Brown Bag February 6, 2008

1. Brown Bag February 6, 2008 The RFP Process BOOT CAMP

2. Objectives From this class the leaner will be able to: • Identify appropriate situations for using the RFP • Develop an RFP • Advertise an RFP in accordance with Texas statues and other rules • Conduct a pre-proposal conference • Evaluate and Score responses • Notify appropriate parties of contract award • Identify basic contract administration duties

3. Defining the rfp

4. What is an RFP? An RFP is a formal invitation for a vendor to submit a proposal to provide a good or service to the State.

5. When is an RFP Used? • Price is not the primary concern • Respondents are expected to provide the best solution • Respondents are evaluated on a variety of criteria • Specifications are not clearly defined

6. Developing The Solicitation

7. Basic structure • Section I: General • Section II: Statement of Work • Section III: Proposal Information • Section IV: Contract Terms and Conditions • Exhibit A: HUB Subcontracting Plan • Exhibit B: Execution of Proposal • Exhibit C: Compensation and Fees

8. Writing and Organizing Tips • Remember the FACCS: • Flexible • The solicitation allows for innovative solutions. • Accurate • The solicitation will result in an acquisition that meets the needs of the end user. • Clear • Avoid jargon and confusing terms. • Competitive • The solicitation allows for multiple parties to respond. It is not written with one provider in mind. • Simple • Say only what you need to say. Avoid unneeded explanations or background information.

9. Section I : General

10. Sectional overview and Description • Introduction and Overview • Legal Citations • The authorizing legislation can be found in the TGC2156.121-124; TAC Title 34, Part I, Ch. 20.37, and other statutes specific to the type of procurement/contract. (i.e. TGC2166.2533) • Project Description • This section summarizes the reason for the procurement.

11. Sectional overview and Description • Background • Only relevant information regarding the procurement should be included. Examples of relevant information can be: • State or Federal mandates • Changes to an existing department/program • A brief program description might be necessary

12. Sectional overview and Description • Scope of Work • In this section, first provide a summary of the work that is to be done. • Then, detail each item the contractor is responsible for completing by describing the required services, deliverables, and delivery deadlines.

13. Sectional overview and Description • Contract Term • Amount of time covered by the initial contract term • (e.g., three years.) • Possible Extensions or Renewal Periods • As a general rule, the total contract term (initial contract term plus renewals or extensions) should not exceed four (4) years if state funded, and five (5) years if federally funded.

14. Sectional overview and Description • Definitions • Words will retain their most common meaning unless otherwise specified • Define acronyms that will be used throughout the document. Example: • “CPA” means the Comptroller of Public Accounts. • “AIS” means automated information system.

15. Section II : Statement of Work

16. Statement of Work The statement of work is the written expression of the end of a project before the work has begun. This section is the core of the RFP.

17. Statement of Work • Agency Duties • In short, it is the primary responsibility of the agency to thoroughly define their expectations. • This can be in terms of deliverables, communication, invoicing, and any other relevant items. • Contractor Duties • The contract is responsible for demonstrating how they expect to fulfill the expectations expressed by the agency.

18. Section III : Proposal Requirements

19. Proposal information • Schedule of Events • In this section, include all critical procurement dates up to the contract start date. • Also, provide a summary or outline of the project timeline, beginning with the contract start date. Include due dates for all major contract milestones. • It is often helpful to tie due dates to the contract start date (e.g. “deliverable is due 90 days after contract execution”) instead of a set date (e.g. “September 1, 2006”) to account for possible project delays.

20. Proposal information • Revision to the Schedule • Outlines the procedure for informing parties of revisions to the schedule. • Pre-proposal conference • The date of the conference should be listed in the schedule of events. • This conference can be mandatory or optional. Either case must be stated in the RFP.

21. Proposal information • Proposal Requirements/Content • Expand on the summary provided in the schedule of events. • Define deliverables attached to the specified dates • Describe how the agency will measure and evaluate the contractor’s performance under the contract. • Define expected levels of performance • List industry standards • List remedies if standards aren’t met • Include a list of required documents that need to be submitted by the respondent in order to be considered responsive to the proposal.

22. Proposal information • Proposal Submission • RFP Opening Date and all compliance requirements • Delivery of Proposals • Include submission deadlines and valid submission addresses, email addresses, and/or fax numbers. • Proposal Opening • When • Where • Public Opening • Public Notice

23. Proposal requirements • Proposal Evaluation and Award • For a purchase made through competitive sealed proposals, agency making the purchase: • (1) must specify in the RFP the known factors other than price that the agency will consider in determining which proposal offers the best value for the state; and • (2) may concurrently inform each vendor that made a proposal on the contract of any additional factors the agency will consider in determining which proposal offers the best value for the state • if the agency determines after opening the proposals that additional factors not previously covered are relevant in determining which proposal offers the best value for the state. Gov’t Code § 2155.075

24. Section IV : Terms and Conditions

25. Contract Terms and Conditions • Customization • Even though each agency might have standard terms and conditions, it is important that they are reviewed every time they are to be included as part of the contracting document.

