FormalBidProcedures

for

TheUniversityofTexasHealthScienceCenterat
Houston
FormalBidProcedure Page2

Introduction 3
ChoosingthecorrectFormalBidProcess 3
Introduction 3
Invitation to Bid 4
ContactsandCommunications 5
PreBidMeetings 5
ITBScopeofWork 6
ClosingDate 6
RequestforProposal 7
Whydoarequestforproposal? 7
RoleoftheProcurementDepartmentintheRFPProcess 7
NonStandardProcurements 8
AlternativeProcurementPractices(EmergencyPurchases>$5K) 9
Whocanbid? 9
GroundsforDisqualification 9
Procedures 10
NeedandPreliminaryApproval 10
RFPPreparationProcess 10
ContactsandCommunications 11
PreBidMeetings 12
Structure 12
RFPScopeofWork 12
ClosingDate 13
Checklist 13
ProposalContents 14
RFPCreation 14
EvaluationCriteria 14
EvaluationMethods 15
PreparingEvaluationCriteria 17
MandatoryRequirements 17
DesirableRequirements 18
EvaluationTeam 19
EvaluatingProposals 20
HowtoEvaluateanRFP 20
BidderPresentations 21
EvaluationTools 21
EvaluationReports 21
Debriefings 22
ComplaintResolution 22
Conclusions 23
FormalBidProcedure Page3

Introduction

ChoosingthecorrectFormalBidProcess

Introduction
TheUniversityofTexasHealthScienceCenteratHoustoniscommittedto:

EnsuringthattheUniversitysrequirementsforgoods,services,constructionand
facilitiesaremetthroughanopenandfairbidprocessthatprovidesthehighest
degreeofcompetition andvaluetotheUniversity
Ensuringthatallbiddershavereasonablenoticeandopportunitytotenderbids
Fosteringeconomicdevelopmentbygivingeverycapablesupplierthe
opportunitytodobusinesswiththeUniversity
EncouragingCertifiedStateofTexasHistoricallyUnderutilizedBusinesses
(HUB)tobecompetitiveandtosustainqualityproductandservicedevelopment
Beingaccountabletothepublicforprocurementdecisions

ThisbookletisintendedtoassistProcurementDepartmentBuyers,departmentsand
suppliersbyprovidinginformationonthepreparation,use,andapplicationofthe
InvitationtoBid(ITB)andRequestforProposal (RFP)processes.Followingthese
guidelineswillleadtodocumentsthatsatisfytheUniversityspolicyon procurement.
Betterevaluationcriteriawillalsoprovidebetterandmoreconsistentmethodsof
identifyingthebestbidsubmission.Theuseofanappropriateevaluationprocessis
mandatoryforallRFPsubmissions.

Nodocumentsuchasthiscancovereveryeventuality.Therewillstillbeneedfor
consultationbetweeninternalcustomersandtheProcurementdepartment.
FormalBidProcedure Page4

Invitation to Bid
Theterm Invitation toBid(ITB) referstoaformalrequestbytheProcurement
department,askingsupplierstobidonsupplyingtheUniversitywithaspecificgoodor
service.TheProcurementdepartmentmayissueanITBforpurchasesofgoodsor
servicesexceeding$25,000.

AnITBistypicallyusedforthepurchaseofagood/servicewhenthespecificationsfor
thegood/serviceiseasilydefined,quantifiedand/orqualified.Generallytheonly
decisionforthebuyertomakeisbaseduponcostanddeliveryofthegood.

ThekeystepsintheITBprocessare:

NeedandPreliminaryApproval
Departmental identificationofneed
Specificationanddocumentationofneed

ITBPreparationProcess
Procurementconsultsandprovidesadvicetodepartment
ScopeofWorkwrittenbydepartment

SolicitationProcess
ProcurementBuyerpreparesITBdocument
IssueofITB
Postingof ITBontheInternetadvertisementinnewspaper,ifrequired
Inquiriesfromsuppliers
Suppliers'meeting(ifrequired)
Receiptof bids

Evaluation
Evaluationofpricinganddelivery
Finalselection

Contracting
Contractpreparationifrequired
Finalapproval(Procurement,otherauthorityasrequired)
Contractaward

NotificationandDebriefing
Notificationtosuppliers
Bidderdebriefing(ifrequested)
FormalBidProcedure Page5

ThespecificationsintheITB,alongwiththeresponsesubmittedbythesuccessfulbidder,
willendupbeingincorporatedintothelegalcontracttoperformtherequiredwork.
Therefore,extraeffortputintoproducinginitialspecificationsresultingin proposalsthat
arethorough,clearandcompletewillpaydividendslateronintheproject.

ContactsandCommunications

TheProcurementdepartmentwillprovideacontactpointforinquiriesfromsuppliersor
potentialsuppliers.Itisvitalthat,beforetheITBisreleased,vacationschedulesand
plannedabsences(meetings,conferences,etc.)arecheckedtoensurethatthecontactsare
expectedtobeintheofficeupuntilthetimethatbidscloseorthatalternativecontracts
areavailabletorespondtoanyinquiries.

TheProcurementdepartmentcontactwilladvisebiddersontechnicalaspectsofthe
procurementprocess,suchashowtosubmitalternativebids,butwillnotadvisesuppliers
regardingtheenduser'srequirementsorcurrentprocesses.

Thedepartmentcontactmustthereforebesomeonewhoiswellinformedaboutthework
coveredbytheITB,andauthorizedtorespondtobidderinquiriesthroughthe
ProcurementBuyer.Uninformedstaffmembersshouldneverbepermittedtogive
(possiblyincorrectorincomplete)answerstoquestionssubmittedtothemfromthe
ProcurementBuyer.

TheProcurementBuyerwill keeparecordofwhomadeinquiriesandwhatwassaid.All
newinformationmustbeprovidedtoallbidders,andanaddendummustbeissuedtoall
potentialbidders.ThismustbedonethroughtheProcurementdepartmentandeach
respondingbiddermustacknowledgereceiptoftheaddendumatthetimetheproposalis
submitted.

