NEGOTIATIONS IN FLORIDA

1
NEGOTIATIONS IN FLORIDA

• Florida Statutes, Rules and Processes (rev.
  9/6/06)
  
• Russ Rothman, CPPO, FCPM
• Director of State Purchasing
• russ.rothman_at_dms.myflorida.com

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NEGOTIATIONS IN FLORIDA

• STATUTORY RULE REQUIREMENTS, AND PROCESS
  RECOMMENDATIONS

3
STATUTORY RULE REQUIREMENTS, AND PROCESS
RECOMMENDATIONS

• Issues in selecting the ITN process (rather than
  other procurement methods)
  
• Agency participants in the process
• Advertising and releasing the solicitation
• Public notice, public records and public meeting
  issues
  
• Specifications Statement of Work

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STATUTORY RULE REQUIREMENTS, AND PROCESS
RECOMMENDATIONS

• Selection criteria
• Ranking/short-listing vendors
• Vendor input
• The evaluation committee
• Responsiveness responsibility
• Best value
• Award decision requirements
• Other negotiation opportunities

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NEGOTIATIONS IN FLORIDA

• This presentation is about
• The use of the Invitation to Negotiate defined in
  section 287.057 Florida Statutes,
  
• Some idea of the differences with the two other
  formal solicitation types (ITB, RFP) addressed in
  that section,

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NEGOTIATIONS IN FLORIDA

• And some of the processes and steps required or
  recommended for conducting formal negotiation
  processes in Florida government procurement.
  

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NEGOTIATIONS IN FLORIDA

• This presentation is NOT about
• Preparing for negotiations through market
  research
  
• Developing goals Least, Most, Probable
• Preparing discussion materials
• Prioritize
• Techniques Relationship, Power, Reason
• Apply few, let them sink. Power of silence
• Differentiate positions from interests
• BATNA
• Stages Relationship, Exploring, Bargaining,
  Closure
  
• BUT you will need to address these matters in
  your negotiation processes!
  

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NEGOTIATIONS IN FLORIDA

• FORMAL COMPETITIVE PUCHASES ITB, RFP, ITN

9
FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• Section 287.057, Florida Statutes, and Rule
  60A-1.002(4), Florida Administrative Code,
  require formal competitive solicitations for
  purchases exceeding Category Two (defined in
  287.017 FS).

10
FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• Exceptions include exempt purchases, and single
  source and emergency purchases.

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FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• The methods are
• Invitation to Bid
• Request for Proposal
• Invitation to Negotiate

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FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• These methods are ranked in order of preference.
• ITB is the first choice, with written
  justification required for one of the other
  choices.

13
FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• RFP is the second choice, and is in fact the
  second most price-driven solution.
  
• Price is one of the factors considered, but not
  the only one.
  
• All responsive respondents stay in the game
  until evaluations are completed.

14
FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• ITN is the third choice and often the least
  price driven.
  
• Unlike the RFP, price may be but is not
  necessarily one of several factors used to
  compare respondents to each other and determine
  best value. (ref. 287.057(3) FS)
• Ranking of initial respondents may exclude or
  limit price as a factor.
  
• Final price offers may be considered for only one
  or a few respondents.
  
• Question How important is price?

15
GREATEST FLEXIBILITY ITN

• Note that while ranked from most to least price
  driven, the ranking also moves from least to
  greatest flexibility!
  
• Note also that they are ranked from least to most
  complex, and least to most time consuming!

16
LEGAL REQUIREMENTS OF FLORIDA STATUTES

• The decision to use an ITN must be justified in
  writing.
  
• At least three knowledgeable persons must be
  appointed to evaluate proposals over Category 4
  (s.287.057(17)(a) FS).
  
• The agency must evaluate and rank the responsive
  replies.
  

17
LEGAL REQUIREMENTS OF FLORIDA STATUTES

• At least three knowledgeable persons must be
  appointed to conduct negotiations over Category 4
  s.287.057(17)(b)FS.
  
