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Bullet-Proofing Your RFPs

Bullet-Proofing Your RFPs. Welcome. Michael Asner Consulting Suite 2003 1028 Barclay St. Vancouver, BC Canada V6E 0B1. Handout Material. Notes michael@rfpmentor.com. Agenda . 1 – Procurement is a zoo! 2 – What can go wrong? 3 – The view from 30,000 feet (world wide issues)

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Bullet-Proofing Your RFPs

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  1. Bullet-Proofing Your RFPs

  2. Welcome Michael Asner Consulting Suite 2003 1028 Barclay St. Vancouver, BC Canada V6E 0B1

  3. Handout Material • Notes • michael@rfpmentor.com

  4. Agenda 1 – Procurement is a zoo! 2 – What can go wrong? 3 – The view from 30,000 feet (world wide issues) 4 – The view from 20,000 feet (RFP issues) 5 – The view from 10,000 feet (The Evaluation Process) 6 – My five favorite problems 7 - Conclusions

  5. 1. Procurement is a Zoo!!!!

  6. Emergency!!

  7. Sole Source

  8. Tender RFQ ITB ITQ 11

  9. RFPs……

  10. When to Use an RFP Types of Procurements

  11. What can go wrong? 2.

  12. Procurement IS the news at 6 p.m.

  13. There are NO valid proposals!

  14. Management INTIMIDATES the Evaluators!

  15. The view from 30,000 feet 3.

  16. A World Wide Trend • FAIR • OPEN • TRANSPARENT • BEST VALUE

  17. fair  • adjective1 just or appropriate in the circumstances. 2 treating people equally.

  18. open • adjective1 allowing access, passage, or view; not closed, fastened, or restricted.

  19. transparent • adjective1 allowing light to pass through so that objects behind can be distinctly seen. 2 obvious or evident.

  20. best value ???????

  21. The view from 20,000 feet 4.

  22. The RFP Document

  23. The RFP Process • Developing Specifications • Forming an Evaluation Team • Issuing the RFP • Vendors’ Meeting • Evaluating Proposals • Finalizing the Contract • Preparing for Public Inspection

  24. Choices in Selecting an Evaluation Methodology Do we compare proposals only with the defined requirements, or do we compare them directly with each other? Approach #1: A Comparison With Requirements Approach #2: Comparing Proposals Directly

  25. Choices in Selecting an Evaluation Methodology (cont’d) Which rating method do we use? ► color coding ► adjectival rating ► ranking ► numerical scores and weights ► non-numerical scoring

  26. Real World Examples State of Montana: Evaluation Process Review all proposals. Determine status. Score proposals. Discuss proposals. Interview. Conduct discussions/negotiations. Obtain best and final offers. Prepare recommendation. Review documents.

  27. The view from 10,000 feet 5.

  28. Inside the Evaluation Process The Building Blocks of The Evaluation Process

  29. What the Courts Have Said

  30. DUTIES on OWNER Duty to disclose Duty of Fairness Duty to Award as Tendered Duty of Fair Competition Duty to Reject Non-Compliant Tenders

  31. Constructing the Evaluation The Building Blocks of The Evaluation Process Establishing Compliance With Mandatory Requirements Scoring the Proposals Imposing Upset Levels Evaluating the Cost Developing a Short List Interviewing Suppliers Negotiating the Contract Requesting Best and Final Offers Using References/Past Performance

  32. 1. Establishing Compliance With Mandatory Requirements Be precise, legalistic. Establish the rules for rejecting proposals. Definitions are important.

  33. Establishing Compliance With Mandatory Requirements (cont’d) Best Practices Put Definitions in the RFP. Provide a Table of Mandatory Requirements in the RFP. Publish the Rules for Rejecting a Proposal in the RFP. Restrict the number of Mandatory Requirements.

  34. 2. Scoring the Proposals Evaluation Factors Weights Scoring Systems

  35. Evaluation Factors (Criteria) Families of criteria Technical Management Cost Effective Criteria Objective Related to the requirements definition Discriminating Non-discriminatory Measurable Economical to use

  36. Weights Determining the Weights Publishing the Weights

  37. Scoring Systems The Bar Can’t Get Any Lower! An Excellent Approach #1 An Excellent Approach #2

  38. The Bar Can’t Get Any Lower! 10 - Excellent - meets all requirements/very desirable 7 - Good - most requirements met, it is good enough 4 - Satisfactory - some requirements met, not sufficient 1 - Unsatisfactory - requirements essentially not met

  39. An Excellent Approach #1 Air Force Regulation 70-15 If the majority of the (sub)factors evaluated meets standards, the requirement is not overly difficult to meet, and the (sub)factors which are deficient are of a very minor nature or are susceptible to easy correction, the item should be scored "5".

  40. An Excellent Approach #2 Ontario Government Factor 2: Project Team (Weight = 40) 1. Project Manager is experienced in all 3 key areas 2. Project Manager has managed large, similar projects 3. Key assistants (2 or 3) are experience in 3 key areas 4. Extra (contingency) resources are available 5. Two or more specialist to assist team 6. Experience with a similar system 7. Commitment/dedication of resources

  41. 3. Imposing Upset Levels What are they? When do you use them? Best Practices

  42. 4. Evaluating the Cost COST IS ALWAYS AN ISSUE.

  43. Different Ways of Handling Cost Best solution (within budget) Cost is just another evaluation factor ‘Bang’ for the buck Two steps: first, merit; then cost

  44. Best Solution (Within Budget) 1. Score the proposals on technical and management evaluation factors combined. 2. Select the proposal with the highest score, regardless of price or within budget.

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