Finally,ifthereisaseriousomissionin theITBprocess,considerationmustbegivento
cancellingtheITBandreissuingitinamodifiedformorwithmorecomplete
information.

PreBidMeetings

Incertaincases,prebidmeetingsorabiddersconferencewillbeconductedwhenthe
ITBaddressescomplexissueswhichcanbebetterexplainedinpersonthaninwriting.A
prebidmeetingisopentoallsuppliersandprovidesanopportunitytoaskquestions
abouttheprojectandtheITBprocess.Anysuchmeetingsmustbescheduledbeforethe
ITBisissued.ItispreferablethatthemeetingtakeplaceatleastoneweekaftertheITB
isreleased,andatleastoneweekbeforeproposalsaredue.Ifattendanceatsucha
meetingismandatory,thismustbestatedontheITBscoverpageandlistedinthe
mandatorycriteria.

Therearetwopurposestoaprebidmeeting.First,itenablesallsupplierstounderstand
asclearlyaspossibletheintentoftheITB.Thisresultsinbetterproposalsandmore
FormalBidProcedure Page6

usefulandcosteffectivesolutionsfortheUniversity.Secondly,itgivesthesuppliers
confidencethattheyhavehadeveryopportunitytosubmittheirbestproposal.

Theprebidmeetingmaybeaconvenienttimetodistributesupplementary
documentationfortheITB.However,departmentsarecautionedthattheprebidmeeting
isnottobeusedtodistributemajorpiecesofinformationwhichhaveakeyeffectonthe
suppliersbids.TheITBdocumentisthecallforbidsandthemeetingwillbeheldtofill
inthebackgroundoncomplexissues,nottocovererrorsoromissionsintheITB
document.

Suppliersareencouragedtopreparequestionsbeforehandandtosubmitwrittenquestions
relatingtocomplextechnicalissueswellinadvancetoallowinformativediscussionat
themeeting.

ITBScopeofWork

TheITBScopeofWorkistheresponsibilityofthedepartmentrequestingthegoodor
service.TheScopeofWorkisprojectspecific.Generally,theITBwillincludethe
followinginformation:

Descriptionofthegoodsorserviceforwhichasolutionisrequired
Backgroundinformationrelatingtothegoodorservice
Technicalbackgroundinformationrelevanttotheproposal
Expectedcompletiondate,projectmilestonesandworkplans
Knownconstraintsunderwhichthesuppliers'solutionswillberequiredto
operate(e.g.location,systemarchitecture,costmanagementissues,
securityarrangements,etc.)
Qualitiesexpectedofthewinningbid

ClosingDate

ClosingdatesforthereceiptofbidsarefirmexceptwheretheProcurementdepartment,
inconsultationwiththedepartmentinvolved,hasissuedanextension.Inthiscase,all
potential supplierswillimmediatelybenotified.However,ifthesupplierdownloaded
theITBdocumentsfromtheProcurementwebsite,theywillnotbeaware timeextension
tosubmitabid. Itisthesuppliersresponsibilitytocheckthewebsiteonaregularbasis,
andespeciallyjustbeforeyousubmittingbid,toensurethatitisawareofanyaddendaor
extensions.(theURLfortheProcurementweb sitewillbeincludedinallformalbid
documents).
FormalBidProcedure Page7

RequestforProposal
Whydoarequestforproposal?

ARequestforProposal(RFP)isnormallyusedwheretherequirementsofajobaremore
complex,notsowelldefined,orrequirefurtherinvestigationbeforeafinalapproachcan
beidentified.Intheseinstances,itisimportantthattheRFPbecarefullythoughtoutin
advance,sothatallofthevitalissuescanbeidentifiedandevaluated.

ItisimportanttorememberthatthecreationofanRFPisalsothefirststepinthecreation
ofabindinglegalagreementforworktobedone.Thespecificationsthatarecreatedin
theRFP,alongwiththeresponsesubmittedbythesuccessfulbidder,willendupbeing
incorporatedintothelegalcontracttoperformtherequiredwork.Therefore,anyextra
effortputintoproducinginitialspecificationsresultingin proposalsthatarethorough,
clearandcompletewillpaydividendslateronintheproject.

Remember,anRFPisnotreallyverydifferentfromanITB.Itisnot,asmanypeople
believe,inherentlymoreflexibleintheabilitytochooseavendorwhoisnotthelowest
bidder.TheprimarydifferenceisthatanITBisevaluatedalmostsolelyonprice,while
anRFPcanbeevaluatedonotherweightedcriteriasuchascompletiontimeandthe
expertiseofresourcesavailable.Butintheend,theawardisexpectedtobegiventothe
mostcompetentbidderthatwillprovidetheoverallbestvaluetotheUniversity.
However,pricemuststillbeanimportantfactorintheselectionprocess,andmust
receiveappropriateweighting.

OneofthestrengthsofRFPsisthattheyallowdepartmentstospecifytheirminimum
requirements,andaskthesupplierstosuggestthebestapproachtomeettheseneeds.
Proposalsmayintroducenewconceptsortechnologiesthatthedepartmenthasnothad
thetimeorresourcestoresearchadequately.Further,thevendorcommunitymaybe
familiarwiththelatestleadingedgesolutions,sotheycouldsuggestamorecreative
approachthanwouldhavebeenconsideredbythedepartment.

RoleoftheProcurementDepartmentintheRFPProcess
TheProcurementdepartmentisresponsibleforensuringprocurementpolicyand
proceduresaremet.TheProcurementdepartmenthasthree"customergroups"
Departments,SuppliersandthePublic.Itsbroadresponsibilitiestoeacharesetout
below.

