navigating the professional services contracting maze department of administration division of...

Navigating the Professional Navigating the Professional Services Contracting MazeServices Contracting Maze

Department of AdministrationDepartment of AdministrationDivision of Administrative ServicesDivision of Administrative Services

What Will We Learn Today?What Will We Learn Today?

The Decision Process (and initial The Decision Process (and initial considerations)considerations)

How to Start the Professional Services How to Start the Professional Services Contracting ProcessContracting Process

Developing a Scope of WorkDeveloping a Scope of Work Competition RequirementsCompetition Requirements Contract AdministrationContract Administration Contract AmendmentsContract Amendments

DefinitionsDefinitions

RFPRFP RRequests equests FFor or PProposalsroposalsPECPEC PProposal roposal EEvaluation valuation CCommitteeommitteeOfferorOfferor The respondent to the RFP-also sometimes The respondent to the RFP-also sometimes

(incorrectly) referred to as the bidder(incorrectly) referred to as the bidderContractorContractor The successful offeror with whom the The successful offeror with whom the

State State signs a contract.signs a contract.ResponsiveResponsive Proposal that meets all of the Proposal that meets all of the

minimum requirements in the minimum requirements in the RFP as well as the material RFP as well as the material terms (price, quantity, quality, and terms (price, quantity, quality, and delivery). delivery).

BAFOBAFO BBest est aand nd FFinal inal OOfferffer

Procurement Officer RoleProcurement Officer Role

Ensures compliance with the laws, including all Ensures compliance with the laws, including all requirements of written determinations.requirements of written determinations.

Consults with AG’s Office as needed.Consults with AG’s Office as needed. Issues the solicitation.Issues the solicitation. Coordinates the pre-proposal conference.Coordinates the pre-proposal conference. Reviews proposals for compliance with solicitation Reviews proposals for compliance with solicitation

requirements.requirements. Guides the PEC through the evaluation process.Guides the PEC through the evaluation process. Tabulates scores.Tabulates scores. Issues the Notice of Intent to Award.Issues the Notice of Intent to Award. Responds to protests, if any.Responds to protests, if any.

Alaska’s Procurement CodeAlaska’s Procurement CodeAS 36.30AS 36.30

Establishes the statutory authority for procurement and Establishes the statutory authority for procurement and control of goods and services.control of goods and services.

Based on the model procurement code.Based on the model procurement code. Regulations are found in Administrative Code, Title 2, Regulations are found in Administrative Code, Title 2,

Chapter 12.Chapter 12. The purposes of the procurement code include:The purposes of the procurement code include:

Provides for increased public confidence.Provides for increased public confidence. Fair and equitable treatment of all persons.Fair and equitable treatment of all persons. Maximize purchasing value of State funds.Maximize purchasing value of State funds. Provides for effective broad-based competition within the free Provides for effective broad-based competition within the free

enterprise system.enterprise system. Provides safeguards for the maintenance of a procurement Provides safeguards for the maintenance of a procurement

system of quality and integrity.system of quality and integrity.

Ethics in ProcurementEthics in ProcurementGovernment officials must always aim for what is Government officials must always aim for what is

best for the public, not merely for what may be best for the public, not merely for what may be “okay.” Every public official has a duty of loyal, “okay.” Every public official has a duty of loyal, faithful and honest service which is clearly faithful and honest service which is clearly inherent in the responsibilities of public office at inherent in the responsibilities of public office at all levels.all levels.

Code of EthicsCode of EthicsAlaska Statute Title 39Alaska Statute Title 39

Equates public office to public trust, any effort to Equates public office to public trust, any effort to benefit a personal or financial interest through benefit a personal or financial interest through official action is a violation of that trust.official action is a violation of that trust.

Conduct procurements in a fair and impartial Conduct procurements in a fair and impartial manner.manner.

Notify supervisor of potential conflicts.Notify supervisor of potential conflicts.

Avoid even the appearance of a conflict of interest.Avoid even the appearance of a conflict of interest.

WWID?WWID?

WHAT WOULD I DO (IN MY PERSONAL LIFE)?WHAT WOULD I DO (IN MY PERSONAL LIFE)?

Applying this principle usually gets you to the right choice.Applying this principle usually gets you to the right choice.

Avoid the appearance of unethical or compromising Avoid the appearance of unethical or compromising situations.situations.

Avoid any outside employment or activity in conflict with Avoid any outside employment or activity in conflict with your official duties.your official duties.

Identify and avoid making decisions where a potential Identify and avoid making decisions where a potential conflict of interest may exist.conflict of interest may exist.

Never solicit or accept anything of value from suppliers Never solicit or accept anything of value from suppliers or potential vendors.or potential vendors.

Treat everyone equally.Treat everyone equally.

First Things First!First Things First!

There are a few items to There are a few items to consider before we start consider before we start the professional services the professional services contracting process….contracting process….

Task Order? Employee or contractor?

Is it a professional service?

Is it an exempt (from the Procurement Code) service?

Is it an exception?

What is the dollar value?

Task Order System

Definition

The intent of the Task Order system is to provide qualified firms that can provide for a variety of temporary information technology and management consulting professional services at highly competitive rates without having to go through the normal solicitation process.

They may be very limited in scope and duration, or they may be broad and long-lasting. They are anticipated to vary in size from $5,000 - $500,000, from a few days to many months in duration, and may include a variety of technology and management services.

