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Solicitation Essentials

Solicitation Essentials. 2014 CAPPO/NIGP Joint Conference. October 9, 2014. Demographics. The Growler. The Good The Marginal The Bad. Agenda. Definitions Solicitation Planning RFx Process Specification Types SOW Solicitation Execution Evaluation Criteria

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Solicitation Essentials

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  1. Solicitation Essentials 2014 CAPPO/NIGP Joint Conference October 9, 2014

  2. Demographics

  3. The Growler The Good The Marginal The Bad

  4. Agenda Definitions Solicitation Planning RFxProcess Specification Types SOW Solicitation Execution Evaluation Criteria Scoring RFP Responses / Evaluation Team Additional Sources

  5. Definitions Solicitation Planning GAP – Assessing difference between current state and solicitation objectives (needs) Design or Performance Specs. SOW – Statement of Work / Scope of Work Solicitation Execution Evaluation Criteria – Factors specified in the RFP that will be considered for award (Mandatory/Desirable) Best Value – Determined by comparing solutions against customized criteria Life Cycle Cost – Total cost of acquiring, support, operation, maintain and disposal (as applicable)

  6. Planning Stage • Define Business Goals • Internal and/or External Expertise • Market Research • GAP (Comparing Actual w/ Potential Perf.) • Outsource or Insource Make or Buy • Bidding and Contracting Strategy • Statement of Work Development

  7. RFI, RFB, RFP, RFQ? Request for …….

  8. What is a RFP? • Rely on Market Expertise • Innovation or Creativity is Sought • Should reflect business objectives to allow matching solutions • Promotes Best Value vs. Low Bid • Criteria based Award Determination • Follows a structured evaluation procedure to demonstrate impartiality

  9. When to use the RFP method? • Needed items and/or services are not clearly identified • Department need is goal or results-driven • Proposal requirements allow potential bidders the flexibility to respond • Procurement may be political in nature • Relatively high dollar amount • Highly competitive market • Protest Potential *SOW should provide a clear and thorough description of the goods or services

  10. RFP Planning Checklist Did you perform market research? What are the evaluation team activities? Do you have an evaluation methodology? Do you have an evaluation guide? Do you have debriefing/protest procedures? Consultant roles COI & Ethics Evaluation rules of conduct Obtain Board/Council blessing BAFO Option proposals

  11. What makes a good RFP? • Well organized procurement goals, objectives, and evaluation process • Risk management assessment • Performance risk management • Well defined statement of work • Well organized deliverables • Well defined criteria • Well defined evaluation process

  12. RFI/RFB/P/Q or Single/Sole Source? • Bus shelters • Hybrid buses • Parking lot management system project • Professional SAP consulting services • Enterprise Network Storage system replacement • Annual Microsoft Software support • Annual custodial services • Mobile data computers/terminals and installation • Professional consultation services

  13. Does the prospective bidder know which one you want?

  14. Specification Methods • Performance vs. Design • Performance = vendor risk • Design = buyer risk • Performance + Design = joint risk • Consensus Standards ANSI, ASME, ASTM, IEEE, ISO, NIST, NFPA, SAE, UL

  15. What is a SOW? Statement of Work Vs. Scope of Work

  16. Statement of Work • Provides a clear and thorough description of the goods or services to be provided • Provide the relevant environment where the product/service will be used • Provides a description of the existing business processes and desired performance • Should be organized into logical groups

  17. Background and Objectives • Scope • Tasks / Work Description • Project Schedule • Place of performance • Deliverables • Government-furnished resources • Applicable specifications and standards • Security Requirement • Acceptance Criteria/Project Management • Payment Schedule SOW Format and Contents

  18. Statement of Work Demo/POC

  19. Writing an Effective SOW

  20. SOW Objectives Specific Measurable Attainable Realistic Timely

  21. Execution Stage • Bidding and Evaluation Procedures • Procurement Team(s) • Conflict of Interest / Rules of Conduct • Solicitation Specific Evaluation Criteria • Outreach • Bidder’s Conferences • Demonstration Script • Documentation

  22. Evaluation Criteria • Must represent key areas of importance and reflect user’s needs • Qualitative (subjective) and Quantitative (obj.) • Always include Costs, think in terms of TCO • Relied on to facilitate proposed solutions • Published • Acceptance Criteria (Demo/POC) • Criteria must sync with RFP Data Requests