ToDepartments
Toassistdepartmentsinmakingquality,costeffectivedecisionsinthe
purchaseofgoodsorservices
Toadvisedepartmentsintheprocurementplanningprocessandinthe
implementationofprocurementpoliciesandprocesses
Tohelpadministergovernmentcontracts.
FormalBidProcedure Page8

ToSuppliers
Toprovidefairandequitableaccesswhichenablesqualifiedsuppliersto
competeforgovernmentbusiness
Toensurethatallaspectsoftheevaluationandawardprocessesare
followedfairlyandequitably
TohelpassistinidentifyingqualifiedHUBsuppliersinordertoprovide
anequal opportunityforwork.

ThePublic
TohelpensurethattheStateofTexasreceivethebestvaluefor taxpayers
money
Toenhancethereturnthepublicreceivesfromgovernmentpurchase
investmentdecisions
Toensureaccountabilityinprocurementactivities.

TheProcurementdepartmentmustbeinvolvedinallRFPsfromthetimeadecisionis
madetosolicitproposals,totheexecutionoftheresultingcontract.Toensurethatthe
interestsofeachofitscustomergroupsareprotected,itwill:

AdvisedepartmentsonRFPcontentandapprovethefinalRFPdocument
Managesupplierlists
Receiveproposalsandmonitortheevaluationprocess
MaintaincontactwithsuppliersthroughouttheRFPprocedure
Makethefinaldecisiononawardingofthebid
Advisesuppliers,conductdebriefings,andassistincontractnegotiation
Adviseandassistincoordinatingpaymentprocessestoincludemonitoring
ofsubcontractorpaymentsandreporting

NonStandardProcurements
SoleSourceContracts

InexceptionalcasesandonlywiththeapprovalofProcurement, departmentmay
solicitcontractswithoutcompetition,howeveronlytheProcurementdepartment
hastheauthoritytosignandobligateoncontracts.Thismethodofcontracting
willnormally occurwhenProcurementisreasonablysurethereisonlyone
qualifiedsuppliercapableofdeliveringanacceptablecombinationofproductand
costeffectiveness.TheProcurementdepartmentwillapproveall solesource
awardsandtheirsupportingrationale.
FormalBidProcedure Page9

AlternativeProcurementPractices(EmergencyPurchases>$5K)

Inadditiontosolesourcecontracts,inorderfortheprocurementprocessto
balancetheneedforopen,competitiveopportunitywiththedemandsofurgentor
specializedcircumstances,alternativeprocurementpracticeshavebeencreated.
Theseprocessesmustbeusedonlyforthepurposesintendedandnottoavoid
competitionortodiscriminateagainstspecificsuppliers.Toensurethattheyare
usedappropriately,theAssistantVicePresidentforProcurementmustapprove
theuseofalternativeprocurementpractices.

Whocanbid?

Ingeneral,anyonecanbidonUniversityRFPs,(iftheBidderisnotdebarredfromdoing
businesswiththeStateofTexas)thatarelistedonourwebsiteunderBidOpportunities.
TheProcurementdepartmentdoesnotmaintainanyformofauthorizedbidderslistor
othersupplierregistry.

Suppliersareadvisedthatall significantopportunitiesarepostedonourInternetwebsite.
Suppliersshouldmonitorthesepostingsandrequestcopiesofbiddingopportunitiesof
interest.Mostdocumentscanbedownloadeddirectlyfromthewebsite. Suppliers
shouldmonitorthewebsiteonaregularbasistoensuretheyareawareofeverypossible
opportunity.

Inordertoensureadequatecompetition,somesuppliersmaybeinvitedtosubmitbids.A
letterofinvitationwillbefaxedoremaileddirectlytotheinvitedbidders.Thiswillbe
doneinaddition topostingtheopportunityonthewebsite.Thecompetitionwillstillbe
opentoanyonewhofeelstheycansubmitavalidbid.

GroundsforDisqualification

Thefollowingsummaryindicatespotentialreasonsforthedisqualificationofasuppliers
proposalintheRFPprocess:

ResponsesprovidedtootherthantheaddressspecifiedintheRFP
FailuretomeetmandatoryrequirementsspecifiedintheRFPincluding
signingtheExecutionofOffer
SubmissionofaninappropriateHUBpacketonbidswithatotalexpected
valueof$100,000orgreater
Responsesreceivedaftertheclosingtimeanddate
Responsescontainingorimplyingquestionableethicalorbusiness
practices
Responsesimplyingpotentialconflictofinterest.
FormalBidProcedure Page10

Suppliersarealsoadvisedthatdirectcontactwithofficialsotherthanthedesignated
Procurementcontactwithoutconsent,willberegardedasgroundsfordisqualification.

Procedures

ThekeystepsintheRFPprocessare:

NeedandPreliminaryApproval

Departmentalidentificationofneed
Specificationanddocumentationofneed

RFPPreparationProcess

Procurementconsultedandadviceprovidedtodepartment
ScopeofWorkwrittenbydepartmentbasedonProcurementsmaster
document
Determinationofevaluationcriteria,weightsandassessmentplan
(approvalofAVPforProcurementisneeded)
EstablishanevaluationteamapprovedbyAVPforProcurement
SubmissionbyevaluationteammembersofaNonDisclosure/Conflictof
InterestformpriortopostingofRFP

SolicitationProcess

IssueofRFP
PostingofopportunityonInternetadvertisementinnewspaper,ifrequired
Inquiriesfromsuppliers
Suppliers'meeting(ifrequired)
Receiptofproposals

Evaluation

Evaluation andshortlisting
Presentation/demonstration(optional)
Finalselection andrecommendationforaward
FormalBidProcedure Page11

Contracting

Contractnegotiations
Finalapproval(Procurement,otherauthorityasrequired)
Contractaward

NotificationandDebriefing

Notificationtosuppliers
Bidderdebriefing(ifrequested)

ContactsandCommunications

TheProcurementdepartmentwillprovideacontactpointforinquiriesfromsuppliersor
potentialsuppliers.Itisvitalthat,beforetheRFPisreleased,vacationschedulesand
plannedabsences(meetings,conferences,etc.)arecheckedtoensurethatthecontactsare
expectedtobeintheofficeupuntilthetimethatbidscloseand/orthatalternative
resourcesareavailabletorespondtoanyinquiries.

