Procurement Presentation to the Financial Management Institute of Canada

Transcription

1 Procurement Presentation to the Financial Management Institute of Canada Bid Evaluation Methodologies By: James Steedman Senior Procurement and Contracting Officer, Treasury Board Secretariat November 2012

2 Introduction to Bid Evaluations For competitive requirements, one of the critical elements of the bid solicitation which requires careful consideration is the bid evaluation procedure. More specifically the evaluation criteria and the contractor selection method that will be used to determine the recommended winning bid. The goal of evaluation and selection methods is to achieve the optimal consideration of performance, time and cost in the procurement process, while ensuring that all suppliers are treated in a fair and equitable manner. When designing Evaluation Criteria you must articulate the requirement in a clear and concise manner and identify relevant evaluation criteria.

3 The Responsibility is With the Procurement Section for the integrity of the Procurement Process The development of evaluation criteria and bid evaluation process are sensitive areas where your Procurement Section adds important value to the procurement process. This has become increasingly important in light of our obligations under the various trade agreements and our vulnerability to the bid challenge process under the Canadian International Trade Tribunal (CITT) Finding and case determinations, and several complaints to the Procurement Ombudsman. The following guideline outlines the principles, methodology, and process for evaluating bids. The guidelines will assist procurement personnel in: Developing appropriate bid evaluation criteria; Selecting the most appropriate contractor selection methods; Evaluating the bid proposal or offers; Recommending contract award; and Notifying and debriefing unsuccessful bidders

4 Finalization of Evaluation Must Be Completed Prior to Launch of the Request for Proposal The evaluation plan must be finalized prior to issuance of the bid solicitation document. The evaluation plan shall identify all the mandatory requirements and point-rated criteria items to be evaluated, their relative weighting and how they will be scored. The contracting department in consultation with the Client Authority, shall determine the evaluation criteria, select the evaluation method and the contractor selection method which are most appropriate for the procurement. This process can take weeks if the requirement is complex. If the requirement is being sent to PWGSC then the Contracting Authority will have the final say on the evaluation plan.

5 Methods of Evaluation Bid proposals may be evaluated in accordance with the following evaluation methods: evaluation on the basis of mandatory criteria only to be considered responsive, a proposal must meet all the mandatory criteria specified in the solicitation document; or evaluation on the basis of point rated criteria requirements only to be considered responsive, a bid must obtain the required minimum score on the point-rated criteria; or Evaluation on the basis of a combination of mandatory and point rated criteria to be considered responsive, a bid must meet all the specified mandatory requirements, and obtain the required minimum score on the point-rated criteria.

6 Best Practices in Writing Evaluation Criteria What, Information, Scoring Elements (WISE) In all evaluation criteria, we should find three (3) elements: What do you want to assess? What type of Information does the bidder need to provide, so that its proposal can be assessed? What are the Scoring Elements used by the evaluators to allocate points?

7 Example of a Mandatory Evaluation Criteria Proposed Resource: Project Management Level 2 MET NOT MET M1 The Bidder must provide a detailed resume of the proposed resource. The resume must clearly demonstrate that the proposed resource meets each of the mandatory criteria. M2 The proposed resource must have a minimum of three (3) years in the last (6) years of direct work experience in a project environment where the majority of the experience was gained by organizing and controlling the work in a multi-year (span of 3 years or more) large scale (Value greater than $5M) project environment. ***Referenced projects must demonstrate exposure to project management life cycle activities***

8 Types of Criteria Mandatory Criteria Mandatory criteria are assessed on a pass-fail basis. Bidders must provide information to demonstrate compliance with the mandatory criteria. For example: The candidate must have a PhD in water treatment. If this criterion is not met, the proposal is rejected.

9 Example of Rated Evaluation Criteria Proposed Resource: Project Management Level 2 Max. Points Demonstrated Experience The proposed resource should have experience with, and knowledge of, the Government of Canada s policies, standards and guidelines on project management and related topics. One (2) point per applicable project. **A maximum of five (5) projects will be considered, additional references experience beyond the first five (5) projects listed will not be considered. Projects must be a minimum of three (3) months in length to qualify** 10 The proposed resource should have proven work experience, knowledge and understanding of project management expertise on large transformation initiatives where the value is more than five ($5) million dollars. 1-3 years = 5 points 3-4 years = 10 points 4 plus years = 15 points 15

10 Types of Criteria Rated Criteria Bidders are requested to provide information to demonstrate their capabilities under the rated criteria. If the bidder fails to demonstrate his/her capabilities, the proposal receives a score of 0 for the criteria. However, the proposal is not rejected, as in the case of mandatory criteria.

11 Key Principles of the Evaluation Process Proposals are to be evaluated only on their content. Knowledge of elements outside the proposal (such as web site) cannot be considered in evaluating a proposal. Only information contained in the bid can be considered. This, along with the grid, minimizes any bias that may result from the evaluator s personal preferences. References can only be used to validate information contained in the proposal. The proposal must be evaluated in accordance with the process and criteria published in the RFP. For example, evaluators would not be allowed to ignore published evaluation criteria or to add a new element after the RFP closing date. Only the Point of Contact (Procurement Officer) may be in touch with a bidder during the evaluation period. Evaluators are not allowed to contact any bidders to clarify one or more aspects of their proposal. This procedure minimizes potential bias and ensures the equity of the evaluation process.

12 Typical Evaluation Process Bid Received Mandatory Certifications Met? Yes Mandatory Criteria (If Any) Met? Yes No No Bid Rejected Bid Rejected Rated Criteria meeting the pass mark? Yes Financial Evaluation No Bid Rejected Consultant Selection Method (best value, etc.) Aboriginal Incentive Negotiation with the First Ranked Bidder Successful? Yes Contract No Bid Rejected Negotiation with the Next Ranked Bidder

13 PRACTICE TO AVOID: In a mandatory criterion, never use a subjective qualifier, a vague term, or an ambiguous expression without defining it. Be careful when you define a term in a mandatory criterion, because you will have to evaluate in accordance with the definition you have provided. Subjective statements: Should, might, preferably, ideally. Subjective means "as perceived by the individual." Objective means as it is, or, more often in the law, as it would be percieved by a reasonable neutral observer.

14 Tie Breaker In order to mitigate and manage the risk associated with the variance of scores, a tie breaker is used. Currently, the tie breaker is exercised when the difference in score between the first and following ranked bidders is within 1% of the total score. In this case, the bidder with the lowest financial proposal will be recommended for contract award. The purpose of the tie breaker is to achieve best value as much as possible The results of conciliation often include a variance of scores between the evaluators. The higher is the variance, the higher the subjectivity of the selection process, and therefore, the higher the risk. In addition, if the difference in score between the top ranked bidders is minimal, it becomes difficult to defend the integrity and fairness of the selection process.

15 Questions?