The Task Order system is a non-mandatory form of procurement.

http://www.state.ak.us/local/akpages/ADMIN/info/taskorder/new/

AAM 81.010 cautions against this. An employer/employee AAM 81.010 cautions against this. An employer/employee relationship may exist when:relationship may exist when: The person is subject to the control of the State, not only as to what The person is subject to the control of the State, not only as to what

will be done, but when, where, and how it will be done. It is not will be done, but when, where, and how it will be done. It is not necessary that the State actually direct or control the manner in which necessary that the State actually direct or control the manner in which services are performed, if the State has a right to do so;services are performed, if the State has a right to do so;

The State has the right to discharge the person; The State has the right to discharge the person; The State furnishes the tools, equipment, and a place to work for the The State furnishes the tools, equipment, and a place to work for the

individual performing the services;individual performing the services; If the State allocates funding and requires adherence to a line item If the State allocates funding and requires adherence to a line item

budget.budget.

Employee? Employee? Contractor? Contractor?

People are independent contractors if:People are independent contractors if: They are subject to control or direction of the State They are subject to control or direction of the State

only as to the result to be accomplished and the work only as to the result to be accomplished and the work to be done, not as to the means and methods for to be done, not as to the means and methods for accomplishing the result.accomplishing the result.

They are in business providing a service to the public They are in business providing a service to the public from which they may derive a profit or suffer a loss.from which they may derive a profit or suffer a loss.

They are paid directly for the performance of a They are paid directly for the performance of a particular service or services at a specified price. particular service or services at a specified price.

Employee? Employee? Contractor? Contractor?

Is It a Professional Service?Is It a Professional Service?

Administrative Manual 81.430Administrative Manual 81.430““The provision of a service by a professional does not The provision of a service by a professional does not define that service as a "professional service." define that service as a "professional service."

Professional services are any professional, technical, or Professional services are any professional, technical, or consultant services predominantly intellectual in character. consultant services predominantly intellectual in character. They include analysis, evaluation, prediction, planning, or They include analysis, evaluation, prediction, planning, or recommendation, and result in the production of a report recommendation, and result in the production of a report or the completion of a task. A professional services or the completion of a task. A professional services contract requires specialized knowledge and training contract requires specialized knowledge and training (often through long and intensive academic preparation) or (often through long and intensive academic preparation) or in-depth experience in a particular field or discipline. “in-depth experience in a particular field or discipline. “

Is It Exempt From the Requirements of Is It Exempt From the Requirements of the Procurement Code?the Procurement Code?

Governmental agenciesGovernmental agencies Certified employment Certified employment

programsprograms Youth education Youth education

programsprograms Correctional IndustriesCorrectional Industries Book binding servicesBook binding services PeriodicalsPeriodicals

AdvertisingAdvertising Audio visual materialsAudio visual materials Medical doctors and Medical doctors and

dentistsdentists Newspapers/subscriptionsNewspapers/subscriptions Network information Network information

services accessservices access BooksBooks

Examples of exemptions include purchases of these types:Examples of exemptions include purchases of these types:

Exceptions to the Procurement CodeExceptions to the Procurement Code

An exception is a situation that prevents you from obtaining An exception is a situation that prevents you from obtaining the desired service through normal competitive methods the desired service through normal competitive methods because:because:

1.1. Only one source exists or is acceptable or suitable to meet the Only one source exists or is acceptable or suitable to meet the State’s needs.State’s needs.

2.2. The procurement process is impractical or contrary to the public’s The procurement process is impractical or contrary to the public’s interest and result in restricting the procurement to a limited group of interest and result in restricting the procurement to a limited group of potential contractors.potential contractors.

3.3. An unanticipated amendment to a procurement/contract exceeds An unanticipated amendment to a procurement/contract exceeds the amendment limitation in the Administrative Manual.the amendment limitation in the Administrative Manual.

4.4. An emergency situation exists in which a timely decision (generally An emergency situation exists in which a timely decision (generally less than 72 hours) must be made to prevent loss of life, damage to less than 72 hours) must be made to prevent loss of life, damage to property or facilities, or to mitigate an imminent threat to public property or facilities, or to mitigate an imminent threat to public health.health.

RRequest for equest for AAlternate lternate PProcurementrocurementRAPRAP

What does the law require us to provide in What does the law require us to provide in order to obtain approval of a RAP?order to obtain approval of a RAP? An explanation that thoroughly describes the An explanation that thoroughly describes the

situation.situation. Findings of fact that summarizes all the Findings of fact that summarizes all the

pertinent details surrounding the procurement.pertinent details surrounding the procurement. And supporting evidence that verifies that the And supporting evidence that verifies that the

explanation given and the findings of fact explanation given and the findings of fact listed are true and accurate.listed are true and accurate.

Even if we provide a good explanation of the situation, if we don’t include evidence to support the claims, the RAP cannot be approved!

Determining the Determining the Dollar ValueDollar Value

First, are there funds available? If so….First, are there funds available? If so…. We must consider the total value of all similar We must consider the total value of all similar

requirements for supplies and services during requirements for supplies and services during the same time from the same group of the same time from the same group of vendors, including any options to renew or vendors, including any options to renew or extend the contract.extend the contract.

For Example: If the resulting contract is for $200 a month and will last one year, but also includes three one-year renewal options, you must seek

the level of competition for a $9,600 procurement:

$200 X 12 months=$2,400 annually$2,400 X 4 (years)=$9,600

What is Artificial Fragmentation?What is Artificial Fragmentation?

AS 36.30.320 (d) precludes “artificial division or AS 36.30.320 (d) precludes “artificial division or fragmentation” in order to purchase under small fragmentation” in order to purchase under small procurement procedures. There is no definition procurement procedures. There is no definition of artificial fragmentation that can address every of artificial fragmentation that can address every circumstance. When deciding if a division is circumstance. When deciding if a division is artificial or natural, we consider:artificial or natural, we consider:

PricePriceSimilarity of ServicesSimilarity of ServicesPredictabilityPredictability

Combining ServicesCombining Services PricePrice-the higher the price of a group of procurements, -the higher the price of a group of procurements,

the more likely they should be consolidated. We are the more likely they should be consolidated. We are required to look at our annual costs for a group of required to look at our annual costs for a group of procurements to determine the appropriate level of procurements to determine the appropriate level of competition.competition.

