Download - RFPs and Contracting
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RFPs & Procurement
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Learning Objectives
• The Power of the RFP – Getting What YOU want
• Open Competition & Conflicts of Interest
• Essential Components of an RFP
• The Importance of Being Specific
• Contractor Selection Criteria
• Bid Scoring
• The Contract is Your Protection
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RFP
IFBRFB IFP
RFQ
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Planning
Development
Project Management
Quality Assurance
IV&V
Implementation Specialties
A World of Contractors
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FNS Thresholds for RFP Approval
FSP > $5M total acquisition cost
WIC > $100K total acquisition cost
FSP > $1M total acquisition cost
WIC > $100K total acquisition cost
Competitive {
Non-
competitive {
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FNS Timeframes
60 DAYS
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50 States
x 2 programs (WIC & FSP)
+ states with multiple systems
+ WIC ITOs & US territories
x ~3-6 docs/project
÷ 4 of us
----------------
60 days
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HHSEasier on you if we talk
and agree!
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Stewardship
Ownership
Partnership
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Stewardship
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Partnership
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Scotty, beam me a copy of the latest change order. And some coffee.
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Ownership
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Agency leaders have left the ship. I’m a mid-level career bureaucrat
trying to hold on to ownership of this project with one policy specialist
and a part time IT guy.
PIRATES ON STARBOARD!
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YOU need:
• Knowledge
• Confidence
• Backing
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• Know what you want• Describe it accurately• Recognize what resources you need to hire• Describe them accurately• Hire the contractor that has the right stuff• Use tools to hold contractor accountable
State staff MUST:
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What you want• Reasonable cost• Low risk• Reliable outcome• Happy Execs• On time• Happy customers• No bad press
What they want
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What we want
• Fair and competition• Stewardship of Federal funds• A process that results in access & integrity in
benefit delivery• A process that holds up to legal challenges• Evidence that you are in control of your
destiny
HINT: HINT:
Use the RFP
Use the RFP
Checklist in
Checklist in
901!901!
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Planning RFP
vs.
Development/Implementation RFP
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Used to hire professional services to help a State agency plan the project thoroughly, prepare the required documents, and secure state and federal approvals.
Planning RFP
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DIY
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The Exception to the Rule: State blanket purchase agreements or
master contracts
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If the original contract or master agreement:• Was competitive • Included THIS type of work• Had scope or $$ parameters
Often used for hardware purchases or small consulting tasks, such as assistance with writing a small scope RFP
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If the original contract or agreement:• Wasn’t competitive, but just a process of
signing up on a list or meeting minor qualifications
• Was for unrelated services
Not meant for major procurements!
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Blanket purchase agreements or master contracts should not allow
Conflicts of Interest
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All Federally funded procurements must be …
(No unfair advantages in the bidding process)
Contractor who develops requirements, specifications, or tasks, or writes the RFP…
Bid on that work
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Option #1• All possible roles or
functions • In one RFP at the
beginning • All bidders must bid on all
the parts, priced individually
• State can pick and choose
OR
TRICKIER
TRICKIER
((AND NOT APPLICABLE
AND NOT APPLICABLE
TO THE DEVELOPMENT
TO THE DEVELOPMENT
CONTRACTOR!)
CONTRACTOR!)
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Option #2
Make it clear in the first RFP that the winner will help define other roles and that they will NOT be eligible to bid on those functions.
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The same contractor should
NEVERdefine the work and then bid on it
do the work, and then evaluate it.
OR
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So far we know…
1. FNS thresholds and 60 day review time
2. The importance of project OWNERSHIP
3. An RFP is to get you what YOU want
4. The allowable uses of a master contract
5. The pitfalls of conflicts of interest
6. FNS’s obsession with competition
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Implementation RFP
Used to hire professional and technical skill sets to design a new system, write or adapt the software, produce documentation, and test and implement the system.
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Components of an RFP
Introduction & Overview• Current processing environment• Workload data• New system environment (including
projected growth)
Hint: This stuff is
in 901’s
procurement
chapter!
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Components of an RFP
Solicitation Instructions and Conditions• “Boilerplate” language – legal and
purchasing requirements• Proposal structure and content• Procurement schedule• Q&A process• Submission process
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Components of an RFP
Statement of Work (SOW) – the MEAT!• Desired project schedule• Deliverables• Installation, Conversion, Maintenance
requirements• Personnel requirements• Functional requirements
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Don’t start from scratch!
Did th
ey
get what
they
asked fo
r?
How did they stay on
schedule?
Did they win
that lawsuit?Only 3 change orders?!
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FReD
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Tasks and Deliverables:
• Create a detailed project timeline• Guide state through design or functional
verification process• Document requirements and tech specs• Write or adapt the application code• Create user and technical documentation• Conduct testing• Convert data from the old system• Conduct or support training• Operate or train the Help Desk
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• Know what you want
• Describe it accurately
• Recognize what resources you need to hire
• Describe them accurately
State staff MUST:
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Rely on bidders’ questions
to clarify things you didn’t explain fully.
Bid the product they built for the last customer
GuessBid high enough to cover the unknowns
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So what???
