Request for Proposals (RFPs) for Personal Service Contracts (PSCs) KRS 45A. 690 – 725

1. Requests for Proposals for Personal Service Contracts Request for Proposals (RFPs) for Personal Service Contracts (PSCs) KRS 45A. 690 – 725 FAP 111-43-00 Finance and Administration Cabinet Office of Procurement Services 2012

2. KRS 45A – Model Procurement Code 45A.010 Purposes and Policies  (2) The underlying purposes and policies of this code shall be: •  (a) To simplify, clarify, and modernize the law governing purchasing by the Commonwealth; • (b) To permit the continued development of purchasing policies and practices; • (c) To make as consistent as possible the purchasing laws among the various states; • (d) To provide for increased public confidence in the procedures followed in public procurement; • (e) To insure the fair and equitable treatment of all persons who deal with the procurement system of the Commonwealth; • (f) To provide increased economy in state procurement activities by fostering effective competition; and • (g) To provide safeguards for the maintenance of a procurement system of quality and integrity.

3. KRS 45A – Model Procurement Code 45A.015 General provisions of law applicable -- Obligation of good faith.  (2) Every contract or duty under this code shall impose an obligation of good faith in its performance or enforcement. "Good faith" shall mean honesty in fact in the conduct or transaction concerned and the observance of reasonable commercial standards of fair dealing.

4. OBJECTIVES By the end of this session… • Distinguish professional vs non professional service • Develop a good Statement of Work • Determine who should be on the evaluation team • Develop good evaluation criteria • Successfully evaluate an RFP • Effectively document evaluation process • Identify and recommend the best proposal

5. AGENDA • PSC Determination • Issuance/Approvals/Posting • Statement of Work • Schedule of RFP Activities • Vendor Conference • Scoring Structure • Handling of Proposals • Responsiveness

6. AGENDA • Open Records • Role of the Buyer • Evaluation • Oral Presentation • Evaluation Process Documentation • Negotiation • Determination and Finding • Contract Award

7. PSC or Not?? • KRS 45A.690(g) defines a Personal Service Contract as “an agreement whereby an individual, firm, partnership, or corporation is to perform certain services requiring professional skill or professional judgment” • Professional services include, but are not limited to: • Legal Services • Medical Services • Auditing Services • Consulting Services • Training Services Contact OPS for assistance to determine if a service is considered Professional

8. RFP is required for PSCs 45A.695(3)Adequate notice of the need for a personal service contract shall be given by the contracting body through a request for proposals. The request for proposals shall describe the services required, list the type of information and data required of each offeror, state the relative importance of particular qualifications, and include the reciprocal preference for resident bidders required by KRS 45A.494

9. FAC Approval to Issue RFP Agency shall issue the RFP in the state’s procurement system, currently eMARS. Prior to issuance of the RFP, EO1/LOI approval is required. State agencies needing to purchase eligible services by PSC that are = > $10,000, must file a Letter of Intent to contract (LOI) with the FAC in eMARS on the EO1 form. The LOI should be filed at least two (2) weeks prior to the intended date for the issuance of the RFP. PSC’s < $10,000 are not required to file a LOI (unless a request for competitive exemption is requested) but must have internal EO1 approval.

10. FAC Review Required An RFP is required for a PSC in any amount, unless an exemption from competitive exemption is requested and approved on an EO1/LOI. Upon approval of the EO1/LOI requesting approval to issue an RFP, the RFP must be submitted to the FAC Office of Procurement Services for review and approval prior to posting to the Vendor Self Service website. The RFP should be submitted at least one (1) week prior to the intended date for the issuance of the RFP.

11. Vendor Self Service Following approval from FAC, the RFP shall be posted to the Commonwealth’s eProcurement (VSS) website for a minimum of seven (7) days. RFP posts automatically pursuant to the Let Date entered in eMARS.

12. Vendor Notification Email notices of the RFP availability are sent to all vendors who are registered for the selected commodity code. It is imperative that agencies select the correct code. Do not select miscellaneous codes. Agencies may choose multiple commodity codes so that as many vendors as possible are notified of the RFP.

13. Vendor Notification If the agency is aware of potential vendors, DO NOT enter them under the Vendor Tab. This prevents the automatic email notification process. Any suggested vendors must be entered on the free form vendor tab. Always include the incumbent vendor if the RFP is a re-bid of a current service.

14. Confidentiality All questions related to the RFP must be directed to the Buyer assigned to the RFP. The Buyer is the Sole point of contract throughout the RFP process. All information related to the RFP must remain confidential until the contract is awarded.