Similarity of ServicesSimilarity of Services-the more similar the type of -the more similar the type of services or the availability of services from one type of services or the availability of services from one type of vendor, the more likely that the services should be vendor, the more likely that the services should be consolidated and made part of a single procurement.consolidated and made part of a single procurement.

PredictabilityPredictability-the more predictable the procurement of -the more predictable the procurement of similar services is, the more likely that the services similar services is, the more likely that the services should be consolidated and made part of a single should be consolidated and made part of a single procurement.procurement.

Procurement LevelsProcurement Levels

The estimated dollar value of the procurement will determine what The estimated dollar value of the procurement will determine what solicitation process we follow.solicitation process we follow.

Four distinct levels of competition and requirements:Four distinct levels of competition and requirements:

The minimum number of solicitations required must be obtained from Alaskan vendors for all types of solicitations, regardless of dollar amount.

$0-$5,000$0-$5,000 Reasonable & adequate competitionReasonable & adequate competition$5,000-$25,000$5,000-$25,000 Letter of Solicitation (3 quotes or posted)Letter of Solicitation (3 quotes or posted)$25,000-$50,000$25,000-$50,000 Request for Informal Proposals (3 quotes or Request for Informal Proposals (3 quotes or posted, posted,

notice of award, protest period, no notice of award, protest period, no minimum advertising period)minimum advertising period)Over $50,000Over $50,000 Request for Proposals (RFP) process (post Request for Proposals (RFP) process (post on OPN on OPN

minimum 21 days, notice of intent minimum 21 days, notice of intent to award, ten day protest period)to award, ten day protest period)

What is Reasonable & Adequate What is Reasonable & Adequate Competition?Competition?

Reasonable and adequate procedures Reasonable and adequate procedures means procedures that ensure fairness to means procedures that ensure fairness to potential offerors and competition potential offerors and competition commensurate with the circumstances of commensurate with the circumstances of the procurement, considering price, the procurement, considering price, mission requirements, and available mission requirements, and available competition. Reasonable and adequate competition. Reasonable and adequate competition includes contacting one competition includes contacting one potential offeror in appropriate potential offeror in appropriate circumstances.circumstances.

Into the Maze….Into the Maze….

Division

Assure $ is

available,

establish

encumbrance

once amount is

known.

Remember to

release $ after all

obligations paid

for fiscal year-

establish new line

of coding in

encumbrance if

the contract

crosses fiscal

years.

Prepare ASPS or

Purchase

Requisition if

needed

Monitor day to

day performance

of contractor

At the first sign of

performance

issues, Division is

first responder,

then contacts

Procurement for

additional

assistance

Development of

specifications to

be used in

solcitation

Procurement will

assist with

development of

specifications as

needed and will

assure

compliance with

the procurement

rules

Solicitation

Process

Evaluation

Process

If deliverable

based, no

payments are

made unless

deliverables are

acceptable to the

State

If fixed price, we

still need to

assure that the

contractor has

met its

responsibilities

under the

contract

Track contract

expenditures-

exceeding the

contract $ limit is

a procurement

violation

Award/Protest

Period

Contract

Development

Ascertain when

amendments are

required and

prepare

amendmentAssists in

disputes, issues

formal cure

letters

Procurement

Assists in

contract

development

Start

The ProcessThe Process

Division works on solicitation using the latest shell.Division works on solicitation using the latest shell. Division submits to Procurement Specialist for Division submits to Procurement Specialist for

review/suggestions.review/suggestions. Division revises solicitation.Division revises solicitation. If RFP, Procurement Specialist coordinates review by If RFP, Procurement Specialist coordinates review by

DOA’s RFP review committee.DOA’s RFP review committee. If over $10,000 Procurement Specialist conducts If over $10,000 Procurement Specialist conducts

procurement.procurement. Division provides evaluators, Procurement Specialist Division provides evaluators, Procurement Specialist

receives proposals, determines responsiveness.receives proposals, determines responsiveness.

Developing the Scope of ServicesDeveloping the Scope of Services

After determining the appropriate process, the division drafts the scope After determining the appropriate process, the division drafts the scope of services, with assistance from the Procurement Specialist, if of services, with assistance from the Procurement Specialist, if necessary.necessary.

Why are specifications (scope of work) Why are specifications (scope of work) so important?so important?

To ensure a clear understanding of what is expected (if you don’t To ensure a clear understanding of what is expected (if you don’t ask for it, don’t expect to receive it!)ask for it, don’t expect to receive it!)

To deliver the service that meets the requirements of the agency;To deliver the service that meets the requirements of the agency; To allow for maximum, reasonable competition.To allow for maximum, reasonable competition.

Developing the Scope of ServicesDeveloping the Scope of Services

First, we decide which type of specification First, we decide which type of specification or combination of specifications to use to or combination of specifications to use to describe our needs adequately and to describe our needs adequately and to ensure full and open competitionensure full and open competition..

We don’t limit the competition through overly We don’t limit the competition through overly (or unduly) restrictive specifications. AS (or unduly) restrictive specifications. AS 36.30.060 (c)36.30.060 (c)

Developing a Scope of ServicesDeveloping a Scope of Services

Include:Include:

Scope: a general (but complete) description of the Scope: a general (but complete) description of the scope of services required. Describe the scope of services required. Describe the expected use of the service-what we expect to expected use of the service-what we expect to “get” from the contract.“get” from the contract.

List of Requirements: any special associations, List of Requirements: any special associations, memberships, licenses. memberships, licenses.

Definitions of terms: ensures necessary proper Definitions of terms: ensures necessary proper and mutual interpretation.and mutual interpretation.

