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Best Value Pre-selection and Procurement

Best Value Pre-selection and Procurement. By Terry M. Gellner Ohio Water Environment Association Kalahari Resort and Convention Center June 22, 2011. Ohio Bidding Laws. Statutory Requirements If no exceptions apply, it is required to competitively bid the project

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Best Value Pre-selection and Procurement

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  1. Best Value Pre-selection and Procurement By Terry M. Gellner Ohio Water Environment Association Kalahari Resort and Convention Center June 22, 2011

  2. Ohio Bidding Laws • Statutory Requirements • If no exceptions apply, it is required to competitively bid the project • Statutory requirements for the bidding process can vary by public entity • Local Acceptance of Procedure

  3. Ohio Bid Review Standards • Lowest & Best • Counties, R.C 307.02 6131.44 • Cities/Municipalities, R.C. 735.05 (home rule) • Villages, R.C. 731.14 • Townships, R.C. 505.42, 511.12, 521.04 • Metropolitan Housing Authorities, R.C. 3735.36

  4. Ohio Bid Review Standards (cont.) • Lowest Responsive & Responsible • State of Ohio, R.C. 153.08 • School Districts, R.C. 3313.46 • Ohio School Facilities Commission, R.C. 3318.10 • Libraries, R.C. 3375.41 • Community Colleges, R.C. 3354.16 • Ohio Building Authority, R.C. 152.16

  5. Best Value Bidding • Procurement of bids shall be made in the same manner as competitive bidding • Best Value procurement awards shall be based on criteria set forth in the solicitation • Award must be made to the highest scoring responsive and responsible bidder

  6. When to use Best Value? • Other than government construction contracts • Other than equipment having similar physical characteristics and multiple manufacturers • Equipment or process characteristics vary significantly • Pre-selection of equipment • Differences in equipment effect the design clarity • Pre-purchase of equipment • Bid analysis comparison • Piloting

  7. Best Value Criteria • Include but not be limited to, price, the total cost of acquiring, operating, maintaining and supporting a commodity or service over its projected lifetime, the evaluated technical merit of the bidder’s bid or proposal, the bidder’s past performance, and the evaluated probability of performing the requirements stated in the solicitation on time, with high quality, and in a manner that accomplishes the business objective set forth in the solicitation. (West Virginia Code)

  8. Pre-Selection Process • Select Manufacturers • Develop a Request for Proposals • Request Proposals • Evaluate Proposals • Complete Design based on Selected Manufacturer(s) • Procurement Equipment

  9. Develop Request for Proposal • Introduction • Design Parameters • Equipment /Process Design Parameters • Site Specific Conditions • Information to Be Submitted • Questions to be Answered • Selection Criteria • Submittal Requirements

  10. Selection Criteria/Evaluation • Responsiveness to Request • Submittal Based on Design Parameters • Satisfy the Design Requirements • Any Exceptions or is the Proposal Incomplete • Equipment Warranty, Guarantees & Terms of Purchase • Operation, Maintenance and Historical Information • Experience and Financial Information

  11. Proposal Criteria/Evaluation (Cont) • Proposed Process System Summary • List criteria, volumes, sizes and/or dimension of each process unit • List primary and support equipment information • Description of Process Operation • Scope of Supply • Materials of Construction or Coating Systems • Regular, annual and extended maintenance

  12. Proposal Criteria/Evaluation (Cont) • Services Provided • Warranty • Process Guarantee • Training • Operation Support • Maintenance Support • Location of Support and Parts

  13. Proposal Criteria/Evaluation (Cont.) • Present Worth Cost Analysis Capital CostsMaintenance Costs - Equipment - Power - Structure - Chemical - Cost Adjustments - Replacement - Omitted Items - Labor - Administrative - Solids Handling Purchase Fees

  14. Proposal Criteria/Evaluation (cont.) • Other Considerations • Historical Support Data • Experience • Financial Stability • Visited Sites • Owner’s Considerations • Responses to Questions

  15. Procurement • Negotiate Price and Assign to the Contractor • Execute Purchase Agreement and Assign to the Contractor • Execute Purchase Agreement and Pre-purchase • Bid Equipment as Alternates with Best Value Analysis of Bid

  16. How to Avoid Potential Pitfalls • Allow each manufacturer to bid their best system • Equal Comparisons • Dictate the format of Manufacturers Information • Provide unit Costs for power, chemical, labor, etc. • Knowledge about the manufacturers’ products differences • Include all aspects of the plant • Ask questions to get specific responses to draw comparisons • Criteria Scoring

  17. Questions

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