Transcript Slide 1

Brown Bag February 6,
2008
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
Conduct a pre-proposal conference
Evaluate and Score responses
Notify appropriate parties of contract award
Identify basic contract administration duties
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?
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 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 Tips
Remember the FACCS:
Flexible
 The solicitation allows for innovative solutions.
Accurate
 The 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.
Simple
 Say only what you need to say. Avoid unneeded explanations
or background information.
Sectional overview and
Description
Introduction and Overview
Legal 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
Description
Background
Only relevant information regarding the
procurement should be included.
Examples of relevant information can be:
State or Federal mandates
Changes to an existing department/program
 A brief program description might be necessary
Sectional overview and
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
Description
Contract Term
Amount of time covered by the initial
contract term
(e.g., three years.)
Possible Extensions or Renewal Periods
As 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
Description
Definitions
Words will retain their most common
meaning unless otherwise specified
Define acronyms that will be used
throughout the document.
Example:
“CPA” means the Comptroller of Public Accounts.
“AIS” means automated information system.
Statement of Work
The 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 Work
Agency 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 information
Schedule 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 information
Revision 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 information
Proposal 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 standards
 List 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 information
Proposal Submission
RFP Opening Date and all compliance
requirements
Delivery of Proposals
Include submission deadlines and valid
submission addresses, email addresses, and/or
fax numbers.
Proposal Opening
When
Where
Public Opening
Public Notice
Proposal requirements
Proposal 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
Conditions
Customization
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
Conditions
Essential 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
Introduction Dispute Resolution
Scope of Work
 Contractor Responsibilities
Term of Contract
 Indemnification/Damage Claims
Consideration/P
 Abandonment or Default
rice
 Right to Audit
Specifications
 Force Majeure
Funding Out
 Ownership/Intellectual Property
Clause
Antitrust
Essential documents
HUB Subcontracting Plan
Asses the project (if over $100,000.00) for
possible sub-contracting opportunities
Examples might include painting or carpeting for a
construction project.
If an HSP is requested and not submitted,
the respondent is to be considered nonresponsive
Essential Documents
Execution of Proposal
Makes the respondent legally responsible
for adhering to any contract formed as a
result of the RFP
Renewal Options
No contract should be automatically
renewed unless otherwise stated.
Outline a renewal procedure and the
length of any renewal or extension periods
Essential Documents
Compensation 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 performance
Level of Effort
Actual Deliverable
Solicitation Advertising
Requirements
Centralized Master Bidder’s List
List of vendors who are interested in
doing business with the state of Texas
If you are issuing a competitive
solicitation, vendors on the list that
provide commodity codes that apply to the
project must be notified.
Solicitation Advertising
Requirements
Electronic State Business Daily
An electronic platform where the State
announces new contracting opportunities
Procurements over $25,000 must be
posted to the ESBD.
Posting requirements vary depending on
the amount of information posted
regarding the opportunity.
Solicitation Advertising
Requirements
Notification Requirements for Major
Contracts
Major Contract is defined as a contract
whose value exceeds $1 million dollars
during the ORIGINAL term of the contract
This does not include any extension or renewal
periods.
Contract Advisory Team (CAT) Notification
Pre-Solicitation Conference
Purpose
Clarification
Guidelines
State of Texas Contract Management Guide
Format
Opening
Introduction
Solicitation Overview/Review
Closing Summary
RFP OPENING
Opening Day
This 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 Responses
Evaluation 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 responses
Although 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 Responses
The Evaluation Process
Responsive
The respondent has responded to the RFP by the
appropriate time with all requested information
 HSP
 Financial Statements
 Execution of Offer
Responsible
The contractor is capable of performing the
demands of the RFP at the time requested.
Score Tabulation
Scoring Methodologies
Qualitative
Comparing proposal elements against criteria and
assigning a non-numerical score
Quantitative
Comparing proposal elements against criteria and
assigning a numerical score
Score tabulation
Interviews 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
Notification
Negotiations
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
Notification
Best 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
Notification
Notification
Electronic State Business Daily
After 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 Board
This body must be notified of certain contracts in
as little as 10 days after contract award has been
made
Contract Administration
Vendor 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 Administration
Contract 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 Administration
Contract 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.