RESPONDING TO A REQUEST FOR PROPOSAL (RFP) By Bennie E. Gonzales, Jr.

1. RESPONDING TO A REQUEST FOR PROPOSAL (RFP) By Bennie E. Gonzales, Jr.

2. PRESENTATION OBJECTIVES • Familiarize you with contents of a RFP • What to look for • What is important • Importance of proposal preparation instructions • and evaluation criteria • What to look for • What is important • Key elements in the development of your proposal • Characteristics of each part of your proposal

3. TODAY’S PROPOSAL • Responsive • Addresses informal desires • “Other” desires • Technical bias • Includes graphics • Comprehensive • Looks great • Is derived from a well thought out plan • You’re not selling a product or service • You’re selling the paper that the idea is written on • If you can’t convince the customer, you won’t win

4. TODAY’S PROPOSAL • Judgment is what you’re dealing with • Influencing an evaluator’s judgment is what your proposal is all about • Each agency is different in their likes and dislikes • Know and understand what they are and structure your proposal accordingly • Bid/No Bid decision • Only if you can win • Only if you want to win

5. SOURCE SELECTION PROCESS • The process that drives source selection in federal, state, and commercial organizations is the same • Complexity varies • Government more complex • Government moving to more stringent controls • Driven by increased competition • Driven by tightened budgets • Moving to “Best in Class” concept

6. KNOW THE DIFFERENCE RFQ IFB RFP REQUEST FOR QUOTATION INVITATION FOR BIDS REQUEST FOR PROPOSAL • Fixed-price/cost • reimbursement • contract • Award based on • technical/cost • Services, R&D • Negotiation routine • Price • Three to twelve months • Fixed-price contract • Award to low bidder • Construction • Sealed bidding • No negotiation • (Formal Advertising) • Public opening • Six to sixteen weeks • Fixed-price contract • Small dollar purchases • Award to low bidder • Off the shelf items • Some negotiation • possible • Delivery • Quantity • One to four weeks

7. SOURCE SELECTION TEAM SSO Source Selection Official • Makes final selection • decision Technical Team Cost Team • Audit • Cost realism analysis • “Fill in” the holes with • their numbers • Sub team assignments • correspond to specific • technical areas of the • RFP’s Scope of • Work (SOW) • Evaluate and make • selection recommendation Sub Team Sub Team Sub Team

8. SOURCE SELECTION PROCESS RFP Solicitation Issued PreproposalConference Proposals Received Cost Evaluation Technical Evaluation Questions & Discussions Competitive Range (short list) Site Visits Oral Presentation Best and Final Offers Received Cost Evaluation Technical Evaluation Selection Negotiations Award

9. NO No MAYBE MAYBE Yes YES BID/NO BID DECISION

10. SF 33 - SOLICITATION OFFER AND AWARD • Governments’ Standard Form 33, Solicitation • Offer and Award • Includes 13 sections • Confusing but can be combined into 5 manageable sections

