1 SRP Multi Functional Printers RFP NO. SRP Multi Functional Printers RFP NO. FF320058FLC Kenneth T. Sullivan PhD, MBA Brian Stone MBA Performance Based.

1

SRP Multi Functional PrintersSRP Multi Functional PrintersRFP NO. RFP NO. FF320058FLC

Kenneth T. Sullivan Kenneth T. Sullivan PhD, MBAPhD, MBA

Brian Stone Brian Stone MBAMBA

Performance Based Studies Research GroupPerformance Based Studies Research GroupSchool of Sustainable Engineering and the Built EnvironmentSchool of Sustainable Engineering and the Built Environment

Arizona State UniversityArizona State University

www.pbsrg.com

http://www.cibworld.nl/website/

W W W . P B S R G . C O M 2

This presentation is for This presentation is for educational purposes only.educational purposes only.

Please refer to the Please refer to the solicitation/RFP for specific solicitation/RFP for specific

instructionsinstructions


What If You Are Going In For Brain What If You Are Going In For Brain Surgery…Surgery…Would you? Find the cheapest surgeon? After you found the surgeon you wanted to hire, then ask that surgeon if

he/she could lower their price a little? Would you tell them that they should do it faster? Would you tell them how to perform the surgery / what tools they can use? Would you tell them that you have a better way of doing the surgery? Would you tell them which nurses/doctors they can use? Would you hire other individuals to tell/direct the surgeon how to do the

surgery?

Would you be nervous if? The surgeon asked you how you would like him/her to do the surgery? The surgeon asked how long you would like the surgery to take? If the surgeon knew you had asked for the wrong procedure, but did it any way,

because hey, the customer is always right?


What If You Are Going In For Brain What If You Are Going In For Brain Surgery…Surgery…Wouldn’t you rather? Find the best surgeon available? Let the surgeon ask you the right questions so he/she can gather the right info? Let the surgeon tell you how long it should take to perform the surgery? The surgeon let you know what the potential risks are and what he/she is going to

do about them, but what could happen even if he/she does everything they can…and all this before he/she starts?

The surgeon pick out the best nurses/doctors to assist him/her? Let the surgeon tell you what to do after the surgery so it all works out like it is

supposed to? Let the surgeon let you know of some possible alternatives that could be better in

the long term?

Wouldn’t you feel better if? The surgeon found something different during the operation that he/she used their

expertise and took the best course of action? The surgeon would just sedate you and then wake you up when it was over?

W W W . P B S R G . C O M

What are we trying to What are we trying to accomplish?accomplish?

Scenario 1 Scenario 2

Question:

If Purchasing wants to buy a “green circle”, in which scenario is hiring the right “green circle” easiest to justify?


What makes our research message What makes our research message unusual…..unusual…..Simplistic

Uses logic

Efficiency: less decision making, less management, and better results (best value and high profits)

It is more important for the vendor who does the work to know what to do than it is for client’s representative to know what the vendor should do

Measurement


Industry StructureIndustry StructureHigh

High

I. Traditional/Price-Based

II. Value Based

IV. Unstable Market

III. Negotiated-Bid

Specifications, standards and qualification based

Management & Inspection

Vendor reactive to Owner

Best Value (Performance and price measurements)

Quality control by Vendor

Perceived Competition

Pe

rfo

rman

ce

Low

Vendor minimizes risk

Client minimizes risk


Vendor 1

Vendor 2

Vendor 3

Vendor 4

Perf

orm

an

ce

High

Low

Ris

k

High

Low

Perf

orm

an

ce

High

Low

Ris

k

High

Low

Impact of Minimum Impact of Minimum Requirements & ExpectationsRequirements & Expectations

Vendor 1Vendor 2Vendor 3Vendor 4


High

Low

Perf

orm

an

ce

Owners

“The lowest possible quality

that I want”

Vendors

“The highest possible value that you will get”

