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Procurement-the RFP. By Warren J. McKeon, CPA, VCO. Methods of Procurement. Small purchase, $50,000 or less Emergency procurement Sole source procurement Competitive bid (IFB) > $50,000 Competitive negotiation (RFP) > $50,000 > $30,000 professional services.
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Procurement-the RFP By Warren J. McKeon, CPA, VCO
Methods of Procurement • Small purchase, $50,000 or less • Emergency procurement • Sole source procurement • Competitive bid (IFB) > $50,000 • Competitive negotiation (RFP) > $50,000 > $30,000 professional services
Small Purchase $5,000 or Less • Single quotation is acceptable • Verbal or in writing • Document
$5,000 Not Exceeding $15,000 • Three quotations from a valid source • Quotations may be written or verbal • Document the same as for $5,000 or less
$15,000 Not Exceeding $50,000,Not Exceeding $30,000If Professional Service • Four written quotations • Request for quotation should include: • What • When • Who • General and special terms
$15,000 Not Exceeding $50,000 Continued • Receive quotations • Tabulate quotations • Determine • Responsive? • Responsible? • Post • Execute
Good and Non Professional Services > $50,000 • Only two acceptable procurement methods • Competitive sealed bid (IFB) • Competitive negotiation (RFP)
Invitation To Bid • Specifications • All general and special terms and conditions • Pricing scenario • Due date • Advertise and post for a minimum of 10 days • Mail • Bidder solicitation list
When the Bid Is Received • Stamp • Late bids
Opening Bids • Open publicly • Read aloud • Bidder • Price • Discount terms
Evaluation • Responsive? • Determine the responsive bidder with the lowest price
Responsible Vendor • Check • Confirm • Verify • Investigate
Award • Lowest • Post • Issue
Request for Proposal (RFP) • Written • Criteria • Contractual terms and conditions • Unique capabilities and qualifications required of the vendor
When to Use? • Can’t use competitive sealed bidding • For professional services
IFB or RFP ? • Ombudsman reporting software • Janitorial cleaning • Annual fiscal audit • Employee assistance program (using a clinical psychologist)
Virginia Public Procurement Act • Public notice • Multiple awards • Award notice
RFP Procedure • Determine the need • RFP justification • Create the RFP • Evaluation committee • Pre-proposal conference • Evaluate • Award
Creating the RFP • Timeframe • Background • Statement of needs and deliverables • Specific proposal instructions • Evaluation criteria and weights • General terms and special conditions • Method of payment
Issue the RFP • Public notice • Post on the eVA website • Mail
Receipt of Proposals • Deadline • Late proposals • No public opening • Check proposals for required information • Distribute proposals to the evaluation committee • Committee meets as a group
Consensus Evaluation • Individual review • Responsible? • Consensus scoring sheet
Negotiation • Select • Negotiate • Re-score • Intent to award • Prepare and execute contract
RFP for Professional Service • The RFP shall not request that offerors furnish estimates of man hours or cost for services. • What can you ask for?
Evaluation • Proposals are ranked • Negotiate with Offeror #1 • Award or Proceed to #2 • Award or Proceed to #3 • Award or reissue RFP