11. SOLICITATION, OFFER AND AWARD PART 53 - FORMS 53.301-33 OMB Approved No. 9000-0008 SOLICITATION, OFFER AND AWARD 2. CONTRACT NO. 3. SOLICITATION NO. 4. TYPE OF SOLICITATION 5. DATE ISSUED 6 . REQUISITION/PURCHASE SEALED BID (IFB) NO. NEGOTIATED (RFP) 7. ISSUED BY CODE 8. ADDRESS OFFER TO (If other than Item 7) NOTE: In sealed bid solicitations “offeror” mean “bid” and “buffer”. SOLICITATION 9. Sealed offers in original and ____________copies for furnishing the supplies or services in the Schedule will be received at the place specified in Item 8, or if handcarried, in the depository located in___________________________________________________________until__________________local time____________________________________ (Hour) (Date) CAUTION - LATE Submissions, Modifications, and Withdrawals: See Section L, Provision No. 52.214-7 or 52.215-10. All offers are subject to all terms and conditions contained in this solicitation A. NAME B. TELEPHONE NO. (Include area code) (NO COLLECT CALLS) 10. FOR INFORMATION CALL: 11. TABLE OF CONTENTS ( ) SEC DESCRIPTION PAGE(S) ( ) SEC DESCRIPTION PAGE(S) PART 1 - THE SCHEDULE PART 11 - CONTRACT CLAUSES A SOLICITATION /CONTRACT FORM 1 CONTRACT CLAUSES B SUPPLIES OR SERVICES AND PRICES/COSTS PART 111 - LIST OF DOCUMENTS, EXHIBITS AND OTHER ATTACH C DESCRIPTION/SPECS/WORK STATEMENT J LIST OF ATTACHMENTS D PACKAGING AND MARKING PART 1V - REPRESENTATIONS AND INSTRUCTIONS E INSPECTION AND ACCEPTANCE K REPRESENTATIONS, CERTIFICATIONS AND F DELIVERIES OR PERFORMANCE OTHER STATEMENTS OF OFFERORS G CONTRACT ADMINISTRATION DATA L INSTRS., CONDS., AND NOTICES TO OFFERORS H SPECIAL CONTRACT REQUIREMENTS M EVALUATION FACTORS FOR AWARD 1. THIS CONTRACT IS A RATED ORDER RATINGPAGE OF UNDER DPAS (15 CFR 350) PAGES Specifications or Statement of Work Proposal Preparation Instructions General and Special Clauses Representations and Certification • Sections • C • J • Sections • L • M General Instruction and Notice to Offerors • Sections • I • H • D • E • F • G • Section • K • Sections • B • L Read 1st Read Last Read 4th Read 2nd Read 3rd

12. General Instruction and Notice to Offerors General and Special Clauses ACTUAL CONTENTS OF RFP Representations and Certification Proposal Preparation Instructions Statement of Work (SOW)

13. GENERAL INSTRUCTIONS AND NOTICES TO OFFERORS • READ CAREFULLY • Ask Questions • Don’t miss a deadline • Rules of the game • When proposals are due • Preproposal conference notification • Point of contact • Make personal contact with Buyer or • Contract Administrator • Let them know who you are • Don’t make a sales pitch • GENERAL • INSTRUCTIONS • AND • NOTICES TO • OFFERORS • SF33 Section L • Also see Section B

14. REPRESENTATIONS AND CERTIFICATIONS • Required by law or regulation • FAR Parts 19-26 • Small Business • Labor • Employment • Must be completed and submitted as part of proposal • REPRESENTATIONS • AND • CERTIFICATIONS • SF33 Section K

15. GENERAL AND SPECIAL CLAUSES • Become Part of Contract • You’ll have to live with contents • General Provisions • Basic policy • Flow-down provisions from Univ/DOE contract • Don’t fall into “Boiler-Plate” syndrome - know what you are signing up for • Special Provisions • Know that these provisions are negotiable • Tailored to the procurement • How contract requirements will be enforced • First in order of precedence • Could influence technical proposal • Could affect price • Special • Contract Requirements • SF33 Section H • Also see Sections • D, E, F, G • Contract • Clauses • SF33 • Section I

16. PREPARATION INSTRUCTIONS • PREPARATION • INSTRUCTIONS • WHAT needs to • be addressed in • your proposal • HOW it should • be addressed • Proposal Preparation • Instructions • SF33 Section L • Evaluation Factors • for Award • SF33 Section M Technical Proposal • EVALUATION • CRITERIA • What is important • What should be • emphasized • Weights

17. STATEMENT OF WORK • What the customer wants done • The requirements could prompt • teaming arrangement • Ask questions if guidance is • not provided • Could require special effort • Quality assurance programs • NQA-1 • ISO 9000 • MIL-I • MIL-Q • Cost/Schedule Reporting • Pay attention to Contract Data • Requirements List (CDRLs) and • Data Item Description (DID) SPECIFICATIONS OR STATEMENT OF WORK • SF33 Section C • Also see Section J

18. Proposal Preparation Instructions and Evaluation Criteria PROPOSAL PREPARATION INSTRUCTIONS General Instruction and Notice to Offerors Representations and Certification General and Special Provision Statement of Work (SOW)

19. SOLICITATION PREPARATION • PROPOSAL • PREPARATION • INSTRUCTIONS • Describes to offerors • how they should format • their proposal • Describes to offerors how • and what they should • address in their proposal. • Statement of Work • (SOW) • What is required • Deliverables • EVALUATION • CRITERIA • Discriminators. Describes • what is considered • important, very important, • or key • Weights. Describes what • should be emphasized

