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STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER New York State Office of the State Comptroller Thomas P. DiNapoli, Comptroller Office of Operations John.

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Presentation on theme: "STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER New York State Office of the State Comptroller Thomas P. DiNapoli, Comptroller Office of Operations John."— Presentation transcript:

1 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER New York State Office of the State Comptroller Thomas P. DiNapoli, Comptroller Office of Operations John Traylor, Executive Deputy Comptroller Division of Contracts and Expenditures Margaret Becker, Deputy Comptroller Charlotte Breeyear, Director, Bureau of Contracts Back to Basics Office of Operations 2013 Fall Conference November 6-7 Request for Proposals Fundamentals Setting the Stage for Success Tyler Ahlborn, Nisha Thomas and Peter VanderVeer

2 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 2 REQUEST FOR PROPOSAL Request for Proposal (RFP) is generally used for the procurement of services or technology in situations where price is not the sole determining factor and the award will be based on a combination of cost and technical factors (Best Value) Through its proposal, the bidder offers a solution to the objectives, problem, or need specified in the RFP, and defines how it intends to meet (or exceed) the RFP requirements

3 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 3 PROGRAM Prologue - Best Value Defined I - RFP Planning II - RFP Components III - RFP Evaluation & Selection Process IV - Procurement Record

4 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 4 WHAT IS BEST VALUE? State Finance Law §163 : A best value award is one which optimizes quality, cost, and efficiency and typically applies to complex services and technology contracts

5 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 5 PART I RFP Planning

6 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 6 RFP PLANNING Statutory preference is accorded in the following order: 1 st Preferred Sources 2 nd OGS Centralized Contracts 3 rd Agency or Multi-Agency Contracts 4 th Procurement Methods Prescribed by SFL

7 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 7 RFP PLANNING Develop a procurement strategy Develop a timeline Conducting a procurement is a Project Identify the events of the procurement Effective planning/budgeting of time Start with the end in mind

8 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 8 RFP PLANNING Implementation Other Approvals as required ITS, Civil Service, AG, OSC Business Need Specification/ Requirement Development Release RFP Proposals Due Questions Due* Respond to Questions* Evaluation Begins Draft RFP Develop Evaluation Guide/Instrument Interviews* Evaluation Complete Monitor/ Manage Contract Identify Evaluators Coordinate w/ Evaluators Internal Approvals Distribute Proposals to Evaluation Teams Develop Solicitation List Issue RFP Amendment if necessary* CR Ad Coordinate w/ Evaluators Site Visit* *Optional

9 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 9 RFP PLANNING Elements of the procurement process Specifications Requirements Pool of Vendors Funding stream(s) and associated requirements Evaluation (Evaluators, Instructions, Execution) Forms (e.g., Cost Sheet) Procurement rules and regulations

10 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 10 RFP PLANNING Contract Reporter Procurement must appear in Contract Reporter at least 15 days prior to the due date of proposals Develop solicitation list/letter How can the RFP be obtained? Designated contact person Issue date, due date Questions and Answers due date if applicable

11 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 11 TICKET TO SUCCESS Plan your work, work your plan Identify and mitigate risk Build in adequate time for internal/external approvals

12 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 12 PART II RFP Components

13 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 13 RFP COMPONENTS Table of Contents Introduction –Statement of purpose Calendar of Events –Date of Issuance –Date Questions and Answers Due –Date Responses to Questions and Answers Due –Due Date of Proposals Agency Mission –Statement about the duties of your Agency

14 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 14 RFP COMPONENTS Calendar of EventsKey Dates Publication in Contract Reporter8/30/14 Release RFP9/7/14 Submission of Written Questions10/1/14 Distribution of Pre-Bid Conference Minutes and Responses to Questions11/1/14 Proposal Submission Due Date11/29/14 Finalist notified and Contract Negotiations completed2/21/15 Appropriate Approvals are received5/21/15 Contractor Work Commences6/1/15 Note: Build in adequate time for internal/external approvals

15 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 15 RFP COMPONENTS Administrative process –Restate the timeline –Technical Proposal submission requirements –Cost Proposal submission requirements –Single award/multiple awards Criteria –Minimum qualifications –Specifications of services –Additional information –References Contract terms and conditions Questions & Answers –Issues raised may result in the issuance of an amendment to the RFP Make any necessary change(s) Distribute to potential vendor pool

