IFB A BASIC APPROACH TO THE BID PROCESS – WHEN RFPs or IFBs ARE USED
2010 AASBO Spring Pre-Conference Workshop
Rosa Saenz, PGPC, Inc.
Bill Munch, Mesa Public Schools blmunch@mpsaz.org Today We Will Be Discussing :
When to Use the Invitation For Bid (IFB) Process
When to Use the Request For Proposals (RFP) Process What must be included in each of the type of Process Evaluation Methods Differences Dangers of Using RFPs Protests USING IFBs IFBs are used for pricing on material, various services, and for construction projects.* The majority of opportunities will be here.
Examples: classroom furniture, cleaning
supplies, replacing doors and hardware, repaving the parking lots * Districts can use the Requests for Qualifications (RFQ) for Construction Manager at Risk (CM@R), Design Build or Job Order Contracting (JOC) method for their construction projects. The RFQ process is another session! USING RFPs Request for proposals are used when sealed bidding is either not practicable or not advantageous to the school district. The Governing Board or Designee must authorize each RFP or they can make a class determination to use the RFP process. RFP method may not be used for construction contracts Examples: Consultants, legal services, and software RFP DETERMINATION RFPs may be used if it is determined in writing that it is necessary to: Use a contract other than a fixed-price type Conduct oral or written discussions with Offerors Afford Offerors an opportunity to revise their proposals Determination Con’t. Compare the different price, quality, and contractual factors of the proposals submitted; or Award a contract in which price is not the determining factor. IFBs SHALL INCLUDE THE FOLLOWING:
Specific instructions and information
concerning bid submission, time and date of bid opening, address where the bids will be received, the contract term, and any other special information
Purchase description, specifications, delivery or
performance schedule, inspection, and acceptance requirements.
The factors to be used in the bid evaluation
IFBs Con’t.
Bid price cannot be changed after bid
opening date. Brand names and “or equal” clause.
Protest procedures.
Anticompetitive/non collusion clause
Price sheet with specific information requested to provide pricing. RFPs SHALL INCLUDE THE FOLLOWING:
The type of service required and a
description of the work involved The type of contract to be used An estimated duration that the service will be required That cost and/or pricing data is required RFP Con’t.
Offerors may designate as proprietary
portions of the proposals (not cost) Discussions may be conducted Minimum information that a proposal shall contain Closing time and date of receipt of proposals RFP Con’t.
The relative importance of price
and the other evaluation factors Usually no proposal cost sheet is attached. The Offeror submits its proposal with all information on qualifications and pricing. Evaluation of IFBs The contract shall be awarded to the lowest responsible and responsive bidder whose bid conforms in all material respects to the requirements and evaluation criteria set forth in the Invitation for Bids (IFB). No criteria may be used in bid evaluation that are not set forth in the invitation for bid. IFBs Con’t. Tax is not a consideration if competing bidder is located outside of state. A product acceptability evaluation shall be conducted solely to determine whether a bidder’s product is acceptable to the requirement specified in the bid. Bids will be evaluated to determined which bidder submits the lowest cost meeting all specifications in the bid. IFBs Con’t. Award cannot be made to a bidder submitting a higher quality item than specified, unless the vendor is also the lowest bidder. Tied bids will be awarded by drawing lots or toss of a coin, and documented Written notice of bid award shall be sent to the successful bidder. Evaluation of RFPs The relative importance of price and the other evaluation factors Specific numerical weighting can be used Discussions may be conducted with responsible Offerors Letters to disqualified Offerors are sent before the Best and Final requests are issued Best and Final Offers DIFFERENCES IFBs RFPs Request specific pricing Request proposal Awards based on lowest information for cost of specialized services, responsive/responsible qualifications of company bidder and duration of services Bids are opened in front Awards are based on of public viewing specific numeric Pricing is fixed and weighting (qualifications, background, experience, cannot be adjusted or and cost) changed after bid opening RFPs are not opened for public screening Best and Final can be made Dangers of Using Only RFPs Discredits True Competition – Potential Offerors may assume that award will be made to all Offerors that submit a proposal May allow too much “wiggle room” in the decision process May not be in the District’s best interest Harder to cover all the issues Harder to find the hidden costs Requires more work on both sides PROTESTS REMEMBER: JUST BECAUSE YOU DON’T AGREE WITH THE DISTRICT’S DECISION IS NOT GROUNDS FOR A PROTEST!
Legal and actual grounds must be
detailed in writing including copies of relevant documents where the District erred in the solicitation. QUESTIONS?