This presentation is being provided for educational purposes only Please refer to the RFP for specific instructions If there are any inconsistencies, the RFP and Amendments shall take precedence over this presentation

Best Value Model Pre-Proposal Information Cold Beverage Service RFP # FG JB

20+ Years of Experience Fulbright Scholarship- University of Botswana BV tests RMIT Teaching IMT PBSRG platform Tongji University 6+ years Infrastructure €1.8B plus €1B Brunsfield Complete Supply Chain United States - 65 clients Univ. of Manitoba Dalhousie Univ. Congo PPP Univ. of Alberta Simon Fraser Univ.

InformationTechnology networking data centers hardware COTS software ERP systems help desk services eProcurement FacilityManagement maintenancelandscaping security service building systems industrial moving waste management energy management custodialconveyance pest control Health Insurance/ Medical Services Manufacturing Business / Municipal / University Services dining multi-media rights fitness equipment online education document management property management audiovisual communications systems emergency response systems laundry material recycling bookstoresfurniture Construction / Design / Engineering large gc infrastructuremunicipallaboratoryeducationhospitalfinancial large specialty small gc renovationrepairmaintenanceroofingdemolitiondevelopment supply chain DBBCMARDBIDIQJOC Low Bid IPD networking data centers hardware COTS software ERP systems help desk services eProcurement FacilityManagement maintenancelandscaping security service building systems industrial moving waste management energy management custodialconveyance pest control Health Insurance/ Medical Services Manufacturing Construction / Design / Engineering large gc infrastructuremunicipallaboratoryeducationhospitalfinancial large specialty small gc renovationrepairmaintenanceroofingdemolitiondevelopment supply chain DBBCMARDBIDIQJOC Low Bid IPD

What Percent of RFP’s Are 100% Accurate? 5

Who Should Know More About Performing/Installing the Services Required? 6

It Is More Important For The Vendor To Know What To Do Than It Is For Client To Know What The Vendor Should Do 7

Vendor 1 Vendor 2 Vendor 3 Vendor 4 Performance High Low Risk High Low Performance High Low Risk High Low Impact of Minimum Requirements Vendor 1 Vendor 2 Vendor 3 Vendor 4

High Low Performance Owners “The lowest possible quality that I want” Vendors “The highest possible value that you will get” Minimum Potential Problems High Low Performance Maximum

What is Best-Value? Win-Win Client: – Outsource to experts – Less management and resources Vendor – Control of project/service – Ability to increase profit by maximizing their efficiency – Higher performance 10

Factors For Success Fair (state/follow rules) Open (open to all with experience) Impartial and Transparent (minimize evaluator bias / provide debriefing) Efficient (minimize efforts) Award based on value 11

12 Best Value Model

13 Best Value Model

14 Best Value Goals Goal 1: Differentiate Expertise of Vendors through Cost, Capability, and Value Goal 2: Both parties have clear expectations of project before contract is awarded. Goal 3: Measure performance off of the expectations that are set with Award.

Attachment C – Project Plan 15 Proposal Summary a brief chronological roadmap Project Assumptions a brief summary of the major assumptions Roles, Responsibilities, Expectations brief summary of the expectations and responsibilities that the Offeror has of the University or University personnel. Clarification Period Schedule a high level Clarification schedule 1 Page Template NUMBER ONE TIP

NOT GOING TO CHANGE… Specifications Terms and Conditions Insurance & Bonding Contract Delivery System Pricing / Financials Overlays on top of these… 16

Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating Filter 3 Prioritization (Identify Best Value) Contract Award Evaluation Criteria - Price / Cost / Fee - Project Duration - Risk Assessment - Value Added - Past Performance Information (PPI) Short List prior to Interviews (if necessary) Pre Award Activities - Training - Kickoff Meeting - Planning & Clarifying - Summary Meeting Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Best Value Process Copyright Arizona State Univ

18 Best Value Model - Selection

Selection Objective Selection based upon Proponent Expertise How to differentiate expertise?  Ability to understand the project & plan your approach  Identify & mitigate risks to the project  Add value to optimize project  Cost Competitive