TheProcurementdepartmentcontactwilladvisebiddersontechnicalaspectsofthe
procurementprocess,suchashowtosubmitalternativebids,butwillnotadvisesuppliers
regardingtheenduser'srequirementsorcurrentprocesses.

Theusercontactmustthereforebesomeonewhoiswellinformedaboutthework
coveredbytheRFP,andauthorizedtorespondtobidderinquiriesthroughthe
ProcurementBuyer.Uninformedstaffmembersshouldneverbepermittedtogive
(possiblyincorrectorincomplete)answerstoquestionssubmittedtothemfromthe
ProcurementBuyer.

TheProcurementBuyerwill keeparecordofwhomadeinquiriesandwhatwassaid.All
newinformationmustbeprovidedtoallbidders,andanaddendummustbeissuedtoall
potentialbidders.ThismustbedonethroughtheProcurementdepartmentandeach
respondingbiddermustacknowledgereceiptoftheaddendumatthetimetheproposalis
submitted.

Finally,ifthereisaseriousomissionintheseprocesses,seriousconsiderationmustbe
giventocancellingtheRFPandreissuingitinamodifiedformorwithmorecomplete
information.
FormalBidProcedure Page12

PreBidMeetings

Incertaincases,prebidmeetingsorabiddersconferencewillbeconductedwhenthe
RFPaddressescomplexissueswhichcanbebetterexplainedinpersonthaninwriting.A
prebidmeetingisopentoallsuppliersandprovidesanopportunitytoaskquestions
abouttheprojectandtheRFPprocess.Anysuchmeetingmustbescheduledbeforethe
RFPisissued.ItispreferablethatthemeetingtakeplaceatleastoneweekaftertheRFP
isreleased,andatleastoneweekbeforeproposalsaredue.Ifattendanceatsucha
conferenceismandatory,thismustbestatedonthecoverpageandlistedinthe
mandatorycriteria.

Therearetwopurposestoaprebidmeeting.First,itenablesallsupplierstounderstand
asclearlyaspossibletheintentoftheRFP.Thisresultsinbetterproposalsandmore
usefulandcosteffectivesolutionsfortheUniversity.Secondly,itgivesthesuppliers
confidencethattheyhavehadeveryopportunitytosubmittheirbestproposal.

Theprebidmeetingmaybeaconvenienttimetodistributesupplementary
documentationfortheRFP.However,departmentsarecautionedthattheprebid
meetingisnottobeusedtodistributemajorpiecesofinformationwhichhaveakey
effectonthesuppliersproposals.TheRFPdocumentisthecallforproposalsandthe
meetingwillbeheldtofillinthebackgroundoncomplexissues,nottocovererrorsor
omissionsintheRFPdocument.

Suppliersareencouragedtopreparequestionsbeforehandandtosubmitwrittenquestions
relatingtocomplextechnicalissueswellinadvancetoallowinformativediscussionat
themeeting.

Structure

ThereareatleastsixcomponentstoanRFPissuedthroughtheProcurementdepartment.
Thedepartmental preparerisresponsibleforthecompletionofonlyoneofthese,the
scopeofwork(SOW).Nonetheless,youshouldbegenerallyawareoftheotherparts,
andhowtheyinteract.

TheRFPsectionthatthedepartmentpreparer createsisthecoreandthemostvitalpartof
thewholeprocess,becauseitoutlinesthenatureoftheworktobedoneandhowa
suppliermustrespondtobeconsideredforthework.

RFPScopeofWork

TheRFPScopeofWorkistheresponsibilityofthedepartmentrequestingthegoodor
service.TheyarespecifictothecircumstancesoftheRFPandwillvaryaccordingto
thosecircumstances.Generally,theRFPwillincludethefollowinginformation:
FormalBidProcedure Page13

Descriptionoftheproblemforwhichasolutionisrequired
Backgroundinformationrelatingtotheproblem
Therolethattheprojectwillplayinthedepartment'soperations(howthe
suppliercanexpecthis/herproductsandservicestoassistthedepartment)
Ifpossible,thedepartment'sexpectedapproachtotheproblemandan
indicationofwhetherornotalternativeapproacheswillbeconsidered
Technicalbackgroundinformationrelevanttotheproject
Expectedcompletiondate,projectmilestonesandworkplans
Knownconstraintsunderwhichthesuppliers'solutionswillberequiredto
operate(e.g.location,systemarchitecture,costmanagementissues,
securityarrangements,etc.)
Qualitiesexpectedofthewinningproposal
MethodofevaluationoftheBidderresponsesandtheevaluationcriteria
(discussedinSection2.3&5.4inRFPdocument)

WhereconsultantsarehiredbydepartmentstoassistinwritingtheRequirementsSection,
theywillnotbeallowedto:

SubmitaproposalinresponsetotheRFP
Actassubcontractortothesuccessful supplier
Maintaincontactwith,orprovideinformationto,anypotentialBidder

Unauthorizedcontactbetweensuchconsultantsandsupplierswillgiveriseto
groundsfordisqualification.

ClosingDate

ClosingdatesarefirmexceptwheretheProcurementdepartment,inconsultationwiththe
departmentinvolved,hasissuedanextension.Inthiscase,all supplierswillimmediately
benotified.However,if asupplierhasdownloadedthedocumentsfromtheProcurement
website,Procurementwillnotbeawarethatthesupplierhasdonesoandintendsto
submitabid.Underthesecircumstances,thesuppliermustcheckthewebsiteona
regularbasis,andespeciallyjustbeforebidsubmissiontoensurethesupplierisawareof
any addendaorextensions.TheURLfortheProcurementwebsitewillbeincludedinall
formalbiddocuments.