Minimum

Problem with Traditional Problem with Traditional SystemsSystems

High

Low

Perf

orm

an

ce

Maximum

W W W . P B S R G . C O M 10

Industry StructureIndustry Structure

High

I. Traditional

II. Value Based

IV. Unstable Market

III. Negotiated-Bid

Inefficient

Relationship-based

Allows nonperformance

Maximized management

Technical data

Confusion

Client minimizes risk

Win-win

Efficient/Performance-Based

Quality control/preplanning

Information environment

Vendor minimizes risk

Competition

Pe

rfo

rman

ce

Low

High

Qualified vendors invited

Owner selects vendor

Negotiates with vendor

Vendor performs

W W W . P B S R G . C O M 11

PIPS ObjectivesPIPS Objectives Outsource to experts (not just transfer risk...but minimize risk)

Minimize risk of non-performance Complete on time Complete with no cost change orders Customer satisfaction / No complaints No Finger pointing

Minimize client management, direction, and decision making.

In return, the vendors can maximize profit by being more efficient

W W W . P B S R G . C O M 12

The Performance The Performance Information Information

Procurement System Procurement System (PIPS)(PIPS)

W W W . P B S R G . C O M 13

PIPS is Not Just a PIPS is Not Just a Selection Tool…But a Selection Tool…But a Program to Increase Program to Increase Accountability and Accountability and

Efficiency.Efficiency.

W W W . P B S R G . C O M 14

The Performance The Performance Information Risk Information Risk

Management System Management System (PIRMS)(PIRMS)

W W W . P B S R G . C O M 15

Best Value System: Best Value System: PIPS & PIRMSPIPS & PIRMS

Identification of PotentialBest-Value

Pre Planningand

Risk Management

Measurement ofDeviation from the

Expectation

PHASE 1PHASE 1 PHASE 2PHASE 2 PHASE 3PHASE 3

15

PIPS PIRMSPerformance Information

Procurement SystemPerformance Information Risk Management System


Evaluation CriteriaEvaluation Criteria

Past Performance Information

Vendor Generated Solution

Technical Risk Plan

Risk Assessment & Value Added Plan

Transition Milestone Schedule

Comparison Financial Submittal

Cost Proposal for the Vendor Generated Solution

Interviews

W W W . P B S R G . C O M 17

Filter 1Past

PerformanceInformation

Filter 2Current Project

Requirements

Filter 4Prioritization

(Identify Best Value)

Filter 5Pre-Planning

Phase

Filter 6Weekly

Report &Post-Rating

Time

Qua

lity

of V

endo

rs

Filter 3Interview

Key Personnel

Awar

d

High

Low

PIPS ProcessPIPS Process

W W W . P B S R G . C O M 18

Filter 1Past



Information

Filter 4Identify Potential

Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Filter 1 – Past Performance Filter 1 – Past Performance InformationInformation

W W W . P B S R G . C O M 19

Past Performance Past Performance Information (PPI)Information (PPI)

PPI will be collected on all vendors and their critical team components.

Once the PPI is collected, it is stored in a database.

The data collection is a one-time process (the vendor can reuse the PPI on future projects).


Critical IndividualsCritical IndividualsPast Performance Information will be collected on all critical team

components, which includes:

3 Components

The Vendor (Firm)

Regional or Area Representative (Individual)

“On-Site” Operations Manger (Individual)

20

W W W . P B S R G . C O M 2121

Reference List

VendorVendorVendorVendor MS Excel Spreadsheet

Each Critical Team Component will create

Contains a list of the vendors past projects that will be surveyed

The maximum number of surveys that Vendors will receive credit for is 10 for each firm and 5 for each individual

A template is available online to download

Prepare Reference List

W W W . P B S R G . C O M 2222

Each Critical Team Component will create a “Reference List” (which identifies all projects being surveyed)

Past Project InformationPast Project Information

W W W . P B S R G . C O M 23

ReferencesReferences The reference list must contain different projects

You may submit multiple jobs for the same past client

W W W . P B S R G . C O M 24

Vendor / Individual Vendor / Individual Reference ListReference List All individuals and firms must have separate reference lists.

Each individual will be treated as a separate entity.

If the individual leaves a firm, their PPI will follow them to the next firm.

