1. AASBO Advance Purchasing Session II Bids & Proposals Overview The Solicitation Evaluation & Award Evaluation & Award of Bids

2. You make the call… How would you define competitive sealed bidding? How would you define competitive sealed proposals? What is the difference between bids and proposals? Why is it important that we develop a quality understanding of competitive procurement?

3. Overview Competitive Sealed Bidding… Is a source selection method authorized in the Arizona State Board of Education School District Procurement Rules. Is the specified method of procurement. (R7-2-1021) Is a formal process with specific requirements. Solicited via the Invitation for Bid. Is used unless one of the specified exceptions is appropriate and authorized.

4. Competitive Sealed Proposals… Is a source selection method authorized in the Arizona State Board of Education School District Procurement Rules. Is an exception to competitive sealed bidding. Is a formal process with specific requirements. Is solicited via the Request for Proposals. Is used when the governing board determines in writing that competitive sealed bidding is not practicable or not advantageous to the school district. Overview

5. Assistance The head of the engineering program at the magnet high school needs a wind tunnel. You have no idea what is required. Where do you go for help? Sources of assistance User Professional associations Trade publications Internet Peers Provider (Try to obtain information from more that one) Others? Other considerations Other departments impacted? Is the support unnecessarily restrictive? Should there be an outside review? Will a pre-bid or pre-proposal conference help ensure a valid solicitation?

6. Solicitation refers to the procurement document Invitation for Bid (IFB) for competitive sealed bidding Request for Proposals (RFP) for competitive sealed proposals Other documents are part of the solicitation, including attachments, referenced information, addenda… Ingredients of a successful solicitation Appropriate timelines Reasonable terms & conditions Reasonable and appropriate specifications Clear, concise writing No minutiae Open competition Understanding the requirements Appropriate information management The Solicitation

7. What is included in an appropriate IFB? What is included in an appropriate RFP? Do your solicitations comply? You make the call…

8. The Solicitation Required Elements of an IFB (R7-2-1024(B)) Required Elements of an RFP (R7-2-1042) Do your solicitations contain all of the required elements? Do you track the conditional required elements?

9. The Solicitation Important Elements of an IFB or RFP Clearly designated person for questions. Clearly defined requirements for questions, if appropriate. A clearly specified deadline for submitting questions, if appropriate. Sales/use tax requirements. Vendor information and/or qualification requirements. Price/cost conditions. Samples, descriptive literature or technical data requirements. Inspection or product testing requirements. Industry standard warranty requirements. A clear statement that the school district may seek best & final offers before awarding a contract. Requirements for discussions or presentations. Other considerations Financial stability References

10. Terms & Conditions (Ts & Cs) Govern use of the contracts. Where you go for answers. Must comply with the law to be enforceable. General Ts & Cs/Special Ts & Cs. Also known as “Boilerplate.” Important Considerations Write clearly. Be reasonable. Understand the requirements. Use manageable Ts & Cs. The Solicitation

11. You make the call… What types of specifications are appropriate for an IFB? What is the best specification for an RFP? Can a vendor provide specifications and then submit a bid?

12. The Solicitation Specifications (R7-2-1101 through R7-2-1105) The Procurement rules require that… Specifications seek to promote overall economy for the intended purposes. Specifications encourage competition in satisfying the district’s needs. Specifications not be unduly restrictive. Specifications generally describe the district’s requirements in a manner that does not unreasonably exclude a material, service or construction item. Specifications generally be accepted commercial specifications for procurement of standard commercial materials. Contracts for preparation of specifications by persons other than the district require the specification writer to adhere to rules applicable to the district. No person preparing specifications for a district shall receive any direct or indirect benefit from the utilization of such specifications.

13. Specifications Scope of work A description of the essential products, and/or services to be provided by a vendor upon award of a contract. This specification is used… Generally when the school district is using the competitive sealed proposal method of procurement. When the school district chooses to list only the essential materials or services allow the offeror to determine the best method to achieve the desired result. When the school district is contracting for professional services. The Solicitation

14. Successful specifications… Thoroughly describe the requirements. Concentrate on reasonable performance requirements. List pertinent requirements only and avoid requirements that do not affect successful use of the product or service. Are clear in defining the requirement to avoid incorrect interpretation and controversy. Meet the need, not necessarily the want. Are based upon standard production materials, whenever possible. Promote competition by avoiding restrictive requirements. Are sensitive to the user’s needs, but maintain the guidelines above. Are prudent. The Solicitation

15. You make the call… What is an abstract? Is an abstract required? Is an abstract appropriate for competitive sealed proposals?

