DIVISION OF STATE SERVICES

DIVISION OF STATE SERVICESBUREAU OF CONTRACTS

4/05/06

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Developing Request for Proposals (RFP) &

Evaluation Instrument

May 2006

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Agenda•Defining Best Value•Planning Your RFP•RFP Components•RFP Evaluation and Selection Process

•Developing Clear Evaluation Instrument Instructions

•The Evaluation Criteria•Sample Evaluation Criteria

•Completing the Procurement Package

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AgendaParticipants will learn:

1. The concept of “best value”2. Steps in planning a Request for Proposal (RFP)3. What should be included in an RFP4. Developing clear instructions for proposal

reviewers5. Developing evaluation instrument to accompany

RFP6. Components of a complete procurement package

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Best Value

Defined: §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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Best Value

So What Does Best Value Mean?

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Planning Your RFPDevelop a procurement strategy. Start with the end in mind Develop a timeline for the procurement, including

deliverable need dates Decide which elements of the procurement process will be

utilizedEvaluation process (evaluators)Other special circumstances that will need to be

addressed Identify latest procurement rules and regulations and

ensure they are incorporated into RFP

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What Should Be Included In RFP

Description of administrative process

A timeline

First page of RFP should include a “Calendar of Events”: Date of RFP Issuance Date Questions and Answers are due Date Questions and Answers will be sent to bidders Deadline for Receipt of Proposals

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Description of agency mission

Requirements describing the services needed: Minimum qualifications Specifications of services to be provided Additional information required to be included in

proposal References Contract terms and conditions

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Procurement Policies, Statutes & Disclosures Appendix A

Executive Order 127 (G-Bulletin 219)

Vendor Responsibility (G-Bulletin 221)

Sales and Compensating Use Tax Documentation (G-Bulletin 222)

Procurement Lobbying Law

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What Should Be Included In RFPWe strongly recommend publishing your mandatory contract provisions (agency or procurement specific) in the RFP.Rationale: Allows potential bidders to raise concerns prior to

submitting a bid Eliminates vendors who are not willing to meet these

mandatory provisions, thus: Avoiding prolonged and fruitless contract negotiations Saving agency time and money Preventing gaps in program / service delivery

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Evaluation criteria must state: Minimum Qualifications (Pass / Fail) Fee schedules for cost; if multiple years, should define how fees

should be provided (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Dept. of Labor. Identify the specific index to be used).

Identification of technical criteria to be evaluated Relative weight between technical and cost

Recommend developing the evaluation instrument at the same time as the RFP

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What Should Be Included In RFP It is strongly recommended to inform your bidding

audience (in the RFP) if the weight (points assigned) of one particular technical criterion far outweighs the others (for example, 40 of 70 points are assigned to experience)

Why? This helps to keep all bidders on an “even playing field” and

results in “balanced” proposals You want to award the contract to the “best” vendor, not

simply to the vendor who “guessed” the best at what was important to you

Refer to Handout No. 1 “Example of Good Evaluation Language for Your RFP”

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Method of Award

An example of clear language: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, considering both cost and technical.


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Method of Award

Multiple Awards:RFP should reserve the right to make multiple awards.

Where practical, the RFP should indicate the number of awards the agency expects to make. The RFP should also state how work will be assigned.

The number of awards to be made and the allocation of work must be determined prior to receipt of proposals and documented in the evaluation instrument.


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Include RFP language which: Allows agency to reject any and all bids Allows agency the right to request clarification and

revisions Allows agency the right not to proceed with an

award Establishes a minimum period of proposal validity

that the bidder agrees to (example – price firm for 180 days and/or proposal irrevocable for 30 days)

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Other Tasks to Complete

Procurement must appear in Contract Reporter at least 15 business days prior to the due date of proposals

Develop solicitation list

Evaluation andSelection Process

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Develop Clear Evaluation Instrument Instructions

All evaluation criteria must be established prior to the receipt of bids

Very important to be clear

Very important that relative weights match RFP weights

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Establish the methodology to follow for evaluating all proposals:

Identify the number of personnel and roles involved in the process

Formalize the procedures to be followed

Provide the sequence of events (timeline)

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For math calculations, the evaluation instrument should define:How many decimal points the numbers will

be extendedWhether the numbers will be rounded up or

down

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The evaluation instrument must reflect any modifications to specifications as a result of an amendment to the RFP. For example, Q&A’s may necessitate a

change to specifications. Changes must be issued via an amendment to

the RFP and reflected in the evaluation instrument

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The mandatory requirements checklist will be completed to ensure each vendor’s responsiveness to the RFP requirements. The agency will attempt to cure minor omissions or irregularities with the vendors. However, material deviations will result in the bidder being removed from consideration.

