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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
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WELCOME!
Dealer Pre-Qualification Information Session
State of Michigan • Department of Technology, Management & Budget3
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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)
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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
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Background - State Vehicle Contracts
How are these customers different?
F.O.B. Dealership(Delivery charges – maximum of $2 per mile)
MiDEAL (Includes Transit Agencies)
F.O.B. Destination(Include Delivery charges in bid price)
MDOT
Specified
Delivery Terms
Customer
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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.)
$12,200,000523TOTAL
$8,100,000314MiDEAL (includes Transit)
$4,100,000*209MDOT
Dollars Purchased
Units Purchased
Customer
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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
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Dealer Pre-Qualification Process
Timeline
May 14 th: Pre-Qualification RFP released on Bid4Michigan.com
Interested dealers must read the document thoroughly
May 14 - 24 th: Question and Answer Period Submit questions via e-mail ONLY to Laura
Gyorkos at [email protected] Phone calls not accepted
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Dealer Pre-Qualification Process
TimelineOn or before June 1 st
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)
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Dealer Pre-Qualification Process
TimelineOn or before JUNE 10 th 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!!
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Dealer Pre-Qualification Process
TimelineJune 10 th – July 12 th State Evaluation Process: Dealers evaluated on a Pass/Fail basis Maximum of 10 dealers per manufacturer Dealers agree to the terms and conditions
July 12 th - 23rd Notice to dealers of pre-qualification status Pre-Qualified dealers receive contract for signature
August 4 th: Contracts are executed with Pre-Qualified dealers
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Technology Requirements
Prior to Sept 1 st:
Microsoft Office Suite for ExcelAccess to scanner Ability to Scan and save documents
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June 1, 2011 May 3, 2011 4th Qtr:
7/1/11 – 9/30/11
March 1, 2011 February 1, 2011 3rd Qtr:
4/1/11 – 6/30/11
December 1, 2010 November 1, 2010 2nd Qtr:
1/1/11 – 3/31/11
Sept 1, 2010 August 2, 2010 1st Qtr:
10/1/10 – 12/31/10
Bid Release Request to Manufacturer
Quarter
Quarterly Bid Schedule (Price only)
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Quarterly Bids
Timeline
Sept 1 st: Pricing bid released on Bid4Michigan.com Download and save blank pricing spreadsheet
Sept 1 st – 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
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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
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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
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Quarterly Bids
Timeline
Oct 1 st: 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.
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Questions
The question and answer period is from:
May 14 -24, 2010.
You can submit your questions in writing to:
Laura Gyorkos: [email protected]
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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
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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
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Register as a Vendor
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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
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Dealer Checklist
Register as a vendor on www.michigan.gov/buymichiganfirst
July 1
Dealer Responses to RFP -Pre-Qualification Questionnaire Due
June 10
Questions and Answer Period May 14-24
Pre-Qualification RFP released on Bid4Michigan.com
May 14
Register on-line at Bid4Michigan.comPrior to
May 14
Pre-Qualification Process Dealer Participation
Checklist
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Dealer Checklist
Effective date of new pricingOctober 1
Dealers Submit Pricing Bids Electronically via Bid4Michigan.com
Sept 22
First Quarterly Bid released on Bid4Michigan.com
Sept 1
Contracts w/ Pre-Qualified Dealers BeginAugust 4
Quarterly Bids Dealer Participation
Checklist
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THANK YOU!