20. SOLICITATION RELATIONSHIPS (ACTUAL EXAMPLE) • SOW • SND R&D Laboratory Special Equipment • Special Equipment as defined by this section of the Statement of Work includes, but is not limited to, gloveboxes, fume hoods, process and control, and associated equipment. The Subcontractor shall provide the necessary Engineering and Design services to assist the Laboratory in designing the Laboratory Special Equipment. Services include but are not limited to: • Developing Special Equipment design criteria: • Providing, as required, technical services leading to the preliminary and • final design of Special Equipment. PROPOSAL PREPARATION INSTRUCTIONS Discuss what you believe to be the most important elements that must be considered in the design of gloveboxes. Substantiate these discussions by relating your discussions to previous project experience(s) and to technological applications that are presently available. Clearly and specifically discuss what you have done to ensure the manufacturability of gloveboxes. Discuss the major considerations that must be taken into account and examined before a decommissioning of equipments in a nuclear materials handling facility. • EVALUATION CRITERIA • Evaluation will be based on the offerors specific experience in the following areas: • Engineering and Design services for new gloveboxes and associated special facilities • equipment for nuclear materials handling facilities. • Engineering and Design services that ultimately led to the decommissioning and • removal of gloveboxes and associated special facilities equipment from a nuclear • materials handling facility; and • A key element of this part of the evaluation will be the relationship that the offeror • establishes between the proposed Key Personnel and its specific experience as stated • above. An important element of the evaluation will be the proposals depth, relevance, • and understanding of the major considerations in designing new gloveboxes and • associated special facilities equipment and the depth, relevance, and understanding of • the decommissioning process.

21. THE WALLS Proposal

22. PROPOSAL PREPARATION PLAN PROPOSAL PREPARATION PLAN THE RED TEAM PAR-TEE!! HARDEE!! GO NO GO GRAPHICS AWARD AND NEGOTIATIONS INTELLIGENCE GATHERING PROPOSAL REVIEW BEST AND FINAL OFFER PRE-RFP ACTIVITIES PROPOSAL PREPARATION ORAL PRESENTATIONS THEME DEVELOPMENT QUESTIONS & CLARIFICATIONS REVIEWING THE RFP POST-RFP ACTIVITIES RFP ACTIVITIES

23. INTELLIGENCE GATHERING • Lack of sufficient information is a main reason for losing - Customer is main source of information • Maintain a good technical dialogue • Brief the customer • “Nature does not reveal its secrets - it only responds to a method of questioning” - Heidelberg • Ask pertinent questions (verify response) • Prompt customer to talk about major points you make • Information easily obtainable • Old RFPs • Newsletters • CBD • On-line through Internet • Find out the concerns • Customer level • Industry - wide

24. INTELLIGENCE GATHERING • A “must” if you expect to win • Some information is hard to get but there are big pay-offs • If you always do what you’ve always done - you will always • get what you’ve always gotten • Don’t ever underestimate the ability and willingness of • your competition to play “HARDBALL” • Go after • Information available to the general public • Customer derived information • Others, (i.e. associates, the competition)

25. CUSTOMER CONTACTS • “Boy, this RFP came in and it’s written for my competition.” • Ask yourself - How many time did I visit the • customer? • Develop a plan to influence the customer by meeting with him/her • Who will be contacted • What will be said • How will it be said • What will you get out of the meeting • FAR Changes • Major Initiative - 15.201(c) (FAC 97-02 October 97) • Agencies encouraged to promote early exchange of information among industry • One-on-one meetings with potential offerors

26. FAR CHANGES • Major Change • FAR 15.201 Exchanges With Industry Before Receipt • of Proposals • “Agencies are encouraged to promote early exchanges • of information about future acquisitions.” • “…including terms and conditions, performance requirements, statements of work...” • “…the suitability of proposal instructions and evaluation criteria...” • “One-on-one meetings with potential offerors...should • include the contracting officer…”

27. RULES NOT TO FORGET 1. The customer is always right 2. When the customer is wrong, see 1. above 3. Sweat the small stuff 4. If you don’t, the competition will 5. Critical under Best-Value approach to determining and evaluating past performance

