Kirk W Buffington, CPFIM, CPPO, C.P.M.,

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1 Kirk W Buffington, CPFIM, CPPO, C.P.M.,

2 An Overview We will be talking about: The elements of the RFP process Factors determining the selection of the procurement method The elements of risk and how they apply to the RFP process Comparisons of procurement methods

3 Developing and Managing RFPs What will we be doing? Why is this important?

4 Public Procurement Concepts Full & Open Competition Two or more independent firms, bidding independently Not subsidiaries Independent bidding Lots of potential suppliers

5 Public Procurement Concepts Signs of collusion Bids that are received within minutes Identical irregularities (or seasoned bidder makes an amateur mistake) Bidders that normally submit do not

6 Public Procurement Concepts Responsive a proposer who submits a proposal which conforms in all material respects to the requirements stated in the RFP. Determination takes place at time of proposal evaluation

7 Public Procurement Concepts Responsible A responsible proposer has the capability in all respects to perform the contract

8 Public Procurement Concepts Responsible (continued) Includes Experience Integrity Reliability Capacity Facilities & Equipment Financial resources Management capability

9 Public Procurement Concepts Level Playing Field All proposers have equal information and access to the RFP process Information to one information to all Unfair advantage Inside information Pre-selection of successful proposer Handling of inquiries/questions No political influence on the RFP process

10 Public Procurement Concepts Established Procedures Well-written and accessible policies and procedures consistently applied Established protest guidelines Easy bidder registration Established protest procedure

11 Factors Determining the Procurement Method Types of goods and services Market uncertainty and risk Contracting methods Request for Information (RFI) results Limited competition procurement Requirements not clearly known, qualitative Requirements clearly known, quantitative Pg

12 How Procurement Goals Affect Procurement Method Selection Cost Quality Timeliness Accomplishing social and economic objectives Maximizing competition Maintaining integrity and transparency Pgs

13 Identifying and Minimizing Risk Complexity or procured good or service Urgency of requirement Period of performance or length of production run Size of procurement Pgs

14 Types of Risk Proposal risk Price risk Schedule risk Performance risk Contractual risk Surety / liability risk Pg. 25

15 Introducing the RFP Process What goes into the appropriations process? Should the process begin before funding is available? How long will the RFP process take from inception to completion?

16 The RFP Acquisition Process The Big Picture Pre-Award Solicitation & Award Post Award Three Phases 1. Pre-award (planning) 2. Solicitation & award 3. Post award (contract administration) Pgs. 8-10

17 The RFP Process Evaluation Action Plan Extent of Competition Requisition & Funding Solicitation Market Research RFP Document

18 RFP Process Some factors cannot be objectively measured & depend on judgment that may be challenged. It is important that the RFP process is documented, communicated to the proponents, & followed to the letter.

19 Phase 1: Action Plan Who s on the team? Role of end users Consulting requirements? Logistics? Feasible schedule? Pgs

20 Phase 2: Prepare and Process the Purchase Request Purpose of the PR? Information on the PR? Why? How is a PR processed? Pgs

21 Phase 2: Funding A contract award is a fund obligation How are funds appropriated? How long does funding last? What if funds are inadequate? How can a PR be processed without appropriate funds? Pg. 35

22 Phase 4: Developing the RFP Document Preparing Specifications (Specs) or Scope of Work (SOW) Identifies minimum requirements Allows maximum competition Identifies testing methods Contributes to best value Revealing budgetary figures Pros Cons Pgs

23 Phase 5: Solicitation Approval levels Public notice Electronic solicitation web sites Other methods of publicizing Distributing the solicitation Pre-award inquiries Pre-proposal conference Amendments/ addenda Pgs

24 Phase 5: Solicitation (cont d) Additional solicitation provisions: Socio-economic Considerations and Conditions Set-Asides Preference Goals Pgs

25 Phase 6: Extent of Competition Sources What should you do if there are not enough sources? What should you do if the number of sources are unclear? What should you do if the there are enough sources? Pg. 50 If there appear to be enough sources, it is time to examine the qualified source/bidders list.