Expected deliverables, timelines, milestones.Expected deliverables, timelines, milestones.


A scope of services has a requirement for A scope of services has a requirement for clarity. Scopes of services having more than clarity. Scopes of services having more than one reasonable interpretation are considered one reasonable interpretation are considered ambiguous and should be avoided.ambiguous and should be avoided.

Vague or ambiguous specifications do not Vague or ambiguous specifications do not communicate the requirements to the offerors.communicate the requirements to the offerors.

Ambiguous specifications impede full and open Ambiguous specifications impede full and open competition by failing to ensure that offerors are competition by failing to ensure that offerors are competing on a “common” or “equal” basis.competing on a “common” or “equal” basis.

A scope of services is not ambiguous when it A scope of services is not ambiguous when it contains clear performance expectations.contains clear performance expectations.


Specifications must be written in the Specifications must be written in the broadest possible sense to encourage broadest possible sense to encourage competition from the maximum number of competition from the maximum number of sources, yet still meet the needs of the sources, yet still meet the needs of the agency.agency.


2 AAC 12.090 states that specifications 2 AAC 12.090 states that specifications must describe the requirements….without must describe the requirements….without having the effect of exclusively requiring a having the effect of exclusively requiring a proprietary service from a single source.proprietary service from a single source.

An “unduly restrictive” specification is one An “unduly restrictive” specification is one that limits competition by including a that limits competition by including a requirement that exceeds the needs of the requirement that exceeds the needs of the State.State.

Developing a Scope of ServiceDeveloping a Scope of Service

A good scope of service should do five things:A good scope of service should do five things:

1.1. Identify minimum requirements;Identify minimum requirements;

2.2. Allow for maximum competition;Allow for maximum competition;

3.3. Utilize standard requirements when possible;Utilize standard requirements when possible;

4.4. List the methods to be used to assure List the methods to be used to assure compliance with the scope of work (progress compliance with the scope of work (progress reports, regular meetings); andreports, regular meetings); and

5.5. Provide for an equitable award to the highest Provide for an equitable award to the highest ranked proposal.ranked proposal.


A good scope of service contains:A good scope of service contains:

A brief description of the reason the A brief description of the reason the services are required. Describe what services are required. Describe what you are trying to achieve, not how you you are trying to achieve, not how you want it achieved.want it achieved.

A list of deliverables or milestones (and A list of deliverables or milestones (and their schedules) to base payments on.their schedules) to base payments on.


The goal is clarity-everyone reading the scope of The goal is clarity-everyone reading the scope of service should have the same understanding. service should have the same understanding.

Scope of services are read and interpreted by a Scope of services are read and interpreted by a variety of people. The intent of the words must variety of people. The intent of the words must be understood not only by the writer, but by the be understood not only by the writer, but by the readers.readers.

Avoid redundant words and phrases that clutter Avoid redundant words and phrases that clutter the scope of service.the scope of service.

Be concise, precise, and consistent. Use the Be concise, precise, and consistent. Use the same words and phrases to describe the same same words and phrases to describe the same requirement.requirement.


Vagueness and ambiguities are Vagueness and ambiguities are meaningless and unenforceable in a meaningless and unenforceable in a contract:contract:

Properly assembledProperly assembled

Carefully performedCarefully performed

ReasonableReasonable

Optimum performanceOptimum performance


Use “shall” to express something that is mandatory and Use “shall” to express something that is mandatory and binding on the Contractor (the Contractor shall provide all binding on the Contractor (the Contractor shall provide all necessary equipment…)necessary equipment…)

Use “will” to indicate future requirements or future actions, or Use “will” to indicate future requirements or future actions, or when certain requirements are met (the State will when certain requirements are met (the State will compensate…)compensate…)

Avoid using “may” or “should” as they leave the decision for Avoid using “may” or “should” as they leave the decision for action up to the Contractor (or use them for non-action up to the Contractor (or use them for non-mandatory provisions)mandatory provisions)

Avoid using “any” or “either” unless you want the Contractor Avoid using “any” or “either” unless you want the Contractor to choose what must be done.to choose what must be done.

Avoid “etc.”– the reader has no idea of what is missing.Avoid “etc.”– the reader has no idea of what is missing.

Use active verbs (analyze, audit, calculate, create, design, Use active verbs (analyze, audit, calculate, create, design, develop, interpret, observe, organize, perform)develop, interpret, observe, organize, perform)

Avoid passive language, which can lead to vague Avoid passive language, which can lead to vague statements (use “the Contractor shall perform” instead statements (use “the Contractor shall perform” instead of “it shall be performed”)of “it shall be performed”)

Avoid catch-all and open-ended phrases as they are not Avoid catch-all and open-ended phrases as they are not universally defined (“subject to approval” should be “at universally defined (“subject to approval” should be “at the State’s approval”)the State’s approval”)

Use abbreviations or acronyms only after spelling them Use abbreviations or acronyms only after spelling them out the first time they are referenced. Consider out the first time they are referenced. Consider providing an appendix if there are many abbreviations providing an appendix if there are many abbreviations or acronyms.or acronyms.


