This presentation is being provided for educational purposes only

Please refer to the RFP for specific instructions

If there are any inconsistencies, the RFP and Amendments shall take precedence over this

presentation

Best Value Model Pre-Proposal Information

Cold Beverage ServiceCold Beverage Service

  

RFP # FG 140304 JBRFP # FG 140304 JB

20+ Years of Experience

Fulbright Scholarship-University of BotswanaBV tests

RMITTeaching IMTPBSRG platform

Tongji University

6+ yearsInfrastructure€1.8B plus €1B

BrunsfieldComplete Supply Chain

United States -65 clients

Univ. of Manitoba

DalhousieUniv. Cong

oPPP

Univ. of Alberta

Simon Fraser Univ.

InformationInformationTechnologyTechnologynetworkingnetworkingdata centersdata centershardwarehardwareCOTS softwareCOTS softwareERP systemsERP systems

help desk serviceshelp desk serviceseProcurementeProcurement

FacilityFacilityManagementManagementmaintenancemaintenancelandscapinglandscapingsecurity servicesecurity servicebuilding systemsbuilding systemsindustrial movingindustrial movingwaste managementwaste managementenergy managementenergy management

custodialcustodialconveyanceconveyancepest controlpest control

Health Insurance/Health Insurance/Medical ServicesMedical Services

ManufacturingManufacturing

BusinessBusiness//MunicipalMunicipal//University ServicesUniversity Servicesdiningdiningmulti-media rightsmulti-media rightsfitness equipmentfitness equipmentonline educationonline educationdocument managementdocument managementproperty managementproperty managementaudiovisualaudiovisualcommunications systemscommunications systemsemergency response systemsemergency response systemslaundrylaundry

material recyclingmaterial recyclingbookstoresbookstoresfurniturefurniture

ConstructionConstruction//DesignDesign//EngineeringEngineeringlarge gclarge gcinfrastructureinfrastructuremunicipalmunicipallaboratorylaboratoryeducationeducationhospitalhospitalfinancialfinanciallarge specialtylarge specialty

small gcsmall gcrenovationrenovationrepairrepairmaintenancemaintenanceroofingroofingdemolitiondemolitiondevelopmentdevelopmentsupply chainsupply chain

DBBDBBCMARCMARDBDBIDIQIDIQJOCJOCLow BidLow BidIPDIPD

networkingnetworkingdata centersdata centershardwarehardwareCOTS softwareCOTS softwareERP systemsERP systems

help desk serviceshelp desk serviceseProcurementeProcurement

FacilityFacilityManagementManagementmaintenancemaintenancelandscapinglandscapingsecurity servicesecurity servicebuilding systemsbuilding systemsindustrial movingindustrial movingwaste managementwaste managementenergy managementenergy management

custodialcustodialconveyanceconveyancepest controlpest control

Health Insurance/Health Insurance/Medical ServicesMedical Services

ManufacturingManufacturing

ConstructionConstruction//DesignDesign//EngineeringEngineeringlarge gclarge gcinfrastructureinfrastructuremunicipalmunicipallaboratorylaboratoryeducationeducationhospitalhospitalfinancialfinanciallarge specialtylarge specialty

small gcsmall gcrenovationrenovationrepairrepairmaintenancemaintenanceroofingroofingdemolitiondemolitiondevelopmentdevelopmentsupply chainsupply chain

DBBDBBCMARCMARDBDBIDIQIDIQJOCJOCLow BidLow BidIPDIPD

What Percent of RFP’s Are 100%

Accurate?

55

Who Should Know Who Should Know More About More About

Performing/Installing Performing/Installing the Services Required?the Services Required?

