MEMORANDUMMay 6, 2010

SUBJECT:Award Summary for RFP No. 071I0200001

Statement of Work

This Request for Proposal (RFP) sought proposals for environmentally preferred janitorial supplies to be used by various State of Michigan Agencies (statewide), Michigan Delivering Extended Agreements Locally (MiDeal) Members, and participating National Association of State Procurement Officials (NASPO) Member States for Green Janitorial Supplies. The janitorial supplies requested cover the following categories: glass cleaner, all purpose/multi-purpose cleaner, bathroom cleaner, graffiti remover, lime scale remover, floor finish remover/stripper, floor sealer/finisher, carpet/fabric cleaner, disinfectant cleaner, industrial cleaner/degreaser cleaner, laundry detergent, applicable dispensers and necessary training.

Background Information

Governor Granholm issued Executive Directive 2007-22 in November of 2007. Part of it was dedicated to State purchasing of Energy Efficiency and Energy Star Purchasing as well as Material Management Plan for environmentally preferred products. The Material Management Plan promotes, whenever feasible, environmentally-sound purchasing, use, reuse, and recycling of materials by State Departments and MiDeal members. Also, the State of Michigan will work within the guidance of the Midwestern Bioproduct Procurement Program established by resolution.

The State of Michigan is committed to providing and promoting products and services that have a reduced effect on human health and the environment. To that end, the proposed contract is expected to provide State agencies and MiDeal members with an avenue to purchase cleaning products which, through meeting specific standards, represent a lesser impact to public health and the environment than competing products because they are generally less toxic, contain lower concentrations of volatile organic compounds (VOC’s) and phosphates, are free of carcinogens, reproductive toxins, 2-butoxethanol and other potentially harmful ingredients. Additionally, environmentally preferable cleaning products reduce toxins, air and water pollution, and solid waste generated by excessive packaging, therefore, minimizing environmental impact by formulating less toxic ingredients in cleaning products designed to be used and discarded down the drain. These products also help protect human health by reducing worker exposure to harmful chemicals and the potential of adverse chemical reactions.

Buyer (or Joint Evaluation Committee)

All proposals were reviewed by a Joint Evaluation Committee (JEC) led by DTMB Purchasing Operations.

Bidders

The following companies submitted timely proposals:

1) Native Green, LLC. Auburn Hills, MI

2) Qualitrei, LLC.Northville, MI

3) State Supplier, LLC. Wyoming, MI

4) State Industrial Products,Cleveland, OH

5) Applied Industrial Technologies,Cleveland, OH

6a) Lansing Sanitary Supply, Lansing, MI

6b) Lansing Sanitary Supply, Lansing, MI

6c) Lansing Sanitary Supply, Lansing, MI

7) IPAX Cleanogel, Inc., Detroit, MI

8) Hercules & Hercules, Detroit, MI

9) Empire Equipment & Supply, Detroit, MI

10) Ecolab Inc. St. Paul, MN

11) Americlean, LLC. Ypsilanti, MI

12) Corporate Express (Staples Business Advantage), Southfield, MI

13) Harrington Associates, Warren, MI

14) Michigan Company, Lansing, MI

Solicitation Process

Notice of the Request for Proposal (RFP) was posted on the Bid4Michigan website for 37 days and 14 responses were received.

The Bids were evaluated per Section 3.020 of the RFP which consisted of a technical review and a price analysis. The technical criteria included evaluation of product quality, service capabilities, delivery capabilities, company information/capabilities, and prior experience/past performance. There was a maximum possible score of 100 points, and only those bidders receiving a score of 85 points or more were considered for award.

Selection Criteria

Bidders were to provide a technical proposal which provided detailed information relative to their ability to meet all of the specific requirements included in the Request for Proposal (RFP). Indicated below is a description of each of the specific requirements as well as a summary of each bidder’s response to the requirements.

A.Product Quality (Article 1.0701 & 1.0704) – (30 points)

1)Any product offered must be certified or in compliance with at least one of the following standards(20 points):