• The agency will select one or more vendors with
  which to commence negotiations.
  
• And the eventual basis for selection and how it
  provides the best value will be explained in
  writing.
  

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REQUIREMENTS OF FLORIDA ADMINISTRATIVE CODE

• An agency shall consider which form of
  competitive solicitation will result in the best
  value for the State and if an ITB is not
  practicable, document the decision (Rule
  60A-1.041, FAC).

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DIGRESSION RECOMMENDATIONS ON TEAMS

• The statute s.287.057(17) FS speaks to two
  phases of the process, evaluation negotiation,
  and requires a team for each phase.
  
• Recommendation Preserve continuity in the three
  phases
  
• Solicitation development
• Proposal evaluation
• Negotiation

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RECOMMENDATIONS ON TEAMS

• Negotiation is usually carried on by teams
  representing each organizational entity which
  will have some responsibility for the process
  and/or the outcome.

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RECOMMENDATIONS ON TEAMS

• Teams therefore generally include members with
  differing focuses or areas of expertise,
  authority and responsibility.

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RECOMMENDATIONS ON TEAMS

• Examples
• Administrative perspective (e.g. purchasing,
  finance),
  
• Business Process perspective, (e.g. operating
  bureau, division or program representative),

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RECOMMENDATIONS ON TEAMS

• Technical perspective (e.g. information
  technology),
  
• Legal perspective (the purchasing officer often
  represents this in the day-to-day work).
  

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RECOMMENDATIONS ON TEAMS

• Ancillary/support roles are not prohibited and
  can be quite useful
  
• That is, while the evaluation/negotiation team
  may have 3 or 4 members, the team may consult
  experts for advice

25
JUSTIFICATION FOR ITN

• The ITN requires justification as to why neither
  of the other methods (ITB, RFP) will result in
  best value 287.057(3).
  
• Best value is defined as the highest overall
  value based on objective factors not limited
  to price, quality, design, and workmanship.
  s.287.012(4) FS

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FORMAL COMPETITIVE PROCESSES ITB, RFP, ITN

• Lets consider
• Considerations in choosing ITB, RFP or ITN
  (recommendations, not law)
  
• Specifications/Statement of Work
• Vendor input
• Evaluation criteria and their weights, including
  price other factors

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REASONS FOR CHOOSING AN ITB

• Standard off-the-shelf products are known to meet
  the need
  
• Standard services of a usual commercial type and
  price structure are known to meet the need,
  especially technical or non-professional
  services, such as custodial or waste removal
  services, or equipment maintenance

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REASONS FOR CHOOSING AN ITB

• Filling an immediate need one or a few times, or
  fulfilling a long term requirement with
  repetitive deliveries of same or similar
  products/services

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REASONS FOR CHOOSING AN ITB

• Wide competition is available.
• The agency desires to fulfill the requirement at
  the lowest possible price consistent with at
  least meeting its minimum standards.
  

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REASONS FOR CHOOSING AN ITB

• The vendors experience, education, understanding
  of your mission, etc., dont greatly impact the
  agencys results.

31
REASONS FOR CHOOSING AN ITB

• Any concerns about vendor qualifications can be
  easily addressed by a simple submittal with the
  bid.
  
• Examples Copy of occupational license,
  certification by the manufacturer that vendor is
  a trained/authorized provider, three satisfactory
  references, etc.

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REASONS FOR CHOOSING AN ITB

• Satisfactory offers are expected, without a need
  for further modification through discussion.

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SPECIFICATIONS/STATEMENT OF WORK, ITB

• Specs/SOW designed to avoid restrictive
  specifications and obtain maximum competition
  
• Deliverables are clearly and unequivocally
  spelled out
  
• Any product or service from a responsible vendor,
  meeting or exceeding the requirements, will be
  considered for award based on price
  

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VENDOR INPUT, ITB

• Any necessary market research is conducted prior
  to solicitation
  
• Vendor conferences are more the exception than
  the rule
  
• Vendors have a limited time period to ask
  questions (up to 10 days before bid opening or as
  otherwise specified)
  
• Disputes must be noticed within 72 hours of
  public posting of the ITB
  
• Following the receipt of proposals, discussions
  may be held to clarify offers, (PUR 1001, 14).