Vendor must keep track of who their individuals are.

ABC Company Reference List

Joe Smith Reference List

Sue Parker Reference List

W W W . P B S R G . C O M 2525

PPI / Data Collection PPI / Data Collection ProcessProcess

The vendor is responsible for sending out a survey questionnaire to each of their past clients (on the Reference List).

The vendor should contact each reference to make sure that they complete and return the survey by the due date.

Setup and Fax Survey Forms

VendorVendorPast ClientPast ClientVendorVendorVendorVendor

W W W . P B S R G . C O M 26

Survey FormSurvey Form

W W W . P B S R G . C O M 27

Survey Must Match Survey Must Match Reference ListReference List

W W W . P B S R G . C O M 28

Don’t Forget to Add Your Fax Don’t Forget to Add Your Fax ##

W W W . P B S R G . C O M 29

All Surveys MUST Be All Surveys MUST Be SignedSigned

W W W . P B S R G . C O M 30

PPI / Data Collection PPI / Data Collection ProcessProcess

The vendor is responsible for collecting all surveys

The survey must be faxed back to the vendor

The vendor will submit all surveys with their submittal.


Client Evaluates and Faxes Back

VendorVendorPast ClientPast ClientVendorVendorVendorVendor

W W W . P B S R G . C O M 31

Example Survey Example Survey (Firm and Individuals)(Firm and Individuals)

VendorPast Client

VendorPast Client

W W W . P B S R G . C O M 32

Surveys Returned to Surveys Returned to VendorVendor

Compiles Data


Client Evaluates and Faxes Back

VendorVendorPast ClientPast Client

VendorVendor Current ClientCurrent Client

VendorVendorVendorVendor

Prepare Reference List

W W W . P B S R G . C O M 33

What To SubmitWhat To Submit

Reference List & Analysis

TableSurveys

FirmFirm

Surveys

Project ManagerProject Manager

Surveys

Lead Program Lead Program DesignerDesigner


Table


Table

W W W . P B S R G . C O M 34

PPI Analysis TablesPPI Analysis Tables

Vendor / Firm

Region Manager

Operations Manager

W W W . P B S R G . C O M 35

Calculating the Overall Calculating the Overall ScoreScore

W W W . P B S R G . C O M 3636

PPI SummaryPPI Summary PPI is a one time step. The vendor and individual do not need to

repeat on every project.

Critical individuals may also be evaluated along with the vendor.

The vendor and individual must create a “Reference List” and prepare and send out survey forms.

The vendor should pick their own references

The vendor should collect all surveys

The PPI database can be updated at any time by submitting additional projects and surveys.

W W W . P B S R G . C O M 37

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Filter 2 – Current InformationFilter 2 – Current Information

W W W . P B S R G . C O M 38

The Vendor Generated The Vendor Generated Solution (Scope Plan) Solution (Scope Plan) The objective of the Vendor Generated Solution is to explain the

vendor’s proposed optimal solution based upon what they know about the client’s expectations and constraints

What is the solution/program and what does it look like? # of devices, breakout of types of devices, locations, sustainable, cost effectiveness, etc.

Why is it the best solution? Any assumptions? Describe what would be the optimal financial arrangement Describe what would be the best length of a contract in terms

of years. Describe the optimal transition strategy for changing from SRP

current environment into your new proposed environment or model.

W W W . P B S R G . C O M 39

The Vendor Generated The Vendor Generated Solution (Scope Plan) Solution (Scope Plan)

The Plan must: Do not exceed 2 page limit Contains no names (be anonymous) Contain no marketing (be kept succinct and objective) Be created using an unaltered version of the template provided

W W W . P B S R G . C O M 4040

Vendor Generated Solution: Vendor Generated Solution: (Scope Plan Template)(Scope Plan Template)


Transition Milestone Schedule Transition Milestone Schedule (For the Vendor Generated Solution)(For the Vendor Generated Solution) 1-page Milestone schedule for all phases needed

Anonymous

No template – follow your own preference

41

W W W . P B S R G . C O M 42

Technical Risk PlanTechnical Risk Plan

Outlined in section 1.15.2.2 & Attachment C The Technical Risk Plan must prioritize the major technical risks that

exist within the service, its delivery, and the client expectation and how those risk are minimized through the vendor’s expertise.