66

It Is More Important For It Is More Important For The The VendorVendor To Know What To Know What To Do Than It Is For Client To Do Than It Is For Client To Know What The Vendor To Know What The Vendor

Should DoShould Do

77

Vendor 1

Vendor 2

Vendor 3

Vendor 4

Perf

orm

an

ce

High

Low

Ris

k

High

Low

Perf

orm

an

ce

High

Low

Ris

k

High

Low

Impact of Minimum Requirements

Vendor 1Vendor 2Vendor 3Vendor 4

High

Low

Perf

orm

an

ce

Owners

“The lowest possible quality

that I want”

Vendors

“The highest possible value that you will get”

Minimum

Potential ProblemsPotential Problems

High

Low

Perf

orm

an

ce

Maximum

What is Best-Value?

• Win-Win

• Client:– Outsource to experts– Less management and resources

• Vendor– Control of project/service– Ability to increase profit by

maximizing their efficiency– Higher performance

1010

Factors For Success

• Fair (state/follow rules)

• Open (open to all with experience)

• Impartial and Transparent (minimize evaluator bias / provide debriefing)

• Efficient (minimize efforts)

• Award based on value

1111

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Best Value Model

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Best Value Model

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Best Value Goals

Goal 1:Differentiate Expertise of Vendors through Cost, Capability, and Value

Goal 2:Both parties have clear expectations of project before contract is awarded.

Goal 3:Measure performance off of the expectations that are set with Award.

Attachment C – Project Plan

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Proposal Summary•a brief chronological roadmap

Project Assumptions•a brief summary of the major assumptions

Roles, Responsibilities, Expectations

•brief summary of the expectations and responsibilities that the Offeror has of the University or University personnel.

Clarification Period Schedule •a high level Clarification schedule

1 Page Template

NUMBE

R ONE

TIP

NOT GOING TO CHANGE…• Specifications• Terms and Conditions• Insurance & Bonding• Contract • Delivery System• Pricing / Financials

Overlays on top of these…

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Filter 1Proposal

Evaluations

Filter 2Interview

Key Personnel

Filter 4Cost

ReasonablenessCheck

Filter 5Pre-Award &Clarification

Project ExecutionRisk Reporting & Close Out Rating

Filter 3Prioritization

(Identify Best Value)

Cont

ract

Aw

ard

Evaluation Criteria - Price / Cost / Fee- Project Duration- Risk Assessment- Value Added- Past Performance Information (PPI)

Short List prior to

Interviews (if necessary)

Pre Award Activities- Training- Kickoff Meeting- Planning & Clarifying- Summary Meeting

Total Evaluation Scores are

determined

Logic check to confirm Selection of

the potential Best Value Proponent

Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings

Best Value Process

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Best Value Model - Selection

Selection ObjectiveSelection based upon Proponent Expertise

How to differentiate expertise?

Ability to understand the project & plan your approach

Identify & mitigate risks to the project

Add value to optimize project

Cost Competitive

Evaluation Criteria Weight Committee Rating

Numerical Value

Submission Form - Pass FailInterview 300Financial: (Fixed Fee) 200Financial: (gross sales) 100Risk Assessment Plan 150Value Assessment Plan 100Team Qualifications 50Past Performance Info 100

TOTAL 1000

2020

Filter 1Proposal

Evaluations

Filter 2Interview

Key Personnel

Filter 4Cost

ReasonablenessCheck

Filter 5Pre-Award &Clarification

Project ExecutionRisk Reporting & Close Out Rating

Filter 3Prioritization

(Identify Best Value)

Cont

ract

Aw

ard

Evaluation Criteria - Price / Cost / Fee- Project Duration- Risk Assessment- Value Added- Past Performance Information (PPI)

Short List prior to

Interviews (if necessary)

Pre Award Activities- Training- Kickoff Meeting- Planning & Clarifying- Summary Meeting

Total Evaluation Scores are

determined

Logic check to confirm Selection of

the potential Best Value Proponent

Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings

Best Value Process

Copyright Arizona State Univ. 2013

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Team Qualifications

= differentiate capability

Team Qualifications

= differentiate capability

Value Added

= additional expertise

beyond requirements

Value Added

= additional expertise

beyond requirements

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Evaluated Submittals

Allows Proponents to differentiate themselves based upon their ability to identify and minimize risks to the project.

