DIVISION OF STATE SERVICES

transcript

DIVISION OF STATE SERVICESBUREAU OF CONTRACTS

Request for Proposals (RFP)

RFP - Best Value

Defined:“A best value award is one which

optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts.”

Consider Best Value RFP When:

The agency has defined a need and requests offerors propose the best method for accomplishing itThe agency will consider factors other than lowest price in determining an awardThe problem or need is fairly complexSpecifications of the project cannot be clearly defined

RFP - What Should be IncludedDescription of the administrative process Develop a Timeline & Calendar of Events Must appear in Contract Reporter 15 days prior to

due date of proposal Letter of Intent

Is it Mandatory? Bidder’s Conference (if applicable)

Mandatory or Optional Questions and Answers Limit agency contact to one individual

RFP - What Should be Included

Requirements describing the services needed:Must state relative weight between

technical and costMust state Method of Award

Requirements describing bidder responsibility must determine: IntegrityStabilityPast Performance

Mandatory contract terms and conditions

Provision for Short Term Contract Extension

To be used only if RFP doesn’t allow for specific transitional periodShort term extension to be used in order to: Complete evaluation process and award contract Allow OSC sufficient time to complete contract

review Deal with unforeseen circumstances beyond

agency controlProvision is not to be used to allow the agency to delay re-procurement

Suggested Language for Short Term Extension Provision

At the end of any contract term otherwise provided for herein, if a replacement contract has not yet been approved in accordance with State law, any contract awarded hereunder may be extended unilaterally by the State, upon notice to the contractor, at the same terms and conditions, including all contract pricing, for a period of one month. Additionally, this extension may be for a period of up to three months with the concurrence of the contractor. However, any extension will terminate immediately upon approval of the replacement contract except where a period for transition of contractors has been previously provided for.

RFP - What Should be IncludedEvaluation Criteria: Oral Interviews – Indicate how it will be scored Best and Final Offers (BAFO) Multiple Awards Two Phase Approach

Short List Site Inspection Product Demonstration

Develop fee schedules for cost Develop the Evaluation Instrument at the

same time you develop the RFP

RFP - Evaluation ProcessEvaluation instrument, criteria and methodology must be completed and secured prior to receipt of proposalsOverall evaluation criteria must not be alteredEvaluation criteria must be applied equally and uniformly

In a more complex procurement such as upgrading a computer system, your Best Value evaluation criteria might include these below the line costs:Training costs to the procuring agency for

agency personnel based on individual proposals

Equipment costs to the procuring agency based on individual proposals

Conversion/life cycle costs Represents State’s indirect costs, depending on a

particular purpose

Other Key Elements of Best Value

Technical risks inherent in the offeror’s proposal: for example; Software that is basically untested (no prototype)

for the nature of the procurement service.The financial risk of each offeror’s bid to the procuring agency in relation to the type of contract and resources involved.Agency must have detailed rationale and supporting facts justifying the cost vs. technical trade-offs (“discriminators”).

All such evaluation factors must be clearly stated in the procurement document and be quantifiable (agency must document a “value” to these factors)

Procurement Instruments

Recommended Methods of Award:

Low Bid (IFB)Award to the lowest responsible bidder

meeting the required minimum qualifications

Composite Score (RFP)Evaluate technical and cost proposals.

Award to the vendor with the highest composite score

Evaluation Process

Establishes the methodology to follow for evaluating the proposals: Identify number of personnel and roles involved in

the process Formalize the procedures to be followed. Provide the sequence of events (timeline) Define how the criteria for technical and cost will

be applied

MUST BE DEVELOPED PRIOR TO THE INITIAL RECEIPT OF THE BIDS

Evaluation ProcessIf a multi-level approach – document the approach that will be used to develop the short listMultiple awards – define the basis for how the contracts will be awarded

SHOULD BE DATED ANDPLACED IN A “LOCK BOX”

Evaluation Instruments

INDIVIDUAL TECHNICAL EVALUATION FORM

Develop form for mandatory requirements for each firm – pass/fail (if appropriate)

Evaluation Instruments

INDIVIDUAL TECHNICAL EVALUATION FORM

Should include the following information:Name of firm being evaluatedEvaluators nameTechnical criteria and weight of the specific

criteria

Evaluation Instruments(continued)

Space for evaluators to place comments/notesSignature of individual evaluator and date completedKey to how to apply the points within the individual criteria

VERIFY THE INFORMATION AND CRITERIA BEING EVALUATED AGAINST THE RFP TO

BE SURE THAT IT AGREES

Cost Evaluation Form

Develop a single form to include names of bidders and their costApply the criteria to the dollar cost of each bid as defined in the evaluation instrument.Signature of evaluator and date completed

KEEP IT SIMPLE…..