35
EVALUATION CRITERIA WEIGHTS

• Bidders are compared to each other only as to
  price.
  
• The low responsive bid from a responsible bidder
  gets the award.

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REASONS FOR CHOOSING AN RFP

• It is not practicable to specifically define the
  scope of work, and the vendor will propose his
  solution 287.012(22) FS.
  
• Professional and technical expertise and quality
  of the vendor and proposed offering are critical
  to success.

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REASONS FOR CHOOSING AN RFP

• Requirements include non-standard
  products/services, with some flexibility in what
  is ultimately purchased.
  
• The agency seeks to balance price and quality to
  achieve the best value.
  

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REASONS FOR CHOOSING AN RFP

• There are believed to be more than two or three
  vendors equally capable of submitting a
  satisfactory offer.
  
• The agency does not anticipate a need to revise
  the solicitation and proposals after initial
  receipt.
  
• Document the reason an ITB was not used
  s.287.057(2) FS
  

39
SPECIFICATIONS/STATEMENT OF WORK, RFP

• Specs/SOW designed to avoid restrictive
  specifications and obtain maximum competition.
  
• Objectives, outcomes, performance specifications
  and measures are set forth, in addition to any
  commodity specifications or service outputs.
  

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SPECIFICATIONS/STATEMENT OF WORK, RFP

• A proposal from a responsible vendor, meeting or
  exceeding the requirements, will be considered
  for award based on price and other factors which
  make it the most advantageous to the state
  s.287.057(2) FS.

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VENDOR INPUT, RFP

• Market research is conducted prior to
  solicitation
  
• Disputes must be noticed within 72 hours of
  public posting of the ITB
  
• Vendor conferences are more the rule than the
  exception
  

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VENDOR INPUT, RFP

• Vendors are invited to submit questions prior to
  and during a pre-proposal conference.
  

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VENDOR INPUT, RFP

• Vendor questions and tentative answers are
  discussed
  
• to learn from the vendors of any ambiguities,
  omissions, contradictions, or possibly better
  terms and conditions that can improve the RFP,
  
• and to assist the vendors to understand the
  agencys requirements and objectives.
  

44
VENDOR INPUT, RFP

• A written addendum providing official answers and
  changes to the solicitation will be published
  following the conference.
  
• Following the receipt of proposals, discussions
  may be held to clarify offers, (PUR 1001, 14).

45
EVALUATION CRITERIA WEIGHTS, RFP

• Criteria to determine acceptability of proposals
  must include but are not limited to, price.
  
• The relative importance of price and the other
  criteria must be indicated.
  
• Ref. s.287.057(2)(a) FS

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EVALUATION CRITERIA WEIGHTS, RFP

• Respondents are compared to each other as to
  price and other criteria identified in the RFP,
  such as qualifications and proposed processes,
  equipment and services (solutions). The highest
  scoring responsive proposal from a responsible
  vendor gets the award, as the most advantageous
  to the state.

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REASONS FOR CHOOSING AN ITN

• Negotiations may be necessary to receive the best
  value s.287.012(17). The use of an ITB or RFP
  will not result in the best values.287.057(3).
  
• Non-standard or customized products/services or
  systems.
  
• High complexity.
• Emphasis on technology.

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REASONS FOR CHOOSING AN ITN

• Process re-engineering may be included.
• Innovative solutions may be required.
• Performance based contract may be sought.
• Outsourcing of governmental functions is included.

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REASONS FOR CHOOSING AN ITN

• Highly professional service requirements.
• Limited availability of competition.
• Multiple options for achieving the desired
  results.
  
