Procurement-the RFPProcurement-the RFP

ByBy

Warren J. McKeon, CPA, VCOWarren J. McKeon, CPA, VCO

Methods of ProcurementMethods of Procurement

Small purchase, $50,000 or lessSmall purchase, $50,000 or less Emergency procurementEmergency procurement Sole source procurementSole source procurement Competitive bid (IFB) > $50,000Competitive bid (IFB) > $50,000 Competitive negotiation (RFP) > Competitive negotiation (RFP) >

$50,000$50,000

> $30,000 professional services> $30,000 professional services

Small Purchase $5,000 or Small Purchase $5,000 or LessLess

Single quotation is acceptableSingle quotation is acceptable

Verbal or in writingVerbal or in writing

DocumentDocument

$5,000 Not Exceeding $15,000$5,000 Not Exceeding $15,000

Three quotations from a valid sourceThree quotations from a valid source

Quotations may be written or verbalQuotations may be written or verbal

Document the same as for $5,000 or Document the same as for $5,000 or lessless

$15,000 Not Exceeding $50,000,$15,000 Not Exceeding $50,000,

Not Exceeding $30,000Not Exceeding $30,000If Professional ServiceIf Professional Service

Four written quotationsFour written quotations Request for quotation should include:Request for quotation should include:

– WhatWhat– WhenWhen– WhoWho– General and special termsGeneral and special terms

$15,000 Not Exceeding $15,000 Not Exceeding $50,000 Continued$50,000 Continued

Receive quotationsReceive quotations Tabulate quotationsTabulate quotations DetermineDetermine Responsive?Responsive? Responsible?Responsible? PostPost ExecuteExecute

Good and Non Professional Good and Non Professional Services > $50,000Services > $50,000

Only two acceptable procurement Only two acceptable procurement methodsmethods

– Competitive sealed bid (IFB)Competitive sealed bid (IFB)

– Competitive negotiation (RFP)Competitive negotiation (RFP)

Invitation To BidInvitation To Bid SpecificationsSpecifications All general and special terms and conditionsAll general and special terms and conditions Pricing scenarioPricing scenario Due dateDue date Advertise and post for a minimum of 10 daysAdvertise and post for a minimum of 10 days MailMail Bidder solicitation list Bidder solicitation list

When the Bid Is ReceivedWhen the Bid Is Received

Stamp Stamp

Late bidsLate bids

Opening BidsOpening Bids

Open publiclyOpen publicly Read aloudRead aloud

– BidderBidder– PricePrice– Discount termsDiscount terms

EvaluationEvaluation

Responsive? Responsive?

Determine the responsive bidder with Determine the responsive bidder with the lowest pricethe lowest price

Responsible VendorResponsible Vendor

CheckCheck ConfirmConfirm VerifyVerify InvestigateInvestigate

AwardAward

LowestLowest

PostPost

IssueIssue

Request for Proposal (RFP)Request for Proposal (RFP)

WrittenWritten CriteriaCriteria Contractual terms and conditionsContractual terms and conditions Unique capabilities and qualifications Unique capabilities and qualifications

required of the vendorrequired of the vendor

When to Use?When to Use?

Can’t use competitive sealed biddingCan’t use competitive sealed bidding

For professional servicesFor professional services

IFB or RFP ?IFB or RFP ?

Ombudsman reporting software Ombudsman reporting software Janitorial cleaningJanitorial cleaning Annual fiscal auditAnnual fiscal audit Employee assistance program (using a Employee assistance program (using a

clinical psychologist)clinical psychologist)

Virginia Public Procurement ActVirginia Public Procurement Act

Public noticePublic notice Multiple awardsMultiple awards Award noticeAward notice

RFP ProcedureRFP Procedure

Determine the needDetermine the need RFP justificationRFP justification Create the RFPCreate the RFP Evaluation committeeEvaluation committee Pre-proposal conferencePre-proposal conference EvaluateEvaluate AwardAward

Creating the RFPCreating the RFP

TimeframeTimeframe BackgroundBackground Statement of needs and deliverablesStatement of needs and deliverables Specific proposal instructionsSpecific proposal instructions Evaluation criteria and weightsEvaluation criteria and weights General terms and special conditionsGeneral terms and special conditions Method of paymentMethod of payment

Issue the RFPIssue the RFP

Public noticePublic notice

Post on the eVA websitePost on the eVA website

MailMail

Receipt of ProposalsReceipt of Proposals

DeadlineDeadline Late proposalsLate proposals No public openingNo public opening Check proposals for required Check proposals for required

informationinformation Distribute proposals to the evaluation Distribute proposals to the evaluation

committeecommittee Committee meets as a groupCommittee meets as a group

Consensus EvaluationConsensus Evaluation

Individual reviewIndividual review

Responsible?Responsible?

Consensus scoring sheetConsensus scoring sheet

NegotiationNegotiation

SelectSelect NegotiateNegotiate Re-scoreRe-score Intent to awardIntent to award Prepare and execute contractPrepare and execute contract

RFP for Professional ServiceRFP for Professional Service

The RFP shall not request that offerors The RFP shall not request that offerors furnish estimates of man hours or cost furnish estimates of man hours or cost for services.for services.

What can you ask for?What can you ask for?

EvaluationEvaluation

Proposals are rankedProposals are ranked Negotiate with Offeror #1Negotiate with Offeror #1 Award or Proceed to #2Award or Proceed to #2 Award or Proceed to #3Award or Proceed to #3 Award or reissue RFPAward or reissue RFP

QuestionsQuestions