The RFP Blueprint “A Blueprint for Success” Paul J. Brennan, CPPO, CPPB, C.P.M. New York State Association of Municipal Purchasing Officials.

TheRFP

Blueprint“A Blueprint for Success”

Paul J. Brennan, CPPO, CPPB, C.P.M.

New York State Association of Municipal Purchasing Officials    

It Doesn’t Have To Be DifficultPreparing a RFP

even for the most complex procurements does not need to be difficult.

Feeling overwhelmed?

Follow the RFP Blueprint to ensure success

What Is a Request for Proposal?

“A Request for Proposal is a formal invitation from an organization to a supplier to submit an offer. The offer is to provide a solution to a problem or a need that an organization has identified.”

What Is a Request for Proposal?

A formal process based on fair and open competition.

A process that provides a standardized framework for proposal submission and evaluation.

Examples of When to Use an RFP

Professional Services:Professional services involve specialized skill, training and expertise, use of professional judgment or discretion, and /or a high degree of creativity.

Examples of When to Use an RFP

Specialized Software Purchases which require supplier implementation

Turn-Key systems which include both a product and a service

True Leases

Most Common Problems

Multiple Proposals are Difficult to Evaluate

The Prime Contractor’s Role is too limited

Contract Provisions are “Deal Stoppers”

Proposals restate RFP requirements and do not offer multiple solutions

Pricing is Not Sufficiently Structured

Contract Negotiations Become Stalled

Advantages Promotes competition Provides alternate methodology for

accomplishing the same objective The organization’s personnel

develop a better understanding of the agencies needs

Provides better information for the vendors

Simplified evaluation Less biased selection Improves quality of the proposals

received

Disadvantages

Increased time - 30-90 Days Increased costs Who’s responsible? Difficult to

define

The RFP Document

Before Starting Identify the key users to be

involved in preparing the RFP?

Allocate sufficient staff and time to the RFP process?

Are the overall goals of the procurement process documented and understood?

Defining the Objectives The basic, top-level objectives of the

acquisition must be defined.

Are the anticipated results of a successful solution stated clearly in objective terms?

This approach provides potential offerors the flexibility to develop cost effective solutions and the opportunity to propose innovative alternatives meeting the stated objectives.

Establishing Requirements Has the evaluation methodology

and evaluation criteria been developed and used to ensure that the objectives and requirements are stated clearly?

Based on the complexity of the services or solution needed the RFP document will vary in detail and size

However

The basic outline of the RFP will remain the same, regardless of the size and complexity of the services or solution needed

Developing the RFP Document

RFP’s should contain, at a minimum, the following sections: Background Information Objectives and Technical

Requirements Cost Proposal Requirements Contractual Terms and Conditions Administrative Proposal Format & Content Proposal Evaluation Criteria Attachments

Developing the RFP Document

Background Information

Provide a brief overview of the procurement subject matter

Provide a brief overview of your organization

Describe the background surrounding this procurement

Key Dates/Events Definitions

Objectives and Technical Requirements This section should include the

specific objectives and desired outcomes (SOO)

This section may include a specific technical requirements for the particular contract. (SOW)

Include any criteria which you require to qualify vendors for this project

Objectives and Technical Requirements Relevant and Past Experience

requirements Financial Statement

Requirements Staffing and Personnel

Biographies Certification and License

Requirements Other Technical Requirements

Cost Proposal Requirements Describe the form and cost

breakdown which you require for this particular contract (fixed price, cost plus/ level of effort or lump sum)

Contractual Terms and Conditions

This section should include the standard terms and conditions of your agency

This section of the RFP should be reviewed and approved by your legal staff. (Create a template and do it only once, with an annual review)

Administrative Requirements Inquiries Pre-proposal conference Receipt Confirmation Form Insurance Requirements

Proposal Format and Content Requirements

General Instructions Organization and Number of Copies

Section I: Executive Summary Section II: Technical Response Section III: Cost/Price Proposal Section IV: Contract Documentation Section V: Relevant Past and Present

Performance

Executive Summary

Narrative Summary – A concise narrative summary of the entire proposal, including significant risks, and a highlight of any key or unique features, excluding cost/price.