16 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 16 RFP COMPONENTS Procurement policies, statutes & disclosures –Appendix A –Vendor Responsibility (GFO Section 16) –Procurement Lobbying Law (GFO Section 18B) –Iran Divestment Act (GFO Section 18F) –Sales and Compensating Use Tax (GFO Section 18D) –Debriefing Language –Protest Procedures

17 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 17 RFP COMPONENTS Procurement policies, statutes & disclosures continued –Other (as applicable) HIPAA Agency specific appendices Consultant Disclosure Law (GFO Section 18C) Prevailing Wage MWBE (GFO Section 18A)

18 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 18 RFP COMPONENTS Non-negotiable Contract Provisions Rationale –Concerns raised prior to bid submission –Avoid prolonged, fruitless negotiations –Save agency time and money –Prevent gaps in program/service delivery

19 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 19 RFP COMPONENTS Evaluation Criteria –Minimum qualifications (pass/fail) –Technical criteria –Cost Multiple years – define escalation (e.g., limit annual increase to Consumer Price Index (CPI) as published by the U.S. Department of Labor.) Escalation may be subdivided (e.g. CPI may account for 80% of the adjustments and fuel may account for 20% of the adjustments) –Relative importance – cost vs. technical RFP must disclose the relative importance and/or weight

20 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 20 EXAMPLE RFP – Consultant services –RFP only specified that both hourly rate (cost) and qualifications of the consultant (technical) would be taken into consideration –The evaluation instrument stated that the agency had evaluated the proposals utilizing the following weighting in determining best value: 65% Technical 35% hourly rate –It was determined that the successful proposer was a responsive and responsible proposer

21 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 21 DISCUSSION Approve the contract? Request additional information? Return the contract unapproved?

22 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 22 SOLUTION Return the contract unapproved –Why State Finance Law Section 163 requires that the solicitation identify the relative importance and/or weight of cost and the overall technical criterion to be considered –Course of action Require a re-bid as the RFP failed to identify the relative importance and/or weight of cost and technical

23 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 23 RFP COMPONENTS Method of Award –Single award Upon completion of the evaluation process, a contract will be awarded to the proposer whose proposal met all mandatory requirements and obtained the highest composite score, inclusive of both cost and technical –Multiple Award RFP should reserve the right to make multiple awards RFP should state the number or up to number of awards to be made and how work will be allocated among the vendors MUST be determined prior to receipt of proposals and documented in the Evaluation Instrument

24 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 24 RFP COMPONENTS RFP language should: –Allow agency to reject any and all bids –Allow agency the right to request clarification –Allow agency to waive a mandatory requirement If unmet by ALL proposers and non-material –Allow agency the right not to proceed with an award –Establish a minimum period of proposal validity (e.g., price firm for 180 days and/or proposal irrevocable for 60 days)

25 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 25 TICKET TO SUCCESS Review specifications – are they too restrictive or too general? Be careful when using words such as must, shall, may not, minimum, maximum etc. to describe requirements Know current State rules and regulations Publish relative importance and/or weights Establish/sync evaluation criteria with RFP specifications

26 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 26 PART III RFP Evaluation and Selection Process

27 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 27 RFP EVALUATION & SELECTION PROCESS Critical steps in developing your evaluation strategy –Set the Technical/Cost ratio –Define the criteria – Mandatory (pass/fail) vs. Desirable (scored) –Determine distribution of points among criteria –Create key for assigning points within criteria

28 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 28 RFP EVALUATION & SELECTION PROCESS Develop the evaluation criteria while developing the RFP –Must be clearly stated in the RFP –Must be important to the result you are seeking –Must be measurable Pass/Fail Scale

29 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 29 RFP EVALUATION & SELECTION PROCESS Questions & Answers –Issues raised may result in the issuance of an amendment to the RFP Review all evaluation criteria Make any necessary change(s) in Instructions, Instrument, Score Sheets Make sure all potential bidders receive a copy Clarifications –Must reserve the right in the RFP –Cannot result in a material change to the bid –If cost proposal is extremely low, agency can seek verification from the vendor that they understood the intent of the RFP

30 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 30 RFP EVALUATION & SELECTION PROCESS Mandatory Qualifications Checklist –Pass/Fail – Yes/No –If not met, disqualify –Disqualified proposals Both Technical and Cost proposals must be submitted to OSC for all disqualified vendors

31 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 31 RFP EVALUATION & SELECTION PROCESS Technical evaluation forms must: –Identify the vendor and evaluator –Have a reference list of points and meanings 5 points = exceeds all requirements 4 points = meets all requirements 3 points = meets most requirements 2 points = meets some requirements 1 point = meets few requirements –Have a space for the evaluator to enter his/her rating –Have adequate space for comments