26 Phase 6: Extent of Competition (cont d) Agency specific Open to all vendors Few restrictions Time consuming to manage Open to all vendors Few restrictions Pgs

27 Phase 7: Evaluation Guiding principals Integrity Client service Socioeconomic objectives Competition Equal treatment Accountability Pg. 56

28 Phase 7: Evaluation (cont d) Establishing evaluation criteria Offeror selection methods Dealing with mistakes Identifying potential mistakes prior to award Resolving mistakes Pgs

29 Developing the RFP Document We will discuss: Basic elements of an RFP Instructions for proposal submittal Types of specifications Writing specifications Scope of Work contrasted with Statement of Work

30 Developing the RFP Document The quality of response received from the RFP is directly related to the quality and completeness of the RFP document particularly the Scope of Work. Khi V. Thai, Ph.D. Pg

31 What should be included in an RFP?

32 Basic Elements of RFP Document Cover page Table of contents Purpose Objective Existing environment Inquires Method of selection Pre-proposal conference Determination of responsibility Projected timetable Statement of work Pgs Constraints to the successful offeror Successful offeror s personnel requirements Responsibilities of the jurisdiction Contractor s reporting requirements 32

33 Restrictive Specifications What constitutes a restrictive specification? What problems do restrictive specifications create? Are restrictive specifications ever justified? Pgs

34 Writing Specifications Appropriate Use of Words Requirements Non-Mandatory Provisions shall, must, will should, may Pg

35 Scope of Work (SOW) A written description of the contractual requirements for materials and services contained within a Request for Proposal. The SOW can be compared to the specifications contained within an Invitation to Tender. NIGP

36 Critical Ingredients of SOW Consistent, Simple and Exact Easy to read and understand Easy to revise Formatted with good direction Common among agencies departments, divisions, etc. Categorized, and Organized with a good numbering system Pg

37 Scope of Work The most important section of the document. Pg

38 A good SOW: Scope of Work Identifies minimum requirements Allows for maximum competition Identifies the test methods to be used to verify compliance with the requirements Contributes to obtaining the best value

39 Pg. 97 Receipt of the Proposals

40 Proposal-Handling Process Guidelines for RFP Opening Procedures for receipt Time-stamp proposals Record in log Secure unopened until closing/opening Provide information to jurisdiction employees only on an as-needed basis what does FL law allow Pg

41 Safeguarding Confidential Information General confidential information about the proposals Offerors proprietary information Pgs

42 The Evaluation Process and Selection of the Right Offeror We will discuss: The evaluation committee The evaluation process Selecting the right/best-value offer

43 The RFP Evaluation Committee Who? How Many? Chairperson? Roles and Responsibilities Sample Guidelines Receives instructions /training Pgs

44 Evaluation Committee Roles Committee Chairperson -Procurement Secretary Committee members Contractors/Consultants Pg

45 Evaluation Committee Rules of Conduct Maintain confidentiality of proposals Does not discuss committee actions outside of committee Individually read and score all proposals Attends all committee meetings Is included in all committee votes Attends committee training Pgs

46 Do Not Evaluation Committee Rules of Conduct (cont) Favor one offeror over another Reveal any offeror s technical solution Reveal any offeror s price without offeror s permission Reveal names of individuals references Furnish source selection information Pgs

47 What Happens at the First Evaluation Committee Meeting? Committee guidelines are reviewed Committee sets schedule of future meetings Each Member receives: Pgs Copy of each proposal Copy of evaluation criteria Copy of guidelines/procedures Copies of score sheet templates 47

48 Steps in the Evaluation Process Mandatory requirements Discussions for clarification Preliminary evaluation of proposals Tentative cost evaluation Discussions with responsible offerors for BAFOs Pg. 109

49 What Does the Evaluation Committee Look At? Responsiveness Technical Cost Past performance Pgs

50 Determination of Responsiveness What is a non-responsive response? Pg

51 A non-responsive response might be... Substituting of standard terms and conditions Qualification of offer All-or-none offer Inability to respond to delivery schedules Price qualification Offer contingent on receipt of other awards Failure to provide required bonds or insurance

52 Examples of Non- Responsiveness Fail to meet required delivery Substitute own terms and conditions Qualify their offer Fail to conform to required delivery schedule Make bid contingent upon receipt of other awards Failure to meet specifications Limit the rights of the government Failure to provide any required forms Fail to conform to the proposal submittal requirements Pg

