DIVISION OF STATE SERVICES BUREAU OF CONTRACTS

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DIVISION OF STATE SERVICESBUREAU OF CONTRACTS
5/18/2005
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Request for Proposals (RFP)
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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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PRIOR TO DEVELOPING RFP

• Develop a procurement strategy.
• Start with the end in mind
• Develop a timeline for the procurement, including
  deliverable need dates
• What elements of the procurement process will be
  utilized
• Evaluation process (evaluators)
• Other special circumstances that will need to be
  addressed
• Identify latest procurement rules and regulations
  and ensure they are incorporated into RFP

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WHAT SHOULD BE INCLUDED IN RFP

• Description of administrative process
• A developed timeline
• First page of RFP should include a Calendar of
  Events
• Date of RFP Issuance
• Date Questions and Answers are due
• Date Questions and Answers will be sent to
  bidders
• Deadline for Receipt of Proposals

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WHAT SHOULD BE INCLUDED IN RFP

• Description of agency mission
• Requirements describing the services needed
• Minimum Qualifications
• Specifications of services to be provided
• Additional Information required to be included in
  proposal
• References
• Contract terms and conditions

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WHAT SHOULD BE INCLUDED IN RFP

• Procurement Policies, Statutes Disclosures
• Appendix A
• Executive Order 127 (G-Bulletin 219)
• Vendor Responsibility (G-Bulletin 221)
• Sales and Compensating Use Tax Documentation
  
  (G-Bulletin 222)
• Non-Collusive Bidding Certification

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WHAT SHOULD BE INCLUDED IN RFP

• We strongly recommend publishing your mandatory
  contract provisions (agency or procurement
  specific) in the RFP, since
• This allows potential bidders to raise concerns
  prior to submitting a bid
• Eliminates a vendor or vendors unwillingness to
  meet these mandatory provisions, thus avoiding
  prolonged and fruitless contract negotiations if
  this vendor is the highest ranked firm thus
  saving the agency time and money, and avoiding
  delay of their program needs being met

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WHAT SHOULD BE INCLUDED IN RFP

• Evaluation criteria must state
• Minimum Qualifications (Pass / Fail)
• Fee schedules for cost if multiple years, should
  define how fees should be provided i.e. limit
  annual increase to CPI
• Identification of technical criteria to be
  evaluated
• Relative weight between technical and cost
• Recommend developing the evaluation instrument at
  the same time as the RFP

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WHAT SHOULD BE INCLUDED IN RFP

• It is strongly recommended to inform your bidding
  audience (in the RFP) if the weight (points
  assigned) of one particular technical criteria
  far outweighs the others (for example, 40 of 70
  points is assigned to experience)
• This helps to keep all bidders on an even
  playing field and results in balanced
  proposals
• You want to award the contract to the best
  vendor, not simply to the vendor who guessed
  the best at what was important to you

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Method of Award
WHAT SHOULD BE INCLUDED IN RFP

• An example of clear language
• Upon completion of the evaluation process, a
  contract will be awarded to the proposer whose
  proposal met all mandatory requirements and
  obtained the highest composite score considering
  both cost and technical.
• State whether multiple awards will be granted and
  how work will be assigned

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WHAT SHOULD BE INCLUDED IN RFP

• Include RFP language which
• Allows agency to reject any and all bids
• Allows agency the right to request clarification
  and revisions
• Allows agency the right not to proceed with an
  award
• Establishes a minimum period of proposal validity
  that the bidder agrees to (example price firm
  for 180 days and/or proposal irrevocable for 30
  days)

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• Other Items to Complete
• Procurement must appear in Contract Reporter at
  least 15 business days prior to the due date of
  proposals
• Develop solicitation list

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Evaluation andSelection Process
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Develop Clear Evaluation Instrument Instructions

• Very important to establish all evaluation
  criteria prior to the receipt of bids
• Very important to be clear
• Very important that relative weights match RFP
  weights

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Develop Clear Evaluation Instrument Instructions

• The mandatory requirements checklist will be
  completed to ensure each vendors responsiveness
  to the RFP requirements. The agency will attempt
  to cure minor omissions or irregularities with
  the vendors. However, material deviations will
  result in the bidder being removed from
  consideration

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Develop Clear Evaluation Instrument Instructions

• The evaluation instrument must reflect any
  modifications to specifications as a result of an
  amendment to the RFP. For example, QAs may
  necessitate a change to specifications. Changes
  must be issued via an amendment to the RFP and
  reflected in the evaluation instrument

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Develop Clear Evaluation Instrument Instructions

• Technical Evaluation Team
• Mandatory requirements to be evaluated on
  Pass/Fail basis.
• The breakdown of points assigned to each of your
  technical criteria must be in your evaluation
  instrument.
• Evaluators will grade each vendors proposal for
  each criteria.

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Develop Clear Evaluation Instrument Instructions

• Financial Proposal Evaluation Team
• The basis for the financial proposal evaluation
  rankings will be the total price offer received
  from each offeror. The total price offers will
  be ranked with the low bid awarded the maximum
  points available. The remaining bids will be
  assigned scores based on the following formula
• Low bid divided by bid being evaluated times the
  maximum number of points available

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Price Offer Proposal Form AMultiply the hourly
rate for each level of effort (job title) by the
estimated number of hours to calculate total
cost.(Temporary Services not deliverable based)
Note For evaluation purposes only. Does not
guarantee a specific amount of work. Must state
if rate is fully loaded or identify what
additional costs outside the quoted rate will be
allowed.
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The Cost Proposal Evaluation
Must Choose Formula Prior to Bid Receipt
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Very Important Reminder

• Document evaluation notes and basis for assigning
  scores assists in debriefing bidders

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• Determining Vendor Responsibility must include
• Legal Authority to do business in New York State
• Capacity both organizational and financial
• Past Performance
• For more information
• http//www.osc.state.ny.us/vendrep/
• or [phone]

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Elements of a Fully Documented Procurement
Package

• Copy of RFP and any amendments to RFP
• Solicitation list
• Certified Bid Tab
• Contract Reporter Advertisement / Evidence of
  Exemption
• Evaluation instrument and matrix of scores and/or
  individual scoring sheets

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Elements of a Fully Documented Procurement Package

• Copy of notice of award/non-award letters
• Copy of winning proposal (cost and technical)
• Copies of all rejected proposals (cost and
  technical)
• Copies of all cost proposals for responsive
  bidders

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Elements of a Fully Documented Procurement Package

• Civil Service approval for contracts with
  individuals
• Completed Procurement Record Checklist
• Memo of transaction
• Debriefing Notes

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Elements of a Fully Documented Procurement
Package

• If Applicable
• Copy of question and answers, including
  transmittal letter to vendors
• OFT technology purchase approval
• EO127, Vendor Responsibility, Sales and
  Compensating Use Tax Documentation

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THANK YOU!