Click to add text

Dealer Pre-Qualification Information Session

STATE OF MICHIGANDepartment of Technology, Management and Budget

Purchasing Operations

Wednesday, May 5, 2010

1:30 p.m.

State of Michigan • Department of Technology, Management & Budget2

2

WELCOME!

Dealer Pre-Qualification Information Session

State of Michigan • Department of Technology, Management & Budget3

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)

State of Michigan • Department of Technology, Management & Budget4

4

MiDEAL Program 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

State of Michigan • Department of Technology, Management & Budget5

5

Background - State Vehicle Contracts

How are these customers different?

Customer Specified

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)

State of Michigan • Department of Technology, Management & Budget6

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.)

Customer Units Purchased

Dollars Purchased

MDOT 209 $4,100,000*

MiDEAL (includes Transit)

314 $8,100,000

TOTAL 523 $12,200,000

State of Michigan • Department of Technology, Management & Budget7

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

State of Michigan • Department of Technology, Management & Budget8

8

Dealer Pre-Qualification ProcessTimeline

May 14th: Pre-Qualification RFP released on Bid4Michigan.com Interested dealers must read the document

thoroughly

May 14 - 24th: Question and Answer Period Submit questions via e-mail ONLY to Laura

Gyorkos at gyorkosL@michigan.gov Phone calls not accepted

State of Michigan • Department of Technology, Management & Budget9

9

Dealer Pre-Qualification Process

TimelineOn or before June 1st

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 10th)

State of Michigan • Department of Technology, Management & Budget10

10

Dealer Pre-Qualification ProcessTimelineOn or before JUNE 10th 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!!

State of Michigan • Department of Technology, Management & Budget11

11

Dealer Pre-Qualification ProcessTimelineJune 10th – July 12th State Evaluation Process: Dealers evaluated on a Pass/Fail basis Maximum of 10 dealers per manufacturer Dealers agree to the terms and conditions

July 12th - 23rd Notice to dealers of pre-qualification status Pre-Qualified dealers receive contract for signature

August 4th: Contracts are executed with Pre-Qualified dealers

State of Michigan • Department of Technology, Management & Budget12

12

Technology Requirements

Prior to Sept 1st:

Microsoft Office Suite for ExcelAccess to scanner Ability to Scan and save documents

State of Michigan • Department of Technology, Management & Budget13

13

Quarter Request to Manufacturer

Bid Release

1st Qtr:

10/1/10 – 12/31/10

August 2, 2010 Sept 1, 2010

2nd Qtr:

1/1/11 – 3/31/11

November 1, 2010 December 1, 2010

3rd Qtr:

4/1/11 – 6/30/11

February 1, 2011 March 1, 2011

4th Qtr:

7/1/11 – 9/30/11

May 3, 2011 June 1, 2011

Quarterly Bid Schedule (Price only)

State of Michigan • Department of Technology, Management & Budget14

14

Quarterly Bids

Timeline

Sept 1st: Pricing bid released on Bid4Michigan.com Download and save blank pricing spreadsheet

Sept 1st – 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

State of Michigan • Department of Technology, Management & Budget15

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

State of Michigan • Department of Technology, Management & Budget16

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

State of Michigan • Department of Technology, Management & Budget17

17

Quarterly Bids

Timeline

Oct 1st: 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.

State of Michigan • Department of Technology, Management & Budget18

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.gov

State of Michigan • Department of Technology, Management & Budget19

19

Preparation Steps

Register Online: (This is new for everyone – even dealers with current contracts)

By May 14th

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

State of Michigan • Department of Technology, Management & Budget20

20

Preparation Steps

By July 1st:

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

State of Michigan • Department of Technology, Management & Budget21

21

Register as a Vendor

State of Michigan • Department of Technology, Management & Budget22

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 www.Bid4Michigan.com

State of Michigan • Department of Technology, Management & Budget23

23

Dealer ChecklistDealer 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

State of Michigan • Department of Technology, Management & Budget24

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

State of Michigan • Department of Technology, Management & Budget25

25

THANK YOU!