SimpleSimple, conciseconcise, actionable plans

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Format of Submittals In order to minimize any bias, the Submittals must NOT

contain any names that can be used to identify who the proponent is (such as proponent name, personnel names, project names, etc).

Template are provided and must be used. Proponents are NOT allowed to re-create, re-format, or modify the templates.

The plans should not contain marketing material.

The Risk Assessment must NOT exceed 2 pages.

The Value Added must NOT exceed 1 page

The Team Qualification must NOT exceed 1 page

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Risk Assessment Plan

Team Qualifications

= differentiate capability

Team Qualifications

= differentiate capability

Value Added

= additional expertise

beyond requirements

Value Added

= additional expertise

beyond requirements

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Risk Assessment

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Template

1 Page - Controllable Risks

1 Page – Non-Controllable Risks

2 pages Total

2 Plans in the Risk Assessment• Assessment of Controllable Risks: risks, activities, or

tasks that are controllable by Proposer, or by entities/individuals that are contracted to by Proposer. This includes things that are part of the technical scope of what Proposer is being hired to do. Project risk that other vendors have due to lack of experience and expertise

• Assessment of Non-Controllable Risks: risks, activities, or tasks that are not controllable by Proposer. This may include risks that are controlled by Agency, Agency’s representatives, or completely uncontrollable. Although these risks may not be controlled by Proposer, Proposer must identify a strategy that can be followed or used to mitigate these risks.

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Risk Assessment Example Controllable Risk

• VENDOR 1 – RISK: Noise from our demolition may result in student/staff

complaints (since we will be doing demo in an in-operational library during finals week).

– SOLUTION: We will work with the user to minimize the impact of noise from demolition.

• VENDOR 2– RISK: Noise from our demolition may result in student/staff

complaints (since we will be doing demo in an in-operational library during finals week).

– SOLUTION: To minimize this risk, we have planned to demolition during off hours and weekends. We will also install rubber sheets on the floors to diminish noise and vibrations. Both solutions can be performed within your budget.

Risk Assessment Example Risk Assessment Example Controllable RiskControllable Risk

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RISK: A poor roofing system can result in roof leaks, which may

inconvenience building occupants, increase complaints, increase maintenance, damage building contents, and be a source of mold issues.

Vendor A Solution:• To minimize this risk, our proposed roofing system has been installed on

over 400 roofs and has had an average roof age of 18 years, in which 99% of the roofs don’t leak and 100% of the end clients are satisfied.

Vendor B Solution:• To minimize this risk, we are proposing a thermally-welded roofing system

that has a tensile strength of 2,130 PSI, elongation of 300%, tear strength of 312lbs, has been tested for 10,000, and has a cold brittleness of -30°C.

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Risk Assessment Example Non-Controllable Risk• VENDOR 1

– RISK: The local water company must have the water turned on by June in order for us to properly water the newly installed recreational fields (or the grass will die).

– SOLUTION: We will coordinate and plan our schedule with the water company as soon as the award is made to make sure that we get water to the site to irrigate the fields.

• VENDOR 2– RISK: The local water company must have the water turned

on by June in order for us to water the newly installed fields (or the grass will die). On past projects, the water company has failed to meet the schedule 90% of the time.

– SOLUTION: To minimize this risk, we will coordinate our schedule with the water company as soon as we are awarded the project. If they fail to meet our schedule, we will setup and connect temporary waterlines to the nearby fire hydrants and we will also have water trucks on-site to irrigate the fields.

Risk Assessment Example Controllable Risk

• RISK: Major risk items typically associated with transit implementations revolve around change management and business process impact. New technology implementations create change for the users. Change often causes issues with technology adoption. Requirements and scope creep also creates challenges. Systems may have thought a certain technology or component was incorporated in the RFP and/or needs assessment process that is not included in the actual scope of work or contract. Communication is also an area that can be a challenge.