For clarity, use shorter words that mean the same thing. For example:For clarity, use shorter words that mean the same thing. For example:

UseUse Instead ofInstead ofAvoid…………………………………..CircumventAvoid…………………………………..CircumventRequire………………………………..NecessitateRequire………………………………..NecessitateBut……………………………………..NeverthelessBut……………………………………..NeverthelessBegin…………………………………..CommenceBegin…………………………………..CommenceChanges………………………………ModificationsChanges………………………………ModificationsFalse…………………………………..ErroneousFalse…………………………………..ErroneousUse…………………………………….ConsumptionUse…………………………………….ConsumptionStart……………………………………InitiateStart……………………………………InitiatePay…………………………………….CompensatePay…………………………………….CompensateRank…………………………………..PrioritizeRank…………………………………..PrioritizeRush…………………………………..ExpediteRush…………………………………..ExpediteSpread…………………………………DisseminateSpread…………………………………Disseminate


Do not use long phrases when it is not necessary. For example:Do not use long phrases when it is not necessary. For example:

Long PhraseLong Phrase PreferredPreferredIn the final analysis…………………...FinallyIn the final analysis…………………...FinallyFilled to capacity……………………...FullFilled to capacity……………………...FullA great number of times……………..OftenA great number of times……………..OftenAt regular intervals……………………RegularlyAt regular intervals……………………RegularlyIn the majority of cases………………UsuallyIn the majority of cases………………UsuallyExperience has shown……………….Experience showsExperience has shown……………….Experience showsAt the earliest possible moment…….ImmediatelyAt the earliest possible moment…….ImmediatelyWith respect to………………………..ConcerningWith respect to………………………..ConcerningPrior to, in advance of………………..BeforePrior to, in advance of………………..BeforeAt your earliest convenience………...SoonAt your earliest convenience………...SoonIt is recommended…………………….We recommendIt is recommended…………………….We recommendIn view of……………………………….BecauseIn view of……………………………….Because


Scopes of work should be clear and accurate.Scopes of work should be clear and accurate.

Scopes of work should be concise.Scopes of work should be concise.

Scopes of work should be verifiable.Scopes of work should be verifiable.

Scopes of work should be reasonable in their requirements.Scopes of work should be reasonable in their requirements.

Scopes of work should be fair.Scopes of work should be fair.

Scopes of work should be definite.Scopes of work should be definite.



Scopes of service should not be unduly restrictive.Scopes of service should not be unduly restrictive.

Scopes of service should not be ambiguous or vague.Scopes of service should not be ambiguous or vague.

Scopes of service should not allow requirements to vary or be Scopes of service should not allow requirements to vary or be undefined.undefined.

Scopes of service should not redundant.Scopes of service should not redundant.

Scopes of service should not be written by a potential offeror.Scopes of service should not be written by a potential offeror.

Scopes of service should not contain the solicitation Scopes of service should not contain the solicitation instructions, standard terms and conditions, forms, or instructions, standard terms and conditions, forms, or boilerplate provisions.boilerplate provisions.

Developing Evaluation CriteriaDeveloping Evaluation Criteria

40% required for cost (may be waived in specific 40% required for cost (may be waived in specific circumstances, requires approval by the Division of circumstances, requires approval by the Division of General Services)General Services)

10% is allotted to the Alaska Offeror’s Preference10% is allotted to the Alaska Offeror’s Preference

Directly link the remaining 50% to the scope of work.Directly link the remaining 50% to the scope of work.

Remember, we cannot score it if it’s not identified in the Remember, we cannot score it if it’s not identified in the solicitation.solicitation.

All scoring/evaluation criteria must be published in the All scoring/evaluation criteria must be published in the solicitation.solicitation.

By establishing minimum requirements By establishing minimum requirements (remembering to not be too restrictive) we (remembering to not be too restrictive) we can use the scoring criteria to select the can use the scoring criteria to select the most advantageous proposal. This means most advantageous proposal. This means only the proposals meeting the minimum only the proposals meeting the minimum requirements and otherwise deemed requirements and otherwise deemed responsive move on to the scoring round responsive move on to the scoring round of evaluation.of evaluation.

Helpful Hint to Make the Most of Helpful Hint to Make the Most of the Scoring Criteriathe Scoring Criteria

Minimum requirements are much like when Minimum requirements are much like when you’re selling a house and you want to you’re selling a house and you want to only show it to qualified potential buyers.only show it to qualified potential buyers.

Selling a House???Selling a House???


Potential Minimum RequirementsPotential Minimum Requirements

Location/Service Areas Required Licenses/certificates

Past Success

Specific Prior Experience

Minimum RequirementsMinimum RequirementsWords of Caution!Words of Caution!

The minimum criteria should include every requirement that is necessary to accomplish the task described in the RFP and which offerors must meet in

order to be deemed responsive.

Any offeror who meets the minimum requirements should be able to accomplish the required tasks. The purpose of the evaluated criteria is to select the best

proposal from a group that has already been determined to be responsive. We achieve that by assigning specific weights that are based on the relative

importance of the criteria being evaluated with the more important criteria receiving the higher weight.

There are NO EXCEPTIONS to the minimum requirements. It’s a simple pass or fail. If the proposal fails, it’s OUT!

Standard Evaluation CriteriaStandard Evaluation Criteria

Understanding of the projectUnderstanding of the project MethodologyMethodology ReferencesReferences Experience and QualificationsExperience and Qualifications

Where Are We??Where Are We??

Division

Assure $ is

available,

establish

encumbrance

once amount is

known.

Remember to

release $ after all

obligations paid

for fiscal year-

establish new line

of coding in

encumbrance if

the contract

crosses fiscal

years.