• Uncertainty of how much of the wish list can be
  had within budget or time requirements, and
  willingness to adjust.
  

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REASONS FOR CHOOSING AN ITN

• Significant portion of the agencys procurement
  budget.
  
• Long term relationship with the contractor.
• A very flexible process may be necessary to best
  achieve the agencys goals.
  
• Mission critical for the agency.

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REASONS FOR CHOOSING AN ITN

• Price is important but not enough by itself to
  select from among the responsive offers.
  
• A written determination for selecting an ITN
  process is required s.287.057(3).
  

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ADVERTISING THE ITN

• Like an ITB or RFP, the ITN must be made
  available simultaneously to all vendors
  s.287.057(3).
  
• Like an ITB or RFP, advertising is required for a
  minimum of 10 calendar days s.287.042(3),
  unless the agency determines in writing that a
  shorter period is necessary to avoid harming the
  interests of the state.
• A longer period may be advisable to assure
  adequate competition. 42-60 days may be
  reasonable.

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TEN DAYS ARE NOT ENOUGH

• Typically, competitive negotiations are a
  two-step process. In the first step, respondents
  are ranked (ranking is required by law), and a
  short list of firms to participate may be
  developed (law requires select, based on the
  ranking, one or more vendors with which to
  commence negotiations ).

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TEN DAYS ARE NOT ENOUGH

• In the second step, negotiations are conducted
  with one or more firms and/or short-listed firms
  to arrive at the award of a contract. This
  requires additional time, usually 3 or more
  (often more) meetings at weekly intervals.

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SPECIFICATIONS/STATEMENT OF WORK, ITN

• Again, specs/SOW designed to avoid restrictive
  specifications and obtain maximum competition.
  
• Objectives, outcomes, performance specifications
  and measures are set forth, in addition to any
  commodity specifications or service outputs.
  

56
SPECIFICATIONS/STATEMENT OF WORK, ITN

• A best-and-final offer (BAFO) from a responsible
  vendor, meeting or exceeding the requirements,
  will be considered for award based on how these
  deliverables and price provide the best value to
  the state s.287.057(3) FS.

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VENDOR INPUT, ITN

• Market research is conducted prior to
  solicitation
  
• Disputes must be noticed within 72 hours of
  public posting of the ITN
  

58
VENDOR INPUT, ITN

• Vendor conferences are more the rule than the
  exception
  
• Vendors are invited to submit questions prior to
  and during a pre-proposal conference.
  

59
VENDOR INPUT, ITN

• Vendor questions and tentative answers are
  discussed at a pre-proposal conference, with the
  aim of learning from the vendors of any
  ambiguities, omissions, contradictions, or other
  possibly better terms and conditions that can be
  considered to improve the ITN.

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VENDOR INPUT, ITN

• A written addendum providing official answers and
  changes to the solicitation will be published
  following the conference.
  

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VENDOR INPUT, ITN

• Vendor debriefing After the vendors are selected
  for participation in negotiations, it may be
  useful to hold a debriefing meeting with each
  in turn, more fully explaining the states view
  of their initial proposal, how it may be
  improved, and asking any questions the team has
  that may lead to revisions of our requirements or
  the vendor proposals.

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VENDOR INPUT, ITN

• Meet with each selected vendor for fact finding
  and proposal development. And, be open to
  further revisions of the requirements document.
  
• During one of these negotiation process meetings,
  theres nothing wrong with taking a break during
  a meeting for the parties to confer separately,
  call home, or whatever, and then reconvene.

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NEGOTIATION MEETINGS

• Port Everglades decision, 1995 Port Authoritys
  request that bidders voluntarily excuse
  themselves for each others presentations
  violated Sunshine law.