  • Certified by Green Seal
  • Certified by Environmental Choice Eco Logo Program
  • Recognized by the U.S. Environmental Protection Agency Design for the Environment (DFE) Formulator Program (For Chemicals Only)
  • In compliance with the U.S. Environmental Protection Agency Comprehensive Procurement Guidelines for Commercial and Industrial Sanitary Tissue (For Paper Products Only)
  • Testing data documentation from an independent third-party laboratory verifying that the product meets the criteria of at least one of the Green Seal Standards (GS-37, GS-41, GS-34, and GS-8 for chemicals; or GS-9 for paper) or EcoLogo Standards (CCD-104, CCD-146 or CCD – 148 for chemicals or CCD-86 for paper). Only laboratories that maintain accreditation meeting the standards of ISO/IEC 17025 may conduct the required testing.
  • Bio-based
  • Bio-renewable
  • Environmentally Friendly, Recycled, Energy Star Compliant
  • Federal Energy Management Program (FEMP) Energy Efficient
  • U.S. Environmental Protection Agency (EPA) Program Approved
  • Electronic Product Environmental Assessment Tool (EPEAT)
  • Recycled Content

The Contractor must ensure that all environmentally preferable cleaning products made available to agencies under this agreement shall meet the following criteria:

  • Product shall contain no carcinogens, mutagens, teratogens, or aqua ammonia.
  • Product shall contain no 2-butoxyethanol, aqua ammonia, formaldehyde, benzene, crystalline silica or any other carcinogen, mutagens or teratogens.
  • Product shall contain no ozone depleting compounds.
  • Product shall comply with California Volatile Organic Compounds (VOC) levels in its specific category.
  • It is preferred that cleaning products be designed so that they are not hazardous wastes when they become unusable. Disinfectants are exempted due to Environmental Protection Agency (EPA) and Federal Insecticide, fungicide, and Rodenticide Act (FIFRA) regulations wherein disinfectants are classified as pesticides.
  • Product shall contain no persistent, bio-accumulative and Toxic Chemicals.
  • Product shall contain no ingredient that is known or suspected to be an endocrine disruptor or that is required to be reported under EPA’s Superfund Amendments and Reauthorization Act (SARA Title III, Section 313).
  • Product shall contain none of the persistent, bio-accumulative and toxic chemical (PBT’s) as listed by EPA including, but not limited to dioxins and furans, toxaphene, polychlorinated biphenyls (PCB’s) mirex, mercury compounds, octachlorostyrene, alkyl-lead, DDT, hexachlorobenzene, aldrin/dieldrin, benzo(a)pyrene and chordane. Disinfectants are exempted due to EPA/FIFRA regulations wherein disinfectants are classified as pesticides.
  • Product’s surfactants must meet the Organization for Economic Cooperation and Development (OECD) definition of readily biodegradable organic chemicals as measured by the modified (OECD) screening test for seventy percent (70%) dissolved organic carbon.

2)Describe Quality Assurance Program (10 points)

B.Service Capabilities (Article 1.031, 1.0705 & 1.0710) – (20 points)

1)Contractor Staff, Roles, and Responsibilities (12 points)

Bidder shall discuss their ordering/customer service capabilities. This includes having the capacity to receive orders electronically, by phone, facsimile, and by written order. Contractors shall have internal controls, approved by Purchasing Operations, to insure that authorized individuals with the State place orders. The contractor shall verify orders that have quantities that appear to be abnormal or excessive. In addition, customers must provide a four hour response time for phone calls and 24 hr response for site visit request; have electronic procurement capabilities; EFT compliance; P-card capability; secure website for internet ordering, catalog, and the customer must be able to view data from customer site.

Contractors must provide the following minimum capabilities and must be able to demonstrate how they will provide the following electronic procurement capabilities:

  • Provide a web-based catalog
  • Internet based ordering via secured web site
  • “Browse” capabilities that will lead to shopping cart which include complete descriptions and pictures of the product
  • Accept purchasing cards for on-line payment.
  • Ability to accept electronic payments
  • Creating custom “shopping list” for each agency
  • Specific e-commerce requirements, such as:Usage reports by agency. The report shall include item description, item number, pack, quantity of purchase, date of last purchase and total dollar purchased
  • Contract Administrator shall be able to view and pulldata by Administrator Purchaser from contractor’s system as necessary
  • Provide samples of invoice, reports, manuals

2)Warranty for Products or Services (4 points)

3)Minimum Order (4 points)

  • There is no minimum order for this project

C.Delivery Capabilities (Article 1.0709, 1.0711 & 1.0713) – (20 points)

1)Time Frames (10 points)

  • Requested time frame 10 calendar day after receipt of order; Standard delivery; Quick ship program

2)Packaging (10 points)

  • Recycled content material, recyclable, returnable for refilling

3)Delivery Term (0 points)

  • F.O.B delivered with transportation charges pre-paid

D.Company Information/Capabilities (Article 4.011) – (10 points)

1)Incorporated State / MI Registration (0 points)

2)Sales Volume (5 points)

DollarsPoints Attributed

$-250,0001

$250,0002

$500,0003

$750,0004

$1 mill & above5

3)Years in Business (5 points)

Years in BusinessPoints Attributed

Year 11

Year 22

Year 33

Year 44

Year 55

E.Prior Experience/ Past Performance (Article 4.014) – (20 points)

1) Three (3) qualified projects and descriptions; start and completion dates of projects; number of similar projects completed; name, address and phone # of reference.