15. Confidentiality Failure to maintain confidentiality throughout the process and prior to the award may: • Result in vendor disqualification • Slow the procurement process • Delay contract award • Require termination of the RFP • Result in a protest

16. Statement of Work The quality of responses received from the RFP is directly related to the quality and completeness of the RFP, particularly the Statement of Work (SOW). It is the foundation of the contract resulting from the RFP. It must provide potential offerors a clear understanding of the requirements, evaluation criteria information and instructions on how to submit the proposal. 16

17. A good SOW…. Clearly describes the required services. Makes a clear cut division of responsibility between government and contractors Allows for maximum competition. Contributes to obtaining the required services at the lowest possible cost using a fair, equitable and transparent contract award process. 17

18. Schedule of RFP Activities Presents the major activities associated with the RFP distribution, written questions and proposal submission. While there is no guaranteed date of award, an anticipated date of award may be provided. The Commonwealth reserves the right at its sole discretion to change the Schedule of Activities, including the associated dates and times.

19. Schedule of RFP Activities

20. Vendor Conference Vendor Conference is Optional. • Sign In sheets required for all in attendance. • Conducted by the Buyer • Information on the Meeting Process • Questions are recorded and answers posted in the form of an addendum to the solicitation. • Attendees advised that any answers provided at the meeting are not binding.

21. Scoring Structure PREFERENCE The scoring of bids/proposals is subject to Reciprocal preference for Kentucky resident bidders and Preferences for a Qualified Bidder or the Department of Corrections, Division of Prison Industries.

22. Scoring Structure • Cost shall be a primary factor in award, whenever appropriate – typically 40% minimum. • Points should be on a scale of at least 1000 due to the many factors in scoring a technical proposal. • All vendors need to be made aware that technical score is ____ points and cost score is ____ points. • Agency may need to provide a breakdown as in the following examples:

23. Scoring Structure Example 1 Technical Evaluation Criteria are as follows: • Previous Experience - 250 points Vendor shall include a summary of the organizations’ background, history and experience with similar projects. • Expertise and Qualifications - 350 points Vendor shall include a list of staff who shall complete the study. List must include name, qualifications and hourly rate charged for services. • Total Points Possible for Technical Proposal 600 points

24. Scoring Structure Example 1 Cost Evaluation Criteria are as follows: • The Proposal with the lowest Price receives the maximum score. The Proposal with the next lowest Price receives points by dividing the lowest Price by the next lowest price and multiplying that percentage by the available points. • For example: Assume 400 points is allocated to the lowest Price criteria for this procurement. Proposal “A” bids $30,000 as the lowest price and receives the maximum 400 points ($30,000/$30,000) = 1.00 x 400 = 400). • Assume Proposal “B” is the next lowest Price at $40,000. Then “B” receives 300 points. ($30,000/$40,000) = .75 x 400 = 300). • Total Points Possible for Cost Proposal 400

25. Scoring Structure Example 1 Total Points Possible for Proposal: Criteria Points Possible Technical Proposal 600 Points Cost Proposal 400 Points Total Points Possible 1000 Points

26. Scoring Structure Example 2 Evaluation Criteria are as follows: • Experience - 800 points Please detail respondent’s experience in handling litigation involving construction projects and/or the invocation of bonds. Please also specifically detail any past experience that your firm posesses in representing the Commonwealth. Your response should include but not be limited to the type of representation in which you are typically involved (plaintiff/defendant), percentage of your practice concentrated in this area, litigation and trial experience, prior clients representedin related cases, successful outcomes, and any other factor that you deem relevant for the Cabinet’s consideration. • Organizational Capability- 200 points Please describe your legal entity’s ability to manage complex litigation. In your response, please include but not necessarily limit yourself to the\ following items: the number of employees at respondent’s place of business, the names of the individuals expected to perform the legal services on this matter and a brief statement of the role and the experience of each individual expected to perform said work. TOTAL POINTS POSSIBLE FOR PROPOSAL 1000 POINTS

27. Scoring Structure Example 2 FEE SCHEDULE The Cabinet follows the fee guidelines set out by the Legislative Research Commission. The rates are as follows: $125.00/hour – Partner; $90.00/hour – Associate; $40.00/hour – Paralegal. The Cabinet may reimburse certain expenses. These expenses and other expense related issues will be addressed in a contract between the parties. *reimbursement may not be more than the state rate & travel may not be reimbursed if the hourly rate is paid while in travel status

28. Handling of Proposals Receipt Proposals received by the purchasing agency in response to a solicitation should be stamped with the date and time immediately upon receipt. Proposals that are not sealed should not be accepted by the purchasing agency.

29. Handling of Proposals Receipt Proposals not clearly marked as such may be opened for identification purposes, and shall be appropriately identified with reference to the particular procurement and resealed until the time for opening proposals. The envelope should indicate that it had to be opened to identify the solicitation response and it will not be considered for award. 29

30. Handling of Proposals Receipt All written proposals received by the purchasing agency in response to a solicitation shall be kept secure and unopened in a locked box or safe until the date and hour set for opening the proposals. Proposals are not opened publicly.

31. Handling of Proposals Closing Date All proposals received by the closing time on the closing date shall be transmitted to the buyer for the procurement for opening. 31

32. Handling of Proposals Review by the Buyer The buyer shall examine each written proposal received for general conformity with the terms of the procurement.