Table of Contents – a master table of contents for the entire proposal

Technical Response Section Provide as specifically as possible

the actual methodology used to satisfy the requirements stated in the County’s statement of objectives and statement of work

Address Proposal Risk Personnel Qualifications and

Experience Motivation

Technical Response Section Statement of Work Work Breakdown Structure Master Schedule

Cost Proposal Section

Cost/Price proposals or Budget Proposals

Only one copy of the Cost/Price proposal shall be submitted in the Original Copy. Additional copies of the proposal shall not contain copies of the Cost/Price proposal

Contract Documentation Requirements

Any legal forms required by your agency

Required Licenses or Certifications

Exceptions to Terms and Conditions

Authorized Offeror Personnel Official Company Address and

Identifying Codes

Contract Documentation Requirements Subcontracting Plan DBE Participation Plan

Relevant and Past Performance Relevant Contract information Client Authorization Letter Organizational Structure Change

History

Proposal Evaluation Criteria

Overall Relative Importance of Evaluation Criteria and Assigning Weights Technical Criteria Personnel Qualifications, Project

Organization, Experience and Commitment Criteria

Relevant Past & Present Performance Criteria

Cost Criteria

The Evaluation Process

Use a building block approach Establish compliance Score the proposals Develop a short list Interview the suppliers Evaluate the cost/budget Impose Upset Levels

Use a Two-step Evaluation Process

Technical proposals and cost proposals should be submitted in two separate sealed envelopes

Evaluate technical proposals first, eliminating any supplier not meeting the mandatory requirements; then evaluate the cost proposals for the remaining suppliers

Supplier Complaints & Protests

Have written policies and procedures

Promote fair and open competition

Provide and effective dispute resolution mechanism

Statement of Objectives (SOO)

The SOO is a government prepared document incorporated into the RFP that states the overall solicitation objectives.

It is used to provide maximum flexibility to each Offeror to propose an innovative development approach.

Statement of Objectives (SOO)

Offerors use the SOO and SOW-Technical Requirements as a basis for preparing their proposals including a Statement of Work.

The SOO is retained and is used in contract development

Statement of Objectives (SOO)

The SOO should provide the basic, top level objectives of the acquisition and in many cases can be used in lieu of a Government written SOW

Most RFP’s for large, complex projects will contain both a SOO and SOW

Statement of Objectives (SOO)

Using the SOO approach allows the Government with an opportunity to assess the offeror’s understanding of all aspects of the effort to be performed, by eliminating the “how to” instructions to accomplish the required effort normally contained in an SOW

Statement of Objectives (SOO)

The SOO should address project oriented goals rather than performance requirements

SOOs are normally in the 2-4 page range

In most cases the SOO will not be a one for one replacement of the SOW

Statement of Objectives (SOO)

Each portion of the RFP must support one another

The SOO should be clear and concise and provide potential offeror’s with enough information and detail to structure a sound program, designed to be executable and satisfy government objectives

Statement of Objectives (SOO)

The SOO is used, along with other information and instructions in the RFP, by offerors to develop the statement of work, contract work breakdown structure, master schedule, and other documents supporting and defining the offerors proposed effort

Statement of Objectives – RFP Relationships

The RFP must include instructions to the Offeror that require using the SOO to construct and submit a Statement of Work, Work Breakdown Structure and Master Schedule

The Government’s intention to evaluate the proposed SOW, WBS, and MS should be stressed in the Proposal Evaluation Criteria section.

Statement of Work (SOW)

The SOW and Technical Requirements should logically follow the SOO with instructions to the offerors to provide information supporting the objectives of the project

The Statement of WorkThe Statement of Work (SOW) is a

unique document. The SOW describes the specific requirements applicable to a particular item or service being purchased. The purpose is to provide proposers with a clear, accurate, and complete description of the work to be performed, including inspection, test and acceptance, quality, support services, data and documentation, maintenance, and any other necessary requirements.

The Statement of Work The SOW should tell suppliers

what is wanted and not how they are to perform

As a general statement, in most cases you want to avoid telling the offeror’s “how to do their job” When we do this, we do not give the offerors flexibility to develop cost effective solutions

The SOW should not be any more complex or detailed than necessary

The Statement of Work

Statements of Work will vary greatly depending on the work requirements and depth of detail

As the work increases in complexity and scope, more particulars are required

The Statement of Work

You need to specify all applicable tasks and deliverables

You must be certain that all information is clearly and completely stated

Types of Work Statements Statements of Work are

classified as either a “level-of-effort term” or “completion” type.

Level-of-effort term work statements require the supplier to furnish a specified amount of technical effort during a given period of time and, to furnish a report of the results achieved.

Types of Work Statements Completion or Deliverable based

work statements require the furnishing of completed deliverables/services at the agreed upon delivery date meeting the SOW requirements.

Payments are made based on deliverables and not time.

Sources for SpecificationsCounty Purchasing DepartmentsNYS Office of General ServicesNY State Association of Municipal

Purchasing OfficialsHudson Valley, Capital Region and

Central New York Purchasing GroupsNational Institute of Governmental

Purchasing – Specifications DatabaseBidNet – National Specification Library