32 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 32 EXAMPLE RFP – Auditing Services –RFP specified a relative importance of: 60% Technical 40% Cost –RFP identified the following criteria to be evaluated: Relevant experience Approach to specific project (understanding scope) References Cost –Scoring guide for technical criteria: Excellent Response = all available points Good Response = half of available points Unacceptable Response = zero points

33 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 33 EXAMPLE Enter Points as follows: Excellent Good Unacceptable All Available Points Half Available Points Zero Points Bidder ABidder BBidder C Experience (20 Points)1318 Approach (20 Points)16 12 References (20 Points)12197 Total Technical (60 pts)415337 Cost (40 pts)282540 Total Composite Score697877

34 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 34 DISCUSSION Approve the contract? Request additional information? Return the contract unapproved?

35 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 35 SOLUTION Return the contract unapproved –Why Range of points assigned were not allowed by the scoring methodology as defined in the evaluation instructions –Course of action Agency should re-score proposals in accordance with the evaluation instrument

36 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 36 RFP EVALUATION & SELECTION PROCESS RFP should have a cost form –Agency develops cost form that allows for equivalent cost comparison –Costs submitted should be complete –Costs submitted should be meaningful –Cost components not evaluated should not be in the resulting contract

37 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 37 RFP EVALUATION & SELECTION PROCESS Developing a Cost Form –Examples: Job Titles and Hourly rates, Deliverable based, Unit Price, Categories –Understand what you are really asking for (ie: what is a page? a sheet? a document?) –Capture the cost of all major components –Capture the accumulated costs of all minor components

38 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 38 RFP EVALUATION & SELECTION PROCESS Cost score is a calculation, not an analysis ! Recommended Formula for Cost Score Max Points * (Low Bid ÷ Bid Being Evaluated)

39 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 39 RFP EVALUATION & SELECTION PROCESS VendorHourly RateCost Score A$9030 B$100?? Example of Cost Score Calculation 70% Technical / 30% Cost Cost Score = Max Points * (Low Bid ÷ Bid Being Evaluated) Cost Score = 30*(90 ÷ 100) Cost Score =30*(.9) Cost Score =27

40 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 40 RFP EVALUATION & SELECTION PROCESS Do NOT score cost proposals based on a key (as below). Formula should show a relationship among the bids. $10,000 = 30 points $10,100 = 25 points $18,500 = 20 points $18,501 = 15 points $21,700 = 10 points $21,725 = 5 points $21,750, $25,000 and $31,622 = 0 points

41 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 41 RFP EVALUATION & SELECTION PROCESS Who should be an evaluator? Someone with: Expertise Time to participate fully in the process No conflict of interest Different teams of evaluators can be used for different criteria but the same evaluators must do any single criterion for all bidders.

42 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 42 EXAMPLE RFP – Market assessment of a new program –RFP specified a relative weight of: 65% Technical 35% Cost –Proposals were to be evaluated by a team of 4 evaluators –Average score of the Evaluation Team was to be used in assigning the overall technical score –Evaluator 4 had a conflict of interest with one of the proposing companies and therefore did not evaluate this proposal

43 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 43 EXAMPLE Tech Eval 1 Tech Eval 2 Tech Eval 3 Tech Eval 4 Average Tech Score Cost Score Composite Score Rank Bidder A 65.0 19.884.81 Bidder B 60.061.064.063.062.020.182.13 Bidder C 50.041.046.0N/A45.716.261.85 Bidder D 65.063.061.057.061.522.483.92 Bidder E 4140454442.53577.54

44 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 44 DISCUSSION Approve the contract? Request additional information? Return the contract unapproved?

45 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 45 SOLUTION Tech Eval 1 Tech Eval 2 Tech Eval 3 Tech Eval 4 Average Tech Score Cost Score Composite Score Rank Bidder A65.0 N/A65.019.884.82 Bidder B60.061.064.0N/A61.720.181.83 Bidder C50.041.046.0N/A45.716.261.85 Bidder D65.063.061.0N/A6322.485.41 Bidder E414045N/A42.03577.04

46 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 46 SOLUTION Return the contract unapproved –Why State Finance Law Section 163 requires that there must be a balanced and fair method of award. –Course of action Award to Bidder D

47 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 47 RFP EVALUATION & SELECTION PROCESS Instructions to evaluators must: –Define decision parameters and explain expectations –Define the use of decimals if they will be allowed –Evaluate proposals against standards set in the RFP, not against other bids –Be submitted to OSC with procurement package

