Module 2 (Day 1) – Intermediate Solicitation Development
Slide 1
/ Welcome to Module 2 – Day 1.
Everyone here should have already attended the first session of this series regarding planning.
Question: Is there anyone here that hasn’t?
Name and background
Emergency phone numbers
Exits
Restrooms
Cafeteria
Breaks
Please turn your cell phones off.
No food and only covered drinks in the training room please.
Question: Have any of you written an RFP?
If you haven’t written one, what type of experience do you have?
Before proceeding, let’s get your computers turned on.
Turn on the processor and screen and log on using “password” for password.
Module 2 – Purpose of the Class
Slide 2
/ The duration of this module is two days.
During that timeframe, we are going to talk about what you need to consider when developing a Request for Proposals.
A Request for Proposals (RFP) is a formal solicitation.
Question: Can someone explain why you would use a formal solicitation?
ANS: Formal solicitations are used for procurements that are:
  • more complicated
  • higher in risk
  • usually of higher dollar value
They may be conducted using the IFB or Request for Proposals (RFP), depending on the State’s needs.
Though both the RFP and IFB are used for formal IT procurements, we will be focusing on the development of a Request for Proposals (RFP) only.
Question: Does anybody know why we would use an IFB instead of an RFP?
ANS: An IFB is used when the department knows exactly what goods are needed, with clear detailed requirements. IFB’s may be evaluated on lowest cost.
The next slide describes when an RFP is used.

Module 2 – Request for Proposals (RFP)

Slide 3
/ RFP’s are used for formal integrated IT projects that include system solutions w/hardware, software and services. They can also be used for other formal acquisitions when you want.
Suppliers propose a business solution to the State’s described needs, free of any precise imposed mix of hardware, software, etc.
The RFP states the solicitation requirements or specifications in a more general nature describing the problem to be solved or the goal to be achieved.
In general for any solicitation, the detail should be consistent with the level of complexity of the acquisition and potential risk to the state.
And, RFP’s are evaluated on methodologies other than cost alone.
Question about slide: In the last bullet, what is meant by “evaluated on methodologies other than cost alone?”
ANS: points are used to score responses. We’ll talk more about scoring tomorrow.
Question: Does anyone know what the dollar threshold is for formal IT procurements?
ANS: The threshold is $1,000,000 but you must ask for it in your request for delegation. See MM 07-10.
Question: How does development of the RFP vary if you are doing it under delegated authority, versus working with DGS/PD?
ANS: It doesn’t vary except official contact information and interaction with DGS/PD. Same guidelines and considerations.

Objectives for Day 1 and 2

Slide 4
/
Our objectives for the next two days are to develop and understand:
  • RFP phases
  • Key Action Dates
  • Good requirements
  • Evaluation components
  • Scoring model and DVBE incentive points
  • Contract elements and components

Moving Along toToday’s Schedule
Slide 5
/ In line with our objectives, the first day we will cover:
  • Guidelines which include information about RFP format, content and phases.
  • In the segment on RFP sections, we will identify the purpose of each section and what needs to be included.
  • In the last segment today, we will cover how to develop good requirements.
So, let’s get started and talk about guidelines.

RFP Format

Slide 6
/ The RFP format is structured and organizes requirements by type, such as:
  • administrative and technical requirements
  • evaluation methodology
  • bid preparation instructions
  • contract language
Its purpose is to convey information to the bidder.
The RFP starts with a Title Page and the Table of Contents.
The Table of Contents lists each section and subsection in sufficient detail to clearly describe the subject matter and facilitate easy reference.
As the RFP is developed and processed, the Table of Contents must be updated, as applicable.
The RFP identifier number is the unique number which is assigned to the procurement and is generated by DGS using the Feasibility Study Report (FSR) number and department acronym (EDD). If no FSR, DGS develops the number, but no standard.
The number is to appear on every page of the document, including the contract.
Also, you should follow the numbering format of the model to maintain consistency. If you don’t, PD may ask you to change it.
Let’s go to the model RFP in SCM Vol. 3, Chapter 3 and look at the Title Page and Table of Contents. Go to:

RFP Content

Slide 7
/ For RFP’s, the word bid as used throughout is intended to mean “proposed,” “propose” or “proposal,” as applicable.
Throughout the RFP, the use of “shall”, “must”, or “will” denotes a mandatory requirement and deviation may cause rejection of the bid.
The use of “should” or “may” indicates attributes or conditions that are desirable (non-mandatory) and deviation from, even if it is material, will not in itself cause rejection of the bid.
We will talk more about mandatory and desirable requirements at the end of the day.
The RFP model includes required language and/or recommended content for each subsection.
The applicability of some portions of the model is dependent upon the goods and services required.
Do not attempt to revise the standard language for aesthetic purposes. There are usually reasons why statements are worded a specific way.
There is also italicized information that is directional and clearly informs the department of what activity must be undertaken. Be sure to remove this language when tailoring the solicitation.
Senate Bill 954 allows Solution Based procurements that have the structure removed. These procurements are not the norm and, when used, the department must work closely with DGS/PD.