64
NEGOTIATION EVALUATION MEETINGS, PUBLIC MEETINGS

• Port Everglades decision Violation was not
  cured, since selection and negotiation committee
  did not reconvene in the sunshine before the
  contract was awarded and did not conduct a full,
  open hearing on the competing biddersbefore
  ratifying SNCs recommendation. Implications

65
EVALUATION MEETINGS

• The Silver Express case, third DCA, 1997,
  affirms that evaluation committee meetings are
  public meetings, notwithstanding any inhibiting
  effect this may have on discussions.

66
EVALUATION MEETINGS, PUBLIC MEETINGS

• Judge Fletcher, Silver Express Case the
  (Miami-Dade Community) College violated section
  286.011, Florida Statutes (1995), popularly known
  as the Government in the Sunshine Law

67
EVALUATION MEETINGS, PUBLIC MEETINGS

• The (evaluation) committee met to conduct its
  evaluation of the responses, doing so without
  notice to the public, and voted to recommenda
  contractbe awarded

68
EVALUATION MEETINGS, PUBLIC MEETINGS

• The law is quite clear. An ad hoc advisory
  board, even if its power is limited to making
  recommendations to a public agency and even if it
  possesses no authority to bind the agency in any
  way, is subject to the Sunshine Law.

69
EVALUATION MEETINGS, PUBLIC MEETINGS

• The purchasing directors committee is governed
  by the Sunshine Law. Its closed selection
  meeting violated that law, thus its actions taken
  at the meeting are void ab initio.

70
EVALUATION MEETINGS, PUBLIC MEETINGS

• In Leach-Wells v. City of Bradenton, 1999, Fla.
  District Court of Appeal held that scoring
  separately without a public meeting violated the
  Sunshine Law we conclude that the
  short-listing was formal action that was required
  to be taken at a public meeting.

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NEGOTIATION MEETINGS, PUBLIC MEETINGS

• Florida Government in the Sunshine Manual
  Where, however, a public board or
  commissiontakes independent final action in the
  sunshine, the decision of the board or
  commission will not be disturbed.
• only a full open hearing will cure the defect
  a violation of the Sunshine Law will not be cured
  by a perfunctory ratification of the action taken
  outside of the sunshine.

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PUBLIC MEETINGS

• Florida Government in the Sunshine Manual even
  though the defect may be cured by a later open
  meeting, members of the board or commission are
  still subject to the penalty provisions of the
  statute.

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THE STATUTE

• S. 286.011 All meetings of any board or
  commission of any state agency or of any agency
  or authority of any county, municipal
  corporation, or political subdivision, except as
  otherwise provided in the Constitution, at which
  official acts are to be taken are declared to be
  public meetings open to the public at all times

74
Section 286.011, Florida Statutes

• and no resolution, rule, or formal action shall
  be considered binding except as taken or made at
  such meeting. The board or commission must
  provide reasonable notice of all such meetings.

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Section 286.011, Florida Statutes

• Any public officer who violates any provision of
  this section is guilty of a noncriminal
  infraction, punishable by fine not exceeding
  500.
• Any member who knowingly violates the
  provisions of this section by attending a meeting
  not held in accordance with the provisions hereof
  is guilty of a misdemeanor of the second degree,
  punishable as provided in s. 775.082 or s.
  775.083.

76
NEGOTIATION MEETINGS, PUBLIC MEETINGS

• Closed vendor presentations to an agency
  selection committee were voided as Sunshine Law
  violations in Port Everglades Authority v.
  International Longshoremens Association Thus
  the Sunshine Law applies broadly to the public
  procurement process, including evaluation team
  meetings, vendor presentations, and contract
  negotiations. Andy Bertron, The Florida Bar,
  February 2002

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NEGOTIATION MEETINGS NEW DEVELOPMENTS FOR STATE
AGENCIES

• EFFECTIVE JULY 1, 2006
• PUBLIC RECORDS PUBLIC MEETINGS (cf. HB 1369)
• FLORIDA EFFICIENT GOVT. ACT (cf. SB 2518)

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PUBLIC RECORDS (ref. s.119.071 FS)

• ITB/RFP If an agency posts rejection of all AND
  intent to reissue, bids/proposals are exempt
  until notice of an intended decision on re-bid or
  agency withdraws re-bid.
• ITN Exempt 20 days, not 10. If an agency posts
  rejection of all AND intent to reissue, and does
  within 90 days, sealed replies are exempt until
  notice of decision, not to exceed 12 months.
• SUNSET October 2, 2011.