48 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 48 RFP EVALUATION & SELECTION PROCESS Less than three proposals received –Submit justification of cost –Justify limited response –Canvass non-responding vendors Only one proposal received –Must evaluate it –Submit justification of cost –Justify limited response –Canvass non-responding vendors

49 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 49 RFP EVALUATION & SELECTION PROCESS Ties –If two offers Composite scores are tied, the award shall go to bidder with the highest Cost score (lowest price) –If Technical and Cost scores are both the same, agency must have a pre-defined tie-breaking mechanism May have different tie breaking mechanisms for different types of procurements

50 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 50 TICKET TO SUCCESS Develop evaluation instrument prior to issuance of RFP Document your process Ensure evaluation criteria are measurable Make changes to relevant documents and distribute them to all potential bidders if the Q&A results in changes Understand your chosen formula and carefully consider the weighting Avoid non-standardized technical and cost evaluation forms Using Excel? – Check your formulas/number transpositions Mandatory requirement – make sure you NEED it Check your math!

51 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 51 PART IV Procurement Record

52 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 52 PROCUREMENT RECORD NY Finance Law, Article Eleven, paragraph 9.G instructs: a procurement record shall be maintained for each procurement, identifying with supporting documentation, decisions made by the commissioner or state agency during the procurement process. A comprehensive procurement record is applicable to each new contract, contract amendment or contract supplement.

53 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 53 PROCUREMENT RECORD Agencies are required to maintain a record of every procurement. The Record entails the documentation of the decisions made and the approaches taken by the agency in the procurement process The Record serves as an audit trail of the procurement, a final written determination from the Agency for recommendation of award, and as the principal resource for responding to inquiries and debriefing unsuccessful bidders

54 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 54 PROCUREMENT RECORD The Record serves to protect both the agency conducting the procurement and the vending community, during and after the procurement

55 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 55 PROCUREMENT RECORD OSC Submission Documentation All required data entry fields on STS/AC340S should be completed in their entirety Ensure the contract period dates are entered and corrected For amendment transactions, make sure the contract period dates are properly completed, (end date is the correct end date of the contract, and the renewal date is the starting date of the extension) Ensure the contract amount is correct

56 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 56 PROCUREMENT RECORD Audit Types Review Procurement and Disbursement Guidelines, GFO, Section 2A, to identify the correct Audit Type for your procurement that will ensure it is routed to the appropriate audit team. The use of incorrect Audit Types may add unnecessary time to the approval process. The correct Audit Type for RFP transactions is TBV

57 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 57 GFO, Chapter XI, Section 2. C. Encumbering a Contract Agencies must be prepared to enter the PO encumbrance when requested by OSC Agency should indicate the intended encumbrance amount on the bottom of the STS or AC340S Calculating the minimum encumbrance amount (in general): Contract value / # of years = Amount per year Amount per year /12 months = monthly amount Monthly amount multiplied by the # of months between start date of contract and end of fiscal year = minimum encumbrance amount

58 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 58 PROCUREMENT RECORD Example - when the fiscal year ends March 31st Calculate the minimum encumbrance amount on a $360,000, three year contract beginning August 1 st. $360,000/3 = $120,000 $120,000/12 = $10,000 $10,000 x 8 = $80,000 MINIMUM ENCUMBRANCE NEEDED

59 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 59 PROCUREMENT RECORD All contract/amendment transactions should have a cover letter transmittal, including the following contract information: Agency point of contact information Name of the primary contact person Telephone number and extension Fax number Email address Contract number Contractors name

60 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 60 PROCUREMENT RECORD All contract/amendment transactions should have a cover letter transmittal, including the following contract information: Contract amount (total amount) Contract period and any renewal terms Description of commodity or service Date of bid opening Method of Award

61 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 61 PROCUREMENT RECORD Documents to be submitted to OSC –Instructions to evaluators –Blank RFP –Blank cost form –Blank Individual Technical Score Sheet (ITSS) –Competed Summary cost score sheet –Completed ITSS for each evaluator for each vendor –Summary of Technical Score for all vendors –Technical/Cost matrix with points and rankings

62 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 62 PROCUREMENT RECORD Documents to be submitted to OSC, if Applicable –Site Visit/Bidder Conference sign in sheets –Questions and Answers –Addendums to the RFP –Blank Mandatory Requirements Checklist (MRC) –Completed MRC for each vendor

63 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 63 PROCUREMENT RECORD Please see handout for detailed submission requirements