Checklist

Arequestforproposal(RFP)mustsatisfyallapplicablesectionsof theProposalRelease
ChecklistbeforeitcanbeissuedbytheProcurementdepartment.
FormalBidProcedure Page14

ProposalContents

Suppliersareadvisedtoreviewtheirproposalpriortosubmissiontoconfirmthateachof
themandatoryanddesirablerequirementsidentifiedhavebeenfullyaddressedandare
easilylocatedinthebodyoftheproposal.Suppliersarealsoencouragedtocarefully
examinethecontentsoftheproposalpriortosubmission.Proposalscannotbealtered
afterthebidduedate.

RFPCreation

RFPsshouldbepreparedusingthemasterdocumentformatprovidedbyProcurement
andfillinginthedepartmentssspecificneedsandrequirements.Oneofthemostcritical,
overlookedandunderratedaspectsoftheRFPistheevaluationcriteriaandtheprocess
thatsupportsthem.

WhatisanEvaluationProcessandWhyisOneRequired?

Theevaluationprocessbeginswithsettingevaluationcriteria.Thesecriteriaareaseries
ofstandardsandmeasuresusedtodeterminehowsatisfactorilyaproposalhasaddressed
therequirementsidentifiedinabiddingopportunity.Theyalsoplayamajorrolein
identifyingthebestoverallcosteffectivesolutiontotheproposalrequirement.

Thecompleteevaluationprocessconsistsof:

Establishingappropriatecriteria,andrespectiveweights,
Placingthecriteriaintheproposaldocument,
Selectinganevaluationteam,
Evaluatingtheproposalusingthecriteria,and
Preparingtheevaluationreport,includingarecommendationforsupplierof
choice.

Theneedfortheevaluationprocessistwofold.First,itoffersallpotentialbiddersafair
andequitablemethodofhavingtheirproposalreviewedandconsideredasapotential
solutioninaconsistentandfairmanner.Second,itprovidestheevaluatorswithaclear
andconcisemethodof identifyingthecompetentproposalsandultimatelythebestoverall
bid.

EvaluationCriteria

Evaluationcriteriaarethestandardsandmeasuresusedtodeterminehowsatisfactorilya
proposalhasaddressedtherequirementsidentifiedintheRFP.

Oncebasicevaluationcriteriaareidentified,theRFPpreparersmustdecidewhich
criteriawillbemandatoryandwhichwillbeweighted/ranked.Supplierseithermeetor
FormalBidProcedure Page15

donotmeetmandatorycriteriaapointsystemisnotused.Mandatorycriteriaestablish
thebasicrequirementoftheinvitation.Anybidder thatisunabletosatisfyanyofthese
requirementsisdeemedtobeincapableofperformingthecontractandisrejected. Itis
onthebasisofthemandatorycriteriathatcompetenttendersareestablished.
Weightedcriteria,ontheotherhand,representdesirablefeatures,whichaddvalueor
functionalitytotheproposal.Withweightedcriteria,therelativeimportanceofeach
criteriontotheoverallrequirementsandtotheothercriteriamustbedetermined.For
eachweightedcriterionitmustalsobedecidedifamandatoryrequirementisassociated
withit.Insuchacasethecriterionismadeupoftwoelements:amandatoryrequirement
(pass/fail)andadesirable/weightedfactor,whichappliestofeaturesandfunctionality
desiredoverandabovethebasicrequirementandonwhichthedepartmentwishesto
placeadditionalconsiderationandvalue.

Forevaluationcriteriatobeeffective,theyshouldideallyhavethefollowing
characteristics:

Objective: notsubjecttodiverginginterpretation

Relatetotherequirementsdefinition: allkeyelementsoftheprojectrequirements
mustbecoveredbyevaluationcriteria

Discriminating: separatebest,averageandweakerproposals

Nondiscriminatory: fairandreasonablemandatoryandheavily
weightedcriteriamustbejustified

Realistic: giventhecontractnatureand/orvalue

Measurable: usemeasurablestandardsandhavesub
criteriaifnecessarytosimplifyevaluation

Economicaltouse: donotconsumeanunreasonableamountof
timeorresources

Justifiable: makesense,canbejustifiedoncommon
sense,technicalandlegalbasis.

EvaluationMethods
Therearemanymethodsforevaluatingproposals.Eachhasitstrengthsandweaknesses
andmostsuitableapplications.Thefollowingaresomepossibleevaluationstrategies:

1. Mandatorycriteriaonly,withawardtothelowestcompetenttender
FormalBidProcedure Page16

Usedasthetypicalselectionsystemfortheprocurementofgoods

Objective,fair,easytojustify
Clear,objectivecriteriasomewhatmoredifficulttouseforprofessional
servicesgoodforlowtechnicalexpertiseprojects.

Thissystemwillresultinapricedrivencontract.Ifallcriteriaaremetbyall
bidders,priceisthedeterminingfactor.Thismethodisrarely,ifever,usedfor
RequestforProposals.

2. MandatoryandWeightedcriteria(includingweightedcostfactor)
PricewillbescoredbytheProcurementdepartmentonallRFPs.

Usedwhensimplymeetingminimumrequirementsisnotsufficient.

Priceisassignedapresetweightintheoverallevaluationandis
calculated:

Priceoflowestcompetentbid X #ofpoints = Score

Priceofindividualbid available

Integratespriceintoevaluationasadirectevaluationelement.

Thissystemresultsinavaluedrivencontractbecauseevaluationcriteriaother
thanpricealoneareusedtodeterminetheoutcome.Thismethodisthemost
frequentlyusedwayofevaluatingproposals.

3. Highesttechnicalmerit:

Used,forexample,whenamaximumpriceorbudgethasbeenquotedintheRFP,
toestablishwhichproposaloffersthegreatestresultsforagivenprice.
Allproposalswilllikelybeofthesamepricepossibilityofeconomiesis
lost.
Moredifficulttoevaluate,asallfactorsofallresponsesmustbeanalyzed
andscoredfortheirtechnicalmeritandvalueaddedcomponents.

