Transcript Slide 1

Best Value Pre-selection and
Procurement
By Terry M. Gellner
Ohio Water Environment Association
Kalahari Resort and Convention Center
June 22, 2011
Ohio Bidding Laws
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Statutory Requirements
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If no exceptions apply, it is required to
competitively bid the project
Statutory requirements for the bidding process can vary
by public entity
Local Acceptance of Procedure
Ohio Bid Review Standards
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Lowest & Best
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Counties, R.C 307.02 6131.44
Cities/Municipalities, R.C. 735.05 (home rule)
Villages, R.C. 731.14
Townships, R.C. 505.42, 511.12, 521.04
Metropolitan Housing Authorities, R.C. 3735.36
Ohio Bid Review Standards (cont.)
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Lowest Responsive & Responsible
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State of Ohio, R.C. 153.08
School Districts, R.C. 3313.46
Ohio School Facilities Commission, R.C. 3318.10
Libraries, R.C. 3375.41
Community Colleges, R.C. 3354.16
Ohio Building Authority, R.C. 152.16
Best Value Bidding
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Procurement of bids shall be made in the same
manner as competitive bidding
Best Value procurement awards shall be based on
criteria set forth in the solicitation
Award must be made to the highest scoring
responsive and responsible bidder
When to use Best Value?
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Other than government construction contracts
Other than equipment having similar physical
characteristics and multiple manufacturers
Equipment or process characteristics vary significantly
Pre-selection of equipment
Differences in equipment effect the design clarity
Pre-purchase of equipment
Bid analysis comparison
Piloting
Best Value Criteria
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Include but not be limited to, price, the total cost of
acquiring, operating, maintaining and supporting a
commodity or service over its projected lifetime, the
evaluated technical merit of the bidder’s bid or proposal,
the bidder’s past performance, and the evaluated
probability of performing the requirements stated in the
solicitation on time, with high quality, and in a manner that
accomplishes the business objective set forth in the
solicitation. (West Virginia Code)
Pre-Selection Process
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Select Manufacturers
Develop a Request for Proposals
Request Proposals
Evaluate Proposals
Complete Design based on
Selected Manufacturer(s)
Procurement Equipment
Develop Request for Proposal
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Introduction
Design Parameters
Equipment /Process Design Parameters
Site Specific Conditions
Information to Be Submitted
Questions to be Answered
Selection Criteria
Submittal Requirements
Selection Criteria/Evaluation
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Responsiveness to Request
 Submittal Based on Design Parameters
 Satisfy the Design Requirements
 Any Exceptions or is the Proposal Incomplete
 Equipment Warranty, Guarantees & Terms of
Purchase
 Operation, Maintenance and Historical Information
 Experience and Financial Information
Proposal Criteria/Evaluation (Cont)
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Proposed Process System Summary
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List criteria, volumes, sizes and/or dimension of each
process unit
List primary and support equipment information
Description of Process Operation
Scope of Supply
Materials of Construction or Coating Systems
Regular, annual and extended maintenance
Proposal Criteria/Evaluation (Cont)
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Services Provided
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Warranty
Process Guarantee
Training
Operation Support
Maintenance Support
Location of Support and Parts
Proposal Criteria/Evaluation (Cont.)
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Present Worth Cost Analysis
Capital Costs
Maintenance Costs
- Equipment
- Power
- Structure
- Chemical
- Cost Adjustments
- Replacement
- Omitted Items
- Labor
- Administrative
- Solids Handling
Purchase Fees
Proposal Criteria/Evaluation (cont.)
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Other Considerations
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Historical Support Data
Experience
Financial Stability
Visited Sites
Owner’s Considerations
Responses to Questions
Procurement
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Negotiate Price and Assign to the Contractor
Execute Purchase Agreement and Assign to the
Contractor
Execute Purchase Agreement and Pre-purchase
Bid Equipment as Alternates with Best Value
Analysis of Bid
How to Avoid Potential Pitfalls
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Allow each manufacturer to bid their best system
Equal Comparisons
• Dictate the format of Manufacturers Information
• Provide unit Costs for power, chemical, labor, etc.
• Knowledge about the manufacturers’ products
differences
• Include all aspects of the plant
• Ask questions to get specific responses to draw
comparisons
Criteria Scoring
Questions