www.NAEPnet.org

Choosing the Right SolicitationAlan A. Phillips, CPPB CTPM

Texas Southern University

Summer 2012

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Agenda

• Solicitation Methods

• Specifications

• Statement of Work

• General Terms and Conditions

• Pre bid/proposal conference

• Addenda

• Opening/Closing for bids/proposals

• Evaluations

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

1. Request for Information (RFI)

2. Verbal Quote

3. Request for Quote (RFQ)

4. Invitation to Bid (IFB)

5. Sole Source

6. Request for Qualification (RFQ)

7. Request for Proposal (RFP)

Solicitation Methods

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Request for Information (RFI)

• Used to obtain general information• Informal• Not binding• Estimate for Budget

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Verbal Quote

• When to use• What to include

o Quantityo Descriptiono Delivery time and methodo Priceo Extra charges

• Can be confirmedo PO acknowledgmento Faxo Email

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Request for Quote (RFQ)

• Gain supplier commitment for specific terms• Price, quantity, delivery, services• Does not obligate the purchaser• Supplier hold requirements firm for a specific

period of time• Used when requirements are clearly identifiable

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Invitation to Bid

• Requirements are specific• Used primarily for commodities and general

services• Binding on both supplier and purchaser• Strict Control

o Bid Openingo Basis for award

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Sole Source

• Sole Source is only allowable when it is the only known provider (not distributor) for a commodity or service.

• Almost non-existent

• Can occur with manufacturer direct products

• Through examination of specifications and scope of work

• When in doubt, bid it out!

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Request for Qualifications (RFQ)

• Allows qualification of suppliers/vendors based on criteria

• Criteria includes professional experience, service, capability, personnel, licenses, references

• After meeting qualifications, can be used for responses to solicit RFP

OR

• After qualification review, selection of professional service provider (may occur)

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Request for Proposal (RFP)

• Requirement is not clearly defined

• Statement of work vs. specification

• Used to locate solutions and sources

• Clear evaluation criteria with weights

• Not exclusively price based

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Specification Writing

• Work with the requestor

• Performance/Technical Specifications/Material & Method of Manufacture

• Request needs clarification

• Specifications have to be clear and concise

• Know what you are buying

• Know how or where it will be used

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Specification Writing (continued)

• Work to clarify issues

• Increased costs to fix later

• Reduces number of bidders

• Might cause poor supplier selection

• Lost time

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Boilerplate Documents

• Contains standard language:o General Terms and Conditionso Institution Backgroundo General RFP language (due date, submission of

proposals, etc)

• Saves time during each solicitation, only inserting specifications, pricing, and changing minimal information that applies to each situation

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Terms & Conditions and Specifications

• Invoices/Terms of Payment

• Payment

• Warranties/Maintenance

• Acceptance

• Ownership of Intellectual Property

• Indemnity• Insurance• Changes in Work• Specifications, plans,

and drawings• Delays due to Force

Majeure• Delivery

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

• Default• Termination• Renewals/Escalation• Compliance with laws• Permits and licenses• Patent, Copyright, and

Trademark• Confidential

Information

• Records and right to audit• Taxes• Hazardous Materials• Assignment and

Subcontracting• Unemployment insurance

taxes, contribution, and assessments

Terms & Conditions and Specifications (cont’d)

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Terms & Conditions and Specifications (cont’d)

• Inspection and expediting

• Passage of title and risk of loss

• Safety• Entirety

• Miscellaneous Governing law Non-waiver of rights Severability Publicity Independent contractor Affiliate pricing Notices

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Pre-Proposal/Bidder’s Conference

• Why?• When?• Advantages

o All suppliers receive same informationo Questions can be asked and answered by the expertso Level playing fieldo Better ideas can be explored by all

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Addenda

• Addenda should be issued when there has been an integral change to the proposalo Change in due date and timeo Change in specification or scope of worko Additional information that suppliers will need to respond

• Ensure all suppliers receive the addenda• Should be clarified whether any issued addenda is

to be included in the response to the original proposal

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Opening and Closing

• Bids open and Request for Proposals close• Bids

o Opened publicly at designated place, date, and timeo Names and pricing is read aloud

• Request for Proposalso Close at set date and timeo Only information released is the name of the suppliers

submitting a proposal

• All documents should be date and time stamped for proof of receipt prior to open or close

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Evaluation Methods

• Request for Information• Verbal Quote• Request for Quote• Invitation for Bid• Sole Source• Request for Qualifications• Request for Proposals

Facilities InstituteJuly 9 - 12, 2012Houston, Texas

Questions?Questions?