64 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 64 PROCUREMENT RECORD If applicable: –ITS technology purchase approval –Civil Service approval –OGS approval –DOB Approval –AG Approval

65 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 65 PROCUREMENT RECORD All recommendations for Award are to be submitted to: NYS Office of the State Comptroller 110 State Street, 11 th Floor Albany, New York 12236 Attn: Bureau of Contracts

66 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 66 TICKET TO SUCCESS Specification change as a result of Q&A Distorted cost relationships – understand your chosen formula Technical evaluation form Using Excel? – Check your formulas/number transpositions Mandatory requirement –make sure you NEED it

67 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 67 REFERENCES Open Book http://www.openbooknewyork.com/http://www.openbooknewyork.com/

68 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 68 REFERENCES OSC Internet Site http://www.osc.state.ny.us/http://www.osc.state.ny.us/ –Vendor Responsibility GFO Section 16 –Procurement Lobbying Law GFO Section 18B Advisory Council on Procurement Lobbying Model Forms/Language http://www.ogs.ny.gov/ACPL/regulations/advisoryCouncil/Model Lang.html –Sales and Compensating Use Tax GFO Section 18D NYS Department of Taxation and Finance http://www.tax.ny.govhttp://www.tax. - Consultant Disclosure Law GFO Section 18C O*NET OnLine http://online.onetcenter.org/http://online.onetcenter.org/ Procurement Guidelines http://www.ogs.state.ny.us/procurecounc/default.asp

69 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 69 Questions?

70 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 70 EXAMPLE RFP – Upgrade of legacy software system –RFP specified available workspace could accommodate up to 5 contractor staff at a time –In the cost portion of Proposal A, the proposers rate identified 12 individuals with varying skills and abilities needed to accomplish the scope of work –The agency requested Proposer A to clarify their proposal by confirming that no more than 5 staff would need to be on-site at any one time. Proposer A confirmed the agencys assumption. –Proposals were evaluated in accordance with the evaluation strategy established prior to the receipt of proposals. Proposer A received the highest composite score, was deemed responsive and responsible and was awarded the contract.

71 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 71 DISCUSSION Approve the contract? Request additional information? Return the contract unapproved?

72 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 72 SOLUTION Approve the contract –Why State Finance Law Section 163 states that: Where provided for in the solicitation, state agencies may require clarification from offerors for purposes of assuring a full understanding of responsiveness to solicitation requirements.

73 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 73 EXAMPLE RFP - to obtain technical support for the IT Bureau of the agency –Since the agency anticipated that a single vendor would not be able to provide the necessary services, the procurement provided for two awards. –The relative weight was 60% for technical and 40% for cost.

74 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 74 EXAMPLE Maximum Score for Technical is 60% Tech. Eval 1 Tech. Eval 2 Tech. Eval 3 Tech. Eval 4 Tech. Eval 5 Total Technical Score Bidder A4446485047235 Bidder B4640423938205 Bidder C5450525149256 Bidder D5051485347249 Bidder E5149475250249 Bidder F5255545554270

75 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 75 EXAMPLE Cost – 40% Cost Formula: Low Bid/Bid being evaluated x maximum points for cost Bidder A$180,00035.5 Bidder B$160,00040.0 Bidder C$165,00038.7 Bidder D$172,00037.2 Bidder E$163,00039.3 Bidder F$185,00034.6

76 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 76 EXAMPLE Summary of Scores Technical ScoreCostTotal Score Bidder A23535.5270.5 Bidder B20540.0245.0 Bidder C25638.7294.7 Bidder D24937.2286.6 Bidder E24939.3288.3 Bidder F27034.6304.6

77 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 77 EXAMPLE The agency awarded a contract to Bidder C and Bidder F

78 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 78 DISCUSSION Approve the contract? Request additional information? Return the contract unapproved?

79 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 79 SOLUTION Return the contract unapproved – Why The Composite scores are no longer weighted at 60% Technical and 40% Cost. – Course of action Agency should re-calculate scores in accordance with the stated relative weights.

80 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 80 SOLUTION Technical ScoreCostTotal Score Bidder A47.035.582.5 Bidder B41.040.081.0 Bidder C51.238.789.9 Bidder D49.837.287.0 Bidder E49.839.389.1 Bidder F54.034.688.6

81 STATE OF NEW YORK OFFICE OF THE STATE COMPTROLLER 81 SOLUTION The Evaluation Instrument should include a step in the process advising the evaluation committee that the technical score is averaged or the cost score is multiplied by the number of evaluators to compute the final score.


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