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“Pay me now or
Pay me later”
and
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Components of an RFPManagement Plan• Identify who the contractor will report to• Describe the project management structure• Define the type and frequency of status
reports required• Specify who will review and approval of work
performed• Clarify roles of state staff and other
contractors
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Components of an RFP
Evaluation and Award Process• Identify evaluation criteria• Specify weight or points for each one • Describe the scoring process• Specify the minimum technical score• Explain how bidders will be notified
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DO√ Ensure that RFPs contain
enough detail to clearly define requirements.
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DO√ Describe requirements and
timeline expectations in specific terms to provide the contractor with adequate information to develop a responsive bid.
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DO
√ Describe acceptable levels and measures of performance for products and/or deliverables.
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DO√ Assign people with enough
technical expertise to the evaluation panel
√ Allow them enough time to really read and score all the proposals
√ Provide them training on how the process works and what the selection criteria mean
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DODescribe the performance and other relevant requirements of the procurement.
DON’TSpecify a “brand name” product instead of allowing “an equal” product to be offered, unless you’re talking about a state technical standard.
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DON’TPlace unreasonable requirements on firms to qualify to do business.
Keep it
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DON’TSpecify geographical preferences.
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DON’T• Require unnecessary
experience and excessive bonding
• Include unlimited liability clauses
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DON’T• Use noncompetitive pricing practices
between firms or affiliated companies
• Permit organizational conflicts of interest
• Allow noncompetitive awards to consultants on retainer contracts
• Take any arbitrary action in the procurement process
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Mandatory Criteria
vs.
Scored Factors
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The Nanny Interview
Minimum Mandatory Requirements• At least 18 years old• Has a driver’s license• No arrests or convictions• Can read• Has taken CPR class
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The Nanny Interview
Scored Factors• Years of experience• Number of children supervised at one time• Experience with your children’s ages• References from previous employers• Formal education
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Let’s Try It!• Minimum mandatory requirements• Determining and Weighting
Scored Selection Criteria• Choosing the Best Proposal
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Let’s Try It!• Minimum mandatory requirements• Determining and Weighting
Scored Selection Criteria• Choosing the Best Proposal
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• If the proposal doesn’t meet one of your minimums, it may be “non-responsive”.
• You can only award points for the criteria you already chose. You can’t modify your criteria now.
• No matter how beautiful or tempting a proposal may be, you can only evaluate it on the things you put in your RFP. (The assumption is that these are the same things you listed on the worksheet!)
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Results?
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$$$
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PRICE TECHNICAL
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TEST YOURSELF
High Technical score
High Cost score (meaning a low price)
High Technical score
Low Cost score (meaning the price is high)
Low Technical score
Low Cost score (meaning the price is high)
Low Technical score
High Cost Score (meaning the price is low)
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EXAMPLES1000 possible points with
700 to technical & 300 to cost
High Tech score 625
High Cost score 275
Total Score 900
Highest Tech score 700
Low Cost score 100
Total Score 800
Low Tech score 350
Low Cost score 100
Total Score 450
Lowest Tech score 300Highest Cost score 300 (low bidder)
Total Score 600
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EXAMPLES1000 possible points with
300 to technical & 700 to cost
High Tech score 250
High Cost score 550
Total Score 800
Highest Tech score 300
Low Cost score 300
Total Score 600
Low Tech score 150
Low Cost score 300
Total Score 450
Lowest Tech score 125Highest Cost score 700 (lowest bidder)
Total Score 825
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3 Phases of Bid Scoring
1. Mandatory Minimum Requirements
2. Minimum Technical Score
3. Price and Final Score
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EXAMPLES1000 possible points with
300 to technical & 700 to costHigh Tech score 250 Highest Tech score 300
Low Tech score 150 Lowest Tech score 125
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High Tech score 250
High Cost score 550
Total Score 800
Highest Tech score 300
Low Cost score 300
Total Score 600
Low Tech score 150
Low Cost score 300
Total Score 450
Lowest Tech score 125
Highest Cost score 700 (lowest bidder)
Total Score 825
And the winner is……..
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TEST YOURSELFHigh Technical score
High Cost score (meaning a low price)
High Technical score
Low Cost score (meaning the price is high)
Low Technical score
Low Cost score (meaning the price is high)
Low Technical score
High Cost Score (meaning the price is low)
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Proposal:States your requirements back to
you
Promises you anything you want (even if you don’t know what that is)
Offers what they have to sell, not what you asked to buy
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SUB-
Did you invite this?
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Withdraw and Re-Issue???!!!Are you kidding?!
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If you don’t have time to do it right,
you don’t have time to spend in court.
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It is ok for bidders to improve upon your ideas.
That’s GREAT!
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3 Phases of Bid Scoring
1. Mandatory Minimum Requirements
2. Minimum Technical Score
3. Price and final score
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Go shopping for ideas in Handbook 901
Company stabilityExperie
nceStaffin
g plan
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Handbook 901
Chapter 6 – Procurement
Section 6.6.2
Criteria for Evaluating Proposals
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WHEW!Are we done yet?
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One more thing…
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ContractsHandbook 901
Chapter 6 – Procurement
All the goodies – Contract components, terms and conditions, checklists – including FNS-required provisions
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An engraved invitation from Handbook 901
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Learning Objectives
• The Power of the RFP – Getting What YOU want
• Open Competition & Conflicts of Interest
• Essential Components of an RFP
• The Importance of Being Specific
• Contractor Selection Criteria
• Bid Scoring
• The Contract is Your Protection
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Any Questions?