Two tier contracting
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Two-Tier Contracting. Presented by Bart Potter Marci Disken Scott Geist Oct. 30, 2013. Two-tier contracting process. A procurement within a procurement The first tier is similar to a typical master contract and (usually) results in a competitively pre-qualified vendor pool

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Two-Tier Contracting

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Two tier contracting

Two-Tier Contracting

Presented by

Bart Potter

Marci Disken

Scott Geist

Oct. 30, 2013


Two tier contracting process

Two-tier contracting process

  • A procurement within a procurement

    • The first tier is similar to a typical master contract and (usually) results in a competitively pre-qualified vendor pool

    • The second tier involves separate competition, conducted by you, the customer, for specific work as needed, similar to a typical single contract


First tier vs second tier

First tier vs. second tier


Why two tiers

Why two tiers?

When might the state consider two-tier contracts?

  • When the scope of work varies significantly from project to project

  • When the vendor community and/or the service or commodity is rapidly changing

  • When it offers savings to the state


Second tier time saving tip

Second tier time-saving tip:

  • Take a look at the original RFP or IFB before you begin writing your second-tier solicitation

  • Don’t duplicate what has been done for you already


Second tier process

Second tier process

Every two-tier contract is a little different, but there is one common denominator:

  • All two-tier contracts require a second-tier competitive process


Point to remember

Point to remember

You cannot just pick your vendor from the qualified vendor pool*. All vendors in the pool must be given an opportunity to win your business.

* DES is considering options to allow customers to choose from a pre-qualified list if the project falls under the direct-buy limit.


Changes to two tier contracting

Changes to two-tier contracting

Procurement reform is changing the look of two-tier contracts.

MCC and its customers recognized the first-tier process has been lengthy for customers. Proposed changes include:

  • The first tier will not require customers to help evaluate bids. Customers will be asked to help develop the mandatory requirements (“checklist”) for a solicitation


Changes to two tier contracting1

Changes to two-tier contracting

Changes we’ve already made:

  • In the second tier:

    • Customers identify specifications and scope of work for their specific project or purchase

    • Customers design their own evaluation criteria, which can include references and work histories, interviews, resumes, terms and conditions, etc.


Changes under consideration

Changes under consideration:

Proposed changes include:

  • Vendor pools will have open enrollment several times a year to add established vendors to the pool


Thank you

Thank you

Any questions?

For follow-up questions:

Bart Potter [email protected]

Marci Disken [email protected]

Scott Geist [email protected]


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