Request for Proposal Basics: Best Value and RFP Process

1. Request for Proposal Basics

2. Presenters: Nisha Thomas Peter Vander Veer Elizabeth Jaggers Office of the State Comptroller Bureau of Contracts

3. Stats FY 08/09 – ~35,142contract transactions were reviewed Totaling almost$33.8 billion 92%of these transactions wereApproved!

4. Agenda • Best Value Defined • The Request for Proposal (RFP) Process

5. What isBest Value?

6. Best Value - Defined State Finance Law §163: “A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts”

7. The RFP Process

8. The RFP Process Fail to plan, plan to fail Start with the end in mind Determine that a need exists for a particular service Develop a timeline Keep it updated as you move forward through the process Remember that the evaluation strategy MUST be finalized and documented by the date that the bids are received in the agency Define the service to be procured If you can’t, consider a Request for Information (RFI)

9. The RFP Process Define your vendor pool Identify funding sources Review any rules relative to those sources Review applicable laws and procurement rules and regulations

10. The RFP Process Identify all the people you will need to execute a successful procurement: Who will write the technical sections? Who will write the cost sections? Who will write the administrative sections? Who will proofread and edit the document before it goes out?

11. The RFP Process Identify all the people you will need to execute a successful procurement: Who will respond to vendor questions and distribute the responses being sure to document the process? Who will receive the proposals and log them in? Who will open the bids and create the certified bid tab?

12. The RFP Process • Identify all the people you will need to execute a successful procurement: • Who will manage the evaluation process? • Who will document the evaluation process? • Who will develop the criteria for the evaluation?

13. The RFP Process • Identify all the people you will need to execute a successful procurement: • Who will write instructions for evaluators? • Define decision parameters and explain expectations • Evaluate proposals against standards set in the RFP and not against other proposals

14. The RFP Process Who will develop the scale to be used within each criterion? 5 points = exceeds all requirements 4 points = meets all requirements 3 points = meets most requirements 2 points = meets some requirements 1 point = meets few requirements

15. The RFP Process Who will your evaluators be? Expertise Time to participate fully in the process No conflict of interest Different teams of evaluators can be used but the same evaluators must do any single criterion

16. The RFP Process • Who will manage advertising? • Advertise the procurement • The procurement must appear in the Contract Reporter at least 15 business days prior to the due date of proposals • Consider additional advertising

17. The RFP Process • The advertisement should contain: • How to obtain the RFP • Designated contact person (Procurement Lobbying Act) • Due date • Date and time of Mandatory Site Visit or Pre-bid Conference

18. The RFP Process RFP Content Table of Contents Agency Mission Overview of Procurement Calendar of Events (for the vendor)

19. The RFP Process RFP Content Proposal Submission Requirements Number of Copies Labeling Cost and Technical to be submitted in separate envelopes Insurance Requirements Bonding, Letters of Credit or other guarantees of performance

20. The RFP Process Contract Terms and Conditions Appendix A Agency specific appendices Questions & Answers Give a due date for questions and an anticipated date for agency response Issues raised may result in amendment to the RFP Distribute to entire potential vendor pool Review all evaluation criteria Make any necessary changes Re-advertise if there are significant changes

21. The RFP Process Every RFP should reserve the Agency’s right to: Reject any and all bids Request clarification and revisions If they do not materially alter the proposal If a vendor’s cost is extremely low to clarify that requirements of the proposal were understood by the vendor Waive a mandatory if unmet by ALL proposers Not proceed with an award Require a minimum period of proposal validity (e.g., price firm for 180 days and/or proposal irrevocable for 30 days)

22. The RFP Process Other requirements HIPAA Prevailing Wage Provide information about the Evaluation Process The RFP must include the breakdown between technical and cost elements More specific information about the evaluation process can be included

23. Must inform vendors about the method of award Single award 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, inclusive of both cost and technical Multiple award RFP should reserve the right to make multiple awards RFP should state if awards will be divided among geographic areas, regions, etc. RFP should state the number or “up to” number of awards to be made RFP should state how work will be distributed among vendors selected for award The RFP Process

24. The RFP Process Technical Portion Write the Statement of Work, Project Definition, or Specifications Must clearly state all mandatory qualifications Must be pass/fail Be sure the qualification is really mandatory for the performance of the effort and can be defended if challenged Create a mandatory qualifications checklist Pass/Fail – Yes/No If not met, disqualify Disqualified proposals Both cost and technical proposals must be submitted to OSC for all disqualified vendors

25. The RFP Process Synchronize the Evaluation Instrument to the RFP Review your RFP, statement of work and project definition Choose elements to score that are important to the result you are seeking Requirements to be scored must be clearly stated in the RFP If some requirements are particularly important, disclose this information to the vendors in the RFP Must be measurable Sync the evaluation instrument to the RFP, as you make changes to the RFP, make the necessary changes to the instrument

26. Be sure the requirements are clearly stated “I know you think you understood what I said, but what you heard is not what I meant” Fritz Perls Be sure that what you are asking for is what you need Ask for what you need, do not use representative measures Define your minimum needs and evaluate for meeting and exceeding needs The RFP Process

27. The RFP Process References Be clear about how many references you will contact Be clear about the consequences of being unable to contact the required number of references One person should check all references Use a script if possible

28. The RFP Process • Interviews • Be clear about the purpose of the interview • State if the interview must be in person or if it can it be conducted by telephone • If you do not intend to interview every responsive and responsible candidate, tell the vendor community the process for determining the candidates to be interviewed

29. The RFP Process Product demonstrations or other selection method What will be expected? When will the event take place? How will participants be evaluated?

30. The RFP Process Technical evaluation forms must: Identify the vendor Identify the evaluator Have a space for the evaluator to enter his/her rating Have adequate space for comments

31. The RFP Process Cost score is a calculation Not an analysis!

32. The RFP Process Cost Any cost you ask for must be evaluated What weight will be given to cost? Should cost elements be subdivided? Gasoline and other petroleum based products Elements that will only come into play if contract is renewed Escalation – CPI or other appropriate index De-escalation Cost Evaluation Form Create standard form for all vendors to complete How detailed should the form be? Will you need backup information to understand a simpler form? Will the cost be based on hourly rates?

33. The RFP Process Pick a formula for evaluation of cost OSC formula Procurement Council formula Other (check with OSC before you use an alternative) Do not include non-cost elements in the cost section

34. Important Reminders • Check your math • Use decimals consistently • Do not short list until cost has been included • Determine purpose for interviews prior to RFP release • Use a script if you can • Document the process • Each evaluator should document his/her score and explain with comments • Submit evaluator notes

35. Evaluation Documentation Required Evaluation Documents to be Submitted to OSC: Instructions to evaluators Blank cost form Blank Individual Technical Score Sheet (ITSS) Blank Mandatory Requirements Checklist (MRC) Completed MRC for each vendor Completed Summary cost score sheet Completed ITSS for each evaluator for each vendor Summary of Technical Score for all vendors Technical/Cost matrix with points and rankings

36. Danger Areas! Minimum passing score Specification change as a result of Q & A Distorted cost relationships – understand your chosen formula Short listing Technical evaluation form Cost evaluation form Using Excel? – Check your formulas/number transpositions Mandatory requirement – make sure you NEED it

37. Thank You!

38. Presenter Contact Information Nisha Thomas NThomas@osc.state.ny.us (518) 486-3011 Peter Vander Veer PVanderveer@osc.state.ny.us (518) 473-2401 Elizabeth Jaggers EJaggers@osc.state.ny.us (518) 474-5797 Request for Proposals Office of the State Comptroller www.osc.state.ny.us