RFP Phases

Slide 8
/ The RFP follows a phased approach designed to increase the likelihood that Final Proposals will be received without disqualifying defects.
There are two phases, a Compliance Phase and a Final Phase.
The Compliance Phase consists of a Conceptual Proposal and a Detailed Technical Proposal.
The Final Phase consists of the Draft Proposal and the Final Proposal.
Using a phased approach provides benefits for both the bidder and the State, as follows:
  • Provides the bidder with clear understanding of State’s requirements before developing final solutions;
  • Benefits the State by providing a clear understanding of bidder’s intent before proposals are finalized;
  • Provides an opportunity to discuss weaknesses or potentially unacceptable elements of a bidder’s proposal; and
  • Enables the bidder to correct them.
An understanding of when to include these phases is essential to successfully awarding the contract.
They provide steps necessary for discerning whether your requirements are valid, and determining whether the bidders are compliant with the RFP requirements.
Next slide.
Compliance Phase/Conceptual Proposal
Slide 9
/ The Compliance Phase is an optional step that includes a Conceptual Proposal and/or a Detailed Technical Proposal.
The Conceptual Proposal enables the parties to discover and research options that aren’t clear or yet committed to.
  • Departments can assess alternative approaches
  • Bidders submit general concepts
  • Bidders can be innovative
  • State can determine if bidders are on the right track
Example
The Department of Consumer Affairs (DCA) needs a new automated system to test and issue licenses for beauticians. The new system will replace an existing system that is unable to process existing workload. DCA is aware of the existence of various technology and configurations that might be used and is open to suggestions from suppliers regarding the optimum approach.
Question: Why would DCA want to include a Conceptual Proposal?
ANS: The department wants to cover all options and have the suppliers use their expertise to detail the solution so DCA can assess the variables.
Question: Any other reasons to include a Conceptual Proposal?
ANS: It provides a documented structured analysis of the alternatives and it can help maximize competition.
Also, at the time a Request for Information is sent, the State may not have fully identified all of their needs. Once the State ascertains that what is sought is feasible, more state resources can be invested.
Question: Why wouldn’t you complete the research up front and include the approach in the solicitation? ANS: 1) Suppliers may be more willing to put research and resources into a thorough response when making a commitment to bid, and 2) in a bid environment, their approach is not being shared with everyone.
Compliance Phase/Detailed Technical Proposal
Slide 10
/ The Detailed Technical Proposal is also part of the Compliance Phase, and is an optional step.
The need for a Detailed Technical Proposal is proportionate to how complex or non standard the department’s technical requirements are.
  • Helps avoid precluding a product or feature that would otherwise meet the intent of the requirements except the wording of the requirement precludes it.
  • Enables bidder to provide a detailed technical description so the State can determine early whether the proposal is responsive, and if not, what changes are necessary.
Example
The Department of General Services issued an RFP for a “statewide” alternative solution to the traditional voice, video and data services. They are requesting a new Internet Protocol (IP) environment.
Question: Why would you include a Detailed Technical Proposal? ANS: Because this is a large “statewide” implementation using new complicated technology, with high visibility and political ramifications.
The department wants to use every precaution to ensure a successful implementation and including technical proposals facilitates that.
Question: What is the likelihood that compliant proposals would be received if only Final Proposals were required?
ANS: Not likely.