Refer to Handout No. 2 “Proposal Checklist – Mandatory Requirements or Pass/Fail Portion”

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Technical Evaluation Team: Mandatory requirements to be evaluated on

Pass/Fail basis The breakdown of points assigned to each of your

technical criteria must be in your evaluation instrument

The same panel of evaluators will score the same criteria for each proposal

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Technical Evaluation Team:If the technical evaluation requires the bidder

to meet a minimum score in order to continue through the process, this information needs to be included in the evaluation instrument.

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Technical Evaluation Team: Multiple Awards – The agency needs to define the basis for

how this decision will be made in ADVANCE OF RECEIPT of the bids.

Example: Award will be made to the three firms with the highest composite score.

Example: Award will be made to the highest scoring firm for each region.

Prior to making this decision, the agency will need to defend the need for multiple awards.

This information should be dated and secured throughout the evaluation process.

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The Evaluation Instrument

Individual Technical Evaluation FormThe following should be included:Key indicating how to apply the points

within the individual criteriaDesignation of firm being evaluatedEvaluator designation

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The Evaluation Instrument

Individual Technical Evaluation Form (2)The following should be included:Technical criteria and weight of the specific

criteriaSpace for evaluators to place comments /

notes Initials of individual evaluator and date

completed

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Financial Proposal Evaluation “Team” The basis for the financial proposal evaluation

rankings will be the total price offer received from each offeror. The total price offers will be ranked with the low bid awarded the maximum points available. The remaining bids will be assigned scores based on the following formula:

Low bid divided by bid being evaluated times the maximum number of points available

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Refer to HandoutsNumber 3 “Price Offer Proposal FormA” and

Number 4 “Examples of EvaluationCriteria and Some RecommendedRelative Weights to Use”

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What’s Wrong With This Picture?

Bidder A Bidder B Bidder C

Experience (20 Points) 13 18 18

Approach (20 Points) 16 16 12

References (20 Points) 12 19 7Total Technical (60 pts) 41 53 37

Cost (40 pts) 28 25 40

Total Composite Score 69 78 77

Evaluation Summary Matrix

Enter Points as follows:ExcellentGoodUnacceptable

All Available PointsHalf Available PointsZero Points

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What’s Wrong With This Picture? (cont’d)

Range of points assigned were not allowed by the scoring matrix. Re-bid may not be necessary if agency can rescore proposals in accordance with the evaluation instrument.

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Bidder A Bidder BProposed Price $100,000 $80,000Cost Score 24 30Technical Score 60 54

Total 84 84

Who Should Get the Award????Technical 70% / Cost 30%

State Finance Law S163, Paragraph 10a

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Who Should Get the Award????

State Finance Law S163, Paragraph 10a

If both cost and technical scores are identical, who should get the award?

“When price and other factors are found to be substantially equivalent, the determination of the commissioner or agency head to award a contract to one or more of such bidders shall be final. The basis for determining the award shall be documented in the procurement record.”

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What’s Wrong With This Evaluation??Technical = 60 pts / Cost = 40 pts

Bidder 1 Bidder 2 Bidder 3 Bidder 4Mandatory (Pass/Fail)

Pass Fail Pass Pass

Proposed Price $110,000 $95,000 $125,000 $140,000

Cost Score (OSC Recommended Formula

34.5 40.0 30.4 27.1

Technical Score 46.0 N/A 45.0 54.0TOTAL SCORE 80.5 N/A 75.4 81.1

Winning Bid

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What’s Wrong With This Evaluation??Technical = 60 pts / Cost = 40 pts

Bidder 1 Bidder 2 Bidder 3 Bidder 4Mandatory (Pass/Fail)

Pass Fail Pass Pass

Proposed Price $110,000 $95,000 $125,000 $140,000

Cost Score (OSC Recommended Formula

40.0 N/A 35.2 31.4

Technical Score 46.0 N/A 45.0 54.0TOTAL SCORE 86.0 N/A 80.2 85.4

Winning Bid

** Bids which fail to meet mandatory requirements must be excluded from the evaluation process**

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Very Important Reminders

Document evaluation notes and basis for assigning scores – assists in debriefing bidders

A determination of vendor responsibility must also be performed

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Very Important Reminders

After award decision is made, don’t forget to issue intent to award / non-award letters.

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Elements of a Fully Documented Procurement Package

Copy of RFP and any amendments to RFP

Solicitation list

Certified Bid Tab

Contract Reporter advertisement / evidence of exemption

Evaluation instrument and matrix of scores and/or individual scoring sheets

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Elements of a Fully Documented Procurement Package (2)

Copy of notice of intent to award / non-award letters

Copy of winning proposal (cost and technical)Copies of all rejected proposals (cost and technical)Copies of all cost proposals for responsive bidders

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Elements of a Fully Documented Procurement Package (3)

Civil Service approval for contracts with individuals

Completed Procurement Record Checklist

Memo of transaction

Debriefing Notes

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THANK YOU!Any questions and please don’t forget to fill out the evaluation forms!!!!

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