Contracting for Business Services

1. Contracting for Business Services

2. Today’s Webinar • Introductions • Overview of webinar technology • Asking questions • Raising your hand • Muting/un-muting • Technical Difficulties-Call us at 303-989-5356 • Time for questions

3. Agenda • Overview of the League’s RFP system • Elements of a sound RFP process • Modifications to fit individual school needs • Specific guidance and samples • Questions

4. Why Conduct an RFP? A Request for Proposal (referred to as RFP) is an invitation for suppliers, often through a bidding process, to submit a proposal on a specific commodity or service. A bidding process is one of the best methods for leveraging a company's negotiating ability and purchasing power with suppliers. The Request process brings structure to the procurement decision and allows the risks and benefits to be identified clearly upfront. Effective RFPs typically reflect the strategy and short/long-term business objectives, providing detailed insight upon which suppliers will be able to offer a matching perspective. -Wikipedia definition

5. When Should You Conduct an RFP? • If you are considering using a friend, relative, volunteer or board relationship • If it’s a purchase in a category that is outside of your expertise or that requires specialized expertise • If it is high-dollar expense category / high liability • Recommended for RFP: • HVAC / Mechanical - Employee Benefits • Phone Systems / VOIP - Copiers • Construction of Facilities - School Attorney • IT and large technology purchases - Audits • Payroll Services - Furnishings • Property and Casualty Insurance • Note: School districts and charter schools in Colorado set their own purchasing policies and procedures, as procurement within the Colorado educational community is decentralized. However, when using federal funds, you MUST use the RFP process. (Lynn J. Warner, CDE)

6. RFP Process Overview Vendor Evaluations and Negotiation Needs Assessment Implementation and Maintenance Execution/Award Bid Solicitation Strategic Sourcing

7. Needs Assessment Establish Core Needs • League’s Process: • Visit and survey school leaders to assess trends in operational needs • Individual School: • Define the level of work required • Define infrastructure & resource capacity of school • Create a committee (as necessary)

8. Strategic Sourcing Which Vendors to Include in RFP • Reach Out to Other Charter Schools • Reach Out to the League • Trusted Partners (vetted) • CO Charter Marketplace Members • Consider your District programs • Check out local vendors

9. Bid Solicitation • Tips for Crafting the RFP • Articulate exactly what you need (sample follows) • Define performance measurement criteria • Ex. Price, on-time delivery, communications, savings, etc. • Specify the proposal pricing format (sample follows) • Tell vendor what you hope to achieve (sample follows) • Provide the proposed contract terms • Use closed-ended questions • Do a budgetary quote on something you already know the price of to establish baseline

10. Bid Solicitation • Articulate exactly what you need • Example: Customer Service • Outline the process for repairs and maintenance. We require online, phone-based & on-site support. Can you provide support on all of these platforms? • Indicate your service response time • We require a maximum downtime guarantee. Describe yours. • What is time from order to delivery of equipment? • Explain how your company plans to handle any complaints or disputes from Colorado charter school customers

11. Bid Solicitation • Define Performance Measurement Criteria • Proposals will be evaluated by The League in accordance with our contracting process rules and based on a number of different selection criteria including: member Advisory Committee input, pricing, service, quality, reputation, market share, value-added services, contract terms and conditions, etc.  • The League will evaluate all prospective supplier proposals based on total cost and overall value to the membership, not just line item pricing.

12. Bid Solicitation • Specify the Proposal Pricing Format PRICING FORMAT • All responding suppliers are asked to provide net pricing FOB destination on a cost-plus basis. If applicable, pricing on specific items should be provided via an Excel spreadsheet that includes the following: manufacturer’s name, manufacturer’s number, unit of measure, UPC code, description, list price with or cost plus pricing (based on directions below). • Pricing for all products in section 6.1 to 6.3 • Provide pricing for all products and services listed in sections 6.1 to 6.3 using acost per page pricing scheme. • Provide a plan to adjust pricing based on market conditions

13. Bid Solicitation • Tell Vendor What You Hope to Achieve Ex: The following outlines the primary objectives of this RFP: • Provide League members with Copier services at cost effective pricing that recognizes the membership’s collective purchasing volume • Establish the most favorable pricing and terms available to League member schools • Reduce supplier and League member administrative costs though a central bid process that eliminates the need for multiple bids and responses • Establish a process for yearly group-buy opportunities based on large, one-time aggregate purchases by a group of members

