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Two-Tier Contracting

Two-Tier Contracting

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Two-Tier Contracting

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  1. Two-Tier Contracting Presented by Bart Potter Marci Disken Scott Geist Oct. 30, 2013

  2. Two-tier contracting process • A procurement within a procurement • The first tier is similar to a typical master contract and (usually) results in a competitively pre-qualified vendor pool • The second tier involves separate competition, conducted by you, the customer, for specific work as needed, similar to a typical single contract

  3. First tier vs. second tier

  4. Why two tiers? When might the state consider two-tier contracts? • When the scope of work varies significantly from project to project • When the vendor community and/or the service or commodity is rapidly changing • When it offers savings to the state

  5. Second tier time-saving tip: • Take a look at the original RFP or IFB before you begin writing your second-tier solicitation • Don’t duplicate what has been done for you already

  6. Second tier process Every two-tier contract is a little different, but there is one common denominator: • All two-tier contracts require a second-tier competitive process

  7. Point to remember You cannot just pick your vendor from the qualified vendor pool*. All vendors in the pool must be given an opportunity to win your business. * DES is considering options to allow customers to choose from a pre-qualified list if the project falls under the direct-buy limit.

  8. Changes to two-tier contracting Procurement reform is changing the look of two-tier contracts. MCC and its customers recognized the first-tier process has been lengthy for customers. Proposed changes include: • The first tier will not require customers to help evaluate bids. Customers will be asked to help develop the mandatory requirements (“checklist”) for a solicitation

  9. Changes to two-tier contracting Changes we’ve already made: • In the second tier: • Customers identify specifications and scope of work for their specific project or purchase • Customers design their own evaluation criteria, which can include references and work histories, interviews, resumes, terms and conditions, etc.

  10. Changes under consideration: Proposed changes include: • Vendor pools will have open enrollment several times a year to add established vendors to the pool

  11. Thank you Any questions? For follow-up questions: Bart Potter Marci Disken Scott Geist