Evaluation CriteriaWeightCommittee Rating Numerical Value Submission Form-PassFail Interview300 Financial: (Fixed Fee)200 Financial: (gross sales)100 Risk Assessment Plan150 Value Assessment Plan100 Team Qualifications 50 Past Performance Info100 TOTAL

Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating Filter 3 Prioritization (Identify Best Value) Contract Award Evaluation Criteria - Price / Cost / Fee - Project Duration - Risk Assessment - Value Added - Past Performance Information (PPI) Short List prior to Interviews (if necessary) Pre Award Activities - Training - Kickoff Meeting - Planning & Clarifying - Summary Meeting Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Best Value Process Copyright Arizona State Univ

Team Qualifications = differentiate capability Team Qualifications = differentiate capability Value Added = additional expertise beyond requirements Value Added = additional expertise beyond requirements Risk Assessment = risks you control and risks you don’t control Risk Assessment = risks you control and risks you don’t control Evaluated Submittals Allows Proponents to differentiate themselves based upon their ability to identify and minimize risks to the project. Simpleconcise Simple, concise, actionable plans

23 Format of Submittals In order to minimize any bias, the Submittals must NOT contain any names that can be used to identify who the proponent is (such as proponent name, personnel names, project names, etc). Template are provided and must be used. Proponents are NOT allowed to re-create, re-format, or modify the templates. The plans should not contain marketing material. The Risk Assessment must NOT exceed 2 pages. The Value Added must NOT exceed 1 page The Team Qualification must NOT exceed 1 page

24 Risk Assessment Plan Team Qualifications = differentiate capability Team Qualifications = differentiate capability Value Added = additional expertise beyond requirements Value Added = additional expertise beyond requirements Risk Assessment = risks you control and risks you don’t control Risk Assessment = risks you control and risks you don’t control

Risk Assessment 25 Template 1 Page - Controllable Risks 1 Page – Non-Controllable Risks 2 pages Total

2 Plans in the Risk Assessment Assessment of Controllable Risks: risks, activities, or tasks that are controllable by Proposer, or by entities/individuals that are contracted to by Proposer. This includes things that are part of the technical scope of what Proposer is being hired to do. Project risk that other vendors have due to lack of experience and expertise Assessment of Non-Controllable Risks: risks, activities, or tasks that are not controllable by Proposer. This may include risks that are controlled by Agency, Agency’s representatives, or completely uncontrollable. Although these risks may not be controlled by Proposer, Proposer must identify a strategy that can be followed or used to mitigate these risks. 26

27 Risk Assessment Example Controllable Risk VENDOR 1 – RISK: Noise from our demolition may result in student/staff complaints (since we will be doing demo in an in-operational library during finals week). – SOLUTION: We will work with the user to minimize the impact of noise from demolition. VENDOR 2 – RISK: Noise from our demolition may result in student/staff complaints (since we will be doing demo in an in-operational library during finals week). – SOLUTION: To minimize this risk, we have planned to demolition during off hours and weekends. We will also install rubber sheets on the floors to diminish noise and vibrations. Both solutions can be performed within your budget.

Risk Assessment Example Controllable Risk 28 RISK: A poor roofing system can result in roof leaks, which may inconvenience building occupants, increase complaints, increase maintenance, damage building contents, and be a source of mold issues. Vendor A Solution: To minimize this risk, our proposed roofing system has been installed on over 400 roofs and has had an average roof age of 18 years, in which 99% of the roofs don’t leak and 100% of the end clients are satisfied. Vendor B Solution: To minimize this risk, we are proposing a thermally-welded roofing system that has a tensile strength of 2,130 PSI, elongation of 300%, tear strength of 312lbs, has been tested for 10,000, and has a cold brittleness of -30°C.