Final Phase/Draft Proposals

Slide 11
/ As mentioned previously, the Final Phase is comprised of the Draft Proposal and the Final Proposal.
Draft Proposals are a dry run of the Final Proposals. They are complete except for cost data.
Draft Proposals enable the State to identify any faulty formatting or administrative aspects that could cause noncompliance.
The Draft Proposal is an optional step however it is highly unusual to exclude it in formal IT solicitations because of the risk associated with receiving non compliant Final Proposals.
Per the model, the State’s review of the Draft Proposal is intended to be cursory and not detailed. But realistically, the degree of the State’s review may depend upon how many phases and steps and reviews preceded the Draft Proposals. Generally, departments review every proposal in detail to help ensure compliant Final Proposals.
Next slide.
Final Phase/Final Proposals
Slide 12
/ The Final Proposal is the only mandatory step (per Section II of the RFP Model). There is no code for this provision. Long standing policy.
Question: Can a supplier who has not been in correspondence or participated with the State throughout the bid process submit a Final Proposal and potentially win the award?
ANS: Yes, unless the bid included a mandatory step or requirement that was not adhered to.
For example: Could a bidder who did not adhere to a mandatory requirement for a site visit submit a Final Proposal and be awarded the contract if they didn’t attend the mandatory site visit or otherwise participate in the process?
ANS: No. If the bid included a mandatory requirement for a site visit, the bidder would be non responsive. If the State tried to award to this bidder, another bidder could successfully protest because the bid requirements were not followed. You must follow the procedures.
A bidder’s Final Proposal can’t be changed once submitted.
If someone asks, Section II stipulates that the State has the discretion to declare the Final Proposals “Drafts” if they all contain material deviations and then require resubmission of Final Proposals.
You’ll learn more about this and other processes in future training Modules.
Next slide.
Exercise 1 – RFP Phases
Slide 13
/ Pass out Exercise 1.
For Exercise 1, each student has three different scenarios. There will be six groups so two groups will be working on the same scenario. You may need to identify which two groups will use Scenario 1, Scenario 2, and Scenario 3.
For Exercise 1, you will be required to determine which phases to include in an RFP based upon the scenario in your handout.
There are three different scenarios so there will be two teams working on each scenario.
Please break into 6 groups.
Remember, there are two phases. The Compliance Phase with the Conceptual and Detailed Technical Proposals and the Final Phase with the Draft and Final Proposals.
For reference material, we have also given you a handout that includes the information we just covered regarding phases.
This exercise will take about 10 minutes and then you can take a break.
When you get back from break, each team will share results with the class.
Tell them when to be back from break.
Section I – Moving Along to RFP Sections
Slide 14
/ Next we will review RFP Sections I – VI with a focus on developing the RFP.
RFP Sections I - VI
Slide 15
/ You were all asked to read through the RFP model prior to taking this training, so you are already acquainted with the sections that comprise the RFP.
Section I succinctly describes the basic purpose of the procurement document, Key Action Dates, and agency contact information.
Section II is intended to provide the overall process for Information technology “formal” procurements.
Section III is used to identify attributes of the existing environment that a bidder would need to understand. For example, when the system being procured is to interface with the present system or is to replace a current automated system.
Section IV provides an understanding of the framework and general requirements of the proposed system and the environment in which it must operate.
Section V contains all the non-technical requirements and requirements covering the responsibility aspects of the bidder.
Section VI prescribes all the specific technical requirements.
Tomorrow we will cover Sections VII - X and the Appendixes which include the contract terms and conditions and any other applicable attachments (graphs, maps, even blue prints).
We will be discussing the items in these sections that are essential to developing the RFP.
Let’s talk about Section I on the next slide.
Section I – Introduction and Overview of Requirements
Slide 16
/ Let’s look at Section I together on the screen.
Don’t go into depth on the slide and subsections. Nothing to highlight, or find so they don’t need to scroll themselves. Just show them how it looks.
Go to.
Subsection A identifies the basic purpose of the solicitation and legislative mandates, State business, or operational reasons, as applicable.
No background is needed here, but a brief to the point description of what is being requested.
DMV has identified what products, systems and interfaces are required, that customization services are needed, and award will be based on points.
Question: If leasing or financing were required, would it be mentioned here?
ANS: Yes, because it is pertinent to supplier’s pricing.
Subsection B identifies the codes and policies under which the RFP is being released and provides language to be added if a Compliance Phase is being included.
Subsection C is standard language related to “Availability” that identifies that the equipment and software must be installed and Ready-for-Use as specified in the Key Action Dates.
Subsection D and E identifies the Department Official and Contact. This subsection can be tailored to fit the department’s needs as long as it isn’t a technical contact. This could be a DGS/PD contact or Procurement Official.
Question: Why wouldn’t you include a technical contact? ANS: We know from experience they aren’t familiar with procurement guidelines and may compromise the bid.
Subsection F lists the Key Action Dates.
We’ll talk in detail about Key Action Dates on the next slide.
Section I – Key Action Dates Overview
Slide 17
/ Key Action Dates are a sequence of dates by which suppliers take action or provide documents, thus taking a phased approach that leads to a Final Proposal submittal.
Slippage can occur to the schedule for many reasons:
  • large number of questions
  • large number of proposal submittals
  • change to requirements, etc.
Changes to the Key Action Dates require an addendum, except those falling after the Final Proposal due date.
Make sure that the dates don’t fall on weekends or holidays.
The RFP and any addendums must be approved by DGS legal, so allow a minimum of 10 days for review.
Let’s look at the steps in the model RFP together on the screen.
Go to:
http//:
The format is required:
Column 1 - items are listed sequentially
Column 2 - actions or events are listed
Column 3 - dates and times
Not all actions require that a time be identified with the date.
Question: Which action item should always have a time specified?
ANS: The Final Proposal due date (only mandatory phase).
Let’s look at what times DMV included in their RFP.
Go to:
Remember, dates need to be realistic.
For planning, it is better to shift targeted dates prior to releasing the RFP then to get to the end and run out of time.
Section I – Key Action Dates

Slide 18