October 2 nd, 2017 Albuquerque, NM. Procurement Basics. Small Purchases Bids and RFPs

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1 October 2 nd, 2017 Albuquerque, NM Procurement Basics Small Purchases Bids and RFPs Presented by: Do;y McKinney, CPPB, CSI CDT COOPERATIVE EDUCATIONAL SERVICES 4216 Balloon Park R., NE Albuquerque, NM Phone: Web Site: 1

2 Discussion.. What is a small purchase? What is an Invita\on for Bid? What is a Request for Proposal? What are the Differences? How do I determine which method to use? 2

3 PROCUREMENT ALPHABET SOUP DATA CENTER TOTAL 240 X 400 = 105,000GSF CM Not at Risk CM at Risk CMAR Low Bid DATA FLOOR AREA 40 X 60 BAYS TYPICAL BAYS Pre- Qualify Two Step Process SWITCHGEAR GENERATORS UTILITY TRANSFORMERS/ SWITCHING CUBICLES UPS/ BATTERY ROOMS UTILITY SUPPORT AREA 15,000SF Design/Build MAIL PRINT AREA Best Value JOC STORAGE LOBBY SECURITY MEN WOMEN NOC STAGING MAINTENANCE ELECTRICAL CHILLER PLANT LOADING Fast Track DOCK QBS Weighted Bid Sole Source PRECAST SREEN WALL COOLING TOWERS Negotiated Contract D/B/B OFFICE AREA: RFQ Competitive Sealed Proposals RFP The Foundation Chapter 13 Public Purchases & Property Procurement Code through Public Works Contracts through Sale of Public Property through Public Building Plaques State Purchasing Division (SPD) Website: Regula\ons Price Agreements Sample RFP Contracts CPO Registra\on 3

4 The Foundation Understanding the prevailing statutes and rules (regula\ons) that govern the process you are using is key to a successful procurement to get the desired results. = Oh, if only it were so simple. 4

5 Small Purchases NMSA 1978 Limits for small purchases are set in Statute A. Limit for tangible goods, services and construc\on is $60,000 B. Limit for professional services and qualified professional services (architects/engineers) is $60,000 Small Purchases Local public body limits can be less than, but not more than amount set in Statute NMAC Regula\ons The how to procure small purchases states: $0 to $20,000 - issue a direct purchase order based on the best obtainable price 5

6 Small Purchases $20, to $60,000 Obtain three wri;en quotes If fewer than three wri;en quotes can be obtained, document the findings and place in the procurement file NOTE: Be sure you correctly describe/specify the goods/services/construc\on required Small Purchases To be used for unique one-\me or direct purchases not available on exis\ng contracts If purchases for an item or service are being used repeatedly, consider issuing a Invita\on for Bid Orders shall not ar\ficially divided to avoid a formal Invita\on to Bid or Request for Proposal 6

7 The Rules & Regs to NMSA 1978 NMAC to When the required tangible goods, services, or construc\on exceed the small purchases limit set by your governing body, you will prepare and issue a formal Invita\on to Bid IFB Step 1. Set up a Schedule of Key Events: a. Date of Public No1ce to be published in a newspaper of local circula1on not less than 10 calendar days from date set to open bids b. Date, 1me, loca1on bids to be received c. Date of Board mee1ng for approval d. Date to issue contract/po e. Date Protest period begins/ends 7

8 IFB Step 2. Per , ender end-user shall provide you with a statement of need to assist in development of appropriate specifica\ons: a. Maximum prac1cable compe11on b. Design/performance c. Brand name only (sole source?) d. Brand name or equal SPECIFICATIONS Are required, no matter how large or how small the procurement is! If you can t describe it, how can you buy it? 8

9 IFB Step 3. Determine Type of Contract a. Definite Quan1ty b. Indefinite Quan1ty c. Single Term or Mul1-Term d. Contract Protec1ons insurance, bonds, warran1es, loss of funding, etc. e. Document decision for the procurement file IFB Step 4. Pre-Bid Mee\ng Mandatory or not? a. Discuss bid documents/specifica1ons b. Take minutes of mee1ng and disseminate to interested par1es c. Amendments/changes to documents must be acknowledged by Bidders 9