29 Risk Assessment Example Non-Controllable Risk VENDOR 1 – RISK: The local water company must have the water turned on by June in order for us to properly water the newly installed recreational fields (or the grass will die). – SOLUTION: We will coordinate and plan our schedule with the water company as soon as the award is made to make sure that we get water to the site to irrigate the fields. VENDOR 2 – RISK: The local water company must have the water turned on by June in order for us to water the newly installed fields (or the grass will die). On past projects, the water company has failed to meet the schedule 90% of the time. – SOLUTION: To minimize this risk, we will coordinate our schedule with the water company as soon as we are awarded the project. If they fail to meet our schedule, we will setup and connect temporary waterlines to the nearby fire hydrants and we will also have water trucks on-site to irrigate the fields.

Risk Assessment Example Controllable Risk RISK: Major risk items typically associated with transit implementations revolve around change management and business process impact. New technology implementations create change for the users. Change often causes issues with technology adoption. Requirements and scope creep also creates challenges. Systems may have thought a certain technology or component was incorporated in the RFP and/or needs assessment process that is not included in the actual scope of work or contract. Communication is also an area that can be a challenge. SOLUTION: A clearly defined scope of work and communication of the scope at the beginning of the project minimizes scope creep. If there is a discrepancy, scope or requirements can be discussed early on in the process versus at the end of the process. Communication is the key to successful implementations. Change management and business process re-engineering for organizations can be minimized at the technology and management levels. Management can get early buy-in at the “grass roots” level and include them in the technology planning process. The Team focuses on providing very configurable and flexible tools to minimize process re-engineering tasks. The Team focuses on automating existing business processes and providing additional tools to improve those processes that need to be improved such as data management….

31 Value Added Plan Team Qualifications = differentiate capability Team Qualifications = differentiate capability Risk Assessment = risks you control and risks you don’t control Risk Assessment = risks you control and risks you don’t control Value Added = additional expertise beyond requirements Value Added = additional expertise beyond requirements

Value Add Plan Opportunity to identify any value added options or ideas that may benefit the Owner and Agency. This may include ideas or suggestions on alternatives in implantation strategies, timelines, project scope, equipment, goals, financing, etc. All value added ideas must be logical and/or based on verifiable performance metrics. Value added ideas must NOT be included in the cost proposal. Prior to award, the Owner will determine if the value added items will be accepted or rejected. Understand the need better than the University can specify

Value Assessment 33 Template 1 page max.

34 Example: Value Added Items Reroofing this building will not stop all water leaks. The majority of the leaks are caused by cracks in the parapet walls, broken/missing glass, and poor caulking. For an additional $10K and 3 weeks in schedule we can replace and repair all of these items.

Example: Value Added Items You can save 20% in your cost if you substitute the T-3 lighting system for the T-2. The T-3 lights are newer state-of-the-art systems that are known industry wide as the best systems. If we can alter the hours of operation at Site B, we can increase revenue overall revenue by 5%. This may be an inconvenience for a small number of people (less than 50 students) during this time period, but the revenue gain is considerable.

Example: Value Added Items Idea: Purchase “Concurrent Licenses” instead of “Named Licenses” Why: In a “Named Licensing” model, you must purchase a license for every user and only that particular user can access the software. If that named user is in meetings, on vacation, or not using the system, the license cannot be utilized. In a “Concurrent Licensing” model, the system loans out the licenses to users as they log in. If a user is inactive, the server releases the license and allocates the license to the next user. Expected Benefit: The advantage of the concurrent licenses is that the Agency will not have to purchase licenses that are not being used, which can result in approximately 20%-30% savings in cost. 36

Value Added = additional expertise beyond requirements Value Added = additional expertise beyond requirements Risk Assessment = risks you control and risks you don’t control Risk Assessment = risks you control and risks you don’t control Team Qualifications = differentiate capability Team Qualifications = differentiate capability

Team Qualifications 38 Template 1 page max.