Cost must be objective. Evaluation can be done by one individual. Should be a single value that is added to the technical score.

Summary of Evaluation

Compiles – technical and cost for each bidder to produce their final composite scoreIf multiple phase, results of all levels of the review should be reflected in this document

Selection and AwardSelection and award shall be a written determination in the procurement record made by the commissioner or a State agency in a manner consistent with the provisions of the solicitationIn the event two offers are found to be substantially equivalent, PRICE SHALL BE THE BASIS FOR DETERMINING THE AWARD (SFL 163.10 a)

Examples of Evaluation Criteria and Recommended

Relative Weights to Use

Decision Time

Application of the weightsTechnical versus CostAt a minimum cost should be a minimum of 20% or higher

During this process the agency needs to determine the most important factors within your requirements. This criteria should receive the highest percent of the weight to be applied to the criteria being evaluated.

Evaluation Criteria

Qualifications, including financial resourcesRelevant experienceQuality of past work (past performance)ReferencesTechnical capabilitiesApproach to specific project (understanding scope)CostStaffing offered/resumes (management)

Recommended Relative Weights: Technical/Cost

Legal Services: 60/40 Computer Training: 60/40 Hardware Maintenance: 50/50 Banking Services: 60/40 Routine Services(i.e., janitorial, rubbish removal): 30/70 Highly Technical Solution Required: 70/30

We recognize that “as the level of expertise/specialization increases, the importance of technical weights increases.”

Recommended Relative Weights: Legal Services

PointsExperience: 20Qualifications of proposed staff: 20Understanding of New York State laws pertaining to scope of services desired: 20Cost: 40

Recommended Relative Weights: Computer Training

PointsUnderstanding nature and scope of project: 15Providing a practical approach to meeting scope (experience): 15Demonstrate ability to deliver scope requirements: 15Proposed site of training/availability: 15Cost: 40

Recommended Relative Weights: Hardware Maintenance

PointsTechnical capabilities: 25Relevant experience: 15Quality of past work (past performance): 5References: 5Cost: 50

Recommended Relative Weights: Banking Services

Points Qualifications, including financial resources: 30 Technical capabilities: 10 Relevant experience: 10 Quality of past work (past performance): 5 References: 5 Cost: 40

Recommended Relative Weights: Routine Services*

Points Relevant experience: 15 Quality of past work (past performance): 10 References: 5 Cost: 70 *i.e.; Janitorial, Rubbish Removal

Recommended Relative Weights: Design and Development of a New System (Highly

Technical Solution Required)

Points Understanding scope: 20 Expertise and experience: 10 Implementation (work) plan: 20 Management plan (technical appraisal, proposed staffing): 10 Methodology (tools offered, quality assurance, etc.): 10 Cost: 30

Example of a Uniform “Price Offer Proposal Form”Form A: Labor

Form A: Basically for Labor-Only Contracts(Programmers, Project Managers, Legal,

etc.)Multiply the hourly rate for each job title by the estimated number of hours to calculate total cost.

Number of Hours (Agency

Provides Estimate)

Hourly Rate Bid Total

Manager 100

Senior Analyst 150

Analyst 150

Technical Staff 300

Highly Recommended Cost FormulaLow Bid: Bid being scored x number of points (e.g.:40 points

maximum):

For example: low Bidder A receives maximum points (40). When evaluating Bidder C, we put:

__Bidder A__ $1,000,000Over Bidder C = $1,250,000 X 40 points = 32 points for Bidder C.Another example and illustration of scoring cost is found in the

Procurement Guidelines, Section VII, Pages 38-39.

Bidder Bid Total 40 (Maximum Score)A $1,000,000 40.00 Points

B $1,100,000 36.40 PointsC $1,250,000 32.00 PointsD $1,500,000 26.70 Points

Recommended Cost Formula vs. Procurement Guidelines Cost Formula

Low bid / bid being evaluated x maximum points for cost = cost score

Sample Bid Tabulation

PG Formula (max. pts. 25)

Recommended Formula (max. pts. 25)

$150,000 25.00 25.00

$160,000 24.72 23.44$190,000 23.89 19.74$390,000 18.33 9.62$900,000 4.17 4.17

Multiple Level Review

If the RFP provides for interviews, product demonstrations, site visits, etc. and the agency desires to limit this review to only bidders susceptible to an award, the process for developing this short list needs to be developed in ADVANCE OF RECEIPT of the bids

Multiple Awards

The agency needs to develop in ADVANCE OF RECEIPT OF THE BIDS how this decision will be made and how the work will be assigned (should be in RFP as well)

THANK YOU!

DIVISION OF STATE SERVICES

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