28. THEME DEVELOPMENT Customer Contact Information Competition Information Product Information Intelligence Gathering Industry Data Technical Proposal Executive Summary Your Strengths THEMES Management Proposal Cost Proposal • Proposal • Outline Proposal Preparation Instructions Management Team Statement of Work The Walls Exercise

29. THEME DEVELOPMENT • Backbone of proposal • A point, a strength, a discriminator • An argument, a competitor's disadvantage • Don’t blast the competition • Must answer what is special about you • What is “In” is always a theme • Quality • Cost/Schedule Reporting • Customer Satisfaction • Don’t let themes die on 1st page of your proposal • Don’t overdo • Tailor themes to the requirement • Open up any magazine and review the advertisements • for ideas

30. THEME DEVELOPMENT • Themes must be repeated to drive the point home • Themes must appear on all sections of the proposal • Major and minor themes • Ineffective themes • Our Program Director has maximum responsibility • Our proposal is 100% responsive to the requirements • State-of-the-art methods are used • We will not only meet requirements, we will beat them • Good themes are • - Creative - Can be backed up - Drive the point home • - Communicates “Their Idea” - Not arrogant • How many themes? • As many as it takes to win • The 5/5/5 rule • - Common • - Competitive • - Unique

31. EVALUATION OF PAST PERFORMANCE • March 31, 1995 Federal Acquisition Circular (FAC) 90-26 • revises FAR to require (among other changes) that federal • agencies evaluate past performance in all competitive • procurements expected to exceed $100,000 • Implemented in three phases • Procurements expected to exceed $1M by July 1, 1995 • Procurements expected to exceed $500K by July 1, 1997 • Procurements expected to exceed $100K by July 1, 1999 • Main reason is to develop and maintain performance history • to use in evaluation and selection process • Past Performance • Single most important predictor of future performance • Government thinking • Past behavior = Future behavior = Predictive value • Government looking for patterns • Reduces government uncertainty

32. SOURCE SELECTION METHODS Best-Value (An outcome - not a process) Technically-Acceptable and Lowest Price • Choice limited to lowest price • Technically acceptable offer or bid • Source selection easily defendable • Combination of Selection Criteria • Broad discretion of government • Advertises How Criteria Will Be Used • States relative importance • Restricts government • Provides For Selection of Competing Offers • Based on “Greatest Value” to Government • Evaluation of “Promised” Value • Evaluation made on reliance of the promise • Risk assessment performed • “Confidence” on the promise • Rated!! • Basis for Rating • Management factors • Performance Ability • Facilities & equipment • Key personnel qualifications • Quality • Record of past performance

33. BEST VALUE EVALUATION (EXAMPLE) • Widget • Technical Evaluation Scale • Level of Confidence Scale (LOC) • 2 Offers • #1 = 95 (Technical Eval) x .6 (LOC) = 57 (Expected Value) • #2 = 85 (Technical Eval) x .9 (LOC) = 76.5 (Expected Value) 0 -100 Scale 95 - 100 Excellent 85 - 94 Very Good 75 - 84 Good 65 - 74 Fair 64 and below Unacceptable 0 -1 Scale .8 - 1 High Confidence .6 - .7 Medium Confidence .4 - .5 Low Confidence .1 - .3 No Confidence

34. PROPOSAL DEVELOPMENT Cost Proposal PROPOSAL PREPARATION INSTRUCTIONS and EVALUATION CRITERIA Management and Technical Proposal Executive Summary

35. THE EXECUTIVE SUMMARY Statement of Work • Not graded but “CRITICALLY SIGNIFICANT” • First document read by evaluators • Develop and communicate a theme • What is the customer looking for: • Quality? • Cost efficiency? • Experience? • Advanced methods/applications? • Pay careful attention to evaluation • criteria • Themes must be consistent in technical • and cost proposals • Be innovative but don’t make promises • you can’t support • Address customer bias(s) Proposal Preparation Instructions and Evaluation Criteria EXECUTIVE SUMMARY 1 - 2 PAGES

