Request for Proposals
Fundamentals
Division of State Services
Bureau of Contracts
Priscilla Cassidy
Bob Fetterly
Michelle Jackson
Elizabeth Jaggers
1
Stats

FY 05/06 – 44,000 contract transactions
were reviewed

Totaling almost $54.5 billion

90% of these transactions were Approved!
2
Agenda
Best Value Defined
 RFP Planning
 RFP Components
 RFP Evaluation & Selection Process

 Evaluation
Criteria
 Evaluation Instrument
 Selection of Vendor

Procurement Package
3
What is
Best Value?
4
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”
5
RFP Planning
6
Procurement Planning – Events
Issue RFP
Amendment
if necessary
Business
Need
Draft
Release
Site
RFP CR
RFP
Ad
Visit
Respond to
Questions
Proposals
Due
Questions
Due
Specification/
Requirement
Development
Develop
Solicitation
List
Internal Approvals
Evaluation
Evaluation
Begins
Complete
Interviews
Distribute
Proposals to
Evaluation
Teams
Develop Evaluation
Guide/Instrument
Identify
Evaluators
Meet w/
Evaluators
Implementation
Other Approvals as
required OFT, Civil Service,
AG, OSC
Monitor/
Manage
Contract
Meet w/
Evaluators
7
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
8
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
9
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
10
RFP Components
11
RFP Components

Table of Contents

Introduction


Calendar of Events








Statement of purpose
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
12
Calendar of Events
Calendar 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
13
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
14
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
15
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
16
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)
17
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
18
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)
19
RFP Evaluation &
Selection Process
20
Think Results!

Assumptions
 Technical/Cost
ratio is 70/30
passing technical score is set at 49
70% of the technical points
 Minimum
21
Think Results!
Technical
Points
Cost
Cost
Points
Total
Scores
ABC Corp.
70
3,500,000
12.9
82.9
DEF Corp.
54
4,000,000
11.3
65.3
GHI, LLC
52
3,750,000
12.0
64.0
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
50.5
4,250,000
10.6
61.1
52
1,500,000
30.0
82.0
JKL Industries
JKL Industries
MNO Inc.
22
Think Results!
Technical
Points
Cost
Cost
Points
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
50.5
4,250,000
10.6
61.1
52
1,500,000
30.0
82.0
JKL Industries
MNO Inc.
A tie! The award must go to the lowest cost
23
Think Results!
Technical
Points
Cost
Cost
Points
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
$960,000 for 7 technical points!
$137,142.86 for each point!
24
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
25
Evaluation Instrument

Establish methodology
 Identify
the number of individuals and roles
 Formalize and document the procedures
 Provide the sequence of events (timeline)
26
Evaluation Instrument

Mandatory Requirements Checklist
 Ensure
each proposer’s responsiveness to the
requirements
 Identify minor omissions or
 Agency may attempt to cure
irregularities
 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
27
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
28
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
29
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
30
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
31
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

32
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
33
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
34
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
35
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
36
Procurement Package
37
Concepts

This is a paper world!

Mailrooms

Math
38
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)
39
Procurement Package
Part Two – The Contract

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
40
Procurement Package
Part Three – The Vendor Community

Contract Reporter advertisement/evidence
of exemption

Solicitation list

Notice of intent to award/non-award letters
41
Procurement Package
Part Three – The Vendor Community

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
42
Procurement Package
Part Four – The Evaluation

Certified bid tab

Evaluation Instructions

Blank Technical Evaluation Form

Individual Technical Evaluation score sheets
43
Procurement Package
Part Four – The Evaluation

Technical Evaluation Matrix
 Preliminary
and Final

Cost scoring matrix

Total final score (technical and cost)

Evaluation correspondence and notes
44
Procurement Package
Part Five – The 5 Sisters

EO 127

Vendor Responsibility
 Questionnaire
 Profile
 Certification

Sales and Compensating Use Tax
 ST-220-CA
45
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
46
Procurement Package
Part Five – The 5 Sisters

Consultant Disclosure
 Form A –

Appropriate titles from O*NET
 Form

The estimate
B – The annual report
If applicable:
 OFT
technology purchase approval
 Civil Service approval
 OGS approval
47
48
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

49
Procurement Package
Part Seven – Protests

Original protest letter

Internal memoranda

Correspondence

Decision Letter
50
Procurement Package – Specials

Revenue Contracts

Purchase Orders

Contract Assignments

Piggy-backs
51
Advice

Think speed

Call Us!

The Fifth Day
52
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


Consultant Disclosure Law G-Bulletin 226


NYS Department of Taxation and Finance http://www.tax.state.ny.us
O*NET OnLine http://online.onetcenter.org/
Procurement Guidelines
http://www.ogs.state.ny.us/purchase/AboutPSG.asp
53
Questions?
54