DIVISION OF STATE SERVICESBUREAU OF CONTRACTS
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Request for Proposals (RFP)
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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.”
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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
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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
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RFP - What Should be Included
Requirements describing the services needed:Must state relative weight between
technical and costMust state Method of Award
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RFP - What Should be Included
Requirements describing bidder responsibility must determine: IntegrityStabilityPast Performance
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RFP - What Should be Included
Mandatory contract terms and conditions
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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
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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.
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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
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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
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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
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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”).
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All such evaluation factors must be clearly stated in the procurement document and be quantifiable (agency must document a “value” to these factors)
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Procurement Instruments
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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
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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
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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”
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Evaluation Instruments
INDIVIDUAL TECHNICAL EVALUATION FORM
Develop form for mandatory requirements for each firm – pass/fail (if appropriate)
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Evaluation Instruments
INDIVIDUAL TECHNICAL EVALUATION FORM
Should include the following information:Name of firm being evaluatedEvaluators nameTechnical criteria and weight of the specific
criteria
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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
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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.
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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
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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)
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Examples of Evaluation Criteria and Recommended
Relative Weights to Use
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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.
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Evaluation Criteria
Qualifications, including financial resourcesRelevant experienceQuality of past work (past performance)ReferencesTechnical capabilitiesApproach to specific project (understanding scope)CostStaffing offered/resumes (management)
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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.”
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Recommended Relative Weights: Legal Services
PointsExperience: 20Qualifications of proposed staff: 20Understanding of New York State laws pertaining to scope of services desired: 20Cost: 40
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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
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Recommended Relative Weights: Hardware Maintenance
PointsTechnical capabilities: 25Relevant experience: 15Quality of past work (past performance): 5References: 5Cost: 50
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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
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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
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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
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Example of a Uniform “Price Offer Proposal Form”Form A: Labor
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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.
Title
Number of Hours (Agency
Provides Estimate)
Hourly Rate Bid Total
Manager 100
Senior Analyst 150
Analyst 150
Technical Staff 300
Total
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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
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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
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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
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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)
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THANK YOU!