Identify major Technical risks Explain why the risk is a risk How it is minimized with the vendor’s expertise Should be a risk that is specific to the current project

An as example, a technical risks to consider may include integration with SRP’s IT platform and IT Network.

No names, two pages, no marketing, part of final contract

W W W . P B S R G . C O M 43

Technical Risk PlanTechnical Risk PlanOutlined in section 1.15.2.2 & Attachment C (2-Page Limit)


44

RAVA PlanRAVA PlanRisk Assessment & Value Added Plan (RAVA)Risk Assessment & Value Added Plan (RAVA)

1. The Risk Assessment Plan (RA) is to identify risks, plans to minimize risk

2. The Value Added (VA) options (changes in scope).

The RAVA Plan provides the vendor with an opportunity to prove their level of expertise differentiate themselves from their competitors .

Experienced Vendor

Time

Inexperienced Vendor

Time

W W W . P B S R G . C O M 45

Risk Assessment & Value Risk Assessment & Value Added (RAVA)Added (RAVA)

1. Risk Assessment Section (RA) Identify major Non-Technical risks

Explain why the risk is a risk May cause cost increases, transition delays, change orders, or

cause dissatisfaction to SRP Should be non-techinical Should be a unique risk to the current project

Identify solution to avoid / minimize the risk Non-technical explanation Must explain how risk is avoided or minimized from occuring

W W W . P B S R G . C O M 46

Risk Assessment & Value Risk Assessment & Value Added (RAVA)Added (RAVA)

2. Value Added Section (VA) Propose any options that could increase the value (expectation, cost,

delivery, satisfaction) of the work.


RAVA Plan TemplateRAVA Plan Template

47

W W W . P B S R G . C O M 4848

Format of the PlansFormat of the Plans In order to minimize any bias, the Plans must NOT contain any

names that can be used to identify who the vendor is (such as vendor name, personnel names, project names, etc).

A template is provided and must be used. Vendors are NOT allowed to re-create, re-format, or modify the template.

The plans should not contain marketing material.

The Vendor Generated Solution must NOT exceed 2 pages.

The Technical Risk Plan must NOT exceed 2 pages.

The RAVA Plan must NOT exceed 2 pages.

W W W . P B S R G . C O M 49

Things to AvoidThings to Avoid Marketing data:

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.

Overly Technical data: The system we propose has 200% increase in PRX bandwidth modularity.

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

W W W . P B S R G . C O M 50

Example of Solutions Example of Solutions Risk: Risk: Concrete EscalationConcrete EscalationType: Non-Technical (RAVA)Type: Non-Technical (RAVA)

Plan 1 The owner can be assured all risks associated with material escalations

will be eliminated because we offer the benefit of an experienced project team that includes the most detailed, prequalified and extensive list of subcontractors and suppliers, from around the world.

Plan 2 The cost of concrete has been rising drastically. Since this project

requires a substantial amount of concrete, cost is a risk. To minimize this risk, we have secured and signed a contract with a local concrete manufacturer to prevent any increase in cost during the duration of this project.

MARKETING INFORMATIONMARKETING INFORMATION

W W W . P B S R G . C O M 51

Example of Solutions Example of Solutions Risk: Risk: Loss of Radio Flagship in Major MarketLoss of Radio Flagship in Major MarketType: Non-Technical (RAVA) Type: Non-Technical (RAVA)

Plan 1 We will work very hard to maintain excellent affiliate relationships. If

we lose a radio station (e.g. it changes its format) we will move quickly to replace the lost station. If we cannot quickly replace a flagship station, we can be very creative and could even consider purchasing all local inventory from a new flagship station.

Plan 2 We own and will maintain two radio contracts covering the Phoenix

area with were signals can be switched if required. The flagship station will be the station with the stronger signal and greater coverage. If a station is lost we will have a equal replacement within 2 months. If within two months a replacement is not contracted we will purchase inventory from another station or discount the cost of an inventory purchase and add it to our payments to ASU.