  23. Developing the RFP Evaluation Criteria • Well developed Criteria produce market solutions targeting your needs • Involve stakeholders knowledgeable about goals • How will responses be measured against criteria • Rating Scales • Scoring Phase(s) consideration • Determine relative importance (Criteria Weight) • Concurrently develop the scoring matrix / evaluation worksheet

  24. Sample Criteria • Technical Approach and Understanding • Key Personnel Capabilities • Demonstrated Successful Experience • Project Management Plan / Timelines • Risk Assessment / Fiscal Strength • Ability to meet standards • Cost (TCO)

  25. Evaluation Methodology Objectives • Encourage accurate comparison of potential suppliers against individual RFP criteria • Align weighting to reflect overall procurement goals • Allow criteria to be grouped into sections • Allow the scores of multiple evaluators to be contrasted or aggregated • Enable multiple evaluators to contribute to the scoring process • Compare TCO • Fairness/Transparency

  26. Criteria Publishing Decisions Proposal criteria must be established prior to the release of the RFP and published in the RFP document. The evaluation criteria (not the weights?) were included in the RFP document. Weights?

  27. Weighting Methodologies • Fixed Weights • Variable Weights • Trade-off Analysis (overall value determined as a trade-off between technical differences and their relative worth to the agency) • Go, no-go (are minimum technical and/or managerial needs met?, if yes then the proposal clears to cost evaluation)

  28. Evaluation Scoring Methods • Comparing relative proposal cost • Low cost vs. points • Assigning weighting • TCO/Life Cycle • Consensus scoring • Demo/POC *Develop standard evaluation scoring sheets.

  29. Typical RFP Cost Evaluation “Normalization” Price of Lowest Cost Proposal / Price of Proposal being rated X Maximum cost points available = Awarded Price points Example: The total points available for cost in the RFP was fifty (50) points. The cost of the lowest acceptable proposal is $100,000. Therefore the lowest proposal cost of $100,000 would be awarded fifty (50) points. The second lowest acceptable proposal submitted a cost of $125,000. The second lowest proposal cost of $125,000 would be awarded forty (40) points. $100,000 / $125,000 = .80 X 50 = 40

  30. Evaluation Phases Step 1 - Responsiveness Review Step 2 - Mandatory elements met Step 3 - Minimum / steps / threshold score Step 4 - May include interviews, demos, presentations Step 5 - Post Award POC

  31. Scoring Proposals Sample Scoring Scale (0-3) 3. Exceeds requirements 2. Meets requirements 1. Minimally meets requirements 0. Does not meet requirements *Should match proposal strengths/weakness

  32. Rating Considerations 90-100%: Meets or exceeds all requirements 80-89%: Meets all requirements and standards 70-79%: Proposal indicates a basic understanding 60-69%: Proposal indicates only a marginal 0 - 59%: Proposal demonstrates a significant lack of understanding of the requirements. * Rating should match description

  33. Bad things do happen! • Unbalanced and missing bid prices • Bid Calculation Errors • Material vs. immaterial • Bid price conflict between words and numbers • Protests • Mismatch between specifications and goals • Missing information • Communication and politics

  34. Only One Response? • Open or Not to open • Call potential suppliers • Review specifications • Review pricing methods/formulas • Review terms and conditions • Too many projects on the table *Consult with your legal folks

  35. Scoring Examples

  36. Weighted Criteria – Ex1 * Determine importance

  37. Scoring – Ex2

  38. Score Variance – Ex1 * Variance in evaluator scores

  39. Score Variance – Ex2

  40. Balancing price and qualifications * Test scoring

  41. Differences in Total Scores * Check decimal placement

  42. Need for Documentation • Decision Maker Data Repository • Auditor or Administrative (Board) needs should an issue arise relative to selection • Facilitates FOIA requests • Facilitates final Contract Development

  43. Recap RFP Planning Process Statement of Work Specification Types Evaluation Criteria and Scoring Methodology Document the Process

  44. Nugget Successful solicitations always involve: • Sound Planning • Solid Execution

  45. Sources • http://cappo.org • Leginfo • http://www.rfpmentor.com/ • http://www.nigp.com

  46. The EndBeginning

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