33. Responsiveness Proposals which conform to the requirements of the RFP are deemed Responsive by the Buyer.

34. Non-Responsive Proposal Examples Generally proposals will be *deemed non-responsive if they: • Substitute their terms & conditions for those included in the RFP • Qualify their prices in such a manner that the proposal price cannot be determined • Limit the rights of the contracting authority under any contract clause *There may be other reasons not listed here that a proposal may be deemed non-responsive.

35. Open Records Proposals shall not be subject to public inspection until negotiations between the purchasing agency and all offerors have been concluded and a contract awarded to the responsible offeror submitting the proposal determined by the buyer in writing to be the most advantageous to the Commonwealth, based upon the price and the evaluation factors set forth in the solicitation. 35

36. Role of the Buyer in the Evaluation Process • Provide Structure and Ensure that all Evaluators Participate and Contribute to the Process • Ensure Evaluators Focus Strictly on the Evaluation Criteria • Keep the Team Focused • Obtain all Necessary Clarification • Conduct Reference Checks • Calculate Cost Score • Calculate Final Scores and Rankings • Document Evaluation Process

37. How to Successfully Evaluate an RFP • Choose the Right Evaluation Team • Define your Evaluation Criteria as you Prepare or Review the Scope of Work • Develop Scoring Mechanisms that are Conducive to Project Goals • Use Oral Presentations when Appropriate • Document your findings and results • Be Familiar with Governing Policy and Procedures

38. Evaluation Team The agency shall nominate a technical evaluation committee. The committee shall be comprised of members who are state employees, unless approval for appointment of non-state employees is granted by the secretary of the Finance and Administration Cabinet, or designee. Non-state employees may not score proposals but may serve as technical advisors if approved. Generally, there should be 3 – 5 scorers. 38

39. Evaluation Team • Who should be on the team? • Subject Matter Experts, agency leaders • What do they need to be effective? • SOW, Solicitation, Project schedule • When do we get them involved? • Team meeting before RFP issuance • Where should they do their review? • Buyer will coordinate • Why is this important to them? • Convey the importance of their role

40. Evaluation Team Members must… Have sufficient time to dedicate in order to effectively evaluate the proposals. Such time is dedicated to reading all proposal related materials extensively Attend all Evaluation-related Meetings: Training, Evaluation Sessions, Oral Presentations, Criteria Planning 40

41. Evaluation Team Members shall… • Sign non-disclosure and confidentiality statements prior to viewing responses. • Maintain confidentiality and professional conduct throughout the evaluation process. • Conduct a fair and reasonable review of proposals based on the Evaluation Criteria.

42. Types of Evaluation Criteria SUBJECTIVE • Requires the evaluator to make judgment calls about the performance of the proponent being evaluated. • May be influenced by objective facts, however, the evaluator evaluates the performance according to his/her personal perspective. OBJECTIVE • The evaluator does not make any judgments. • The evaluator does not make a judgment call about whether the response/approach is right or wrong 42

43. Benefits and Limitations SUBJECTIVE Benefits • Allows Evaluators to place emphasis on what they think is most important Limitations • Subjective evaluations are open to interpretation, so one evaluator may be very different from another OBJECTIVE Benefits • Evaluator's views and biases do not affect the evaluation Limitations • While objective evaluations may be fair and free of biases, they can be overly simple

44. Evaluation Criteria Define "what matters" about the decision, drive the search for creative alternatives, and become the framework for comparing alternatives. Must be established prior to the issuance of the RFP and included in the RFP Should be clearly linked to desirable outcomes Use clear and concise language to avoid confusion 44

45. Developing Evaluation Criteria Identify Minimum Qualifications Define Criteria Develop SOW Decide importance of Oral Presentations Develop Reference Check Questions Decide importance of Vendor Conferences Distribute points among each criteria 45

46. Good Evaluation Criteria Is… Measurable and Consistently applied Understandable Consequences and trade-offs can be understood Practical Information can be practically obtained to assess them (i.e. data, models, etc.) Defendable 46

47. Evaluation Criteria - Cost • Agencies shall make cost the primary evaluation factor in the awarding of the contract, whenever appropriate. • 40% of total available points should be assigned to Cost for most RFP’s • Cost score is calculated by the Buyer. • Evaluation Team does not see Cost until after the Technical Evaluation is completed.

48. Evaluation Process • Evaluation Team independently reviews Technical proposals based upon the specific evaluation criteria, then meets to determine a consensus score. • Proposals are reviewed in alphabetical order. • Do not compare Proposals. • Technical scores are assigned applying the designated evaluation criteria and recorded by the Buyer. * Score agreed upon by the team based on review of the criteria

49. Evaluation Process • If Team cannot agree on a score, the remainder of the proposal is evaluated, then the Criteria is re-visited. If Team still cannot agree, an average is used for the score. • After Technical Evaluation is complete, Buyer combines Technical and Cost Scores to determine the Total Score.

50. Oral Presentations • Purpose is to obtain additional information to enable the Evaluation Team to determine or clarify the offeror’s qualifications. • Set in the RFP. If an agency fails to address the need for oral presentations they may not go back and require Orals after the solicitation has closed.