36. THE EXECUTIVE SUMMARY • The Executive Summary is written by the Proposal Manager NOT by • The President • A consultant • A team of people • Your style and language must be convincing • Technical and management overviews • Price realism • Write the Executive Summary FIRST • Influences train of thought • Guides the rest of the proposal • When done LAST is very difficult • Adjust it as you develop other parts of proposal • Talk about your team • Use graphics - pictures “OK”

37. THE MANAGEMENT PROPOSAL • Not hard to come in no. 1. in the Management Proposal • Too many ignore this section • Write this first - will help when writing technical evaluation • Find out what customer wants • Have good themes • Evaluators like “teams” that have worked together in the past • Work harder than the competition • Pay attention to evaluation criteria • Organizational charts • Stay away from complicated - dotted line charts • Customers like clear solid lines • Your experience must relate to the work • Your strongest horse may place last • Believable schedules - defendable schedules • One manager with full authority

38. THE TECHNICAL PROPOSAL • Establish an understanding of the SOW • requirements • Format to make the reading easy on • evaluator • Keep Evaluation Criteria in mind at all • times • Don’t assume anything • Don’t “define” the requirement • Be specific. Don’t generalize • Most significant drawback • Be creative • Illustrations, tables, and graphs • Make sure you carry your “theme” • forward • Don’t save anything for later • Give it your best shot 1st time • Red Team • Familiar with proposal preparation • instructions and evaluation criteria Statement of Work Proposal Preparation Instructions and Evaluation Criteria TECHNICAL PROPOSAL

39. ACTUAL RFP RESPONSE EXAMPLES PROPOSAL PREPARATION INSTRUCTIONS EVALUATION CRITERIA SOW • Statements that the offeror understands and can or will comply with all requirements, statements, paraphrasing the statement of work or parts of it and phrases such as “Standard Operating Procedures will be “used” or “well-known” techniques will be employed,” etc. will be considered insufficient. • Organization’s Experience and Past Performance. The University is particularly interested in the experiences that relates to the services requirements that are described below. • Designing special facilities equipment that comply with Department of Energy Standards for nuclear materials handling facilities including: • Environment, Safety, and Health • Applying Quality Assurance requirements in • accordance with applicable DOE Orders • Discuss your Value Engineering approach in • the services required by the Statement of Work • The Subcontractor shall be required to • provide other services that are related to • the Engineering and Design services • listed above. • These services include but will not be • limited to: • Developing associated Quality DOE • Orders as may be required by the • Laboratory • Provide value engineering services as • required • Develop plans related to • Environmental, Safety and Health • Organization’s Experience and Past Performance • The offeror must substantiate its capability to • successfully perform all the requirements • described in the Statement of Work. The proposal • will be evaluated for depth, relevance, and quality • of experience, and past performance in the • following key areas: • Quality Assurance • Environmental, Safety, and Health • Value Engineering PROPOSAL RESPONSES RESPONSE 3 RESPONSE 4 RESPONSE 2 RESPONSE 1 ABC Company has built its reputation and growth by providing high quality engineering. Quality of services is attained to a large degree, through use of long-standing practices which are inherent to the firm’s operations, as well as reliance on specific client standards, such as DOE. ABC Company will provide a foundation upon which the quality assurance program is based. The repeat nature of our work for DOE and related organizations also assures our familiarity with the required standards. (lack of depth) DEF Company personnel have experience in developing, implementing and managing QA programs associated with design, production, and testing of a wide range of materials piece parts, components, and assemblies. (lack depth and quality) JKL Company technical and quality assurance staff members have extensive experience in compliance with a diversity of standards and regulations and have performed QA audits for a variety of applications. (lacks depth and relevance) The equipment is designated to meet the relevance standards and codes necessary for the operation of special nuclear materials facilities. GHI Company has considerable experience in designing equipment to meet the necessary environmental, safety, health safeguards, and security requirements. GHI Company generally requires work to be carried out to more restrictive standards than those implied by the national legislation. GHI Company has considerable experience in the design and operation of procedures compliance with these regulations. (lack of depth)

40. THE TECHNICAL PROPOSAL • Back up your data • Let them know what you looked at and considered • as well as the results • Intelligence information fits here • Use tables - comparative analysis • Exploit your competitors weaknesses/approaches • Use latest published and/or technical data • Evaluators look for substantiated information • Trade studies • Demonstrate you understand the problem

