planning a successful management procurement calact 2011 spring conference planning a successful...
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Planning a Successful Management ProcurementCalACT 2011 Spring Conference
PLANNING A SUCCESSFUL MANAGEMENT PROCUREMENT
CalACT Spring Conference
April 20, 2011
Roy Glauthier
Transportation Planning and Policyv/fax: 949.650.5956
Email: [email protected]
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
PLANNING A SUCCESSFUL MANAGEMENT PROCUREMENT
Workshop Goal:
To share tips, techniques and approaches that will improve your odds of carrying out a trouble-free procurement for contracted transit or paratransit management.
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Workshop Outline
Overview of Procurement Process Sources of Procurement Guidance Terminology Contracting Market Should You Go To Bid? Setting a Realistic Procurement Timeline Expert Panel: Pitfalls and Problems
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Workshop Rules
Questions are welcome/encouraged. No experts here, we’re all still
learning, too.
Any questions?
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Elements in the Procurement Process
RFP development RFP release/publication Preproposal conference
& question period Addenda/clarifications Proposal submission Evaluation Interviews BAFO/negotiations
Selection/staff report Award Contract finalization Transition Start-up Month One Monitoring &
management Repeat as needed
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Primary Sources for Procurement Guidance:
Federal Transit Administration Best Practices Procurement Manual
Available at: http://www.fta.dot.gov/funding/thirdpartyprocurement/grants_financing_6037.html
[do not print…. 694pp] FTA Triennial Review Workbookhttp://www.fta.dot.gov/funding/oversight/grants_financing_10924.html
Your agency’s procurement policies.
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
CalACT/RTAP Contracting Workshops
1-Day Workshops on Effective Contracting coming in July [Northern CA] and October [Southern CA]
Webinar on Effective Contracting [3, 2-hour sessions, timing tbd]
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Critical Terminology
Bid versus Competitive Procurement-- Bid requires very clear specifications
-- Competitive Procurement is intended to permit competition on quality and other factors, as well as on price
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Critical Terminology
Types of Procurements*: Professional Services Agreement Sole Source Negotiated Procurement Competitive Procurement
*Depending on your agency’s procurement policies
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Overview of the Contracting Market
Major National Firms Regional Firms Local Transportation Firms
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Overview of the Contracting Market
Major National Firms Regional Firms Local Transportation Firms
Focus on performance-based specificationsClearly indicate criteria for selectionSeek broadest possible participation in process
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 1: Should you go to out to bid or not?
What does your existing contract say about contract term and options?
What objectives will be achieved by a competitive procurement?
Could these be achieved through negotiations with existing contractor?
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
RFP development RFP release/publication Preproposal conference
& question period Addenda/clarifications Proposal submission Evaluation Interviews BAFO/negotiations
Selection/staff report Award Contract finalization Transition Start-up Month One Monitoring &
management Repeat as needed
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Evaluation and Interviews November 1-24, 2011
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
PROPOSALS DUE 5:00 pm PDT October 29, 2011
Evaluation and Interviews November 1-24, 2011
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Addenda and Answers Distributed October 22, 2011
PROPOSALS DUE 5:00 pm PDT October 29, 2011
Evaluation and Interviews November 1-24, 2011
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Deadline for Submission of Questions October 15, 2011
Addenda and Answers Distributed October 22, 2011
PROPOSALS DUE 5:00 pm PDT October 29, 2011
Evaluation and Interviews November 1-24, 2011
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Voluntary Pre-proposal Conference October 13, 2011
Deadline for Submission of Questions October 15, 2011
Addenda and Answers Distributed October 22, 2011
PROPOSALS DUE 5:00 pm PDT October 29, 2011
Evaluation and Interviews November 1-24, 2011
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Request for Proposals Issued October 1, 2011
Voluntary Pre-proposal Conference October 13, 2011
Deadline for Submission of Questions October 15, 2011
Addenda and Answers Distributed October 22, 2011
PROPOSALS DUE 5:00 pm PDT October 29, 2011
Evaluation and Interviews November 1-24, 2011
Contract Award December 1, 2011
START OF SERVICE January 1, 2012
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 2: Determining Your Procurement Timeline
Critical Considerations in Setting Timeline: Acquisition and Preparation of
Vehicles Facilities Computers and software, other equipment
Internal City/Agency Reviews and Approvals Review and approval of RFP document by management, legal counsel,
risk management, etc. Council/governing body approval of RFP, selection, award
Practical Considerations Holiday periods Governing Board meeting schedule Coordinating contract timing to fiscal year
Others?