79
PUBLIC MEETINGS (cf. s.286.0113 FS)

• Portions of meeting revealing a security system
  plan are exempt.
  
• Negotiations with a vendor pursuant to
  s.287.057(3)are exempt.
  
• Negotiation meetings thus exempted must be
  completely recorded. No portion of the meeting
  may be held off record.
  
• The recording is exempt until notice or 20 days
  after final competitive sealed replies.
  
• Rejection of all sealed replies similar to
  preceding slide on ITNs.
  

80
PUBLIC RECORDS PUBLIC MEETINGS (cf. HB 1369)

• Section 3 of HB 1369 goes on to state
  Legislative finding that it is unfair and
  inequitable to publicly discuss negotiation
  strategies, assessment of offers or positions,
  or the details of offers.
• What about negotiations not pursuant to
  287.057(3) FS?
  

81
FLORIDA EFFICIENT GOVT. ACT (cf. SB 2518)

• FLORIDA EFFICIENT GOVERNMENT ACT
• Council on Efficient Government
• Business case for outsourcing
• Contract clauses
• Negotiator requirements
• Limits on contact by respondents
• Funding the requirements
• Exempt commodities services

82
NEGOTIATOR REQUIREMENTS (cf. SB 2518)

• Section 1 amends 287.057 For any negotiated
  contract exceeding 1 million in any fiscal year,
  one of the negotiators must be a DMS certified
  contract negotiator.
• For any negotiated contract exceeding 10 million
  in any FY, one of the negotiators must be
  certified by the Project Management Institute.
  
• These qualifications could reside in 1 person.
• THIS APPLIES TO ALL ITNs, NOT JUST OUTSOURCING.

83
LIMITS ON CONTACT BY RESPONDENTS (cf. SB 2518)

• Section 1 creates s.287.057(26) Respondents to
  this solicitation or persons acting on their
  behalf may not contact any employee or officer
  of the executive or legislative...except in
  writing to the procurement officer or as provided
  in the solicitation. Violation may be grounds
  for rejecting a response.
• This applies to commodities and services, ITBs,
  RFPs and ITNs, from issuance to completion of the
  posting of the intended decision!
  
• This language must be included in all
  solicitations.

84
VENDOR INPUT, ITN

• Negotiation offers the greatest flexibility of
  the three methods discussed, allowing both the
  requirements of the agency and the proposal of
  the respondent to be repeatedly improved after
  the initial solicitation and response.

85
VENDOR INPUT, ITN

• The agency may obtain maximum value from the
  vendors expertise, by encouraging vendors to
  offer suggestions for requirements and solutions,
  and price/quality trade-offs.

86
VENDOR INPUT, ITN

• In addition, the purchasing officer guiding the
  ITN process can craft it so that technical errors
  of responsiveness or responsibility, which often
  plague the ITB and RFP processes, resulting in
  exclusion from consideration of what may be the
  best offer, or litigation, can be resolved at the
  negotiation table.

87
RESPONSIVENESS RESPONSIBILITY, ITN

• Responsive proposal or best-and- final offer
  (BAFO) means a proposal that conforms in all
  material respects to the solicitation. (Material
  means offer meets mandatories indicated by must,
  shall and will usually, allows for comparison
  with other offers, and does not include
  additional cost to the state or deviations which
  confer a competitive advantage).

88
RESPONSIVENESS RESPONSIBILITY, ITN

• Responsible denotes a vendor who has the
  capability in all respects to fully perform the
  contract requirements and the integrity and
  reliability that will assure good faith
  performance. s.287.012(24) FS

89
RESPONSIVENESS RESPONSIBILITY, ITN

• Vendor capability is typically scored, and is a
  factor in determining the award.
  

