planning a successful management procurement calact 2011 spring conference planning a successful...

Planning a Successful Management ProcurementCalACT 2011 Spring Conference

PLANNING A SUCCESSFUL MANAGEMENT PROCUREMENT

CalACT Spring Conference

April 20, 2011

Roy Glauthier

Transportation Planning and Policyv/fax: 949.650.5956

Email: [email protected]


PLANNING A SUCCESSFUL MANAGEMENT PROCUREMENT

Workshop Goal:

To share tips, techniques and approaches that will improve your odds of carrying out a trouble-free procurement for contracted transit or paratransit management.


Workshop Outline

Overview of Procurement Process Sources of Procurement Guidance Terminology Contracting Market Should You Go To Bid? Setting a Realistic Procurement Timeline Expert Panel: Pitfalls and Problems


Workshop Rules

Questions are welcome/encouraged. No experts here, we’re all still

learning, too.

Any questions?


Elements in the Procurement Process

RFP development RFP release/publication Preproposal conference

& question period Addenda/clarifications Proposal submission Evaluation Interviews BAFO/negotiations

Selection/staff report Award Contract finalization Transition Start-up Month One Monitoring &

management Repeat as needed


Primary Sources for Procurement Guidance:

Federal Transit Administration Best Practices Procurement Manual

Available at: http://www.fta.dot.gov/funding/thirdpartyprocurement/grants_financing_6037.html

[do not print…. 694pp] FTA Triennial Review Workbookhttp://www.fta.dot.gov/funding/oversight/grants_financing_10924.html

Your agency’s procurement policies.


CalACT/RTAP Contracting Workshops

1-Day Workshops on Effective Contracting coming in July [Northern CA] and October [Southern CA]

Webinar on Effective Contracting [3, 2-hour sessions, timing tbd]


Critical Terminology

Bid versus Competitive Procurement-- Bid requires very clear specifications

-- Competitive Procurement is intended to permit competition on quality and other factors, as well as on price


Critical Terminology

Types of Procurements*: Professional Services Agreement Sole Source Negotiated Procurement Competitive Procurement

*Depending on your agency’s procurement policies


Overview of the Contracting Market

Major National Firms Regional Firms Local Transportation Firms


Overview of the Contracting Market

Major National Firms Regional Firms Local Transportation Firms

Focus on performance-based specificationsClearly indicate criteria for selectionSeek broadest possible participation in process


Step 1: Should you go to out to bid or not?

What does your existing contract say about contract term and options?

What objectives will be achieved by a competitive procurement?

Could these be achieved through negotiations with existing contractor?


Step 2: Determining Your Procurement Timeline

RFP development RFP release/publication Preproposal conference

& question period Addenda/clarifications Proposal submission Evaluation Interviews BAFO/negotiations

Selection/staff report Award Contract finalization Transition Start-up Month One Monitoring &

management Repeat as needed



START OF SERVICE January 1, 2012



Contract Award December 1, 2011




Evaluation and Interviews November 1-24, 2011





PROPOSALS DUE 5:00 pm PDT October 29, 2011






Addenda and Answers Distributed October 22, 2011







Deadline for Submission of Questions October 15, 2011








Voluntary Pre-proposal Conference October 13, 2011









Request for Proposals Issued October 1, 2011

Voluntary Pre-proposal Conference October 13, 2011









Critical Considerations in Setting Timeline: Acquisition and Preparation of

Vehicles Facilities Computers and software, other equipment

Internal City/Agency Reviews and Approvals Review and approval of RFP document by management, legal counsel,

risk management, etc. Council/governing body approval of RFP, selection, award

Practical Considerations Holiday periods Governing Board meeting schedule Coordinating contract timing to fiscal year

Others?


Step 3: Fundamental Concepts of a Successful Procurement Process

Guidelines: Transparency Define your process, then follow it Fairness, level playing field Establish Sole Point of Contact Win/Win/Win -- Agency, Contractor, Public


Developing Your Request for Proposals

Start with a good sample RFP… or several

Why reinvent the wheel? Give yourself/your agency plenty of time Get outside review


Major Parts of RFP Document

Solicitation Terms of procurement, evaluation criteria and

protest process, checklist of proposal contents Sample contract Scope of Work Attachments -- Anticipate bidders’ requests:

Copies of monthly reports, present wage scales and benefits, fleet schedule and mileages, detail on provided equipment, facilities and furnishings


Key Elements in Contract Document

Term of contract and any option periods



Term of contract and any option periods Termination for cause and for convenience



Term of contract and any option periods Termination for cause and for convenience How compensation will be paid

– Fixed Rate [per Rev Vehicle Hour, RVM, passenger]– Fixed and Variable – usually fixed payment per month for

fixed cost reimbursement plus specified amount per hour or mile operated during billing period

– Pass-through or Cost reimbursement – useful for cost items out of contractor’s control [e.g. fuel, facility rent, public phones]



Term of contract and any option periods Termination for cause and for convenience How compensation will be paid Insurance Requirements



Term of contract and any option periods Termination for cause and for convenience How compensation will be paid Insurance Requirements Emergency response:

– Expected actions– Terms of compensation


And, in case your project uses Federal funds…..


Applicable Federal Clauses – See FTA Triennial Review Workbookhttp://www.fta.dot.gov/funding/oversight/grants_financing_10924.html

Exhibit 6.1

A. Required Third-Party Contract Clauses

B. Required Certifications, Reports and Forms

C. Other Required Items

Exhibit 6.2

Applicability of Third-Party Contract Clauses

[breaks down applicability by type of procurement & dollar value]


Key Elements in Scope of Work

Definitions Description of services to be operated

[hours, days, routes, service levels, policies]



Definitions Description of services to be operated Performance standards, penalties/incentives,

how defined and measured




how defined and measured Detailed Responsibilities of Agency and

Contractor




how defined and measured Detailed Responsibilities of Agency and

Contractor Staffing: key positions, qualifications,

retention/replacement and approval


Key Elements in Scope of Work -- Continued

Specifications for vehicles and equipment to be provided by contractor or supplied by agency




If DAR, operating details




If DAR, operating details Fuel cost arrangements


Working With Your Contractor

Work to develop a partnership … both parties must succeed;

Manage, don’t micro-manage; Don’t get between company and its employees; Strive for consistency and clear direction; and Be familiar with actual operations, employees,

services.


Expert Contracting Panel

Dave Smith, MV Transportation Authority

Sandi Schmidt, Transportation Concepts

planning a successful management procurement calact 2011 spring conference planning a successful...

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