10 IFB Step 5. Receipt and Opening of Bids a. Bids shall be date/1me stamped upon receipt at designated loca1on b. Late bids cannot be accepted under any circumstances c. Bids shall be read publically d. Recommenda1on for award to Board c. No1fy all bidders of the award results IFB Step 6. To be Determined.. a. Responsive bid is filled out correctly and all requirements have been met b. Responsible bid is responsive and vendor has demonstrated ability to fulfill the contract requirements c. Non-Responsive if mandatory requirements are not met, no1fy vendor in wri1ng immediately d. Bid irregulari1es - can be waived if they do not affect Time/Quan1ty/Quality of bid offered 10

11 Invitation for Bid In the IFB process, the bidder who has the lowest price AND the product or service that meets or exceeds the specifica\on wins the award. IFB Step 7. It s not over Contract Administra1on/Close-out a. Who will manage the contract b. Who will monitor deliveries/payments c. Who will ensure contract is completed 11

12 Know the Difference! Bidders LOWEST $ Respond to an Invita\on For Bid Offerors respond to a Request For Proposal Request For Proposal Compe\\ve sealed proposals; condi\ons for use. States that compe11ve sealed proposals are to be used for the acquisi1on of professional services and for products and services when compe**ve sealed bidding is not prac*cable or advantageous. 12

13 Request For Proposal The objec\ve is to award a contract to the Offeror who best meets the requirements or evalua\on criteria set forth by the agency, with price being weighted as a factor in the award. Request For Proposal The IFB is not appropriate for acquisi\on of professional services or other types of procurement where knowledge, skills, experience, and prior performance must be evaluated in addi\on to price. 13

14 Request For Proposal GETTING STARTED! RFP Steps 1. Iden\fy a Need 2. Develop the RFP Schedule 3. Develop the RFP Document 4. Issue the RFP 5. Evaluate the RFP 6. Award the RFP 7. Contract Administra\on 14

15 1. Iden\fying a Need RFP Step 1. A. End User department provides Purchasing with the Scope of Work/ Specifica\ons B. Defini\on: Scope of Work or SOW Milestones, Reports, Deliverables, expected to be provided by the winning Offeror. Pre-Determination STEP 1. Mee1ng with Purchasing and End User Procurement Schedule Poten1al CommiYee Benefits & Disadvantages RFP Documents & Weights for Evalua1on Contract and General Condi1ons 15

16 RFP Step 1. Defini\on: Specifica\ons = a detailed descrip\on of the design and materials used to make something. The widget shall be 2 Long x 1/2 Wide, weight no more than 0.2 ounces, be constructed of wood and come in a variety of colors. RFP Step 2. It is Purchasing s responsibility to validate, verify, research and confirm the Scope/Specs are not proprietary. They must be wri;en to be fair and equitable to all. Purchasing puts the process (RFP docs) with the Scope/Specs to complete the Step 1. 16

17 Scope of Work Tangibles: Hardware, Data, Written Report, Installation Completed Less Tangible: Meeting Facilitator, Custodial Services, or Training Deliverables should be: Specific Clear submission instructions Clearly defined manner and standards for acceptance Specifications Who writes the Specifications? (Not the Vendor!) End-Users initiate the development of the Specifications. NM Government Conduct Act

18 Keep in Mind RFP process requires diligent coordination between the requesting department and Purchasing or Finance Department. Keep in Mind Proposals are not opened in Public! Price Proposals are separated from the Technical Proposals Price Proposals are kept in a secure place until Technical Proposals are scored. 18

19 Request For Proposal STEP 1. Pre-DeterminaKon: Mee1ng with Purchasing and End User Procurement Schedule Poten1al CommiYee Benefits & Disadvantages RFP Documents & Weights for Evalua1on Contract and General Condi1ons Request For Proposal Step 2. Semng up The Commi;ee 19