• SOLUTION: A clearly defined scope of work and communication of the scope at the beginning of the project minimizes scope creep. If there is a discrepancy, scope or requirements can be discussed early on in the process versus at the end of the process. Communication is the key to successful implementations. Change management and business process re-engineering for organizations can be minimized at the technology and management levels. Management can get early buy-in at the “grass roots” level and include them in the technology planning process. The Team focuses on providing very configurable and flexible tools to minimize process re-engineering tasks. The Team focuses on automating existing business processes and providing additional tools to improve those processes that need to be improved such as data management….

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Value Added Plan

Team Qualifications

= differentiate capability

Team Qualifications

= differentiate capability

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Value Added

= additional expertise

beyond requirements

Value Added

= additional expertise

beyond requirements

Value Add Plan• Opportunity to identify any value added options or

ideas that may benefit the Owner and Agency.

• This may include ideas or suggestions on alternatives in implantation strategies, timelines, project scope, equipment, goals, financing, etc.

• All value added ideas must be logical and/or based on verifiable performance metrics.

• Value added ideas must NOT be included in the cost proposal. Prior to award, the Owner will determine if the value added items will be accepted or rejected.

Understand the need better than the University can specify

Value Assessment

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Template

1 page max.

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Example: Value Added Items

• Reroofing this building will not stop all water leaks. The majority of the leaks are caused by cracks in the parapet walls, broken/missing glass, and poor caulking. For an additional $10K and 3 weeks in schedule we can replace and repair all of these items.

Example: Value Added Items• You can save 20% in your cost if you

substitute the T-3 lighting system for the T-2. The T-3 lights are newer state-of-the-art systems that are known industry wide as the best systems.

• If we can alter the hours of operation at Site B, we can increase revenue overall revenue by 5%. This may be an inconvenience for a small number of people (less than 50 students) during this time period, but the revenue gain is considerable.

Example: Value Added Items• Idea: Purchase “Concurrent Licenses” instead of “Named

Licenses”

• Why: In a “Named Licensing” model, you must purchase a license for every user and only that particular user can access the software. If that named user is in meetings, on vacation, or not using the system, the license cannot be utilized. In a “Concurrent Licensing” model, the system loans out the licenses to users as they log in. If a user is inactive, the server releases the license and allocates the license to the next user.

• Expected Benefit: The advantage of the concurrent licenses is that the Agency will not have to purchase licenses that are not being used, which can result in approximately 20%-30% savings in cost.

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Value Added

= additional expertise

beyond requirements

Value Added

= additional expertise

beyond requirements

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Risk

Assessme

nt

= risks you

control and

risks you

don’t control

Team Qualifications

Team Qualifications

= differentiate capability

Team Qualifications

= differentiate capability

Team Qualifications

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Template

1 page max.

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Things to Avoid• Marketing Information:

– Our company is known worldwide as a leader in online education.

– We will use our long history to make sure the project is a success.

– We will use state-of-the-art process to make it a success.

• Transferring risk back to client:– We will work with the owner to resolve issues– We will have team meetings / partnering meeting with the owner

• General risks and/or general solutions:– We will plan ahead to coordinate activities– We will plan ahead to get classes scheduled and created

• Overly Technical data:– The system we propose has 200% increase in PRX bandwidth

modularity.

Submittal RequirementsSubmittal Document Maximum Page Length

Risk Assessment Two (2) pages

Value Add One (1) page

Team Qualifications One (1) page

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• Must NOTNOT contain ANY identifying information (names, company names, project names, product names, etc.)

• Must use the provided template (can submit as many risks as fit within the page limits of each submittal)

• List Risks and Value Added in order of priority

Cost Proposal

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Cost Proposal

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Cost Proposal

4343

Cost Proposal

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Past Performance Information

Collected For:Key Personnel

The Offeror (Firm)– 5 maximum

Key Account Manager – 5 maximum

The Proponent picks their own referencesThe Proponent collects all surveys Close out ratings at the end of the contract will

be used to update PPI scores going forward at U of M

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PPI Survey / Questionnaire

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PPI Process

• The Proponent is responsible for sending out a survey questionnaire to each of their past clients.

