State Contracting 101 – How Michigan Businesses Can Win State Awards

1. State Contracting 101 – How Michigan Businesses Can Win State Awards Elise Lancaster Director of Purchasing Operations

2. Business Resources • Doing Business Website • www.michigan.gov/doingbusiness • Entrepreneurship Website • www.michigan.gov/beyourownboss • Procurement Technical Assistance Centers (PTACs) • www.michigantac.org • Small Business & Technology Development Centers (SBTDCs) • www.misbtdc.org

3. Who Buys What?

4. Who We Are – Purchasing Operations • We handle a diverse portfolio of more than 2,200 contracts valued at more than $11.6 billion (yes, billion) • We act on behalf of state agencies to buy goods and services • We provide guidance regarding competitive bidding to state agencies • We report to the legislature regarding statutory purchasing requirements • We recruit and maintain a diverse, large pool of potential vendors

5. What We Buy in Purchasing Operations • Commodities • Services • Information Technology • General Rule • Orders of $25,000 or more are handled by Purchasing Operations • Orders of less than $25,000 are handled by each state agency

6. Business Opportunities • Contracting / State Vendors • Michigan based businesses succeed as state vendors • Small businesses succeed as state vendors • Today’s purchasing is open and accessible • All vendors have a fair and equal chance to win state business • Subcontracting with Prime Vendors • Vendor / Sub Fairs in 2006 • Future web enhancements to link primes and subs

7. MiDEAL = Michigan Delivering Extended Agreements Locally Voluntary program that allows local units of government to buy off of state contracts MiDEAL – Expanding Your Client List • Townships • Cities & Villages • Counties • Road Commissions • Non-profit Hospitals • Colleges • Universities • School Districts • Typical contract = 1 vendor + 1 client • MiDEAL contract = 1 vendor + 2,661 clients

8. Where Michigan Firms Fit In • Your registration as a vendor expands and diversifies our pool of potential vendors • Your research and your visits to our website (www.michigan.gov/doingbusiness) get you prepared to bid • Your preparation and planning lead to a thorough, complete bid response • Your competitive bids can win contract awards and help save taxpayer $$$ • Your feedback helps us improve

9. Doing Business With Michigan Step One: Register as a Vendor Step Two: Find an Opportunity through Purchasing Operations ($25,000 or more) Step Two: Find an Opportunity through Agency Buyers ($24,999 or less) Step Three: Review, Plan, Prepare Step Four: Submit Be Competitive – Be Complete – Be Timely Step Five: Evaluate and Debrief

10. “When the opportunity presents itself, it’s too late to prepare.” -Coach Wooden

11. Research and Preparation • Become familiar with contracts that you are interested in bidding on • Visit our website: www.michigan.gov/doingbusiness • Click on “For Vendors” on the left, then click on “Complete Contract List” • Excel spreadsheet that you can download • Gives contract value, current vendor, expiration dates, etc • Anticipate projects that you want to bid on

12. Research and Preparation • Example of how to use current contract list to research opportunities • Clean and Sweeps Janitorial Services, LLC

16. Contract/Purchase Order Number Agency Buyer Name TEAM VENDOR_NAME 071B5200027 761 AKM FAC UNITED COMMERCIAL SERVICES INC • Contract/Purchase Order Number • Identification number • Agency • Agency the contract is created for • Buyer Name • Buyer who oversees contract • Vendor Name • Name of current vendor

17. Description Amount Expiration Date (A) JANITORIAL SERVICE DEQ CADILLAC OFC $60,180.00 10/1/2007 • Description • Contract description of goods/services • Amount • Contract value • Expiration Date • Contract expiration

18. Research and Preparation • Review Past and Present Contracts – they are public information • Freedom of Information Act (FOIA) allows you to obtain a copy • FOIA area of website • Acquisition Services’ FOIA contact • Mike Bliss • (517) 335-6544 • blissm@michigan.gov

19. Research and Preparation • Public Documents Options to Obtain Through the Freedom of Information Act (FOIA) • Administrative Board bid tabulation • Existing contract • Joint Evaluation Committee Synopsis • Winning proposal

20. Ad Board Bid Tab

21. Contract Cover Sheet

22. Points Summary

23. Finding Current Solicitations • Make Us Part of Your Weekly Routine! • Bookmark Our Web Address • www.michigan.gov/doingbusiness • Select “Bids & Proposals” • Select “Commodities & Services” • Review Invitations to Bid (ITBs)

24. Finding Current Solicitations • Example of how to find a Invitations to Bid (ITBs) that apply to your company • Amusement and Carnival Services • Search • Browse through list • If ITB # is known, type in search box • View and Print Documents • “ITB Document” • “ITB Attachments”

27. Invitation to Bid

28. Vendor Registration • Registration is an important first step for businesses who want to be state vendors • Visit our website: www.michigan.gov/doingbusiness • Select “For Vendors” • Select “How to Register as a Vendor” • Follow the instructions to register online

29. Vendor Registration • Allot 10-15 minutes • Have business information and banking information handy • Questions? • Contact the Vendor Registration Help Desk • (517) 373-4111 or (888) 734-9749 • Monday – Friday from 7:00 a.m. – 5:00 p.m.

34. Submitting Winning Proposals • Internal Environment • Know your business & know yourself • Be prepared to convey what makes you unique and qualified to win a contract award • External Environment • Know your industry & know your competition • Be prepared to convey what makes you better and MORE qualified than your competitors

35. Submitting Winning Proposals • Use FREE resources that are available to you! • Procurement Technical Assistance Centers (PTACs) www.michigantac.org • Small Business Technology & Development Centers www.misbtdc.org • Review the ENTIRE Invitation to Bid, with all attachments! • Attend mandatory pre-bid meetings and site visits • Review question and answers (posted with ITB) • Ask questions, especially if specifications are tight

36. The Wrong Way • Frills (such as fancy-schmancy binders and pretty extras) • Offers to help the buyer write proposals during the bid process • Offers to take buyers to lunch • Offering gifts to buyers • Contacting buying agencies after the Invitation to Bid has been posted

37. The Right Way • Attend pre-bid meetings and site visits • These will be specified on the Invitation to Bid or the attachments on our website • Follow Invitation to Bid directions completely • Follow format requirements exactly • Direct questions or concerns to Purchasing Operations’ buyer specified on the Invitation to Bid • Be Competitive – Be Complete – Be Timely

38. Persevere! • If at first you don’t succeed…. • Schedule a debriefing (follow-up meeting) with buyer • Determine areas that need improvement for your next bid response • Review other bid submissions • Freedom of Information Act information noted at the beginning of presentation

39. Persevere! • Debriefing is the recommended first step • If you still think we made a mistake with the award • Challenge the process with a formal protest • Protests must be in writing • Direct protests to Elise Lancaster, Director of Purchasing Operations

40. Celebrate! • If you win… • Sign contract within 10 days of receipt • Make sure certifications and representations are on file

41. Purchasing Operations • Integrity First • Quality Service Daily • Responsible Spending Always

42. Contact Purchasing Operations 2nd Floor, Mason Building Lansing, MI 48909 Phone: 517.335.0230 Fax: 517.335.0046 Email: DMB-Outreach@michigan.gov www.michigan.gov/doingbusiness