20 Evaluation Committee WHO IS THE COMMITTEE? Cross sec\on of agency management, end users, experienced community members (knowledgeable)! Member of the governing body? Conflict of interest NM Government conduct Code Evaluation Committee HOW MANY ARE ON THE COMMITTEE? Keep the number manageable 5 is ideal, 7 may be too many, and 3 may be too few. Large commi;ees may slow the process & reduce the quality of the results. 20

21 Evaluation Committee No\fy poten\al commi;ee members in wri\ng of their selec\on. Inform them they must a;end all mee\ngs and be present for the final evalua\on and interviews, if held. Include a tenta\ve schedule for the procurement and the project. Evaluation Committee Request a wri;en acknowledgement and a response ASAP if they will par\cipate on the commi;ee. Include a Conflict of Interest form. Keep the key players in the loop! Supervisors End Users 21

22 Evaluation Committee Commi;ee Mee\ng Review the tenta\ve project \meline Review the procurement requirements Procurement methodology RFP procurement documents Evalua\on criteria and weights Contract and Terms and Condi\ons Prepare the final Schedule of Events Request for Proposal Step 3. The Procurement Manager 22

23 Procurement Manager 1. must communicate and keep list of poten\al Offerors up-to-date. 2. Keep detailed notes of any conversa\ons, ask for follow-up in wri\ng. Distribute to all! Procurement Manager Procurement Library 3. Set up an electronic folder for all the documents for easy access to respond to ques\ons and inquiries Project Manual, Procurement Code, Regula\ons 23

24 Procurement Manager 4. Procurement Library Keep a notebook with copies of all correspondence, s, mee\ng notes, etc. WHY? The Procurement Report Protests, your Sanity! Request for Proposal Pre-Proposal Ac\vity 24

25 Request for Proposal Pre-Proposal Mee\ng Mandatory or not? Sign-in Sheet / Hand-outs Establish communica\ons Discuss RFP Process Evalua\on Criteria Review Schedule of Events Review Project Schedule Distribute list of A;endees with minutes. Request for Proposal RFP Submi;al & Evalua\on 25

26 Request for Proposal RECIEPT & OPENING OF PROPOSALS Du\es & Responsibili\es Time stamp & ini\al using the same clock Request for Proposal RECIEPT & OPENING OF PROPOSALS Du\es & Responsibili\es Q: Can you accept a late proposal? A: Depends on what? 26

27 Request for Proposal Procurement Manager. Prepare a List of Respondents Open proposals with a witness Separate Price Proposal from Technical Proposal, and lock in a safe place! Check Mandatory Requirements (a necessary evil) Request for Proposal Evalua\on Commi;ee Q: Does the lowest cost Offeror have to be selected as a finalist? A: No, you are looking for the best overall proposal including price. Price may be nego1able depending on the circumstances of the procurement. If price is the driving factor, not qualificakons, then the procurement should have been adverksed as a bid, not a proposal. 27

28 Request for Proposal Pumng the Pieces Together! Technical scores are added to the price scores Totals Scores are calculated and ranked Highest Ranked Offeror, 1 st, wins! Request for Proposal Prepare no\fica\on to Finalists and Non-Finalists. If interviewing Prepare Interview Ques\ons, determine the date, \me, and loca\on interviews will be held. If Best & Final Offer is required, set date and \me for response. 28

29 Request for Proposal PUBLIC INSPECTION PROTESTS CONTRACT PACKAGE Executed Contract Protests Protest Resolu\on Le;er Evalua\on Commi;ee Report Wri;en ques\ons & Answers All Correspondence Request for Proposal Governing Board Approval Return Copies of Offeror Proposals Keep original for the Procurement File Prepare to meet the non-winners Sigh! 29

30 Ques\ons Answered? What is an Invita\on for Bid? What is a Request for Proposal? What are the Differences? How do I determine which method to use? NMASBO BOOT CAMP Any QuesKons? 30

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