W W W . P B S R G . C O M 52

Plan 1 We will work with the user to minimize the impact of noise from

demolition.

Plan 2 We have planned to demolition during off hours and weekends.

This will have a slight impact on our cost (less than 1%), but the impact to customer satisfaction justifies this. We will also install rubber sheets on the floors to diminish noise and vibrations. Both solutions can be performed within your budget.

Example of SolutionsExample of SolutionsRisk: Risk: Noise from DemolitionNoise from Demolition

Type: Technical RiskType: Technical Risk

W W W . P B S R G . C O M 53

Plan 1 Our internal food safety standards are recognized as being far more stringent

than government regulatory requirements. In the unlikely event of a food-borne illness, our strong relationships with local, state, and national health agencies will ensure and 24-hour response.

Plan 2 If a food safety issue arises, vendor will effectively minimize the client’s risk of exposure

by: 1) Vendor’s system will issue a safety alert and related directives to 10,000+ units and all

ASU email accounts in less than 15 minutes. 2) The vendor will place a lock within in its foodservices purchasing system on any food

with risk so it cannot be purchased, 3) The vendor will remove all potentially harmful products within the first hour of notice. 4) The vendor will identify as many purchasers as possible through credit receipt names

and the client system to notify them individually. Warnings will be placed around campus within two hours of discovery.

Example of Solutions Example of Solutions Risk: Risk: Safe Food Supply/Food Born IllnessSafe Food Supply/Food Born IllnessType: Non-Technical (RAVA)Type: Non-Technical (RAVA)

W W W . P B S R G . C O M 54

Plan 1 Coordination with [water company] is critical. We will coordinate and

plan with [water company] as soon as the award is made to make sure that we get water to the site to irrigate the fields.

Plan 2 We will coordinate and schedule the water with [water company].

However, based on past experience there is a high risk they will not meet the schedule. We will have temporary waterlines setup and ready to connect to the nearby fire hydrant to irrigate until [water company] is ready. We will also have water trucks on-site if there is problems with connecting the lines.

Example of Solutions Example of Solutions Risk: Risk: Getting water to the siteGetting water to the siteType: Technical RiskType: Technical Risk


Example of Value AddedExample of Value Added

W W W . P B S R G . C O M 56

Example: Value Added Example: Value Added ItemsItems

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 $20K and 3 weeks in schedule we can replace and repair all of these items.

W W W . P B S R G . C O M 5757

We are Looking for Vendors We are Looking for Vendors Who Can Think Ahead…Who Can Think Ahead…

……And Act In And Act In Our Best InterestOur Best Interest

W W W . P B S R G . C O M 58

How Many Risks & Value Added How Many Risks & Value Added Options Can You Submit?Options Can You Submit?

…As many as you can fit

within the 2-page limit!

W W W . P B S R G . C O M 5959

Vendor Generated Solution & Vendor Generated Solution & Plans SummaryPlans Summary The All Plans are 2 pages maximum each

The Plans must NOT contain any names.

No marketing / No technical information

Avoid general risks / solutions

Identify value added options (and explain why)

The Plans becomes part of the final contract.

The Plans provide a high performing vendor an opportunity to prove their expertise & prove they are not a commodity.

If nobody can clearly differentiate themselves in the Plans, the prioritization will be based on other factors.