Prepare ASPS or

Purchase

Requisition if

needed

Monitor day to

day performance

of contractor


performance

issues, Division is

first responder,

then contacts

Procurement for

additional

assistance

Development of

specifications to

be used in

solcitation

Procurement will

assist with

development of

specifications as

needed and will

assure

compliance with

the procurement

rules

Solicitation

Process

Evaluation

Process

If deliverable

based, no

payments are

made unless

deliverables are

acceptable to the

State

If fixed price, we

still need to

assure that the

contractor has

met its

responsibilities

under the

contract

Track contract

expenditures-

exceeding the

contract $ limit is

a procurement

violation

Award/Protest

Period

Contract

Development

Ascertain when

amendments are

required and

prepare

amendmentAssists in

disputes, issues

formal cure

letters

Procurement

Assists in

contract

development

Start

Solicitation StageSolicitation Stage$5,000-$25,000$5,000-$25,000 Letter of Solicitation (3 quotes or Letter of Solicitation (3 quotes or posted)posted)

$25,000-$50,000$25,000-$50,000 Request for Informal Proposals (3 Request for Informal Proposals (3 quotes or posted, notice quotes or posted, notice of award, of award, protest period, no minimum protest period, no minimum advertising period)advertising period)

Over $50,000Over $50,000 Request for Proposals (RFP) process Request for Proposals (RFP) process (post on OPN minimum 21 days, (post on OPN minimum 21 days, notice of intent to award, ten day notice of intent to award, ten day protest period)protest period)

Division is responsible for background information, scope of work, and evaluation criteria.

RFPsRFPsPre-proposal Conference

The purpose of holding a pre-proposal conference is to allow the procurement officer to highlight particularly important requirements and encourage vendor participation to ask questions, identify potential flaws, and assure everyone has the same interpretation of

the RFP.

If questions were asked that require clarification to the solicitation, or if revision is otherwise required, the

procurement officer will issue a formal amendment to the solicitation.

The procurement officer normally will not answer questions (other then questions in which the answers are

contained already in the RFP) directly to the questioning party. The

goal is to assure that everyone receives the same information at the

same time.

Deadline for Receipt of ProposalsDeadline for Receipt of Proposals

Once the deadline for receipt of proposals has past, the procurement officer will determine which proposals are responsive. Only responsive

proposals move forward to the Proposal Evaluation Committee for evaluation.

RESPONSIVENESS: Proposals must comply with the material terms of the solicitation, commonly: price, quantity, quality, delivery, minimum

requirements.

And now, EVALUATION!!!


Division

Assure $ is

available,

establish

encumbrance

once amount is

known.

Remember to

release $ after all

obligations paid

for fiscal year-

establish new line

of coding in

encumbrance if

the contract

crosses fiscal

years.

Prepare ASPS or

Purchase

Requisition if

needed

Monitor day to

day performance

of contractor


performance

issues, Division is

first responder,

then contacts

Procurement for

additional

assistance

Development of

specifications to

be used in

solcitation

Procurement will

assist with

development of

specifications as

needed and will

assure

compliance with

the procurement

rules

Solicitation

Process

Evaluation

Process

If deliverable

based, no

payments are

made unless

deliverables are

acceptable to the

State

If fixed price, we

still need to

assure that the

contractor has

met its

responsibilities

under the

contract

Track contract

expenditures-

exceeding the

contract $ limit is

a procurement

violation

Award/Protest

Period

Contract

Development

Ascertain when

amendments are

required and

prepare

amendmentAssists in

disputes, issues

formal cure

letters

Procurement

Assists in

contract

development

Start

e·val·u·atee·val·u·ate

–verb (used with object), –verb (used with object), -at·ed, -at·ing.-at·ed, -at·ing. 1. to determine or set the 1. to determine or set the

value or amount of; value or amount of; appraise: appraise: to evaluate to evaluate property. property.

2. to judge or determine the 2. to judge or determine the significance, worth, or significance, worth, or quality of; assess: quality of; assess: to to evaluate the results of an evaluate the results of an experiment. experiment.

3. 3. Mathematics. Mathematics. to ascertain to ascertain the numerical value of (a the numerical value of (a function, relation, etc.). function, relation, etc.).

The PEC’s GoalThe PEC’s Goal

To independently evaluate each proposal To independently evaluate each proposal against the criteria established in the RFP against the criteria established in the RFP in order to select the most advantageous* in order to select the most advantageous* proposal.proposal.

*the most advantageous proposal is the proposal *the most advantageous proposal is the proposal receiving the highest point total after evaluation of receiving the highest point total after evaluation of the technical proposals, cost proposals, applicable the technical proposals, cost proposals, applicable preferences, and the scripted demonstrations.preferences, and the scripted demonstrations.

IMPORTANT TO IMPORTANT TO REMEMBER!REMEMBER!

During the evaluation process, the proposals, During the evaluation process, the proposals, as well as the PEC activities, are confidential. as well as the PEC activities, are confidential.

• Don’t reproduce or distribute proposal material• Don’t discuss the submitted proposals or the procurement activities with any person outside the scheduled PEC meetings. This even includes telling people how many proposals we received, who the offerors are, etc.

Non-conflict of InterestNon-conflict of Interest

IMPORTANT! Many protests have been IMPORTANT! Many protests have been filed against the State alleging the filed against the State alleging the “appearance of an impropriety.” Let’s not “appearance of an impropriety.” Let’s not be one!be one!

Every PEC member must read and sign the non-conflict of interest statement form.

PEC MembersPEC Members

2 AAS 12.2602 AAS 12.260

Each PEC member must Each PEC member must exercise independent exercise independent judgment in their judgment in their evaluations.evaluations.

No one member’s vote may No one member’s vote may be weighted more than be weighted more than another.another.

Evaluation may only be Evaluation may only be based on the evaluation based on the evaluation factors established in the factors established in the RFP.RFP.

Instructions to PEC MembersInstructions to PEC Members

Use independent judgmentUse independent judgment Be aware of potential influences from outside the Be aware of potential influences from outside the

evaluation committee/within the committeeevaluation committee/within the committee Evaluators may not act in a concerted way to Evaluators may not act in a concerted way to

either favor or disfavor a particular proposal or either favor or disfavor a particular proposal or group of proposals.group of proposals.