Bid Evaluation

Technical Proposal

State Industrial Supply, Lansing Sanitary,Applied Industrial, and Ecolab Inc. all passed technical proposal with scores of 85 or higher.

State Industrial Supply

Product Quality:

  • Bidder met 1 of 12 standard certifications listed which was Green Seal Products.
  • Bidder is ISO 9001 certified; all productsundergoinspection and laboratory testing, product does not ship until released by quality control and ship records are maintained for a defined period of time.
  • Bidder received 30 out of 30available points for this Section.

Service Capabilities:

  • Bidder demonstrated how they will provide the requested capabilities.
  • Warranty of 1 yr from date of purchase; repairs/replacement at no cost and sales associate will visit monthly and will respond to problems within 48 hours.
  • Bidder has a minimum order of $50.00; however the State requested no minimum quantities.
  • Bidder failed to provide the requested invoice sample.
  • Bidder received 17 out of 20 available points for this Section.

Delivery Capabilities:

  • Bidder will have all orders delivered to each customer within 96 hours after receipt of order.
  • Bidder uses only #2 recyclable plastics for all their product containers.
  • Prices will be quoted F.O.B delivered.
  • Bidder received 20 out of 20 available points for this Section.

Company Information:

  • Bidder is anOhio based company but is registered in MI.
  • Bidder annualsales volume is $540,000.00.
  • Bidder in business for 98 yrs.
  • Bidder received 10 out of 10 available points for this Section.

Prior Experience/Past Performance:

  • Bidder has 3 qualified projects; State of LA since 2001, State of OH since 2008, and State of MS since 2007.
  • Bidder did provide phone numbers but no documentation of sales volumes.
  • Bidder received 15 out of 20 available points for this Section.

FinalScoreState Industrial Supply 92.

Lansing Sanitary Supply

Product Quality:

  • Bidder met 1 of 12 standard certifications listed which was Green Seal Products, and complied with 1 of 9 criteria listed standards which was Environmental Protection Agency (EPA).
  • Bidder has developed a relationship with a proven manufacturer;all product is put through examination and inspection, market testing. The Bidder participates in a national standardized program through the International Sanitary Supply Association.
  • Bidder received 30 out of 30 available points for this Section.

Service Capabilities:

  • Bidder demonstrated how they will provide the required electronic procurement, but failed to submit the requested invoice sample.
  • Bidder has manufacturer warranty and upon notification from agency of any defect, deficiencies or any general concerns will replace product within 3 days.
  • Bidder has no minimum order size (dollar, weight, etc.).
  • Bidder received 18 out of 20 available points for this Section.

Delivery Capabilities:

  • The bidder will deliver within 10 calendar days after receipt of order (ARO) and on smaller orders within 2-3 days ARO. Quick ship through UPS. The Bidder has 20 field representatives available to respond to emergencies.
  • Bidder uses post consumable material on all products and all packaging is labeled with required marking.
  • Bidder takes no exception or any modifications; F.O.B. delivered.
  • Bidder received 18 out of 20 available points for this Section.

Company Information:

  • This is a Michigan based company.
  • Bidder annual sales volume is $12 million.
  • Bidder in business for 34 yrs.
  • Bidder received 10 out of 10 available points for this Section.

Prior Experience/Past Performance:

  • Bidder has 3 qualified projects; Peckham Incorporated Lansing, MI ($600,000.00), MichiganStateUniversity, Lansing, MI ($578,000.00), Lansing School District Lansing, MI ($400,000.00), and Sparrow Health Systems Lansing, MI ($980,000.00), however bidder failed to submit dates for service as requested in the RFP.
  • Bidder received 19 out of 20 available points for this Section.

Final Score Lansing Sanitary Supply 95.

Applied Industrial

Product Quality:

  • Bidder met 1 of 12 standard certifications listed which was Green Seal Products, and complied with 1 of 9 criteria listed standards which was Environmental Protection Agency (EPA).
  • Bidder has ISO 9001:2000 certification; continuousimprovement measure, non stop benchmarking and error free delivery.
  • Bidder received 30 out of 30 available points for this Section.