90
RESPONSIVENESS RESPONSIBILITY, ITN

• In addition, responsibility can be considered
  similarly to an ITB process
  
• Review suspended and convicted vendor lists
• Use complaints for tie breakers

91
RESPONSIVENESS RESPONSIBILITY, ITN

• Make certain responsibility indicators
  mandatory, such as, occupational licensing,
  employee training and certification,
  certification of years in business, minimum
  number of verifiable references, location
  proximate to the work, D B rating, etc.
• Require bonding and/or insurance if appropriate
  to mitigate risk
  

92
EVALUATION CRITERIA WEIGHTS REQUIREMENTS OF
s.287.057(3) FS

• All applicable terms conditions, including the
  criteria to be used in determining acceptability,
  must be stated in the ITN.
  
• Include the price for each year for which the
  contract may be renewed.
  
• The statute does NOT mention relative importance
  of the criteria. Discuss.
  
• Evaluate rank responsive replies.
• Select one or more vendors to commence
  negotiations.
  

93
EVALUATION CRITERIA WEIGHTS REQUIREMENTS OF
CH. 287 PART I

• Award shall be to the proposal determined in
  writing to offer the best value to the state.
  
• The contract file must contain a statement that
  explains the basis for the vendor selection, and
  sets forth the deliverables and price, and how
  they provide best value.
• Ref. s.287.057(3) FS

94
EVALUATION CRITERIA WEIGHTS

• Respondents are compared to each other as to the
  criteria identified in the ITN, such as
  qualifications and proposed processes, equipment
  and services (solutions), and price. The best
  value gets the award. This could be reflected as
  the highest scoring responsive best-and-final
  offer from a responsible vendor.

95
SUMMARY OF STEPS IN AN ITN PROCESS

• 1. Put together a team or teams for development
  of the solicitation, proposal evaluation and
  negotiation. Include major stakeholders. Have a
  chairperson, preferably the purchasing officer,
  clarify member roles, meet between sessions with
  vendors.

96
SUMMARY OF STEPS IN AN ITN PROCESS

• 2. Develop information, goals and plan.
  Understand your agencys requirements and goals,
  learn about market factors and trends, and
  suppliers. Find out what types of contract terms
  have been achieved by similar organizations for
  similar commodity/service requirements.

97
SUMMARY OF STEPS IN AN ITN PROCESS

• 3. Develop the solicitation. An ITN should
  contain legal boilerplate, background,
  objectives, Statement of Work or Scope of
  Services, performance measures, proposal format,
  submittal instructions and evaluation criteria,
  including relative importance (weights)?.
  Include a calendar of events.

98
SUMMARY OF STEPS IN AN ITN PROCESS

• 4. Issue/Advertise Solicitation. One approach
  is to solicit an initial statement of
  qualifications and services offered. Then,
  responses are ranked and a short list of two or
  three vendors may be selected to participate in
  negotiations.

99
SUMMARY OF STEPS IN AN ITN PROCESS

• 5. A pre-proposal conference following a
  question period (repeat as necessary). Use at
  least one pre-proposal conference prior to the
  initial proposal (technical proposal, or
  statement or qualifications and services
  offered), and then if needed, one more
  pre-proposal conference for the short-listed
  vendors.

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SUMMARY OF STEPS IN AN ITN PROCESS

• 6. Rank and perhaps short list selected
  respondents. Evaluate the statement of
  qualifications and services offered using the
  criteria you announced in the solicitation!
  Recommendation Post your decision to allow a
  point of entry for protest.