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Step 3: Fundamental Concepts of a Successful Procurement Process
Guidelines: Transparency Define your process, then follow it Fairness, level playing field Establish Sole Point of Contact Win/Win/Win -- Agency, Contractor, Public
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Developing Your Request for Proposals
Start with a good sample RFP… or several
Why reinvent the wheel? Give yourself/your agency plenty of time Get outside review
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Major Parts of RFP Document
Solicitation Terms of procurement, evaluation criteria and
protest process, checklist of proposal contents Sample contract Scope of Work Attachments -- Anticipate bidders’ requests:
Copies of monthly reports, present wage scales and benefits, fleet schedule and mileages, detail on provided equipment, facilities and furnishings
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Contract Document
Term of contract and any option periods
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Contract Document
Term of contract and any option periods Termination for cause and for convenience
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Contract Document
Term of contract and any option periods Termination for cause and for convenience How compensation will be paid
– Fixed Rate [per Rev Vehicle Hour, RVM, passenger]– Fixed and Variable – usually fixed payment per month for
fixed cost reimbursement plus specified amount per hour or mile operated during billing period
– Pass-through or Cost reimbursement – useful for cost items out of contractor’s control [e.g. fuel, facility rent, public phones]
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Contract Document
Term of contract and any option periods Termination for cause and for convenience How compensation will be paid Insurance Requirements
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Contract Document
Term of contract and any option periods Termination for cause and for convenience How compensation will be paid Insurance Requirements Emergency response:
– Expected actions– Terms of compensation
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
And, in case your project uses Federal funds…..
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Applicable Federal Clauses – See FTA Triennial Review Workbookhttp://www.fta.dot.gov/funding/oversight/grants_financing_10924.html
Exhibit 6.1
A. Required Third-Party Contract Clauses
B. Required Certifications, Reports and Forms
C. Other Required Items
Exhibit 6.2
Applicability of Third-Party Contract Clauses
[breaks down applicability by type of procurement & dollar value]
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work
Definitions Description of services to be operated
[hours, days, routes, service levels, policies]
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work
Definitions Description of services to be operated Performance standards, penalties/incentives,
how defined and measured
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work
Definitions Description of services to be operated Performance standards, penalties/incentives,
how defined and measured Detailed Responsibilities of Agency and
Contractor
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work
Definitions Description of services to be operated Performance standards, penalties/incentives,
how defined and measured Detailed Responsibilities of Agency and
Contractor Staffing: key positions, qualifications,
retention/replacement and approval
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work -- Continued
Specifications for vehicles and equipment to be provided by contractor or supplied by agency
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work -- Continued
Specifications for vehicles and equipment to be provided by contractor or supplied by agency
If DAR, operating details
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Key Elements in Scope of Work -- Continued
Specifications for vehicles and equipment to be provided by contractor or supplied by agency
If DAR, operating details Fuel cost arrangements
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Working With Your Contractor
Work to develop a partnership … both parties must succeed;
Manage, don’t micro-manage; Don’t get between company and its employees; Strive for consistency and clear direction; and Be familiar with actual operations, employees,
services.
Planning a Successful Management ProcurementCalACT 2011 Spring Conference
Expert Contracting Panel
Dave Smith, MV Transportation Authority
Sandi Schmidt, Transportation Concepts