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Best Value Pre-selection and Procurement

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Presentation on theme: "Best Value Pre-selection and Procurement"— Presentation transcript:

1 Best Value Pre-selection and Procurement
By Terry M. Gellner Ohio Water Environment Association Kalahari Resort and Convention Center June 22, 2011

2 Ohio Bidding Laws Statutory Requirements Local Acceptance of Procedure
If no exceptions apply, it is required to competitively bid the project Statutory requirements for the bidding process can vary by public entity Local Acceptance of Procedure

3 Ohio Bid Review Standards
Lowest & Best Counties, R.C Cities/Municipalities, R.C (home rule) Villages, R.C Townships, R.C , , Metropolitan Housing Authorities, R.C

4 Ohio Bid Review Standards (cont.)
Lowest Responsive & Responsible State of Ohio, R.C School Districts, R.C Ohio School Facilities Commission, R.C Libraries, R.C Community Colleges, R.C Ohio Building Authority, R.C

5 Best Value Bidding Procurement of bids shall be made in the same manner as competitive bidding Best Value procurement awards shall be based on criteria set forth in the solicitation Award must be made to the highest scoring responsive and responsible bidder

6 When to use Best Value? Other than government construction contracts
Other than equipment having similar physical characteristics and multiple manufacturers Equipment or process characteristics vary significantly Pre-selection of equipment Differences in equipment effect the design clarity Pre-purchase of equipment Bid analysis comparison Piloting

7 Best Value Criteria Include but not be limited to, price, the total cost of acquiring, operating, maintaining and supporting a commodity or service over its projected lifetime, the evaluated technical merit of the bidder’s bid or proposal, the bidder’s past performance, and the evaluated probability of performing the requirements stated in the solicitation on time, with high quality, and in a manner that accomplishes the business objective set forth in the solicitation. (West Virginia Code)

8 Pre-Selection Process
Select Manufacturers Develop a Request for Proposals Request Proposals Evaluate Proposals Complete Design based on Selected Manufacturer(s) Procurement Equipment

9 Develop Request for Proposal
Introduction Design Parameters Equipment /Process Design Parameters Site Specific Conditions Information to Be Submitted Questions to be Answered Selection Criteria Submittal Requirements

10 Selection Criteria/Evaluation
Responsiveness to Request Submittal Based on Design Parameters Satisfy the Design Requirements Any Exceptions or is the Proposal Incomplete Equipment Warranty, Guarantees & Terms of Purchase Operation, Maintenance and Historical Information Experience and Financial Information

11 Proposal Criteria/Evaluation (Cont)
Proposed Process System Summary List criteria, volumes, sizes and/or dimension of each process unit List primary and support equipment information Description of Process Operation Scope of Supply Materials of Construction or Coating Systems Regular, annual and extended maintenance

12 Proposal Criteria/Evaluation (Cont)
Services Provided Warranty Process Guarantee Training Operation Support Maintenance Support Location of Support and Parts

13 Proposal Criteria/Evaluation (Cont.)
Present Worth Cost Analysis Capital Costs Maintenance Costs - Equipment - Power - Structure - Chemical - Cost Adjustments - Replacement - Omitted Items - Labor - Administrative - Solids Handling Purchase Fees

14 Proposal Criteria/Evaluation (cont.)
Other Considerations Historical Support Data Experience Financial Stability Visited Sites Owner’s Considerations Responses to Questions

15 Procurement Negotiate Price and Assign to the Contractor
Execute Purchase Agreement and Assign to the Contractor Execute Purchase Agreement and Pre-purchase Bid Equipment as Alternates with Best Value Analysis of Bid

16 How to Avoid Potential Pitfalls
Allow each manufacturer to bid their best system Equal Comparisons Dictate the format of Manufacturers Information Provide unit Costs for power, chemical, labor, etc. Knowledge about the manufacturers’ products differences Include all aspects of the plant Ask questions to get specific responses to draw comparisons Criteria Scoring

17 Questions

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