39 Things to Avoid Marketing Information: – Our company is known worldwide as a leader in online education. – We will use our long history to make sure the project is a success. – We will use state-of-the-art process to make it a success. Transferring risk back to client: – We will work with the owner to resolve issues – We will have team meetings / partnering meeting with the owner General risks and/or general solutions: – We will plan ahead to coordinate activities – We will plan ahead to get classes scheduled and created Overly Technical data: – The system we propose has 200% increase in PRX bandwidth modularity. Team Qualific ations Value Added Risk Assess ment Risk Assess ment

Submittal Requirements Submittal DocumentMaximum Page Length Risk AssessmentTwo (2) pages Value AddOne (1) page Team QualificationsOne (1) page 40 NOT Must NOT contain ANY identifying information (names, company names, project names, product names, etc.) Must use the provided template (can submit as many risks as fit within the page limits of each submittal) List Risks and Value Added in order of priority

Cost Proposal 41

Cost Proposal 42

Cost Proposal 43

Cost Proposal 44

Past Performance Information Collected For:  Key Personnel  The Offeror (Firm)– 5 maximum  Key Account Manager – 5 maximum The Proponent picks their own references The Proponent collects all surveys Close out ratings at the end of the contract will be used to update PPI scores going forward at U of M 45

46 PPI Survey / Questionnaire

47 PPI Process The Proponent is responsible for sending out a survey questionnaire to each of their past clients. The survey must be faxed/ ed back to the Proponent The Proponent will submit all surveys to the Owner with their submittal. Setup and send Survey Forms Past Client Evaluates and Returns Vendor Past Client Vendor Proponent

48 Example Survey (Firm and Individuals) Proponent Past Client Proponent Past Client

Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating Filter 3 Prioritization (Identify Best Value) Contract Award Evaluation Criteria - Price / Cost / Fee - Project Capability - Risk Assessment - Value Added - Past Performance Information (PPI) Short List prior to Interviews (if necessary) Pre Award Activities - Training - Kickoff Meeting - Planning & Clarifying - Summary Meeting Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Best Value Process Copyright Arizona State Univ

50 The Evaluation Process Submittal Evaluation Members Proposal Form (1 page) Proposal Form, $, & Other Documentation Proposal Form (1 page) Risk Plans Total Score Contracting Officer Contracting Officer

Shortlisting If necessary short listing will be conducted prior to interviews (depending on the number of Proponent) Interviews: – Key Account Manager

52 Interview Format Q&A Interview, NOT a presentation Individuals will be interviewed separately. A standard set of questions will be generated and asked to each individual. Typically interview times will last about minutes per individual No substitutions will be allowed.

Best Value Interviews: Identifying Expertise Examples of questions asked: 1.Why were you selected for this project? 2.How many similar projects have you worked on? Individually and as a Team? 3.Describe a similar project you have developed/worked on to the current project. 4.What is different about this project from other projects that you have worked for? 5.Draw out the process for this project by major milestone activities. 1.Identify, prioritize, and how you will minimize the risks of this project. 2.What risks don’t you control? How will you minimize those risks? 3.What do you need from the client and when do you need it? 6.How are you going to measure your performance during the project? 7.Other questions regarding the RFP requirements 53

Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating Filter 3 Prioritization (Identify Best Value) Contract Award Evaluation Criteria - Price / Cost / Fee - Project Capability - Risk Assessment - Value Added - Past Performance Information (PPI) Short List prior to Interviews (if necessary) Pre Award Activities - Training - Kickoff Meeting - Planning & Clarifying - Summary Meeting Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Best Value Process Copyright Arizona State Univ

Simple Scoring Methodolgy 55

56 Dominance Check & Financial Reasonableness Best-Value is the lowest price Best-Value is within [5%] of next highest ranked firm Best-Value can be justified based on other factors Yes No Best Value Prioritization Best Value Prioritization Yes No Go with Alternate Proposal or Cancel Proceed to Pre-Award Yes No

Attachment C – Project Plan 57 Proposal Summary a brief chronological roadmap Project Assumptions a brief summary of the major assumptions Roles, Responsibilities, Expectations brief summary of the expectations and responsibilities that the Offeror has of the University or University personnel. Clarification Period Schedule a high level Clarification schedule 1 Page Template