26. Essential Contract Clauses The State of Texas Contract Management Guide lists the following as essential contract clauses: Some of the clauses might be reflected in the RFP Dispute Resolution Contractor Responsibilities Indemnification/Damage Claims Abandonment or Default Right to Audit Force Majeure Ownership/Intellectual Property Contract Terms and Conditions • Introduction • Scope of Work • Term of Contract • Consideration/Price • Specifications • Funding Out Clause • Antitrust

27. Exhibit A : HUB Subcontracting Plan HSP

28. Essential documents • HUB Subcontracting Plan • Asses the project (if over $100,000.00) for possible sub-contracting opportunities • Examples might include painting or carpeting for a construction project. • If an HSP is requested and not submitted, the respondent is to be considered non-responsive

29. Exhibit B : Execution of Proposal

30. Essential Documents • Execution of Proposal • Makes the respondent legally responsible for adhering to any contract formed as a result of the RFP • Renewal Options • No contract should be automatically renewed unless otherwise stated. • Outline a renewal procedure and the length of any renewal or extension periods

31. Exhibit C : Compensation and Fees

32. Essential Documents • Compensation and Fees • List fees that the state is not obligated to pay. • Taxes • List fees that should be non-recurring. • Tooling • List a compensation schedule. • Will compensation be tied to performance • Level of Effort • Actual Deliverable

33. Advertising The Solicitation

34. Solicitation Advertising Requirements • Centralized Master Bidder’s List • List of vendors who are interested in doing business with the state of Texas • If you are issuing a competitive solicitation, vendors on the list that provide commodity codes that apply to the project must be notified.

35. Solicitation Advertising Requirements • Electronic State Business Daily • An electronic platform where the State announces new contracting opportunities • Procurements over $25,000 must be posted to the ESBD. • Posting requirements vary depending on the amount of information posted regarding the opportunity.

36. Solicitation Advertising Requirements • Notification Requirements for Major Contracts • Major Contract is defined as a contract whose value exceeds $1 million dollars during the ORIGINAL term of the contract • This does not include any extension or renewal periods. • Contract Advisory Team (CAT) Notification

37. Pre-proposal coference

38. Pre-Solicitation Conference • Purpose • Clarification • Guidelines • State of Texas Contract Management Guide • Format • Opening • Introduction • Solicitation Overview/Review • Closing Summary

39. rfp opening

40. RFP OPENING • Opening Day • This is the day (as stated in the RFP) that responses are no longer accepted. • All that is read at the RFP opening is the name of the respondents.

41. evaluating responses

42. Evaluating Responses • Evaluation Criteria • Proposals can only be evaluated against the criteria stated in the RFP • Criteria to Consider • Company Information • Financial History • Proposed Services • Technical Support, Training on new equipment • Experience and Qualifications • Years in industry, Similar projects • Compensation and Fees • Lifecycle costs, tooling, discounts • References

43. Evaluating responses • Although price and conformance to specifications are the most important best value considerations, Texas Government Code § 2155.074 lists other relevant factors that may be considered. • installation costs; • life cycle costs; • the quality and reliability of the goods and services; • the delivery terms; • indicators of probable vendor performance • the cost of employee training associated with a purchase; • the effect of a purchase on agency productivity; • the vendor's anticipated economic impact to the state or a subdivision of the state

44. Evaluating Responses • The Evaluation Process • Responsive • The respondent has responded to the RFP by the appropriate time with all requested information • HSP • Financial Statements • Execution of Offer • Responsible • The contractor is capable of performing the demands of the RFP at the time requested.

45. score tabulation

46. Score Tabulation • Scoring Methodologies • Qualitative • Comparing proposal elements against criteria and assigning a non-numerical score • Quantitative • Comparing proposal elements against criteria and assigning a numerical score

47. Score tabulation • Interviews and Oral Presentations • If oral presentations and interviews are anticipated, information relevant to the process should be included. • If not anticipated, all respondents should be given an equal opportunity to participate. • Original proposals cannot be changed during oral presentations or interviews

48. vendor award and notification

49. Vendor Award and Notification • Negotiations • Defined as the process whereby multiple parties with competing interest bargain for an advantage with the aim of coming to a mutual agreement. • A key advantage to using the RFP method of solicitation is the ability to negotiate .

50. Vendor Award and Notification • Best and Final Offer (BAFO) • After negotiations, the evaluation team can decide that they would like to receive a best and final offer from each respondent. • If one respondent is allowed to submit a BAFO, then all respondents must be afforded the same opportunity.