Comparisons FinancialsComparisons Financials

60


Cost Proposal for Vendor Cost Proposal for Vendor Generated SolutionGenerated Solution

61


Summary of SubmittalSummary of SubmittalSummary

Past Performance Information Sent in by past clients to the vendor Vendor collects and submits with

proposal Submit 3 separate Excel files

Firm, Region Rep, Ops Mgr. 3 worksheet per file

Profile Reference List Analysis Table

Vendor Generated Solution (Up to 2 Pages) Technical Risk Plan (Up to 2 Pages)

Risk Assessment & Value Added Plan (RAVA) (Up to 2 pages)

Schedule (1 page) Comparison Financial Proposal Cost for Vendor Generated

Solution Proposal Form Any additional required forms


Proposal FormProposal Form

63


Proposal FormProposal Form Proposal Form is stapled (or fastened) to the Proposal Documents:

W W W . P B S R G . C O M 6565

How The Submittal How The Submittal Process WorksProcess Works

Submittal

Evaluation Members

Proposal Form(1 page)

Proposal Form, $, & Other Documentation

Proposal Form(1 page)

Plans & Schedule

Average Score

ContractingOfficer

ContractingOfficer


ShortlistingShortlisting If necessary, depending on the number of proposers, shortlisting will be

conducted

We may shortlist to 3-5 teams

W W W . P B S R G . C O M 67

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Filter 3 – InterviewsFilter 3 – Interviews

W W W . P B S R G . C O M 68

Interview FormatInterview Format The client will actually “interview” each critical individual. This is not a

“presentation”

All vendor individuals will be interviewed separately. The client will not allow group interviews with the vendors team. The client will not allow any other individuals to be present during interviews

Generally, interview times will last about 15-25 minutes per individual

A standard set of questions will be generated and asked to each individual.

The client has the option to clarify any answers (or ask additional questions to clarify an answer).

No substitutions will be allowed. Individuals listed on Proposal Form must be present. If a team member is not present for the interview, they will jeopardize the teams competitiveness.


Primary QuestionsPrimary Questions1. 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. What value do you bring to the project in terms of differences based on dollars, quality, expertise, or time?

W W W . P B S R G . C O M 70

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Filter 4 – Identify the Filter 4 – Identify the Potential Best ValuePotential Best Value


VendorNo Summary Criteria Out of A B C1 RAVA Plan 10 5.91 7.09 6.312 Transition Milestone Schedule 10 5.17 6.96 6.333 Interview 25 15.77 16.78 13.534 Past Performance Information - Survey 10 9.80 9.99 9.825 Past Performance Information - #/Clients Raw # 5.67 3.00 4.426 Past Performance Information - Financial 10 7.02 8.67 6.907 Financial Rating 10 4.00 8.00 8.008 Financial Return - Commissions Raw $ 30,254,170$ 60,137,588$ 64,000,000$ 9 Capital Investment Plan Raw $ 14,750,000$ 20,525,000$ 12,340,000$

10 Equipment Replacement Reserve Raw $ 7,213,342$ 4,100,001$ 8,171,811$ Finanical Totals 52,217,512$ 84,762,589$ 84,511,811$

VendorNo Summary Criteria Weight/Out of A B C1 RAVA Plan 28 16.55 19.85 17.672 Transition Milestone Schedule 2 1.03 1.39 1.273 Interview 25 15.77 16.78 13.534 Past Performance Information - Survey 9 8.82 8.99 8.845 Past Performance Information - #/Clients 1 1.00 0.53 0.786 Past Performance Information - Financial 15 10.53 13.01 10.357 Financial Rating 5 2.00 4.00 4.008 Financial Return - Commissions 7 3.31 6.58 7.009 Capital Investment Plan 6 4.31 6.00 3.61

10 Equipment Replacement Reserve 2 1.77 1.00 2.00100 65.09 78.13 69.04

Assessment: based on actuals

W W W . P B S R G . C O M 72

Identifying the Potential Identifying the Potential Best-ValueBest-Value

Best-Value is the lowest priceBest-Value is within 10% of next highest ranked firm Best-Value can be justified based on other factors

Best-Value is within budget

YesNo

YesYes

Best ValuePrioritizationBest Value

Prioritization

YesNo

Go with AlternateProposal or Cancel

Proceed toPre-Award

YesYes

YesYes

YesYes YesNo

YesNo Proceed to highest ranked proposal within budget

W W W . P B S R G . C O M 73

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Filter 5 – Pre-AwardFilter 5 – Pre-Award

