BEST VALUE The Virginia Way

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BEST VALUE - The Virginia Way

• Don Rainey, VCO
• Nancy Davis, CPPO, VCO
• DGS/DPS Forum 2000

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AGENDA

• Background
• Overview
• Approach
• Procurement Planning
• Solicitation Structure
• Receipt, Evaluation, Award
• Contract Administration
• Questions Answers

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BACKGROUND

• Procurement Task Force Recommendations- Amend
  the law (VPPA)- Develop a training program-
  Provide adequate resources for training-
  Encourage Best Value Procurement Concepts
• Code of Virginia ( 11-35G 11.37)
• Agency Procurement Surplus Property Manual
  (APSPM)- PIM 98-006- Chapter 1 Appendix A

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OVERVIEW

• Definition
• Best Value as predetermined in the
• solicitation, means the overall combination of
• quality, price, and various elements of
• required services that in total are optimal
• relative to a public bodys needs.

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OVERVIEW (CONT)

• When to Use Best Value
• Use best value when it is essential to evaluate
• and compare factors in addition to quality or
• price in order to select the most advantageous
• offer.

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OVERVIEW (CONT)

• Strengths
• Allows greater flexibility to subjectively
  compare technical and cost factors to determine
  the value of the relative strengths, weaknesses,
  and risks of the offers.
• Enables selection of the best suppliers who are
  most likely to provide quality products, on time,
  and at reasonable cost.
• Takes advantage of the experience and independent
  judgement of the evaluator(s).

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OVERVIEW (CONT)

• Weaknesses
• Using too many evaluation criteria. A large
  number of criteria dilutes consideration of those
  which are truly important.
• Failure too make significant investment in
  resources needed for a competent and defensible
  value analysis.
• It is an inherently subjective process and maybe
  difficult too evaluate and document.

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OVERVIEW (CONT)

• Key Elements of Best Value Purchasing
• Specifications
• Evaluation Process
• Contract Administration

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APPROACH

• Small Purchases (15,000 up to 50,000) - Best
  Value Bidding - Best Value Proposals
• Formal Process (50,000 and above) (TBD)-
  Request for Best Value Proposals
• Establish an Ad Hoc Committee- DPS Staff -
  Agency/Institution Representatives
• Pilot Agencies (January - June 2000)DGS, DIT,
  DMHMRSAS, VDH, DOC, VCU MWC

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PROCUREMENT PLANNING

• 15,000 up to 50,000- Must solicit a minimum of
  4 valid sources (SWAM)- Publicly post (VBO
  advertising recommended)- Provide a written
  description of requirements- Receive written
  bids/proposals
• Market Analysis- Existing products/services-
  Capable sources, including SWAM businesses-
  Generalized pricing information

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PROCUREMENT PLANNING (CONT)

• Market Analysis (Cont)- Varying levels of
  product performance and quality- Commercial
  practices- Supportability- Successful
  acquisitions practices of other agencies,
  institutions, or organizations

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PROCUREMENT PLANNING (CONT)

• Scope of Work, Statement of Needs, Specifications
  or Other Requirements
• Evaluation Factors
• APSPM Requirements

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SOLICITATION STRUCTURE

• Best Value Bidding
• Purpose
• Scope of Work/Specification(s)
• Pre-bid Conference
• Evaluation Criteria (Objective)
• General Terms Conditions
• Special Terms Conditions
• Pricing Schedule
• Attachments

• Best Value Proposals
• Purpose
• Statement of Needs
• Pre-proposal Conference
• Evaluation Criteria (Primarily Subjective)
• General Terms Conditions
• Special Terms Conditions
• Pricing Schedule
• Attachments

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EVALUATION FACTORS

• Subjective
• Appearance
• Durability
• Experience
• Facilities
• Value
• Staff Qualifications
• Risk (High, Medium or Low)
• Technical Approach
• Testing/Quality Assurance
• User Friendly
• Past Performance

• Objective
• Certification/Qualifications
• Compatibility
• Total Ownership Costs
• E-commerce
• Environmental Impact
• Material
• Performance
• Resources
• Size
• Response Time
• Past Performance

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RECEIPT, EVALUATION, AWARD

• Receipt
• Establish due date time
• Specify in solicitation
• Bids/Proposals can be returned by Faxback,
  Electronic, Hand-Delivered or Mail
• Maybe opened upon receipt

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RECEIPT, EVALUATION, AWARD (CONT)

• Evaluation
• Conducted by buyer and/or end user
• Use the Adjectival rating method
• Use Go/No-Go approach
• Evaluate price- Realism (Is the overall costs
  proposed realistic?) - Reasonableness (Is the
  price fair and reasonable)- Completeness (Cost
  estimate, information, performance)

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RECEIPT, EVALUATION, AWARD (CONT)

• Adjectival
• Adjectives such as exceptional, acceptable,
• marginal, and unacceptable are used to
• indicate the degree to which the bid/proposal
• has met the standard for each factor evaluated.

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RATING METHOD
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EVALUATION CRITERIA SCORE SHEET
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RECEIPT, EVALUATION, AWARD (CONT)

• Award
• Bidder/Offeror with best value based on
  evaluation factors
• Written justification of the decision to award
• Place in procurement file

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CONTRACT ADMINISTRATION

• Assign in writing
• Outline duties and responsibilities
• Monitor contract or performance
• Document performance (Good/Poor)
• Provide contracting officer with evaluation
  reports

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QUESTIONS ANSWERS

• BEST VALUE PANEL
• Nancy Davis
• Paul Higgins
• Don Rainey
• Judith Wallace