Thissystemwillresultinavaluedrivencontract.

NormallybudgetinformationisnotreleasedaspartoftheRFPprocess.This
helpstoensurethatprojectscopeandexpectationsarereasonableandsubjectto
marketdiscipline.Therefore,RFPsusingtheHighestTechnicalMerit
evaluationprocessarediscouraged.
FormalBidProcedure Page17

PreparingEvaluationCriteria
Thesuccessofacompetitivesolicitation dependslargelyontheevaluationcriteria.Clear
andsimplecriteriaareeasyforthesuppliertounderstand,andeasyfortheenduserto
evaluate.Whentherequirementsaremorecomplex,criteriamayhavetobeexpandedor
brokendownintosimplercomponentsinordertopreserveclarityandunderstanding.

MandatoryRequirements

EveryRFPshouldincludemandatoryrequirements.Theserepresenttheminimum
qualificationsoracceptablelevelofresponse.Withoutthesespecificminimum
requirementseventhemostinappropriatebidcouldpotentiallybecompliant.Thiswould
beparticularlytroublesomeinevaluatingacomplexsetof services.

EachRFPmustalsoaddresstheissueofacceptablerisklevels,particularlywithmission
criticalservices.

WhenadepartmentissuingtheRFPrequiresabsoluteassurancesagainstspecific
serviceorperformancerisk(s),theRFPdocumentshouldpresenttherequirements
clearly,aspass/failcriteria.Thespecifiedrisk(s)mustbeeasilydeterminable,
(forexample,arequireddeadlinedate).Allqualifiedbidsmustindicateclearand
distinctcompliance,beforeabidcanproceedtothenextroundofevaluation.

Wheretheexclusiveuseofmandatorycriteriamightnotproperlydifferentiatesuitable
fromunsuitableproposalsthenitmaybealsoappropriatetoidentifytheminimumscore
thatmustbeachievedinordertobeconsideredacompetenttender,ortorequire
presentationsfromashortlistofhighestscoringsuppliers.Forinstancetoaddressthis
issuetheRFPcouldincludedirectionssuchas:

a) EvaluationofWrittenSubmission

Proposalsmeetingthemandatoryrequirementswillbeevaluatedinaccordance
withthepointratingscheme.Toqualifyasacompetenttenderwrittenproposals
mustachieveanoverallminimumof X[e.g.70]%forthecategoriessubjectto
pointrating. ORCategoriesmarkedwithanasterisk(*)areconsideredcritical.
SuppliersmustscoreatleastX[e.g.70]%inthesecategoriesinordertobe
consideredcompliant.

b) SelectionofShortListandBidderPresentation

Fromthelistofcompetentproposals,thehighestscoringproposals(amaximum
of X[e.g. 3])willbeselectedfortheshortlist.EachBidderontheshortlistmay
FormalBidProcedure Page18

beaskedtomakeapresentationtothedepartmenttoclarifytheirproposalandits
content.Finalselectionwillbebasedonscoringplusanevaluationofthe
presentation.

c) ExamplesofMandatoryRequirements

BiddermusthaveatleasttwostaffwhoareProfessionalEngineers
licensedtopracticeintheStateofTexas.

Biddermustbeanauthorizedreselleroftheproductsrequired,andmust
provideproofofauthorizationfrom themanufacturer(s)withtheProposal.

Biddermustprovideresumesforallpersonnelidentifiedintheresponseto
Section4.5ofthisRFP.Resumesmustnotexceedtwopageseach.

DesirableRequirements

Desirableoroptionalrequirementsareworthpointsintheevaluation,butarenotrequired
towintheaward.Theirimportanceisdeterminedsolelybythescoreandweightthey
haveinthetender.

Dependingonthedepartmentsrequirements,theRFPcouldbestructuredsothatthe
scoreswerespecifictosectionswithintheRFP.InanRFPwithsectionalscores,the
vendormayfailprerequisitesforparticularsections,butwouldnotnecessarilybe
completelydisqualified.Thebidwouldloseanypossiblepointsforthesection,butmay
scorewellenoughinotherareastoremaincompetitiveinthefinalaward.Thiswouldbe
applicablewhentryingtostreamlinetheevaluationofanRFPwithmanycomplexlow
priorityfeatures,ornoncriticaloptions.

TheRFPforgoodsorbasicservicesinvolvesaspecificationofdeliverables.These
specificationsindicatethephysicalcharacteristics,andperformanceattributesindetail.
Specificationsforgoodscanbestatedineitheroftwoways.Theycanbeexact,stating
preapprovedbrandnamesand/ormodels,ortheycanbespecifiedusingdetaileddesign,
performanceormaterialsspecifications.Ifadepartmentfailstoprovideanacceptable
justificationforspecifyingparticularproducts/serviceswithnosubstitution,itmay be
viewedasunnecessarilyrestrictive,andthedepartmentwillbeaskedtodefendthe
requirementtotheProcurementdepartment.Inthecaseofanyrequestforclarification
bythepublic,thedepartmentwillberesponsiblefordefendingtheirrequirementsina
publicforum.Therequirementsmustbeclear,andshouldnotconflict.Similarly,the
criteriaandscoringscalemustbestatedintheRFP,inaclearandconcisefashion.Every
evaluationshouldbeanobjectiveexercise,measuringthevendorsresponseagainst
clearlystatedcriteria,thatresultinasimpletabulationofthebestscore.

TheevaluationprocessforacomplexRFPissimplifiedbycombiningtherightdecision
toolswithaproperlyformattedtenderreplyform.Requiringspecificandunequivocal
answersfromthesuppliersmakestheevaluationasobjectiveandclearlymeasurableas
FormalBidProcedure Page19

possible.Whereapplicable,useaquestionnaireformatfortherequiredinformation,with
yes/noalternatives,orprecisequantityreplies.

