Request for Proposals Fundamentals

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Request for Proposals Fundamentals

Division of State ServicesBureau of Contracts

Priscilla Cassidy Bob Fetterly

Michelle Jackson Elizabeth Jaggers

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Stats

FY 05/06 – 44,000 contract transactions were reviewed

Totaling almost $54.5 billion

90% of these transactions were Approved!

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Agenda

Best Value Defined RFP Planning RFP Components RFP Evaluation & Selection Process

Evaluation Criteria Evaluation InstrumentSelection of Vendor

Procurement Package

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What isBest Value?

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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”

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RFP Planning

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Procurement Planning – Events

Implementation

Other Approvals as required OFT, Civil Service,

AG, OSC

BusinessNeed

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

CRAd

Meet w/ Evaluators

SiteVisit

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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

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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

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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

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RFP Components

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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

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Calendar of EventsCalendar of Events Key Dates

Publication in Contract Reporter 8/30/04

Release RFP 9/7/04

Submission of Written Questions 10/1/04

Proposers’ Conference 10/12/04

Distribution of Proposers’ Conference Minutes and Responses to Questions 11/1/04

Proposal Submission Due Date 11/29/04

Interviews/Reference Checks 1/10/05 – 1/21/05

Finalist notified and Contract Negotiations begin 2/21/05

Contractor Work Commences 5/10/05

Note: Build in adequate time for internal/external approvals

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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

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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

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RFP Components

Mandatory Contract Provisions

RationaleConcerns raised prior to bid submissionAvoid prolonged, fruitless negotiationsSave agency time and moneyPrevent gaps in program/service delivery

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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)

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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

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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)

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RFP Evaluation & Selection Process

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Think Results!

Assumptions

Technical/Cost ratio is 70/30Minimum passing technical score is set at 49

70% of the technical points

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Think Results!Technical

Points CostCost

Points Total

Scores

ABC Corp. 70 3,500,000 12.9 82.9DEF Corp. 54 4,000,000 11.3 65.3

GHI, LLC 52 3,750,000 12.0 64.0

JKL Industries 50.5 4,250,000 10.6 61.1

MNO Inc. 52 1,500,000 30.0 82.0

ABC Corp. 69 3,500,000 12.9 81.9

DEF Corp. 54 4,000,000 11.3 65.3

GHI, LLC 52 3,750,000 12.0 64.0

JKL Industries 50.5 4,250,000 10.6 61.1

MNO Inc. 52 1,500,000 30.0 82.0

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Think Results!

TechnicalPoints Cost

CostPoints

Total Scores

ABC Corp 70 3,740,000 12.0 82.0

DEF Corp 54 3,250,000 13.8 67.8

GHI, LLC 52 3,750,000 12.0 64.0

JKL Industries 50.5 4,250,000 10.6 61.1

MNO Inc. 52 1,500,000 30.0 82.0

A tie! The award must go to the lowest cost

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TechnicalPoints Cost

CostPoints

Total Scores

ABC Corp 70 4,200,000 23.1 93.1 #1

DEF Corp 64 3,425,000 28.4 92.4 #3

GHI LLC 60 3,300,000 29.5 89.5

JKL Industries 60 3,280,000 29.6 89.6

MNO Inc. 63 3,240,000 30.0 93.0 #2

Think Results!

$960,000 for 7 technical points!

$137,142.86 for each point!

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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

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Evaluation Instrument

Establish methodology

Identify the number of individuals and rolesFormalize and document the proceduresProvide the sequence of events (timeline)

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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

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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

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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

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Technical Evaluation – Multiple AwardsDefine 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

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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

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Cost Proposal EvaluationCost 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

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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

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Five steps in developing evaluation methodologyDefine the criteriaSet the cost/technical ratioDetermine minimum passing score, if anyDetermine distribution of points among criteriaDefine distribution of points within each criterion

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Requirements of a Complete Technical Evaluation Individual evaluator’s score sheetsSummary of technical scoresWorksheet showing cost calculationsCombined cost/technical score sheet

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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

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Procurement Package

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Concepts

This is a paper world!

Mailrooms

Math

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Procurement PackagePart One - Identification

Batch Control Listing & AC340

Procurement Record Checklist with Contact Information

Cover Letter/Memorandum Explanation of transaction

Table of Contents (large procurements)

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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 PackagePart Two – The Contract

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Procurement PackagePart Three – The Vendor Community

Contract Reporter advertisement/evidence of exemption

Solicitation list

Notice of intent to award/non-award letters

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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 PackagePart Three – The Vendor Community

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Procurement PackagePart Four – The Evaluation

Certified bid tab

Evaluation Instructions

Blank Technical Evaluation Form

Individual Technical Evaluation score sheets

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Technical Evaluation Matrix Preliminary and Final

Cost scoring matrix

Total final score (technical and cost)

Evaluation correspondence and notes

Procurement PackagePart Four – The Evaluation

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Procurement PackagePart Five – The 5 Sisters

EO 127

Vendor Responsibility Questionnaire Profile Certification

Sales and Compensating Use Tax ST-220-CA

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Procurement LobbyingGovernmental Entity Representation FormAffirmation of understandingPrior non-responsibility determinationsCertification – complete, true and accurateTermination clause

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Consultant DisclosureForm A – The estimate

Appropriate titles from O*NETForm B – The annual report

If applicable:OFT technology purchase approvalCivil Service approvalOGS approval

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Procurement PackagePart 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

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Procurement PackagePart Seven – Protests

Original protest letter

Internal memoranda

Correspondence

Decision Letter

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Procurement Package – Specials

Revenue Contracts

Purchase Orders

Contract Assignments

Piggy-backs

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Advice

Think speed

Call Us!

The Fifth Day

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References OSC Internet Site 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 Sales and Compensating Use Tax G-Bulletin 222 & 222a

NYS Department of Taxation and Finance http://www.tax.state.ny.us

Consultant Disclosure Law G-Bulletin 226 O*NET OnLine http://online.onetcenter.org/

Procurement Guidelineshttp://www.ogs.state.ny.us/purchase/AboutPSG.asp

http://www.osc.state.ny.us/



http://www.ogs.state.ny.us/aboutogs/regulations/advisoryCouncil/ModelLang.html

http://www.tax.state.ny.us/

http://www.tax.state.ny.us/

http://online.onetcenter.org/



http://www.ogs.state.ny.us/purchase/AboutPSG.asp

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Request for Proposals Fundamentals

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