• The survey must be faxed/emailed back to the Proponent

• The Proponent will submit all surveys to the Owner with their submittal.

Setup and send Survey Forms

Past Client Evaluates and Returns

VendorVendorPast ClientPast ClientVendorVendorProponentProponent

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Example Survey (Firm and Individuals)

Proponent

Past ClientProponent

Past Client

Filter 1Proposal

Evaluations

Filter 2Interview

Key Personnel

Filter 4Cost

ReasonablenessCheck

Filter 5Pre-Award &Clarification

Project ExecutionRisk Reporting & Close Out Rating

Filter 3Prioritization

(Identify Best Value)

Cont

ract

Aw

ard

Evaluation Criteria - Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance Information (PPI)

Short List prior to

Interviews (if necessary)

Pre Award Activities- Training- Kickoff Meeting- Planning & Clarifying- Summary Meeting

Total Evaluation Scores are

determined

Logic check to confirm Selection of

the potential Best Value Proponent

Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings

Best Value Process

Copyright Arizona State Univ. 2013

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505050

The Evaluation Process

Submittal

Evaluation Members

Proposal Form(1 page)

Proposal Form, $, & Other Documentation

Proposal Form(1 page)

Risk Plans

Total Score

ContractingOfficer

ContractingOfficer

Shortlisting

• If necessary short listing will be conducted prior to interviews (depending on the number of Proponent)

• Interviews:– Key Account Manager

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Interview Format• Q&A Interview, NOT a presentation

• Individuals will be interviewed separately.

• A standard set of questions will be generated and asked to each individual.

• Typically interview times will last about 15-30 minutes per individual

• No substitutions will be allowed.

Best Value Interviews:Identifying Expertise

Examples of questions asked:

1. Why were you selected for this project?

2. How many similar projects have you worked on? Individually and as a Team?

3. Describe a similar project you have developed/worked on to the current project.

4. What is different about this project from other projects that you have worked for?

5. Draw out the process for this project by major milestone activities.1. Identify, prioritize, and how you will minimize the risks of this project.2. What risks don’t you control? How will you minimize those risks?3. What do you need from the client and when do you need it?

6. How are you going to measure your performance during the project?

7. Other questions regarding the RFP requirements

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Filter 1Proposal

Evaluations

Filter 2Interview

Key Personnel

Filter 4Cost

ReasonablenessCheck

Filter 5Pre-Award &Clarification

Project ExecutionRisk Reporting & Close Out Rating

Filter 3Prioritization

(Identify Best Value)

Cont

ract

Aw

ard

Evaluation Criteria - Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance Information (PPI)

Short List prior to

Interviews (if necessary)

Pre Award Activities- Training- Kickoff Meeting- Planning & Clarifying- Summary Meeting

Total Evaluation Scores are

determined

Logic check to confirm Selection of

the potential Best Value Proponent

Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings

Best Value Process

Copyright Arizona State Univ. 2013

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Simple Scoring Methodolgy

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Dominance Check & Financial Reasonableness

Best-Value is the lowest priceBest-Value is within [5%] of next highest ranked firm Best-Value can be justified based on other factors

YesNo

Best ValuePrioritizationBest Value

Prioritization

YesNo

Go with AlternateProposal or Cancel

Proceed toPre-Award

YesYes

YesYes

YesYes YesNo

Attachment C – Project Plan

5757

Proposal Summary•a brief chronological roadmap

Project Assumptions•a brief summary of the major assumptions

Roles, Responsibilities, Expectations

•brief summary of the expectations and responsibilities that the Offeror has of the University or University personnel.