58 Best Value Model NOT DetailedDetailed

Filter 1 Proposal Evaluations Filter 2 Interview Key Personnel Filter 4 Cost Reasonableness Check Filter 5 Pre-Award & Clarification Project Execution Risk Reporting & Close Out Rating Filter 3 Prioritization (Identify Best Value) Contract Award Evaluation Criteria - Price / Cost / Fee - Project Capability - Risk Assessment - Value Added - Past Performance Information (PPI) Short List prior to Interviews (if necessary) Pre Award Activities - Training - Kickoff Meeting - Planning & Clarifying - Summary Meeting Total Evaluation Scores are determined Logic check to confirm Selection of the potential Best Value Proponent Project Execution - Weekly Risk Report - Director Report - Performance Meas. - Close Out Ratings Best Value Process Copyright Arizona State Univ

Pre-Award Objectives Period of time allotted before work begins for the Proponent to: Lay out & clarify their plan. Coordinate milestone schedule. Identify the risks that could cause the plan to deviate. – FORMALLY DOCUMENT risk management plans. – Identify what you don’t know & when you will know it. – How will the plan could change based upon what you discover? – Address all client concerns. Identify what you need from the client and have a plan for getting it Outcome: completely aligned expectations

Pre Award Document 1.Financial Summary (financial details, how funding will work, etc) 2.Transition Plan & Schedule (showing major milestones, risky activities, client actions, etc) 3.Project Risks/Concerns (all controllable risks/concerns, all non-controllable risks/solutions) 4.Assumptions (all project assumptions with associated impacts, identify what you need from the client and have a plan for obtaining it, roles and responsibilities of the client, etc ) 5.Performance Metrics (how the vendor will monitor performance, document success, metrics used, frequency, baseline for comparison, how will it assist the client, etc) 6.Scope of Work (plan of action, detailed work plan, how technical requirements will be met, baseline expectations, implementation plan, transitional plan, staffing plan, communication plan, training plan, organization change plan, what’s included, excluded, etc) 7.Contract (language, terms and conditions, etc) 61

62 Clarification / Preplanning Period

63 Keep Phase 2 In Mind During Phase 1

64 Phase 2 Financial Summary Project Plan Project Risks/Concerns Assumptions Performance Metrics Contract

65 Best Value System

66 Weekly Risk Report Excel Spreadsheet that tracks risks and impacts Client will setup and send to vendor once the Award is issued. ASU will provide additional training. The final project rating will be impacted by the accuracy and timely submittal of the WRR

67 Best Value Review Proposal ($) Past Performance Team Qualifications Risk Assessment Value Assessment Interviews Pre-Planning & Clarification Award Weekly Reporting Post Award Metrics Final Documentation Update PPI

Suggestions Identify who your best people are (done through measurements) Have your best people sit down in a room and think about this project Adapt their comments/ideas into your Risk and Value Assessment Plans Correlate any suggestions/ideas/solutions to documented performance Minimize marketing (risk of reformatting, names, words, etc.) Follow all formatting requirements (no names, page limits) Be dominant Be simple, non-technical, and logical Picture what it takes to make the client very happy at the end 68

Anticipated Schedule NoActivityDate 1Project Announcement03/04/14 2Pre-Proposal Conference & Site Walk03/18/14 3Deadline to Submit Questions/Inquiries03/20/14 4Proposal Due Date (4:00 PM Winnipeg Time)04/01/14 5Interviews04/07/14 6Clarification Period04/10 to 05/08/2014 7Anticipated Date of Award5/15/2014 8Transition Period05/16/14 -06/30/14 9Start of Service07/01/

Project Overview PROJECT DETAILS AND DESIRED OUTCOMES The University is looking to secure services equal to, or better than, the level of service currently provided. It is the University’s desire to have a fixed fee annual contribution guaranteed commission-based structure. The University’s primary goals of this RFP are to increase financial return to the University and to increase satisfaction to the University and the students. 1.3PROJECT TERM This contract will commence on July 1, The term of this contract is seven (7) years. 1.4CURRENT CONDITIONS Best efforts have been made to obtain accurate, detailed information on the current conditions at the University, as detailed on Exhibit 2; however, Offerors should not assume this information is 100% complete or accurate.

Questions? 71