New Mexico Child Support Enforcement Business Assessment Review, RFP #14-630-6000-0001

Follow-up (Update 05-28-2014)

RFP Questions and Answers

# / RFP Reference / Question / Response
1 / General Question / If an Offeror is successful in obtaining a contract for the Child Support Enforcement Division (CSED) Business Assessment Review (BAR), would the work performed by the BAR contractor preclude them from bidding on the Child Support Enforcement System Replacement Project? / Yes, in accordance with NMSA 1978 Sec. 10-16-13 “Prohibited Bidding” , it is expected that the successful offeror of the CSED BAR/RFP would be precluded from bidding on the Child Support Enforcement System Replacement Project RFP, because the Child Support Enforcement Division (CSED) Business Assessment Review (BAR) deliverables and final work product will used, in part, in the development of the replacement system. An excerpt from the aforementioned State Statute reads: “No state agency or local government agency shall accept a bid or proposal from a person who directly participated in the preparations of specifications, qualifications, or evaluation criteria on which the specific competitive bid or proposal was based.”
Therefore, the BAR offeror would be precluded from participating in the system replacement project RFP unless the work provided by the offerer on the BAR project can be shown to be different, separate and distinct from the requirements and specifications of the system replacement project RFP. It would be the responsibility of the bidding entity to show the definite distinction.
2 / V.B.7.a (p35) / Please provide more detail regarding the CPI in Step 1 of the Cost Proposal Evaluation:
(a) How is the State going to “Determine estimated cost for year one” when the costs in Appendix C, Cost Response Form, are not in year-by-year format?
Which Consumer Price Index will the State use and what timeframe of the CPI will the State use?
(b) How does the State define the “Base Unit Rate”? Will the CPI Adjustment Factor be the same for estimating all four years of contract costs, or will it vary for each year?
(c) What is the State’s logic for applying a CPI Adjustment Factor to the costs for year 1? The instructions for Appendix C, Cost Response Form, specify that the gross receipts tax should not be included in the cost calculation. How should the Offeror reflect the cost of the gross receipts tax in the price of their bids so that this cost is included in the final contract?
(d) Please clarify the formula for estimating costs for years 3 and 4 (the description only shows calculations for years 1 and 2). Why is the State applying a CPI Adjustment Factor to the costs when proposed costs are fixed and any annual increase should already be considered by bidders and reflected in each year’s price submission? Please explain this logic further.
(e) Will the CPI Adjustment Factors used for evaluation purposes in years 2, 3, and 4 compounds from prior years? Please explain.
(f) Are Offerors expected to give costs and deliverables for years 2 -4? If so, on what basis? / (a) The “State” will not determine estimated cost for year one. The offeror must determine the estimated cost for year one, based on the Project Requirements outlined in the RFP. US Bureau of Labor Statistics – Consumer Price Index (CPI)
(b) The “State” will not define the “Base Unit Rate.” The offeror must determine the Base Unit Rate of each deliverable (or transaction) based on the Project Requirements outlined in the RFP. The Offeror must list and describe each Deliverable or Transaction and the proposed cost associated with each Deliverable or Transaction. The CPI will most likely vary for each year, based on the US Bureau of Labor Statistics – Consumer Price Index (CPI).
(c) Because this is a public procurement, the State takes into consideration that the Offeror’s cost proposal is usually submitted months in advance of the contract award date. The State also takes into consideration that the first-year cost projection, when added to the pre-award timeframe, may be as long as eighteen (18) months. Therefore, the State includes a CPI Adjustment Factor and requires the Offeror to include this factor as part of their fixed rate. The instructions for Appendix C, Cost Response Form, does not specify that the gross receipts tax should be excluded in the cost calculation, the instructions require the offeror to separate the gross receipt taxes for invoicing purposes.
(d) For Year 2 and beyond repeat steps one (see steps one and two below).
Step 1: Determine estimated cost for year one. The proposed cost per transaction, as stated in Annual Cost Proposal Calculation Response Form (Appendix C.2). [Base Unit Rate × Est. CPI* Adj. Factor = Total cost × one plus gross receipts tax rate = Total with Gross Receipts Tax.]
* US Bureau of Labor Statistics – Consumer Price Index (CPI)
Step 2: For year two(2) and beyond, repeat steps 1.
For the second question posed in (d) see response (c) above.
(e) Refer to the US Bureau of Labor Statistics – Consumer Price Index (CPI) for guidance regarding the CPI and its application.
(f) Offerors are not expected to give costs and deliverables for years two (2) thru four (4).