Attempts to improperly favor or disfavor a Attempts to improperly favor or disfavor a particular proposal or group of proposals, such particular proposal or group of proposals, such as awarding or withholding points in a manner as awarding or withholding points in a manner that might affect the outcome of the committee that might affect the outcome of the committee results, must be reported to the procurement results, must be reported to the procurement officer immediately.officer immediately.

Initial EvaluationInitial Evaluation

PEC members will independently PEC members will independently review the RFP as amended.review the RFP as amended.

PEC members should review and PEC members should review and consider each proposal in detail with consider each proposal in detail with equal care and attention.equal care and attention.

Consider working at home for Consider working at home for concentration and confidentiality concentration and confidentiality purposes.purposes.

Using the Evaluation FormUsing the Evaluation Form Proposals are to be evaluated by assigning points within Proposals are to be evaluated by assigning points within

the allowable range for each of the weighted criteria on the allowable range for each of the weighted criteria on the evaluation form.the evaluation form.

Use the “neutral scoring method” described on the next Use the “neutral scoring method” described on the next screen.screen.

Initial scores should be recorded in pencil, to facilitate Initial scores should be recorded in pencil, to facilitate any changes the PEC member wishes to make during any changes the PEC member wishes to make during the group discussion at the PEC meeting(s).the group discussion at the PEC meeting(s).

NOTE: The assignment of points at this time is tentative NOTE: The assignment of points at this time is tentative and reflects the PEC member’s individual view of the and reflects the PEC member’s individual view of the merits of the written proposal. PEC members will have merits of the written proposal. PEC members will have the opportunity to revise scores at the PEC meeting(s) the opportunity to revise scores at the PEC meeting(s) after discussion of the proposals as a committee.after discussion of the proposals as a committee.

Neutral Scoring MethodNeutral Scoring Method

Points for the evaluation categories will be Points for the evaluation categories will be determined based upon a “neutral score” as a determined based upon a “neutral score” as a starting point as shown below:starting point as shown below:

Available Points:Available Points: 1515Divide the available points by 2 to arrive at the Divide the available points by 2 to arrive at the

“neutral score” of 7.5“neutral score” of 7.5Using independent judgment, add or subtract from Using independent judgment, add or subtract from

the neutral score, based on your opinion of the the neutral score, based on your opinion of the proposal in comparison to the RFP proposal in comparison to the RFP requirements.requirements.

More on Independent ReviewMore on Independent Review

Use the “Evaluator’s Notes” portion Use the “Evaluator’s Notes” portion of the evaluation form to give a of the evaluation form to give a brief and concise explanation of brief and concise explanation of your scoring. Remember that you your scoring. Remember that you could be asked later for an could be asked later for an explanation of your written explanation of your written explanation.explanation.

Helpful hint: Don’t score a section Helpful hint: Don’t score a section with “0” unless the proposal does with “0” unless the proposal does not address the section at all.not address the section at all.

PEC MeetingsPEC Meetings

After the PEC has completed their initial independent scoring, the After the PEC has completed their initial independent scoring, the PEC will convene as a group.PEC will convene as a group.

Remember that we may have “Best and Final Offers” which give Remember that we may have “Best and Final Offers” which give another opportunity to rescore particular areas of the proposals. another opportunity to rescore particular areas of the proposals. Don’t score so high that if an offeror submits a BAFO, you can’t give Don’t score so high that if an offeror submits a BAFO, you can’t give them higher points.them higher points.

PEC meetings are NOT open to the public, nor are they recorded PEC meetings are NOT open to the public, nor are they recorded electronically.electronically.

The PEC will discuss one proposal at a time.The PEC will discuss one proposal at a time. Includes a review of PEC member initial scoring and discussion Includes a review of PEC member initial scoring and discussion

of assignment of points, followed by an opportunity to revise of assignment of points, followed by an opportunity to revise initial scores.initial scores.

The Procurement Officer records the scores into a spreadsheet The Procurement Officer records the scores into a spreadsheet for tabulation and record keeping.for tabulation and record keeping.

OK to Debate!OK to Debate!

It’s normal and acceptable for there to be It’s normal and acceptable for there to be debate, even passionate debate, within debate, even passionate debate, within the PEC on the merits of proposals.the PEC on the merits of proposals.

Keep it respectful!Keep it respectful! It’s ok to change your score based on It’s ok to change your score based on

what another member says.what another member says. No bullying!No bullying! No spitting and no name calling!No spitting and no name calling!

Compilation of ScoresCompilation of Scores

The Procurement Officer will tabulate the The Procurement Officer will tabulate the scores for each offeror to determine which scores for each offeror to determine which offerors are “susceptible for award” and offerors are “susceptible for award” and included in BAFOs.included in BAFOs.

BAFOs allow the State to hold discussions with susceptible offerors, limited to specific portions of the RFP and/or proposal.

The areas discussed are allowed to be rescored by the PEC.

Notice of Intent to AwardNotice of Intent to Award

After the PEC has identified the most After the PEC has identified the most advantageous proposal, the division and advantageous proposal, the division and procurement officer will enter negotiations procurement officer will enter negotiations with the highest ranked offeror. Once with the highest ranked offeror. Once agreement is reached, the procurement agreement is reached, the procurement officer issues the Notice of Intent to Award officer issues the Notice of Intent to Award a Contract, which is subject to a ten-day a Contract, which is subject to a ten-day protest period. If a protest is received, a protest period. If a protest is received, a delay in the actual contract execution may delay in the actual contract execution may occur, depending on the circumstances.occur, depending on the circumstances.

Protests-Let’s Hope Not!!Protests-Let’s Hope Not!!

AS 36.30.560 provides that an interested party AS 36.30.560 provides that an interested party may protest the contents of the RFP may protest the contents of the RFP

AS 36.30.560 also provides that an interested AS 36.30.560 also provides that an interested party may protest the award of a contract or the party may protest the award of a contract or the proposed award of a contract.proposed award of a contract.