Clarification Period Schedule •a high level Clarification schedule

1 Page Template

5858

Best Value Model

NOT Detailed Detailed

Filter 1Proposal

Evaluations

Filter 2Interview

Key Personnel

Filter 4Cost

ReasonablenessCheck

Filter 5Pre-Award &Clarification

Project ExecutionRisk Reporting & Close Out Rating

Filter 3Prioritization

(Identify Best Value)

Cont

ract

Aw

ard

Evaluation Criteria - Price / Cost / Fee- Project Capability- Risk Assessment- Value Added- Past Performance Information (PPI)

Short List prior to

Interviews (if necessary)

Pre Award Activities- Training- Kickoff Meeting- Planning & Clarifying- Summary Meeting

Total Evaluation Scores are

determined

Logic check to confirm Selection of

the potential Best Value Proponent

Project Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out Ratings

Best Value Process

Copyright Arizona State Univ. 2013

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Pre-Award ObjectivesPeriod of time allotted before work begins for the Proponent to:

• Lay out & clarify their plan.• Coordinate milestone schedule.

• Identify the risks that could cause the plan to deviate.– FORMALLY DOCUMENT risk management plans.– Identify what you don’t know & when you will know it.– How will the plan could change based upon what you discover?– Address all client concerns.

• Identify what you need from the client and have a plan for getting it

Outcome: completely aligned expectations

Pre Award Document

1. Financial Summary (financial details, how funding will work, etc)

2. Transition Plan & Schedule (showing major milestones, risky activities, client actions, etc)

3. Project Risks/Concerns (all controllable risks/concerns, all non-controllable risks/solutions)

4. Assumptions (all project assumptions with associated impacts, identify what you need from the client and have a plan for obtaining it, roles and responsibilities of the client, etc )

5. Performance Metrics (how the vendor will monitor performance, document success, metrics used, frequency, baseline for comparison, how will it assist the client, etc)

6. Scope of Work (plan of action, detailed work plan, how technical requirements will be met, baseline expectations, implementation plan, transitional plan, staffing plan, communication plan, training plan, organization change plan, what’s included, excluded, etc)

7. Contract (language, terms and conditions, etc)

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Clarification / Preplanning Period

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Keep Phase 2 In Mind During Phase 1

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Phase 2

• Financial Summary• Project Plan• Project Risks/Concerns• Assumptions• Performance Metrics• Contract

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Best Value System

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Weekly Risk Report• Excel Spreadsheet that tracks risks and impacts

• Client will setup and send to vendor once the Award is issued. ASU will provide additional training.

• The final project rating will be impacted by the accuracy and timely submittal of the WRR

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Best Value Review

• Proposal ($)• Past Performance• Team

Qualifications• Risk Assessment• Value Assessment• Interviews

• Pre-Planning & Clarification

• Award • Weekly Reporting• Post Award Metrics• Final Documentation• Update PPI

Suggestions Identify who your best people are (done through measurements)

Have your best people sit down in a room and think about this project

Adapt their comments/ideas into your Risk and Value Assessment Plans

Correlate any suggestions/ideas/solutions to documented performance

Minimize marketing (risk of reformatting, names, words, etc.)

Follow all formatting requirements (no names, page limits)

Be dominant

Be simple, non-technical, and logical

Picture what it takes to make the client very happy at the end

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Anticipated Schedule

No Activity Date1 Project Announcement 03/04/142 Pre-Proposal Conference & Site Walk 03/18/143 Deadline to Submit Questions/Inquiries 03/20/144 Proposal Due Date (4:00 PM Winnipeg Time) 04/01/145 Interviews 04/07/146 Clarification Period 04/10 to 05/08/20147 Anticipated Date of Award 5/15/20148 Transition Period 05/16/14 -06/30/149 Start of Service 07/01/2014

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Project Overview

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1.2 PROJECT DETAILS AND DESIRED OUTCOMES • The University is looking to secure services equal to, or better than, the

level of service currently provided. It is the University’s desire to have a fixed fee annual contribution guaranteed commission-based structure. The University’s primary goals of this RFP are to increase financial return to the University and to increase satisfaction to the University and the students.

 1.3 PROJECT TERM • This contract will commence on July 1, 2014. The term of this contract is

seven (7) years.  

1.4 CURRENT CONDITIONS • Best efforts have been made to obtain accurate, detailed information on

the current conditions at the University, as detailed on Exhibit 2; however, Offerors should not assume this information is 100% complete or accurate.

Questions?

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