Service Capabilities:

  • Bidder has web-based site, toll free number, and 16 service centers in Michigan all linked by computer and accept all electronic forms of payment.
  • Warranty of 1 yr; repair or refund defective products: however bidder was not responsible for fitness for a particular use.
  • Bidder has no minimum order requirements for the products listed in this solicitation.
  • Bidder did not discuss time frames for response time.
  • Bidder received 17 out of 20 available points for this Section.

Delivery Capabilities:

  • Bidder will comply with the time frame of 10 days ARO and a quick ship program is available.
  • Bidder can meet the packaging requirements, however unclear on how program work or cost.
  • Bidder has quoted F.O.B. delivered with transportation charges paid on all orders.
  • RFP required a discussion of recycle material however the bidder did not provide this information.
  • Bidder received 13out of 20 available points for this Section.

Company Information:

  • Bidder is an Ohio based company but is registered in MI.
  • Bidder annual sales volume is $2 billion.
  • Bidder in business for 86 yrs.
  • Bidder received 10 out of 10 available points for this Section.

Prior Experience/Past Performance:

  • Bidder has 3 qualified projects; Lansing Board Water & Light, Lansing, MI (since 2008), MichiganStateUniversity, Lansing, MI (since 2008), and City of East Lansing (since 2001), however dollar volume were not provided.
  • Bidder received 15 out of 20 available points for this Section.

Final Score Applied Industrial Technologies 85.

Ecolab Inc

Product Quality:

  • Bidder met 1 of 12 standard certifications listed which was Green Seal Products, and complied with 1 of 9 criteria listed standards which was Environmental Protection Agency (EPA).
  • Bidder has Design for Excellence programs in place to document efficiency and stability of specific products. Bidder has a reporting and tracking systems, research lab and, technical support team.
  • Bidder received 30 out of 30 available points for this Section.

Service Capabilities:

  • Bidder demonstrates how they will provide customer service via a web based catalog, ability to acceptsp-card purchases, allow electronic payments,can provide a shopping cart for each agency, give customer remote access to data and have a territory manager available to address customer concern
  • Bidder guarantees the products sold under this agreement shall meet manufacturer warranty.
  • Bidder has a two case minimum quantity. However, the bid required no minimum order.
  • Bidder received 17 out of 20 available points for this Section.

Delivery Capabilities:

  • The Bidder will deliver within 2-5 days after receipt of order (ARO).
  • Bidder shall meet the packaging requirements. Products not returnable for refilling or recycled.
  • Bidder has quoted F.O.B. delivered with transportation charges paid on all orders.
  • Bidder received 18 out of 20 available points for this Section.

Company Information:

  • Bidder is aDelaware based company but is registered in MI.
  • Bidder annualsales volume is $6 billion.
  • Bidder in business for 85 yrs.
  • Bidder received 10 out of 10 available points for this Section.

Prior Experience/Past Performance:

  • Bidder has 3 qualified projects; State of WI (since 2005), State of MN (since 2003); Henry Ford Health System Detroit, MI, and MGM Grand Detroit, MI,however specific dates and dollar volumes were not provided.
  • Bidder received 15 out of 20 availablepoints for this Section.

Final Score EcoLab Inc 90.

Native Green, Qualitrei, State Supplier, IPAX Cleanogel, Hercules & Hercules, Empire Equipment, Americlean, Corporate Express-Staples, Harrington Associates, and Michigan Company did not receive enough points to pass the technical proposal. A description of their proposal submissions are listed below.

Native Green

Product Quality:

  • Bidder met 1 of 12 standard certifications listed which was the U.S. Environmental Protection Agency Design for the Environment (DFE) Formulator program, and complied with 1 of 9 criteria listed standards which was Environmental Protection Agency (EPA).
  • Bidder described manufactures quality controls which include PODS and ASTM review measures
  • Bidder received 30out of 30 availablepoints for this Section.

Service Capabilities:

  • Bidder operates a fully integrated e-commerce platform and the system is compliant with the GSA and all Federal procurement.
  • Bidder did not provide information regarding internal controls and how they would address excessive orders.
  • Bidder received 18out of 20 availablepoints for this Section.

Delivery Capabilities:

  • Bidder will comply with the time frame of 7 days ARO; however bidder did not give timing regarding a quick ship program.
  • Bidder shall meet the packaging uses 30% post consumable goods.
  • Bidder has quoted F.O.B. delivered with transportation charges paid on all orders.
  • Bidder received 18out of 20 availablepoints for this Section.

Company Information: