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“Best Value” Procurement Process

“Best Value” Procurement Process. PEP Seminar Division of Purchasing & General Services Thursday, June 6, 2019. “Procurement Unit … shall … manage and supervise the procurement to ensure to the extent practicable that taxpayers receive the best value ”.

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“Best Value” Procurement Process

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  1. “Best Value” Procurement Process PEP Seminar Division of Purchasing & General Services Thursday, June 6, 2019

  2. “Procurement Unit … shall … manage and supervise the procurement to ensure to the extent practicable that taxpayers receive the best value” “ The request for proposals process is appropriate for a procurement unit to use in selecting the proposal that provides the best value or is the most advantageous to the procurement unit” “To determine which proposal provides the best value to the procurement unit, the evaluation committee shall evaluate each responsible offeror's responsive proposal that has not been disqualified from consideration under the provisions of this chapter, using the criteria described in the request for proposals.” “In determining which proposal provides the best value to the procurement unit, the evaluation committee and the conducting procurement unit shall prepare a written justification statement” What is a “Best Value” Procurement?

  3. Best Value Selection Process • Dean Kashiwagi • Best Value Approach (BVA) • Performance Information Procurement System (PIPS) • Information Measurement Theory • Governed by Part 7 of the Utah Procurement Code • Experiences / lessons learned form the Division of Purchasing using this process.

  4. Goals for a “Best Value” Procurement Identify and utilize industry expertise. Identify the “expert” partner. Utilize metrics that demonstrate partner expertise and ensure performance. Award to the partnerwho demonstrates the highest performance.

  5. Best Value Selection Process 2 3 1 0 Award Contract(s) Vendor(s) Who Meet Threshold All Vendors -Public Posting -Educate vendors (pre-proposal conference) -Weekly tracking of project deviation -Weekly Risk Report (WRR) -Contract Management -Using nontechnical performance metrics Evaluation Criteria -Level of Expertise -Risk Assessment -Value Added -Interview -Price -Best value vendor clarifies proposed scope and plan. Vendor Plan -Detailed / Milestone Schedule -Risk Mitigation -Performance Metrics Pre -Qualification Execution Clarification Selection

  6. Developing the Best Value RFP 0 Pre -Qualification RFP Structure • Purpose of the Solicitation • Background of the Conducting Procurement Unit • Expectations for Deliverables by the Conducting Procurement Unit (scope) • Project Goals for the Conducting Procurement Unit (scope) • Evaluation Criteria • General RFP Provisions • Award intent, evaluation process, Terms and Conditions, template language. • Set the tone that the vendor must demonstrate their expertise • Pre-Proposal Conference (webinar)

  7. Rating System & Criteria Weighting 1 Selection 10 – High performance claim with metrics 5 –Don’t know Insufficient vendor metrics. Vague, requires decision making, don’t know. 1 – Low performance claim with metrics Blind Evaluations

  8. Clarification Period 2 Clarification Vendor(s) clarifies their proposed scope (plan): Detailed / Milestone Schedule. Project Schedule. Risk mitigation [lack of information and stakeholder involvement]. Deliverable [Performance metrics]. No work is done in the clarification phase. Outcome = executed contract.

  9. Execution Phase 3 Execution Weekly Risk Report (WRR) Measures deviation from Contractor's initial plan Creates transparency Manages contractor’s performance Contract Management

  10. WRR – Weekly Progress Report 3 Execution

  11. WRR – Schedule 3 Execution

  12. WRR – Budget 3 Execution

  13. WRR – Risks & Risk Mitigation Plan 3 Execution Identify those risks that could interfere with Contractor’s ability to meet the Milestone Schedule. When a risk occurs, Contractor outlines their plan to mitigate the harm created by that risk.

  14. WRR – Performance Metrics Project Start End Milestones 3 Execution Awarded Vendor helps establish the appropriate performance metrics

  15. Best Value Projects • State Travel Services • Office and School Supplies Marketplace • Quality Assurance System • Cell Phone and Computer Accessories • Electronic Pollbooks • Regulatory Management System • Connected Vehicles • Tires, Tubes, and Related Services • Election Management System NOJOS Level 4 Group Home Reservation System Loss Prevention Group Study Opportunity Zone Consultant Tourism Website Redesign SEO and PPC for Website Asphalt Slurry Crack Sealant Waste Management with New Technology

  16. “Best Value” Procurement Process Thank you! Solomon Kingston skingston@Utah.gov 801-538-3228

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