Building a Better BidBuilding a Better BidThe Nuts & BoltsThe Nuts & Bolts

Dave LeonardDave Leonard

The World BankThe World Bank

Capital Funding StrategyCapital Funding Strategy

Develop a 3-5 year plan for Develop a 3-5 year plan for equipment equipment andand services services• Must be consistent with organization’s Must be consistent with organization’s

strategic goalsstrategic goals• Plan should have its own strategic goals Plan should have its own strategic goals

with a “purpose to the purchase”with a “purpose to the purchase”• Work with your team and have buy in Work with your team and have buy in

from management and any other key from management and any other key stakeholders, i.e. IT, Facilities, etc.stakeholders, i.e. IT, Facilities, etc.

Capital Funding RequestCapital Funding Request

Once a capital plan is in place, Once a capital plan is in place, funding is requested for individual funding is requested for individual projects per fiscal yearprojects per fiscal year

Challenge is to determine how much Challenge is to determine how much to ask forto ask for• Can use consultants to get a statement Can use consultants to get a statement

of probable costsof probable costs• Experience is the best teacher for Experience is the best teacher for

accurate estimatesaccurate estimates

Capital Funding RequestCapital Funding Request

Get help to fill out the formGet help to fill out the form• Resource/Budget person for your unitResource/Budget person for your unit• Procurement OfficerProcurement Officer

Be sure to document and estimate Be sure to document and estimate risks including:risks including:• The risk of The risk of notnot doing the project doing the project• Things that could happen during the Things that could happen during the

project, both negative and positiveproject, both negative and positive

Bid ConstructionBid Construction

Key to good solicitation is good Key to good solicitation is good specification writingspecification writing• Be clear and as specific as possible – Be clear and as specific as possible –

assumptions by bidders can cause huge assumptions by bidders can cause huge variances in bid amountsvariances in bid amounts

• Include what contractor Include what contractor isis and and is notis not responsible for in projectresponsible for in project

• Include list of necessary equipment and Include list of necessary equipment and servicesservices

Bid ConstructionBid Construction

If project bids are part of your regular If project bids are part of your regular work, develop templateswork, develop templates• Scope of Work (SOW)Scope of Work (SOW)• ScheduleSchedule• Bid template spreadsheetBid template spreadsheet

Consultants can help create these if you Consultants can help create these if you are new to project managementare new to project management

Be sure to read Be sure to read everythingeverything and decide if it and decide if it is applicable to this current projectis applicable to this current project

IFBs, RFPs and RFIsIFBs, RFPs and RFIs

IFB – Invitation for BidIFB – Invitation for Bid• Lowest qualified bidder gets jobLowest qualified bidder gets job

RFP – Request for ProposalRFP – Request for Proposal• Bidders are evaluated and scored by a panel Bidders are evaluated and scored by a panel

on both technical and cost merits and best on both technical and cost merits and best overall score wins joboverall score wins job

RFI – Request for InformationRFI – Request for Information• A way to see which firms are qualified to do A way to see which firms are qualified to do

your project based on the SOW and defined your project based on the SOW and defined mandatory criteriamandatory criteria

IFBIFB

Simplest way to get project going Simplest way to get project going and through Procurement and through Procurement

Good if scope and requirements are Good if scope and requirements are well definedwell defined

Danger in that lowest bidder can Danger in that lowest bidder can often cut corners in some areas – often cut corners in some areas – ““you get what you pay for…”you get what you pay for…”

RFPRFP

Much more complex process Much more complex process requiring longer time to bid awardrequiring longer time to bid award

Need to develop valid scoring criteriaNeed to develop valid scoring criteria Review panel must be created to Review panel must be created to

evaluate proposals and scoreevaluate proposals and score Panel can supply needed technical Panel can supply needed technical

expertiseexpertise Best process for large and complex Best process for large and complex

projectsprojects

RFIRFI

A way to go out to market to see what A way to go out to market to see what firms are qualified or have unique solutionfirms are qualified or have unique solution

Must be done in collaboration with Must be done in collaboration with organization's Procurement departmentorganization's Procurement department

Resembles RFP in form but with no specific Resembles RFP in form but with no specific project or monetary contract project or monetary contract

RFI divided into Mandatory and Evaluation RFI divided into Mandatory and Evaluation CriteriaCriteria

Evaluation Criteria judged by panel, Evaluation Criteria judged by panel, typically five personstypically five persons

Vendor prequalificationVendor prequalificationA process to create a “short A process to create a “short

list “ of bidders for your list “ of bidders for your projects that will perform the projects that will perform the work to agreed specifications.work to agreed specifications.

Advantages of prequalificationAdvantages of prequalification

Initial solicitation done thru RFI, not Initial solicitation done thru RFI, not RFP or IFBRFP or IFB

Limits number of bid responses toLimits number of bid responses to Familiarity with company and key Familiarity with company and key

persons already establishedpersons already established Agreed pricing structure in place for Agreed pricing structure in place for

goods and servicesgoods and services Enables buyer to move quickly with Enables buyer to move quickly with

IFB, especially on smaller projectsIFB, especially on smaller projects

Disadvantages of Disadvantages of prequalificationprequalification

Investment of time to create RFI and Investment of time to create RFI and go through processgo through process

Vendors feel they put in much effort Vendors feel they put in much effort into a response with no guarantee of into a response with no guarantee of work, if chosen, it only gives them work, if chosen, it only gives them the opportunity to bid on future the opportunity to bid on future projectsprojects

Specifications can be restrictive to Specifications can be restrictive to some unique projectssome unique projects

Final adviceFinal advice

Work closely with your Budget and Work closely with your Budget and Procurement team to give them what Procurement team to give them what they need in the form that is required they need in the form that is required to get it through the process – to get it through the process – usually they’ll help you if you ask usually they’ll help you if you ask them nicely…them nicely…