CriteriaintheRFPDocument

Atthispointintheevaluationprocess,theevaluationcriteriahavebeenestablishedwith
theappropriaterequirementslisted,rankedandweightedforselectionpurposes.Thenext
stepistoensurethatthesecriteriaareincludedintheproposaldocument. Itis
mandatorythatallRFPshaveappropriatedocumentedevaluationcriteria
includedandclearlyexplained. AllevaluationcriteriamustbeapprovedbytheAVP
forProcurementpriortopostingoftheRFP.Evaluationcriteriamustrelateto
requirementsidentifiedinthebodyoftheRFP.Itisnotreasonableordefensibletouse
criteriawhichdonotclearlyrelatebacktotherequirementsidentifiedortheproblemto
beresolvedbytheproposal.

EvaluationTeam

TheevaluationteammustbeapprovedbytheAVPforProcurementpriortopostingthe
RFPandmustnotincludeanyonewho:

hasapersonalorbusinessrelationshipwithanyofthesuppliers
hashadamajorpersonalityconflictwithanyofthesuppliersinthepast
hasanypreconceivedbiasfororagainstanyofthesupplierswhomaybidforthe
workbeingtendered

TheselectionoftheEvaluationTeamshouldbedonewhentheRFPisfirstprepared,and
theTeammembersmustbeapprovedbytheAVPforProcurementbeforetheevaluation
processbegins.Thefinal teamshouldconsistofagroupofthreeormoreindividuals
assignedtheresponsibilityinacompetitivesolicitation toa)developtheprocurement
plan,b)reviewtherequirementsandRFP,c)settheevaluationcriteriaandpoints
structure,d)evaluatebidsagainstpredefinedcriteria,e)documentevaluationsand
recommendtheaward.TheProcurementDepartmentisresponsibleforensuringthatan
evaluation teamisinplaceandthatareportdocumentingtheevaluationispreparedfor
each competitivesolicitation.Acopyofeachevaluationreportistobefiledwith
Procurementandwillbepartofthepermanentfile.ArepresentativefromProcurement
canparticipateintheevaluationprocess,asrequired,tofacilitateanacquisitionorto
validatetheevaluationprocessthathastakenplace.Procurementwillevaluatepriceand
theHUBCoordinatorwillevaluatetheHUBsubcontractingplan.

Uponthereceiptofvalidbidproposals,noadditionalmemberswillbeaddedtothe
evaluationteam.Duringtheprocessofevaluationandwhilemeetingsareinsession,the
evaluationteamshallmaintainconfidentiality.Nomembershallcommunicate
preliminaryconclusionsorresultsofwhatwasbidbythevendors,orthatagivenvendor
willbeselected.Allinternalworkingsofthecommitteeshallbekeptconfidentialuntil
thecommitteehascompleteditsworkandallbiddershavebeenofficiallynotifiedofthe
FormalBidProcedure Page20

selection.Thispracticesupportsafairandethicalevaluationofallvalidproposals
withouttheopportunityforoutsideinfluencefromnonteammembers.Anethicaland
fairevaluationprocessiskeytoensuringthatbidsareawardedtothesupplierproviding
thebestvaluetotheUniversity.Additionally,thisbestbusinesspracticeprovidesthe
Universitystabilityandreliabilityintheprocurementprocessandreducestheriskof
supplierprotests.

AllevaluationteammembersmustsignandsubmittotheProcurementdepartmenta
NonDisclosure/ConflictofInterestform.Failuretodosowillmeanthatthe
individualcannotparticipateintheevaluationoftheproposals.

EvaluatingProposals

HowtoEvaluateanRFP

Foranyproposalthatwillyieldavaluegreaterthan$100,000aHUBSubcontracting
packetmustaccompanythebidproposal.Thefirststepintheevaluationprocessisthe
openingandreviewoftheHUBSubcontractingpacketbytheUniversitysHUB
Coordinator.TheHUBCoordinator willmakethedeterminationthatthesubmittaleither
meetsorfailsthesubmissioncriteriaasdeterminedbytheStateofTexas,thenthose
associatedproposalswill beevaluatedbytheevaluationteam.

Theevaluationteammustevaluatesubmissionsbasedonlyon thecriterialistedinthe
proposaldocument.Anyrequestsforsupplementaryinformationmustbeconveyedto
thesuppliersthroughtheProcurementdepartment.Anycommunicationwiththe
evaluationteammembersortheiradvisorsbyaBidder,otherthanattherequestofthe
team,isunacceptableandwillleadtodisqualificationofthatBidder.

Thefirstphaseoftheevaluationprocessistoreviewallsubmissionsformandatory
qualificationsandtoestablishcompetenttenders.Threequestionsshouldbeappliedtoall
mandatoryrequirementsforallresponses:

1. HastheBiddersubstantiallycompliedwiththerequirements?
2. Havethesuppliersreceivedfairandequaltreatment?
3. Hastheintegrityofthecompetitivebiddingprocessbeenrespected?

IfallanswersareYesthentheBidderiscompetent.Donotforgettoconsider
whethertheBidderattendedthemandatorybidders conferenceorsiteviewing,if
applicable.AnyBiddernotmeetingallmandatoryrequirementsiseliminatedandis
excludedfromfurtherconsideration.Theremainingqualifiedproposalsarereviewedin
furtherdetail,whichinsomecasescouldresultinashortlistofcandidates.Ifthereare
tobeoralpresentationsthentheseshouldbeorganizedwiththeshortlistedsuppliers(see
BidderPresentationsbelow).ContacttheProcurementdepartmentifyouareunsureof
thisprocessandtheywillassistyou.
FormalBidProcedure Page21

BidderPresentations

Bidderpresentationsmayberequestedtoobtainadditionalinformationfromthe
suppliersortoseeaproductdemonstrated.Thedepartmentmustprepareanagenda
outliningtheobjectivesofthepresentationandanyspecificrequirements.Allshortlisted
supplierswillbegivenacopyoftheagendafarenoughinadvancetoallowthemto
prepareproperly.Criteriamustbepreparedinadvancebythedepartmentinorderto
evaluatethepresentations. Allshortlistbidderswillbeaskedtoanswerthesame
questionsorprovidethesameinformationandwillbeevaluatedaccordingly.