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SUMMARY OF STEPS IN AN ITN PROCESS

• 7. Meet with respondents. You may require
  another submittal, with prices, and some changes
  to the technical portion prior to the first
  meeting. Then, team members prepare questions
  and comments, which are discussed with the
  vendors. As meetings continue and the positions
  of both sides evolve (yes, you can modify the
  states requirements) try to submit written
  discussion topics to vendors prior to the next
  meeting. Record the meetings in full. You may
  also want to keep notes on points of agreement,
  disagreement or clarification, for future
  reference.

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SUMMARY OF STEPS IN AN ITN PROCESS

• Recommendation Use concurrent rather than serial
  negotiations in most cases. Both are allowed by
  law.
  
• Serial negotiations may fail to consider a better
  offer from a competitor and/or fail to achieve
  all possible and reasonable improvements in the
  leading offer.

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SUMMARY OF STEPS IN AN ITN PROCESS

• 8. Positions evolve. Anticipate revision of both
  the States requirements and vendor proposals as
  best meets the needs of the state and the
  capabilities of the vendors, keep communications
  open, and document any changes or alternatives.

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SUMMARY OF STEPS IN AN ITN PROCESS Concurrent
Negotiations

• Since the process of involving two or more
  vendors is competitive, each will in effect
  assist you in evaluating the others claims,
  objections, suggestions and prices, even if your
  expertise in the area is quite limited.

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SUMMARY OF STEPS IN AN ITN PROCESS

• 9. Obtain Best and Final Offer (BAFO). It is
  desirable to get the BAFO in writing before the
  last meeting, and let that meeting be a
  presentation and discussion of it, not to
  indicate acceptance but to be sure everyone
  understands it. You may want to allow
  pen-and-ink corrections signed by an authorized
  representative at that meeting.

106
SUMMARY OF STEPS IN AN ITN PROCESS

• 10. Evaluate and post intended award. The
  committee should select the best offer using the
  criteria that have been announced (and possibly
  amended). Post your decision to allow a point of
  entry for protest.
• NOTE Evaluation committee meetings must be
  public in accordance with s. 286.011, FS, per
  last court decisions on this issue.
  

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SUMMARY OF STEPS IN AN ITN PROCESS

• Recommendation Evaluation committee meetings are
  preferable to the simple averaging of independent
  scoring by committee members. Failure to discuss
  scoring before it is final may loose the value of
  the synergy of competencies represented on the
  evaluation team.
• Its better to do the right thing in public than
  the wrong thing in private...

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REMINDER

• The contract file must contain a statement that
  explains the basis for the vendor selection, and
  sets forth the deliverables and price, and how
  they provide best value.
• Ref. s.287.057(3) FS

109
SUMMARY OF STEPS IN AN ITN PROCESS

• 11. When the posting period has been completed,
  award the contract.

110
Other Negotiation Processes

• Informal negotiations may be conducted between
  competing State Contract or State Purchasing
  Agreement or agency contract vendors, or a
  combination thereof.
• Informal negotiations may be conducted with
  single source vendors.
  
• Informal negotiations may be conducted with
  exempt vendors.
  
• Informal negotiations may be conducted with
  incumbent vendors due to changes in circumstances
  or objectives, or at renewal decision points.
  

111
OVERVIEW OF THE PROCESS

• FACTS
• Preparation is key
• METHODS
• Team composition
• Planning (stakeholder negotiations!)
• Competition
• Tactics
• VALUES
• Content
• Interests Positions
• Best value (Right balance of price quality)
• Relationship
• GOALS

112
TYPICAL PHASES OF MEETING(S)

• ESTABLISHING RAPPORT
• EXPLORING FACTS, E.G. MARKET COMPANY,
  CAPABILITIES, OFFER, POSITIONS, GOALS (Dont
  rush)
  
• BARGAINING (which issues first?)
• CONCLUSION CLOSURE

113
REACHING AGREEMENT

• POSITIONS (best, worst, likely)
• INTERESTS

114
TECHNIQUES

• RAPPORT
• POWER
• REASONING

115
COMPONENTS OF AGREEMENT

• CONTENT
• RELATIONSHIP