1. Building a Better Bid The Nuts & Bolts Dave Leonard The World Bank

2. Capital Funding Strategy Develop a 3-5 year plan for equipment and services Develop a 3-5 year plan for equipment and services Must be consistent with organization’s strategic goalsMust be consistent with organization’s strategic goals Plan should have its own strategic goals with a “purpose to the purchase”Plan should have its own strategic goals with a “purpose to the purchase” Work with your team and have buy in from management and any other key stakeholders, i.e. IT, Facilities, etc.Work with your team and have buy in from management and any other key stakeholders, i.e. IT, Facilities, etc.

3. Capital Funding Request Once a capital plan is in place, funding is requested for individual projects per fiscal year Once a capital plan is in place, funding is requested for individual projects per fiscal year Challenge is to determine how much to ask for Challenge is to determine how much to ask for Can use consultants to get a statement of probable costsCan use consultants to get a statement of probable costs Experience is the best teacher for accurate estimatesExperience is the best teacher for accurate estimates

4. Capital Funding Request Get help to fill out the form Get help to fill out the form Resource/Budget person for your unitResource/Budget person for your unit Procurement OfficerProcurement Officer Be sure to document and estimate risks including: Be sure to document and estimate risks including: The risk of not doing the projectThe risk of not doing the project Things that could happen during the project, both negative and positiveThings that could happen during the project, both negative and positive

5. Bid Construction Key to good solicitation is good specification writing Key to good solicitation is good specification writing Be clear and as specific as possible – assumptions by bidders can cause huge variances in bid amountsBe clear and as specific as possible – assumptions by bidders can cause huge variances in bid amounts Include what contractor is and is not responsible for in projectInclude what contractor is and is not responsible for in project Include list of necessary equipment and servicesInclude list of necessary equipment and services

6. Bid Construction If project bids are part of your regular work, develop templates If project bids are part of your regular work, develop templates Scope of Work (SOW) Scope of Work (SOW) Schedule Schedule Bid template spreadsheet Bid template spreadsheet Consultants can help create these if you are new to project management Consultants can help create these if you are new to project management Be sure to read everything and decide if it is applicable to this current project Be sure to read everything and decide if it is applicable to this current project

7. IFBs, RFPs and RFIs IFB – Invitation for Bid IFB – Invitation for Bid Lowest qualified bidder gets jobLowest qualified bidder gets job RFP – Request for Proposal RFP – Request for Proposal Bidders are evaluated and scored by a panel on both technical and cost merits and best overall score wins jobBidders are evaluated and scored by a panel on both technical and cost merits and best overall score wins job RFI – Request for Information RFI – Request for Information A way to see which firms are qualified to do your project based on the SOW and defined mandatory criteriaA way to see which firms are qualified to do your project based on the SOW and defined mandatory criteria

8. IFB Simplest way to get project going and through Procurement Simplest way to get project going and through Procurement Good if scope and requirements are well defined Good if scope and requirements are well defined Danger in that lowest bidder can often cut corners in some areas – “you get what you pay for…” Danger in that lowest bidder can often cut corners in some areas – “you get what you pay for…”

9. RFP Much more complex process requiring longer time to bid award Much more complex process requiring longer time to bid award Need to develop valid scoring criteria Need to develop valid scoring criteria Review panel must be created to evaluate proposals and score Review panel must be created to evaluate proposals and score Panel can supply needed technical expertise Panel can supply needed technical expertise Best process for large and complex projects Best process for large and complex projects

10. RFI A way to go out to market to see what firms are qualified or have unique solution A way to go out to market to see what firms are qualified or have unique solution Must be done in collaboration with organization's Procurement department Must be done in collaboration with organization's Procurement department Resembles RFP in form but with no specific project or monetary contract Resembles RFP in form but with no specific project or monetary contract RFI divided into Mandatory and Evaluation Criteria RFI divided into Mandatory and Evaluation Criteria Evaluation Criteria judged by panel, typically five persons Evaluation Criteria judged by panel, typically five persons

11. Vendor prequalification A process to create a “short list “ of bidders for your projects that will perform the work to agreed specifications.

12. Advantages of prequalification Initial solicitation done thru RFI, not RFP or IFB Initial solicitation done thru RFI, not RFP or IFB Limits number of bid responses to Limits number of bid responses to Familiarity with company and key persons already established Familiarity with company and key persons already established Agreed pricing structure in place for goods and services Agreed pricing structure in place for goods and services Enables buyer to move quickly with IFB, especially on smaller projects Enables buyer to move quickly with IFB, especially on smaller projects

13. Disadvantages of prequalification Investment of time to create RFI and go through process Investment of time to create RFI and go through process Vendors feel they put in much effort into a response with no guarantee of work, if chosen, it only gives them the opportunity to bid on future projects Vendors feel they put in much effort into a response with no guarantee of work, if chosen, it only gives them the opportunity to bid on future projects Specifications can be restrictive to some unique projects Specifications can be restrictive to some unique projects

14. Final advice Work closely with your Budget and Procurement team to give them what they need in the form that is required to get it through the process – usually they’ll help you if you ask them nicely… Work closely with your Budget and Procurement team to give them what they need in the form that is required to get it through the process – usually they’ll help you if you ask them nicely…