EvaluationTools

AsimpletabulationusingpenandpapersufficeforanRFPwithveryfewcategoriesto
score.MorecomplexRFPslendthemselvestomoredetailedanalysisandpossiblythe
useofelectronicevaluationsoftware.Theoptionsforthesetypesofevaluationtools
commonlyincludesuchitemsas:Percentages,includingweightedvalues(basedon
documentedcriteria)appliedtothescoresfromeachmemberoftheevaluationteam,
averagedacrosstheentirecommitteequestionnairetyperepliesineachtenderresponse,
inhardcopyand/ordigitalmediumcalculatedprice/performancestandardsnetpresent
valueforfuturecashstreamsandballoonpaymentstimelinescheduleswithrequired
milestonedatesquantifiableriskfactorstodeadlines.

Eachtoolusedintheanalysisshouldbedesignedwithanaudittrailinmind.The
evaluation resultsmustbereconcilableandrepeatable,whetherusingsimpleorcomplex
evaluationmethods.Each tool shoulddescribethepointrangeforeachscoreditem,and
whatconstitutesthecriteriaforeachscore.Forexample,thetopscoreforstaff
experienceinarangeshouldbebasedonspecifics,likeaminimumnumberyearsof
workinthesubjectareaalongwithspecificcertification(s),andnotjustanaffirmative
responsetoaquestionlike,Doyouhaveexperienceinthesubjectarea?

Ifpossible,definetermsinadvance.Whatconstitutesanexcellentresponsetoa
particularcriterion?Ensurethatallmembersoftheevaluationteamunderstandand
agreewiththeratings.

EvaluationReports

Tocompletetheevaluation process,youmustcreateareporttooutlinethefindingsofthe
evaluationteamandalsotomakearecommendationforaVendororBidderofchoice.
Wheretheevaluationteamrecommendsanawardtootherthanthecompetenttenderwith
thehighestscore,theevaluationreportwillhavetobesubmittedtotheAVPof
Procurementforconsiderationandapproval.

Atthecompletionoftheevaluationscoringandpriortoawarditmaybecomenecessary
tocontactreferencesthatwereprovidedbytheBidders.TheProcurementdepartment
willberesponsibleformakingthereferencecontactsandreportingthefindingstothe
evaluationteam.Thefindingsofthereferencecheckscanbeusedtoassisttheevaluation
FormalBidProcedure Page22

teaminmakingtheirfinalrecommendationforaward. Additionally,afinancialanalysis
mayneedtobeperformedononeormorebidderstodeterminetheirlongtermfinancial
stability.ThisanalysiswillbecompletedbytheProcurementdepartmentandfindings
willbereportedtotheevaluationteam.

Theevaluationreportdetailsthefindingsoftheevaluationteamandindicatesthe
collectivereasoningandopinionsoftheindividualsforthescoringofeachofthebids.
Thedocumentshouldidentifyallcompetenttendersaswellasbeasummaryofeach
Biddersbidsubmissionandhowtheyscoredrelativetotheircompetitors.The
evaluationreportismandatoryandformspartofthecompetitivesolicitation
documentation. Itwillbemadeavailableasapublicdocumentandcanbereviewedby
anyonerequestingit,subjecttotheregulationsofanopenrecordsrequest.

Debriefings

DebriefingsessionsmayberequestedbyanyBidder.Theevaluationreport,alongwith
othercompetitiondocumentationmustbemadeavailabletotheBidderatthesesessions.
TheProcurementBuyerevaluationteamshouldtaketheleadroleinthesesessionsand
maybecalledupontoexplainandjustifythedecisionsoutlinedintheevaluationreport.

SuppliersshouldcontacttheProcurementdepartmenttorequesta debriefingsession.
Departmentsaretodiscusstheevaluationorselectionwithsuppliersindebriefing
sessionsonly.Debriefingsessionsshouldbedoneverballywheneverpractical.

Debriefingswillbetreatedasanexchangeofinformationwhichhelpsboththesuppliers
andtheUniversity.TheprincipalobjectiveofthedebriefingistoaidtheBidderin
presentingabetterproposalinsubsequentRFPs.Usingthewinningproposalasa
benchmark,theBidderwhoisbeingdebriefedwillbeprovidedwithatleastthe
following:

thewinningBiddersevaluationratingascomparedtotheBidderbeingdebriefed,
withsubstantiationwherepossible

DuringthedebriefingtheBidderisnormallynottoldhoweachofthecompetitorsranked
orhowtheyscored.However,allproposalsandmaterialsmaybesubjecttorelease
underanopenrecordsrequest. ClickhereforlinktotheOpenRecordsWebsite.

ComplaintResolution

BiddercomplaintsarisingfromtheRFPprocessshouldbedirectedinthefirstinstanceto
theProcurementdepartmentrepresentativenamedintheRFP. Thegrievance/protest
processisoutlinedintheProcurementHandbook.
FormalBidProcedure Page23

Conclusions

TheRFPprocessisnecessarytoarriveatafair,equitableanddefensibleprocurement
decisionandtoensurethebestvalueformoneyspent.Althoughthisbookletisnot
intendedtocovereveryaspectoreventualityoftheprocess,itshouldassistdepartments
inestablishingtheappropriatecriteriafortheirparticularrequirement.Itshouldalsogive
Suppliersanappreciationoftherolesofthedifferentagenciesinvolved,andofthesteps
requiredtosubmitasuccessfulProposal.Itisrecommendedthatyoucontactthe
ProcurementdepartmenttoassistyouwiththecompleteRFPprocess,includingthe
structureanduseofevaluationcriteria.