41. Agencies or Private Firms 1 2 3 4 5 6 7 Contract Contract Contract Contract No. X2456 No. X2456 No. X2456 No. X2499 Contract Contract Contract No. A561 No. S561 No. A225 Contract Contract Contract No. 65231 No. 65255 No. 6655 Contract Contract Contract Contract Contract No. N225 No. N566 No. N226 No. N225 No. N566 USE TABLES TO YOUR ADVANTAGE -- Sample-- SPECIFICATION (Statement of Work) SECTIONS USAF ARMY SMITH CORP. NAVY

42. Your Approach Approach B Approach C Cost High High Risk Tested Tested Now in progress Past Performance No Data Customer Satisfactory No Data Schedule No schedule developed Experience Benefits By end of year Availability Army, Navy, Nasa, YMCA Customers USAF, FBI, CIA 1 yr Fixed Price 5 yr cost-plus fixed 30 days same as cash Contract Type/Duration Contract fee with 3 yr option Centralized approach On-Site Offices USE TABLES TO YOUR ADVANTAGE - - Sample - - Other Approaches High Low High Low No Yes Excellent Poor Mixed High Late On Time 35 years 5 Years 60 Days Notice Immediate Girl Scouts No Yes - All Locations

43. WRITING GUIDELINES • General to Specific

44. HOW EVALUATORS SCORE (RATE) PROPOSALS HIGH POINTS LOW PROPOSAL NARRATIVE I understand the problem, I’ve done it and here are the places where we’re doing it now and all are delighted customers I understand the problem, I can do it. I understand the problem, I have several options I understand the problem, I have a low risk option I understand the problem, I have a low risk option and here are the places I’ve done this before

45. Technical Proposal THE TECHNICAL PROPOSAL • Identify completed work • Use trade studies to your advantage • Capitalize on competitors weaknesses • Demonstrate risk is low by choosing you The Walls • ENSURE you are • solving the right • problem Customer Information Intelligence Gathering Your Approach Competitors Weakness Industry Data Solving the Problem Statement of Work Proposal Preparation Instructions Evaluation Criteria

46. PROPOSAL COMMUNICATION • Key is to get proposal liked early • Proposals must provide • Section organization to promote quick comprehension • Ease of reading • Structured learning sequence (general to specific) • Three readers • Expert • Alleged expert • Lay person • Proposals Are • Skimmed • Re-read for scoring • Opinions formed with first reading which influence • second reading

47. PROPOSAL COMMUNICATION • Your proposal must be understood first time it is read • Evaluators will not go out of their way to interpret • your material • 2 to 4 times the people you know will evaluate your • proposal • Don’t use filler information to meet page limitation • Rules of thumb in section development • Begin with summary statement (thesis statement) • Tell the readers what they will read • Address each point • Summarize what you said • Say it your way (themes)

48. PROPOSAL FORMAT AND GRAPHICS • Give the customer a document that looks good • 3 Ring Binder No Spiral Binders • First thing that customer sees that reflects on you • Must be a document that evaluators want to read • Must be a document tired evaluators will read • No mixed page styles • No landscape pages • Maintain the same font size • Use color • Graphics/narrative mix

49. FORMAT AND GRAPHICS • Use “The Walls” • Does it “Look Good”? • Double column format (11 Pt.) • Most impressive -- most impacting • Stay away from single column pages • Double column front and back • Convey a theme through graphics • Must look like it belongs • Proof (photos) • Caption should plant a message • “Real Stuff” and support lend to believing themes • Know the difference between “Elaborate” and “Real Good” proposals • Avoid “Graphics Madness” or “Photo Album” • Don’t rely on graphics to convey important data/message • 10 second rule • Reader should grasp clearly the intent in 10 seconds • Covers • First thing reader will see (make an impression) • Show them you’re above the norm • Should convey a theme • Inside cover

50. COST PROPOSAL • Separately evaluated • Must correspond to technical proposal • If you have left it out the government will price it for you • Used as a tie-breaker • Audit required if over $500K • Don’t rely on numbers when • narrative will do the job better • Show that little has been left to chance • Establish your own comparisons • Use the Walls • Trend is to place more weight • on cost proposal • Cost efficiency • Cost effectiveness COST PROPOSAL