2 AAC 12.990 (a)(7) defines interested party as: 2 AAC 12.990 (a)(7) defines interested party as: “an actual or prospective bidder or offeror whose “an actual or prospective bidder or offeror whose economic interest might be affected substantially economic interest might be affected substantially and directly by the issuance of a contract and directly by the issuance of a contract solicitation, the award of a contract, or the failure solicitation, the award of a contract, or the failure to award a contract.”to award a contract.”

More on ProtestsMore on Protests

Good or bad, protests are a part of the Good or bad, protests are a part of the procurement process.procurement process.

We don’t take personal offense.We don’t take personal offense. We remain objective and calm.We remain objective and calm. If we do it right in the first place, we don’t If we do it right in the first place, we don’t

have to do it over!have to do it over! Remember you may be asked later to Remember you may be asked later to

explain your written documentation of the explain your written documentation of the scoring process-be careful what you say.scoring process-be careful what you say.


Division

Assure $ is

available,

establish

encumbrance

once amount is

known.

Remember to

release $ after all

obligations paid

for fiscal year-

establish new line

of coding in

encumbrance if

the contract

crosses fiscal

years.

Prepare ASPS or

Purchase

Requisition if

needed

Monitor day to

day performance

of contractor


performance

issues, Division is

first responder,

then contacts

Procurement for

additional

assistance

Development of

specifications to

be used in

solcitation

Procurement will

assist with

development of

specifications as

needed and will

assure

compliance with

the procurement

rules

Solicitation

Process

Evaluation

Process

If deliverable

based, no

payments are

made unless

deliverables are

acceptable to the

State

If fixed price, we

still need to

assure that the

contractor has

met its

responsibilities

under the

contract

Track contract

expenditures-

exceeding the

contract $ limit is

a procurement

violation

Award/Protest

Period

Contract

Development

Ascertain when

amendments are

required and

prepare

amendmentAssists in

disputes, issues

formal cure

letters

Procurement

Assists in

contract

development

Start

Houston, We Have a Contract!Houston, We Have a Contract!

Upon final execution of the contract (signed Upon final execution of the contract (signed by all parties) the contractor may begin by all parties) the contractor may begin performing the services.performing the services.

Approval flow:Approval flow:

ContractorContractor

DivisionDivision

Administrative ServicesAdministrative Services

Contract AdministrationContract Administration

What is contract administration and why is it What is contract administration and why is it important?important?

The role of the Division of Administrative The role of the Division of Administrative Services.Services.

The role of division staff.The role of division staff.

What & Why?What & Why?

DefinitionDefinitionAdministrative activities associated with handling of Administrative activities associated with handling of

contracts, such as (1) invitation to bid, (2) bid evaluation, contracts, such as (1) invitation to bid, (2) bid evaluation, (3) award of contract, (4) contract implementation, (5) (3) award of contract, (4) contract implementation, (5) measurement of work completed, and (6) computation of measurement of work completed, and (6) computation of payments. It also includes monitoring contract payments. It also includes monitoring contract relationship, addressing related problems, incorporating relationship, addressing related problems, incorporating necessary changes or modifications in the contract, necessary changes or modifications in the contract, ensuring both parties meet or exceed each other's ensuring both parties meet or exceed each other's expectations, and actively interacting with the contractor expectations, and actively interacting with the contractor to achieve the contract's objective(s). Also called to achieve the contract's objective(s). Also called contract administration.contract administration.

Why? Because it’s the public’s money and we have an obligation to safeguard that money.

How?How?

Monitor day to day activities of the contractor to assure they are in Monitor day to day activities of the contractor to assure they are in compliance with the contract.compliance with the contract.

Resolve issues immediately-do not wait.Resolve issues immediately-do not wait. Ascertain when contract changes are required (such as anticipated, Ascertain when contract changes are required (such as anticipated,

unanticipated amendments, extensions of time)unanticipated amendments, extensions of time)

Track milestones, deliverable dates, and receipt of services. NEVER SIGN AN Track milestones, deliverable dates, and receipt of services. NEVER SIGN AN INVOICE IF YOU HAVEN’T VERIFIED THAT THE WORK HAS BEEN INVOICE IF YOU HAVEN’T VERIFIED THAT THE WORK HAS BEEN COMPLETED-REMEMBER WWID!!!COMPLETED-REMEMBER WWID!!!

AmendmentsAmendments

Anticipated Amendment-foreseen at the time Anticipated Amendment-foreseen at the time of procurement. The solicitation and of procurement. The solicitation and resulting contract must advise offerors of resulting contract must advise offerors of the potential of amendments.the potential of amendments.

Unanticipated Amendment-not foreseen at Unanticipated Amendment-not foreseen at the time of procurement. the time of procurement.

Unanticipated AmendmentsUnanticipated Amendments

Contracts originally established under Contracts originally established under $50,000 may be amended up to $50,000, $50,000 may be amended up to $50,000, so long as the additional work is within the so long as the additional work is within the scope of the original contract.scope of the original contract.

If the amendment amount will cause the If the amendment amount will cause the contract to exceed $50,000, a RAP is contract to exceed $50,000, a RAP is required.required.

Unanticipated AmendmentsUnanticipated Amendments

Contracts originally established over Contracts originally established over $50,000 may be amended up to the lesser $50,000 may be amended up to the lesser of $50,000 or 20%, so long as the of $50,000 or 20%, so long as the additional work is within the scope of the additional work is within the scope of the original contract.original contract.

If the amendment amount will cause the If the amendment amount will cause the contract to exceed the amounts identified contract to exceed the amounts identified above, a RAP is required.above, a RAP is required.

Be Careful Out There!Be Careful Out There!

navigating the professional services contracting maze department of administration division of...

Documents