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