W W W . P B S R G . C O M 74

PIPS Best Value SystemPIPS Best Value System

Identification of PotentialBest-Value

Pre Planningand

Risk Management

Measurement ofDeviation from the

Expectation

PHASE 1PHASE 1 PHASE 2PHASE 2 PHASE 3PHASE 3

W W W . P B S R G . C O M 7575

Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important Period of time allotted to potential best value

Why is it important: Allows the vendor to preplan the entire project in detail Allows the vendor to minimize surprises to the client Allows the vendor to clarify if their proposal is accurate Allows the vendor to place client at risk for risks outside of

their control

Risk Risk Risk

W W W . P B S R G . C O M 76

Pre Award (PA) Phase Pre Award (PA) Phase ComponentsComponents

PA Kickoff Meeting

PA Period

PA Final Meeting

PA Document

W W W . P B S R G . C O M 77

PA Kick-Off MeetingPA Kick-Off Meeting Vendor is notified that they are potential best value

The client will coordinate a meeting with all critical parties

Purpose of the meeting is to educate all parties of the PA requirements

Vendor will be given: All other proposers’ risks from RAVA plans, no solutions, no VA, no scope Any technical concerns, issues, or risks, identified by client Contact list of critical individuals

All parties will review online PA Tutorial

W W W . P B S R G . C O M 78

Filter 1Past


Filter 2Proposal & RAVA Plan

Filter 4Prioritize (Identify

Best Value)

Filter 5Pre-Award

Phase (Pre-Plan)

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Non-Detailed vs. DetailedNon-Detailed vs. DetailedN

on

-De

taile

d

No

n-D

eta

iled

No

n-D

eta

iled

No

n-D

eta

iled

De

taile

d

W W W . P B S R G . C O M 7979

Filter 1Past


Filter 2Proposal & RAVA Plan

Filter 4Prioritize (Identify

Best Value)

Filter 5Pre-Award

Phase (Pre-Plan)

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

No NegotiationNo NegotiationYes for Clarification & AdjustmentYes for Clarification & Adjustment

Negotiation

Clarification

Adjustment

W W W . P B S R G . C O M 80

Pre Award DocumentPre Award Document(RM Plan)(RM Plan) The PA Document should contain the following:

1. Scope Clear and Detailed Project Scope (what is and what is not included)

– Set Baseline Expectation2. Uncontrolled Risks List

A list of Risks Proposer does not control with plans to minimize3. Identified Risks List

A list of all client/user risks with plans to minimize & all proposer’s risks

4. Milestone schedule5. Client Action Item List6. Weekly Risk Report 7. Performance Metrics8. Fee9. Other: Agreed to Value Adding Options, Original RAVA Plan, Interview

Minutes, etc…

W W W . P B S R G . C O M 8181

Pre Award Summary Pre Award Summary MeetingMeeting Is not a “Q&A” meeting

All issues resolved All coordination complete All risks that are not in vendors control have been identified All value added options have been addressed

PA Meeting is to summarize all of the coordination that has been complete and walk through the PA Document

Upon successful completion of the PA Meeting, the client will make the award

W W W . P B S R G . C O M 82

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

AwardAward

W W W . P B S R G . C O M 83

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Filter 6 – Weekly Risk ReportFilter 6 – Weekly Risk Report

W W W . P B S R G . C O M 84

Weekly Reporting SystemWeekly Reporting System Excel Spreadsheet that tracks only unforeseen risks on a project

Client will setup and send to vendor once Award/NTP issued

Vendor must submit the report every week (Friday).

The final project rating will be impacted by the accuracy and timely submittal of the WRS

W W W . P B S R G . C O M 85

Unforeseen Risks

PERFORMANCE SUMMARY• Vendor Performance• Client Performance• Individual Performance• Project Performance

PREPLANNING/QC• Risk• Risk Minimization• Schedule• Performance Metrics

WEEKLY REPORT• Risk• Unforeseen Risks

Measurement of Deviation from the ExpectationMeasurement of Deviation from the ExpectationManagement by Risk MinimizationManagement by Risk Minimization

W W W . P B S R G . C O M 86

Filter 1Past



Information


Best Value

Filter 5Pre-Award

Phase

Filter 6Weekly

Report &Post-

Rating

Time

Qualit

y o

f V

endors

Filter 3Interview

Aw

ard

High

Low

Post Project RatingPost Project Rating

W W W . P B S R G . C O M 8787

Final RatingFinal Rating After the project is complete, the client will evaluate the project.