14. Questions to Ask Vendors • Have you ever worked for schools? Charter Schools? If so, references? • Do you charge a service fee? Travel fee? Other fees? • What kind of warranties/guarantees are on your work? • Are you licensed, bonded and/or insured? • Do you run background checks on workers? • What is payment schedule and flexibility? • What discounts do you offer to schools? • What is response time if there’s a problem/crisis? • Vendor solicitations, give them sample bills and have them show what they would do differently if they were your provider

15. Elements of RFP • School provides to vendors: • Instructions (Format, Deadlines (30 days min), etc) • RFP Objectives (Relevance to school Mission) • Scope of Products & Services Requested • Estimated volume & usage • Measurable, Desired Outcomes • Minimum qualifications • Contact info for questions

16. Elements of RFP • Vendor submits to School: • General Company information (history, contacts, etc) • Detailed Specs of Products & Services • References (preferably from other charter schools) • Delivery Specs (extra fees, timelines, returns, etc) • Customer Service Practices and Guarantees • Pricing (payment methods, flexibility, itemized, etc) • Change order process and costs • Extra Value-adds

17. Vendor Evaluation & Negotiation • Develop Rubric for Evaluating Proposals • Identify the Selection Team • Review & Score Proposals (Does Not Meet, Meets, Exceeds) • Understand Strengths and Weaknesses • Consider Total Cost of Ownership • Formal Interviews with Top Providers • Make adjustments to initial scoring

18. Total Cost of Ownership • How much does product or service really cost? • Direct and indirect costs: administrative time, maintenance, repair, delivery, disposal, associated services or parts • Factor in Opportunity costs, example: Purchasing 101

19. Sample: General Evaluation Rubric (Consultant)

20. Sample: General Evaluation Rubric (External Svc Provider)

21. Sample: General Evaluation Rubric (con’t)

22. Key Contract Provisions • Scope of Work • Deliverables • Timelines • Personnel • Vendor’s Expectations of School • Goals / Performance Management • Costs • Change Orders • Payment Terms • Contract Length • Dispute Resolution • Contract Amendments • Dissolution Process • Ties to Other Laws and Policies • TABOR-cannot sign multi-year contracts

23. Execution/Award of Contract • Make adjustments to initial scoring • Identify finalist • Collaborate to finalize contract terms • Execute Contract

24. Implementation & Maintenance • Both parties should understand the specific targets of performance and timetables • Appropriate Evaluations (choose one): • Informal evaluations • Executive roundtable • Formal annual performance evaluations

25. Sample Performance Evaluation

26. Common Mistakes & Pitfalls • Unclear performance targets and timelines • Neglecting Total Cost of Ownership • Lack of reference information • Not asking about hidden or “soft” costs • Using relatives, friends, or board relations without conducting a formal selection process • Not setting clear expectations for volunteers

27. Putting It All Together • Review school and authorizer policies regarding contracting with vendors • Use League GPP experts as resources and benchmarks • Contact other charters for suggested providers • Share your vendor experiences with others • Save time: Restrict walk-ins; vendors should make appt.

28. Contact Info for League Trusted Partners AXA Steven Fortino Steven.fortino@axa-advisors.com 303 995-9917 CCS Presentation Systems James Okada jokada@ccsprojects.com 303-278-7800 Counter Trade Products Tanya Tyler ttyler@countertrade.com 303-424-9710 HUB International Insurance Gary Clark (Employee Benefits) gary.clark@hubinternational.com Eric Slinger (Risk, P&C, Liability) eric.slinger@hubinternational.com 303-893-0300 OfficeScapes Peter Husak719-433-7300phusak@officescapes.com PACE – Professional Assn of CO Educators Ariel Elliott ariel@coloradoteachers.org 720-580-1326 Staples Busines Advantage Kristen Oskvarek kristen.oskvarek@staples.com 719-310-7953 Social Research Lab at UNC Josh Packard, Ph.D. josh.packard@unco.edu 970-351-3385

29. Resources • Charlotte Franson cfranson@coloradoleague.org • Facility Financing • Griselda Nanfito gnanfito@coloradoleague.org • Business Services Manager • Colorado charter school conference • National charter school Conferences Thank you for attending.