brown bag february 6, 2008
DESCRIPTION
Brown Bag February 6, 2008. The RFP Process. BOOT CAMP. Objectives. From this class the leaner will be able to: Identify appropriate situations for using the RFP Develop an RFP Advertise an RFP in accordance with Texas statues and other rules - PowerPoint PPT PresentationTRANSCRIPT
Brown Bag February 6, 2008Brown Bag February 6, 2008
ObjectivesObjectivesFrom this class the leaner will be able to:
Identify appropriate situations for using the RFP Develop an RFP Advertise an RFP in accordance with Texas
statues and other rules Conduct a pre-proposal conference Evaluate and Score responses Notify appropriate parties of contract award Identify basic contract administration duties
What is an RFP?What is an RFP?
An RFP is a formal invitation for a vendor to submit a proposal to provide a good or service to
the State.
When is an RFP Used?When is an RFP Used? Price is not the primary concern
Respondents are expected to provide the best solution
Respondents are evaluated on a variety of criteria
Specifications are not clearly defined
Basic structureBasic structure Section I: General
Section II: Statement of Work
Section III: Proposal Information
Section IV: Contract Terms and Conditions
Exhibit A: HUB Subcontracting Plan
Exhibit B: Execution of Proposal
Exhibit C: Compensation and Fees
Writing and Organizing TipsWriting and Organizing Tips Remember the FACCS:
FlexibleThe solicitation allows for innovative solutions.
AccurateThe solicitation will result in an acquisition that meets the
needs of the end user.Clear
Avoid jargon and confusing terms.Competitive
The solicitation allows for multiple parties to respond. It is not written with one provider in mind.
SimpleSay only what you need to say. Avoid unneeded explanations
or background information.
Sectional overview and Sectional overview and DescriptionDescription
Introduction and OverviewLegal Citations
The authorizing legislation can be found in the TGC2156.121-124; TAC Title 34, Part I, Ch. 20.37, and other statutes specific to the type of procurement/contract. (i.e. TGC2166.2533)
Project Description This section summarizes the reason for the
procurement.
Sectional overview and Sectional overview and Description Description
BackgroundOnly relevant information regarding the
procurement should be included. Examples of relevant information can be:State or Federal mandatesChanges to an existing department/program
A brief program description might be necessary
Sectional overview and Sectional overview and Description Description
Scope of Work In this section, first provide a summary of
the work that is to be done. Then, detail each item the contractor is
responsible for completing by describing the required services, deliverables, and delivery deadlines.
Sectional overview and Sectional overview and Description Description
Contract TermAmount of time covered by the initial
contract term (e.g., three years.)
Possible Extensions or Renewal PeriodsAs a general rule, the total contract term (initial
contract term plus renewals or extensions) should not exceed four (4) years if state funded, and five (5) years if federally funded.
Sectional overview and Sectional overview and Description Description
DefinitionsWords will retain their most common
meaning unless otherwise specifiedDefine acronyms that will be used
throughout the document.Example:
“CPA” means the Comptroller of Public Accounts. “AIS” means automated information system.
Statement of WorkStatement of WorkThe statement of work is the written expression of
the end of a project before the work has
begun.
This section is the core of the RFP.
Statement of WorkStatement of WorkAgency Duties
In short, it is the primary responsibility of the agency to thoroughly define their expectations.This can be in terms of deliverables,
communication, invoicing, and any other relevant items.
Contractor Duties The contract is responsible for
demonstrating how they expect to fulfill the expectations expressed by the agency.
Proposal informationProposal informationSchedule of Events
In this section, include all critical procurement dates up to the contract start date.
Also, provide a summary or outline of the project timeline, beginning with the contract start date. Include due dates for all major contract milestones. It is often helpful to tie due dates to the contract start date
(e.g. “deliverable is due 90 days after contract execution”) instead of a set date (e.g. “September 1, 2006”) to account for possible project delays.
Proposal informationProposal informationRevision to the Schedule
Outlines the procedure for informing parties of revisions to the schedule.Pre-proposal conference
The date of the conference should be listed in the schedule of events.
This conference can be mandatory or optional. Either case must be stated in the RFP.
Proposal informationProposal informationProposal Requirements/Content
Expand on the summary provided in the schedule of events. Define deliverables attached to the specified dates
Describe how the agency will measure and evaluate the contractor’s performance under the contract. Define expected levels of performance List industry standardsList remedies if standards aren’t met
Include a list of required documents that need to be submitted by the respondent in order to be considered responsive to the proposal.
Proposal informationProposal informationProposal Submission
RFP Opening Date and all compliance requirementsDelivery of Proposals
Include submission deadlines and valid submission addresses, email addresses, and/or fax numbers.Proposal Opening
WhenWherePublic OpeningPublic Notice
Proposal requirementsProposal requirementsProposal Evaluation and Award
For a purchase made through competitive sealed proposals, agency making the purchase: (1) must specify in the RFP the known factors other
than price that the agency will consider in determining which proposal offers the best value for the state; and
(2) may concurrently inform each vendor that made a proposal on the contract of any additional factors the agency will consider in determining which proposal offers the best value for the state
if the agency determines after opening the proposals that additional factors not previously covered are relevant in determining which proposal offers the best value for the state.
Gov’t Code § 2155.075
Contract Terms and ConditionsContract Terms and ConditionsCustomization
Even though each agency might have standard terms and conditions, it is important that they are reviewed every time they are to be included as part of the contracting document.