16. Abstracts A record of bids and proposals must be developed at the public opening. For competitive sealed bidding, the name of each bidder and the amount of each bid must be included in the record. The district has discretion in determining the format and other elements of the record. For competitive sealed proposals the name of each offeror must be included in the record. All information in the proposals is confidential until contracts are officially awarded. For competitive sealed bidding, the public record is commonly an “abstract” of all bids. The abstract provides an overview of key bid information and serves as the primary means to evaluate bids and document awards. An abstract may be prepared for competitive sealed proposals. However, prior to award it must be available to only those individuals involved in evaluation of proposals and award of contracts. Evaluation & Award

17. You make the call… What are the pros and cons of using evaluation committees? Does the type of solicitation influence your opinion? What do you do if a governing board member wants to sit on a committee?

18. Evaluation & Award Evaluation Committee Should be limited to… Appropriate interested parties (contract users, people impacted by the contract, consultants, members of the public, etc.) The evaluation committee can… Evaluate and recommend awards in accordance with the solicitation. Help maintain the integrity of the procurement. Committee members must… Disclose any potential conflicts. Avoid disclosure of contents to non-committee members. Avoid discussing the offers outside of committee activities. Generally, are best suited for use with proposals.

19. Evaluation & Award Evaluation Committee Sample evaluation committee member form

20. Evaluation & Award Evaluation Committee Sample conflict of interest form

21. How do you award contracts under competitive sealed bidding? How do you award contracts under competitive sealed proposals? Is scoring allowed under competitive sealed bidding? How much more can you pay for a better product of service? How do you add missing key information or change an incorrect requirement after receipt & opening of bids and proposals? You make the call…

22. Requirements Bid evaluation & award (R7-2-1031) Proposal evaluation & award (R7-2-1050) Only 1 bid (R7-2-1032) or proposal (R7-2-1045) is received Multiple award (USFR Compliance Questionnaire) Regardless of procurement method, evaluation is limited to the factors in the solicitation!!! Evaluation & Award

23. The bids are essentially equal. Same product, same price, same delivery time. This is the lowest bid and both vendors are responsible. Vendor A offers the specified warranty. Vendor B offers a warranty that is twice as long. What do you do? Vendor A’s bid is half the cost of the next lowest bidder. He is bidding specs. Everything else looks good. What do you do? Vendor B offers a truck with 50 horsepower more than Vendor A’s truck. A’s truck meets horsepower specs. B’s truck is $1 more than A’s truck. Both are responsive and responsible bidders. The fleet manager recommends award to B as the best value to the district. What do you do? Vendor A has been your alternator and starter rebuilder for the past three years. She is the lowest responsive and responsible bidder for the new contract. The crew chief rejects her bid because her product has not been acceptable. He says the vendor knows all about it. This is news to you. What do you do? You make the call…

24. Evaluation & Award - Bids Determining the lowest responsive & responsible bidder It’s as simple as “Yes” or “No” Bids may not be revised. Each bid stands alone. Does the bidder demonstrate the ability to successfully perform the contract? (Yes: in; No: out) Starting with the lowest cost bid, does the bidder comply with all terms and conditions? (Yes: award; No: reject) Starting with the lowest cost bid, does the bidder meet specifications? (Yes: award; No: reject)

25. Its never that easy Mistakes vs. minor informalities Line item vs. all or none Determining the number of awards Pricelist and discount Substitutions Bidder assistance District assistance Public assistance Lack of response Evaluation & Award - Bids

26. The solicitation is for a catalog contract. Your district uses all of the vendors. All are responsible and responsive, but they have various discounts. What do you do? The solicitation is for copiers. You are using life cycle costing that includes maintenance and supplies cost. You have estimated the number of copies per month and life cycle cost is based upon that number. However, you are not able to guarantee that the copy count is completely accurate. What do you do? You rejected the bids from Vendors A and B. Vendor C offers an acceptable product. He will hold prices firm for 30 days. The IFB requires 180 days firm pricing. You are placing a single order for complete delivery to one location. Purchase history indicates that this is the only order you will place. What do you do? You are making a multiple award. Some of the lower cost bids are nonresponsive. What do you do? Vendor A has a privilege tax rate of 7.6%. Vendor B has a privilege tax rate of 5.6%. They are located across the street from each other. Their bids are identical. What do you do? You make the call…

27. What does it all mean? Only the criteria in the solicitation can be used for evaluation and award. There must be some reasonable means to measure the criteria. Specifications must accurately describe what you need to purchase. A vendor doesn’t get points for a better product or service. What you see is what you get. You cannot give a non-performance based preference for a local office. A better product, service, warranty, etc. cannot be used as a tie-breaker. You do not have to award to the low bidder. You can award a contract from a single bid response. Be able to substantiate what you did. Multiple awards must be well documented to substantiate they are limited to the least number of suppliers determined necessary to meet the requirements. Evaluation & Award - Bids