The Final Rating will be heavily impacted by: Change in Cost Project delays Poor service Owner surprises Complaints Ability to submit accurate and timely weekly reports

In Best-Value Procurement, the vendors goal is to get a high rating in order to stay competitive.

W W W . P B S R G . C O M 8888

50% Modification50% Modification

NO CRITERIA Ven 1 Ven 2 Ven 3 Ven 4

1 Ability to manage the project cost 9.4 9.8 9.4 9.52 Ability to maintain project schedule 9.6 9.8 9.7 9.83 Quality of workmanship 10.0 9.8 9.7 9.94 Professionalism 9.6 9.8 9.7 9.75 Close out process 9.3 9.7 9.5 9.56 Ability to communicate 9.4 9.8 9.4 9.57 Ability to follow the users rules 9.7 9.8 9.4 9.88 Overall customer satisfaction 9.9 9.8 9.7 9.89 Total number of different jobs 19 18 18 20

10 Total number of different customers 19 17 18 17

NO CRITERIA Ven 1 Ven 2 Ven 3 Ven 4

1 Ability to manage the project cost 9.4 7.4 9.4 9.52 Ability to maintain project schedule 9.6 7.4 9.7 9.83 Quality of workmanship 10.0 7.4 9.7 9.94 Professionalism 9.6 7.4 9.7 9.75 Close out process 9.3 7.4 9.5 9.56 Ability to communicate 9.4 7.4 9.4 9.57 Ability to follow the users rules 9.7 7.4 9.4 9.88 Overall customer satisfaction 9.9 7.4 9.7 9.89 Total number of different jobs 19 18 18 20

10 Total number of different customers 19 17 18 17

NO CRITERIA Ven 2

1 Ability to manage the project cost 9.82 Ability to maintain project schedule 9.83 Quality of workmanship 9.84 Professionalism 9.85 Close out process 9.76 Ability to communicate 9.87 Ability to follow the users rules 9.88 Overall customer satisfaction 9.89 Total number of different jobs 1810 Total number of different customers 17

NO CRITERIA Ven 2Current Project

1 Ability to manage the project cost 9.8 5.02 Ability to maintain project schedule 9.8 5.03 Quality of workmanship 9.8 5.04 Professionalism 9.8 5.05 Close out process 9.7 5.06 Ability to communicate 9.8 5.07 Ability to follow the users rules 9.8 5.08 Overall customer satisfaction 9.8 5.09 Total number of different jobs 18

10 Total number of different customers 17

NO CRITERIA Ven 2Current Project

Ven 2

1 Ability to manage the project cost 9.8 5.0 7.42 Ability to maintain project schedule 9.8 5.0 7.43 Quality of workmanship 9.8 5.0 7.44 Professionalism 9.8 5.0 7.45 Close out process 9.7 5.0 7.46 Ability to communicate 9.8 5.0 7.47 Ability to follow the users rules 9.8 5.0 7.48 Overall customer satisfaction 9.8 5.0 7.49 Total number of different jobs 18 18

10 Total number of different customers 17 17


ScheduleSchedule


Website – www.pbsrg.comWebsite – www.pbsrg.com



All Proposal Questions Must Be Emailed All Proposal Questions Must Be Emailed Using the Proposer Inquiry Form Using the Proposer Inquiry Form

to: Lonnie Cunico atto: Lonnie Cunico [email protected]

Cc: Brian stone atCc: Brian stone [email protected]@mainex1.asu.edu

W W W . P B S R G . C O M 93

Comments / QuestionsComments / Questions


1 SRP Multi Functional Printers RFP NO. SRP Multi Functional Printers RFP NO. FF320058FLC Kenneth T. Sullivan PhD, MBA Brian Stone MBA Performance Based.

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