Contract Terms and ConditionsContract Terms and ConditionsEssential Contract Clauses
The State of Texas Contract Management Guide lists the following as essential contract clauses:Some of the clauses might be reflected in the RFP
Dispute Resolution Contractor Responsibilities Indemnification/Damage Claims Abandonment or Default Right to Audit Force Majeure Ownership/Intellectual Property
IntroductionScope of WorkTerm of ContractConsideration/PriceSpecificationsFunding Out ClauseAntitrust
Essential documentsEssential documentsHUB Subcontracting Plan
Asses the project (if over $100,000.00) for possible sub-contracting opportunitiesExamples might include painting or carpeting for a
construction project.If an HSP is requested and not submitted,
the respondent is to be considered non-responsive
Essential DocumentsEssential DocumentsExecution of Proposal
Makes the respondent legally responsible for adhering to any contract formed as a result of the RFPRenewal Options
No contract should be automatically renewed unless otherwise stated.
Outline a renewal procedure and the length of any renewal or extension periods
Essential DocumentsEssential DocumentsCompensation and Fees
List fees that the state is not obligated to pay.Taxes
List fees that should be non-recurring.Tooling
List a compensation schedule.Will compensation be tied to performanceLevel of EffortActual Deliverable
Solicitation Advertising Solicitation Advertising RequirementsRequirements
Centralized Master Bidder’s ListList of vendors who are interested in doing
business with the state of TexasIf you are issuing a competitive
solicitation, vendors on the list that provide commodity codes that apply to the project must be notified.
Solicitation Advertising Solicitation Advertising RequirementsRequirements
Electronic State Business DailyAn electronic platform where the State
announces new contracting opportunitiesProcurements over $25,000 must be
posted to the ESBD.Posting requirements vary depending on
the amount of information posted regarding the opportunity.
Solicitation Advertising Solicitation Advertising RequirementsRequirements
Notification Requirements for Major ContractsMajor Contract is defined as a contract
whose value exceeds $1 million dollars during the ORIGINAL term of the contractThis does not include any extension or renewal
periods.Contract Advisory Team (CAT) Notification
Pre-Solicitation ConferencePre-Solicitation ConferencePurpose
Clarification
GuidelinesState of Texas Contract Management Guide
FormatOpeningIntroductionSolicitation Overview/ReviewClosing Summary
RFP OPENINGRFP OPENING
Opening DayThis is the day (as stated in the RFP) that
responses are no longer accepted.All that is read at the RFP opening is the
name of the respondents.
Evaluating ResponsesEvaluating ResponsesEvaluation Criteria
Proposals can only be evaluated against the criteria stated in the RFP
Criteria to Consider Company Information
Financial History Proposed Services
Technical Support, Training on new equipment Experience and Qualifications
Years in industry, Similar projects Compensation and Fees
Lifecycle costs, tooling, discounts References
Evaluating responsesEvaluating responsesAlthough price and conformance to specifications are
the most important best value considerations, Texas Government Code § 2155.074 lists other relevant factors that may be considered. installation costs; life cycle costs; the quality and reliability of the goods and services; the delivery terms; indicators of probable vendor performance the cost of employee training associated with a
purchase; the effect of a purchase on agency productivity; the vendor's anticipated economic impact to the state
or a subdivision of the state
Evaluating ResponsesEvaluating ResponsesThe Evaluation Process
ResponsiveThe respondent has responded to the RFP by the
appropriate time with all requested informationHSPFinancial StatementsExecution of Offer
ResponsibleThe contractor is capable of performing the
demands of the RFP at the time requested.
Score TabulationScore TabulationScoring Methodologies
Qualitative Comparing proposal elements against criteria and
assigning a non-numerical score
QuantitativeComparing proposal elements against criteria and
assigning a numerical score
Score tabulationScore tabulationInterviews and Oral Presentations
If oral presentations and interviews are anticipated, information relevant to the process should be included.
If not anticipated, all respondents should be given an equal opportunity to participate.
Original proposals cannot be changed during oral presentations or interviews
Vendor Award and NotificationVendor Award and NotificationNegotiations
Defined as the process whereby multiple parties with competing interest bargain for an advantage with the aim of coming to a mutual agreement.
A key advantage to using the RFP method of solicitation is the ability to negotiate .
Vendor Award and NotificationVendor Award and NotificationBest and Final Offer (BAFO)
After negotiations, the evaluation team can decide that they would like to receive a best and final offer from each respondent.
If one respondent is allowed to submit a BAFO, then all respondents must be afforded the same opportunity.
Vendor Award and NotificationVendor Award and NotificationNotification
Electronic State Business DailyAfter an award determination has been made by
the evaluation team and confirmed by executive management, and the vendor notified, it is then time to post notice of award on the ESBD.
Legislative Budget BoardThis body must be notified of certain contracts in
as little as 10 days after contract award has been made
Contract AdministrationContract AdministrationVendor Performance Tracking System
Report vendor performance on procurements over $25,000.00
System is 100% input reliant, which means it is depended upon timely and accurate feedback.
Reports can be made during the contract if the term is lengthy, or upon contract completion
Contract AdministrationContract AdministrationContract Extension and Renewal
Contracts can be renewed or extended if the terms are outlined in the RFP and/or contract.
Any options to renew or extend MUST be exercised before the termination date of the original agreement.
Contract AdministrationContract AdministrationContract Closeout
Ensure that all deliverables have been received.
Resolve all outstanding invoices.Provide contractor with letter stating that
the contract has ended.Collect all relevant documentation as part
of the contract file.Formally close the contract file.