53 Handling of Non-Responsive Proposals Do not score Do not open cost proposal Do not recommend for award 53

54 Minor Irregularities May Be Minor Irregularities Waived Failure to provide requested samples Failure to return proper number of RFP s Failure to return proper number of Addendum (providing that the proposer was aware and proposal was submitted in accordance) Failure to sign proposal when evidence clearly show intent Failure to provide insurance certificates

55 More Examples Of Minor Irregularities That May Be Allowed Failure to provide required information regarding the firms qualifications Failure to provide complete descriptive information on the products/services offered Failure to provide required insurance/bonding forms Failure to provide references as required Failure to provide required copies of the proposal Pg

56 Evaluation Committee Committee Functions Apply evaluation criteria Evaluate Proposals individually and/or discuss Rank and/or develop short list Interview/obtain clarification and negotiate finalize contract terms with selected vendor Recommend award 56

57 MANDATORY REQUIREMENTS Are they really mandatory? Pgs

58 Mandatory Requirements Mandatory criteria Desirable vs. Mandatory Eliminating a proposal Pgs

59 Evaluation Methodologies and Scoring We will discuss: Technical proposals Determining responsibility Verbal and numerical evaluations Price and cost analysis Value analysis Creating the short list Best and Final Offer (BAFO)

60 Evaluation Methodology RFP Always a team effort by the evaluation committee Vendors are compared to the spec, and are scored comparison to each other 60

61 Numerical Methods of Evaluating Proposals Numerical Systems Points are assigned to factors or subfactors More points to more important factors Two Types Fixed weight methods Variable weight method Pg

62 Numerical Methods of Evaluating Fixed Weights Proposals Most commonly used Numerical weights assigned based on distribution Example: 5 criteria = 20% each Pg

63 Numerical Methods of Evaluating Proposals (cont d) Variable Weights Used when different criteria have different value in selection Example: Selection criteria states that approach is more important than Schedule, while schedule is more important than cost Pg

64 Numerical Evaluation Methodologies Dollar ($) Per Point Method Firm #1 received 500 points (committee average) with a proposal price at $500,000, their cost per point is $1,000 ($500,000/500) Firm #2 receives 700 points (committee average) with a proposal price at $650,000, their cost per point is $ ($650,000/700) Therefore firm #2 is the best value Pgs

65 Numerical Evaluation Reward Low Price Methodologies Firm #1-$200,000, Firm #2-$400,000, Firm #3-$500,000 Firm #1-max points of 20 Firm #2 $200,000/$400,000 or 50% of the max 20 points (=10 points) Firm #3 $200,000/$500,000 or 40% of the max 20 points (=8 points) Pg

66 Scoring and Award 66

67 Developing Score Sheets Match the complexity of the score sheet to the procurement Examples Pgs

68 Simple Score Sheet Evaluation Criteria Weight Company A Company B Company C Company D Approach Management Key Personnel Financial Past Performance Totals

69 Complex Score Sheet Eval Criteria Weight Company A Company B Company C Company D Approach Task 1 Task 2 Task 3 Management Task 1 Task 2 69

70 Determining Award Best Value Weighted technical evaluation factors are used Provides most flexibility in selecting best solution for the agency Used where technical expertise of contractor will be important Pg

71 Conducting Interviews/Discussions Interview everyone on short list Develop standardized set of questions Record answers Reconvene Selection Committee Pg. 148 Discuss Rescore 71

72 Best and Final Offers After all proposals are reviewed After short list is developed Allows a price change after proposal receipt Not used anymore in federal sector Pgs

73 Improper Discussions with Offerors 73

74 Protests, Claims and Disputes Protest and Dispute Procedures: established to address grievances should be simple straightforward fast inexpensive 74

75 Protests, Claims and Disputes Four major requirements in dealing with protests 1.Start with a solid foundation promote fair and open competition 2.Go the extra mile promote excellence 3.When best efforts fail handle protests more efficiently 4.The best defense know the law Lastly Procurement official issues the Notice to Proceed and the job of Contract Administration begins Pgs

76 Keys to RFP Success: Lessons Learned Have written RFP procedures Begin planning early Have a plan (Acquisition Plan) Use cross functional RFP team Develop written Evaluation Committee Guidelines Evaluation Committee training Control the process Control communications Maintain a level playing field 76

77 Questions?

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