DIVISION OF STATE SERVICES BUREAU OF CONTRACTS

1. DIVISION OF STATE SERVICESBUREAU OF CONTRACTS 5/18/2005

2. Request for Proposals (RFP)

3. BEST VALUE Defined “A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts.”

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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 WHAT SHOULD BE INCLUDED IN RFP Method of Award

12. 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)

13. 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

14. Evaluation andSelection Process

15. 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

16. Develop Clear Evaluation Instrument Instructions • The mandatory requirements checklist will be completed to ensure each vendor’s 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

17. 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, Q&A’s may necessitate a change to specifications. Changes must be issued via an amendment to the RFP and reflected in the evaluation instrument

18. 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 vendor’s proposal for each criteria.

19. 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

20. 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.

21. The Cost Proposal Evaluation ** Must Choose Formula Prior to Bid Receipt **

22. Very Important Reminder • Document evaluation notes and basis for assigning scores – assists in debriefing bidders

23. 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 (518) 408-3687

24. 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

25. 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

26. Elements of a Fully Documented Procurement Package • Civil Service approval for contracts with individuals • Completed Procurement Record Checklist • Memo of transaction • Debriefing Notes

27. 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

28. THANK YOU!