MICHIGAN DEPARTMENT OF CORRECTIONS

“Expecting Excellence Every Day”

MEMORANDUM

DATE:September 19, 2011

TO: File

FROM:Lisa Lehnert, Buyer

Procurement

SUBJECT:Award Recommendation for 472I1300007 Detergents and Ware Washing Capsules

GENERAL:

The MichiganDepartment of Corrections (MDOC), Michigan State Industries (MSI) issued this Request for Proposal (RFP) to obtain bids from qualified vendors to provide detergents and ware washing capsules.

The contract period is three years, with two additional one-year options to renew.

BIDDERS:

The RFP was posted on Bid4Michigan on June 22, 2011, and two (2)vendors responded by the due date of July 12, 2011.

1)Arrow Chemical Products, Inc.

2)Austin Sales Group, Inc.

JOINT EVALUATION COMMITTEE:

The Joint Evaluation Committee consisted of the following members:

1)Lisa Lehnert, Buyer

2)Jeff Barrett, Area Manager

3)Cecelia Smith, Accountant

EVALUATION PROCESS:

Bids were evaluated based upon the following factors:

Criteria / Weight
Product Quality / 50
Service Capabilities / 15
Delivery Capabilities / 20
Past Performance / 5
Prior Experience / 10

3.23Price Evaluation

Only those proposals receiving a score of 80 points or more of the total maximum possible score will be considered for award.

Evaluation Matrix:

Arrow Chemical Products, Inc.

Criteria / Weight Received
Product Quality / 50
Service Capabilities / 10
Delivery Capabilities / 20
Past Performance / 5
Prior Experience/References / 3
Total Points Received / 88

Product Quality – The vendor provided a sample of all three line items noted on Attachment A of the RFP. All three samples met the specifications noted on the RFP. The field testing of all three samples showed acceptable cleaning results. All three samples were approved.

Service Capabilities –Vendor is able to receive purchase orderselectronically, fax and written. Vendor agreed that internal controls are in place to verify that only authorized MSI staff place orders and to verify quantitiesthat appear to be abnormal, however, the internal control processes were not discussed in detail. The vendor will have an individual assigned to the MDOC/MSI account and a toll free telephone number was provided. The vendor did not identify key personnel in Section 1.3.3. The vendor will warranty all products for one year after the manufacture date.

Delivery Capabilities –The vendor is able to provide the product in the time framespecified. The vendor agrees with the minimum order of one pallet of 48 cases per product. The vendor agreed to all packaging and palletizing requirements without exception, as specified in the RFP.

Past Performance – Per the response, the vendor has not had any contracts terminated.

Prior Experience –The vendor has been in business for 78 years. The vendor only listed one reference instead of three references, as requested in Section 4.1.9.

Austin Sales Group, Inc.

Criteria / Weight Received
Product Quality / 50
Service Capabilities / 10
Delivery Capabilities / 20
Past Performance / 5
Prior Experience/References / 2
Total Points Received / 87

Product Quality – The vendor provided a sample of line items 002 and 003 noted on Attachment A of the RFP. Both samples met the specifications noted on the RFP. The field testing of the two samples showed acceptable cleaning results. Both samples were approved.

Service Capabilities – Vendor is able to receive customer orders electronically, by telephone, fax and written. The vendor agreed that there are internal controls in place to ensure that only authorized individuals within MDOC/MSI place the orders and to verify orders that have quantities that appear to be abnormal or excessive, however, it was not discussed how this would be performed. The vendor has a staff member that will be assigned specifically to the MDOC/MSI account, however, a toll free telephone number was not provided. In Section 1.6.4, the vendor stated “material is replaced with question.” The vendor did not provide details of the specific warranty, such as how long the warranty is good for.

Delivery Capabilities – The vendor is able to provide the product as required in the RFP. The vendor agrees with the minimum order of one pallet of 48 cases per product. The vendor agreed to all packaging and palletizing requirements without exception, as specified in the RFP.

Past Performance – Per the response, the vendor has not had any contracts terminated.

Prior Experience –The vendor has been in business for 28 years. The vendor did not provide three references as requested in Section 4.1.9.

EVALUATION RESULTS:

EVALUATION
Bidder: / Score:
Arrow Chemical Products, Inc. / 88
Austin Sales Group, Inc. / 87

AWARD RECOMMENDATION:

Arrow Chemical Products, Inc. and Austin Sales Group, Inc.both met the 80 point threshold.

The pricing was reviewed for both vendors since both met the 80 point threshold. After evaluating the pricing, it was determined that Arrow Chemical Products, Inc.provided the lowest price for all items on Attachment A. MDOC/MSI recommends the award to Arrow Chemical Products, Inc.

APPROVALS:

I agree with the synopsis as written this day, September 19, 2011.

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Voting Member – Cecelia SmithDate

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Voting Member – Jeff BarrettDate

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Voting Member -Lisa LehnertDate