DIVISION OF STATE SERVICES BUREAU OF CONTRACTS

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DIVISION OF STATE SERVICESBUREAU OF CONTRACTS
4/05/06
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Developing Request for Proposals (RFP)
Evaluation Instrument
May 2006
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Agenda

• Defining Best Value
• Planning Your RFP
• RFP Components
• RFP Evaluation and Selection Process
• Developing Clear Evaluation Instrument
  Instructions
• The Evaluation Criteria
• Sample Evaluation Criteria
• Completing the Procurement Package

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Agenda

• Participants will learn
• The concept of best value
• Steps in planning a Request for Proposal (RFP)
• What should be included in an RFP
• Developing clear instructions for proposal
  reviewers
• Developing evaluation instrument to accompany RFP
• Components of a complete procurement package

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Best Value

• Defined 163
• 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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Best Value

• So What Does Best Value Mean?

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Planning Your RFP

• Develop a procurement strategy.
• Start with the end in mind
• Develop a timeline for the procurement, including
  deliverable need dates
• Decide which 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 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)
• Procurement Lobbying Law

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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.
• Rationale
• Allows potential bidders to raise concerns prior
  to submitting a bid
• Eliminates vendors who are not willing to meet
  these mandatory provisions, thus
• Avoiding prolonged and fruitless contract
  negotiations
• Saving agency time and money
• Preventing gaps in program / service delivery

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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 (e.g., limit
  annual increase to Consumer Price Index (CPI) as
  published by the U.S. Dept. of Labor. Identify
  the specific index to be used).
• 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 criterion
  far outweighs the others (for example, 40 of 70
  points are assigned to experience)
• Why?
• 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
• Refer to Handout No. 1 Example of Good
  Evaluation Language for Your RFP

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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.

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Method of Award
What Should Be Included In RFP

• Multiple Awards
• RFP should reserve the right to make multiple
  awards. Where practical, the RFP should indicate
  the number of awards the agency expects to make.
  The RFP should also state how work will be
  assigned.
• The number of awards to be made and the
  allocation of work must be determined prior to
  receipt of proposals and documented in the
  evaluation instrument.

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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 Tasks 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

• All evaluation criteria must be established 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

• Establish the methodology to follow for
  evaluating all proposals
• Identify the number of personnel and roles
  involved in the process
• Formalize the procedures to be followed
• Provide the sequence of events (timeline)

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Develop Clear Evaluation Instrument Instructions

• For math calculations, the evaluation instrument
  should define
• How many decimal points the numbers will be
  extended
• Whether the numbers will be rounded up or down

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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

• 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.
• Refer to Handout No. 2 Proposal Checklist
  Mandatory Requirements or Pass/Fail Portion

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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
• The same panel of evaluators will score the same
  criteria for each proposal

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Develop Clear Evaluation Instrument Instructions

• Technical Evaluation Team
• If the technical evaluation requires the bidder
  to meet a minimum score in order to continue
  through the process, this information needs to be
  included in the evaluation instrument.

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Develop Clear Evaluation Instrument Instructions

• Technical Evaluation Team
• Multiple Awards The agency needs to define the
  basis for how this decision will be made in
  ADVANCE OF RECEIPT of the bids.
• Example Award will be made to the three firms
  with the highest composite score.
• Example Award will be made to the highest
  scoring firm for each region.
• Prior to making this decision, the agency will
  need to defend the need for multiple awards.
• This information should be dated and secured
  throughout the evaluation process.

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The Evaluation Instrument

• Individual Technical Evaluation Form
• The following should be included
• Key indicating how to apply the points within the
  individual criteria
• Designation of firm being evaluated
• Evaluator designation

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The Evaluation Instrument

• Individual Technical Evaluation Form (2)
• The following should be included
• Technical criteria and weight of the specific
  criteria
• Space for evaluators to place comments / notes
• Initials of individual evaluator and date
  completed

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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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Refer to Handouts

• Number 3 Price Offer Proposal Form
• A and
• Number 4 Examples of Evaluation
• Criteria and Some Recommended
• Relative Weights to Use

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Whats Wrong With This Picture?
Evaluation Summary Matrix
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Whats Wrong With This Picture? (contd)

• Range of points assigned were not allowed by the
  scoring matrix. Re-bid may not be necessary if
  agency can rescore proposals in accordance with
  the evaluation instrument.

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Who Should Get the Award????Technical 70 /
Cost 30
State Finance Law S163, Paragraph 10a
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Who Should Get the Award????

• If both cost and technical scores are identical,
  who should get the award?
• When price and other factors are found to be
  substantially equivalent, the determination of
  the commissioner or agency head to award a
  contract to one or more of such bidders shall be
  final. The basis for determining the award shall
  be documented in the procurement record.

State Finance Law S163, Paragraph 10a
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Whats Wrong With This Evaluation??Technical
60 pts / Cost 40 pts
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Whats Wrong With This Evaluation??Technical
60 pts / Cost 40 pts
Bids which fail to meet mandatory requirements
must be excluded from the evaluation process
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Very Important Reminders

• Document evaluation notes and basis for assigning
  scores assists in debriefing bidders
• A determination of vendor responsibility must
  also be performed

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Very Important Reminders

• After award decision is made, dont forget to
  issue intent to award / non-award letters.

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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 (2)

• Copy of notice of intent to 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 (3)

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

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THANK YOU!
Any questions and please dont forget to fill out
the evaluation forms!!!!