Certified bid tab Evaluation Instructions Blank Technical Evaluation Form Individual Technical Evaluation score sheets

44. 44 Technical Evaluation Matrix  Preliminary and Final Cost scoring matrix Total final score (technical and cost) Evaluation correspondence and notes Procurement Package Part Four – The Evaluation

45. 45 Procurement Package Part Five – The 5 Sisters EO 127 Vendor Responsibility  Questionnaire  Profile  Certification Sales and Compensating Use Tax  ST-220-CA

46. 46 Procurement Package Part Five – The 5 Sisters Procurement Lobbying  Governmental Entity Representation Form  Affirmation of understanding  Prior non-responsibility determinations  Certification – complete, true and accurate  Termination clause

47. 47 Procurement Package Part Five – The 5 Sisters Consultant Disclosure  Form A – The estimate Appropriate titles from O*NET  Form B – The annual report If applicable:  OFT technology purchase approval  Civil Service approval  OGS approval

48. 48

49. 49 Procurement Package Part Six – Control Agencies Attorney General – Contract Approval Attorney General – Outside Counsel OFT – Technology Procurements Civil Service – Personal Service OGS – Piggybacks Division of the Budget – Financing

50. 50 Procurement Package Part Seven – Protests Original protest letter Internal memoranda Correspondence Decision Letter

51. 51 Procurement Package – Specials Revenue Contracts Purchase Orders Contract Assignments Piggy-backs

52. 52 Advice Think speed Call Us! The Fifth Day

53. 53 References OSC Internet Site http://www.osc.state.ny.us/ http://www.osc.state.ny.us/  Vendor Responsibility G-Bulletin 221  Procurement Lobbying Law G-Bulletin 224 Advisory Council on Procurement Lobbying Model Forms/Language http://www.ogs.state.ny.us/aboutogs/regulations/advisoryCouncil/ModelLang.html http://www.ogs.state.ny.us/aboutogs/regulations/advisoryCouncil/ModelLang.html  Sales and Compensating Use Tax G-Bulletin 222 & 222a NYS Department of Taxation and Finance http://www.tax.state.ny.ushttp://www.tax.state.ny.us Consultant Disclosure Law G-Bulletin 226  O*NET OnLine http://online.onetcenter.org/ http://online.onetcenter.org/ Procurement Guidelines http://www.ogs.state.ny.us/purchase/AboutPSG.asp http://www.ogs.state.ny.us/purchase/AboutPSG.asp

54. 54 Questions?