Workshop Outline
Sources of Procurement Guidance Terminology Contracting Market Should You Go To Bid? Procurement Timeline
Procurement Process
Federal Transit Administration Best Practices Procurement Manual [do not print. 694pp] FTA Triennial Review Workbook
_6037.html
http://www.fta.dot.gov/funding/oversight/grants_financing_10924.html
Critical Terminology
Critical Terminology
Types of Procurements*: Professional Services Agreement Sole Source Negotiated Procurement Competitive Procurement
*Depending on agency procurement policies
Workshop in Effective Contract Management CalACT 2010 Spring Conference
Focus on performance-based specifications Clearly indicate criteria for selection Seek broadest possible participation in process
Workshop in Effective Contract Management CalACT 2010 Spring Conference
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?
Vehicles Facilities Computers and software, other equipment Review and approval of RFP document by management, legal counsel, risk management, etc. Council/governing body approval of RFP, selection, award Holiday periods Governing Board meeting schedule Coordinating contract timing to fiscal year
Practical Considerations
Others?
Workshop in Effective Contract Management CalACT 2010 Spring Conference
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 ?
Start with a good sample RFP or several Why reinvent the wheel? Sample: City of Rosemead, Rosemead Transit
[procurement conducted Dec 07 Feb 08]
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
Workshop in Effective Contract Management CalACT 2010 Spring Conference
Scope of Work Description of the services, equipment, and/or facilities to be provided under the contract
Clearly state base term of contract Specify any option periods and how these may be exercised [at sole option of the City or upon mutual agreement] Specify option term price [specific price or CPI limit]
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
Form of compensation Documentation needed for payment Timing of payments Payment for additional and out-of-contract services
Form of Compensation
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 contractors 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 Emergency response:
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]
Definitions
Any terms used in compensation [e.g. vehicle revenue hours and miles] Acronyms [NTD, FTA, GPPV] Service terms: door-to-door, curb-to-curb, ontime, dwell time, missed trip, no-show
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 Detailed Responsibilities of Agency and Contractor Staffing: key positions, qualifications, retention/replacement and approval
Workshop in Effective Contract Management CalACT 2010 Spring Conference
Make, model year, fuel, mileages Replacement schedule or requirements Present condition/ major rebuild history Integrated equipment: radios, MDTs, AVL, annunciators, fareboxes,
Workshop in Effective Contract Management CalACT 2010 Spring Conference
Specifications for vehicles and equipment to be provided by contractor or supplied by agency If DAR, operating details
Scheduling software or procedures to be used Present call volumes by hour and day Request policies [DR, advance or subscriptions]
Specifications for vehicles and equipment to be provided by contractor or supplied by agency If DAR, operating details Fuel cost arrangements
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 ?
Interviews
Optional at agencys discretion Specify total time and breakdown [e.g. No more than 60 minutes, presentation not to exceed 15 minutes] Require project manager to participate and limit number on proposer teams If PP allowed, equipment failure does not extend time allowed for presentation.
Optional Valuable if: Selection is close Questions about what is being provided Specifications need to be clarified May be requested of all proposers or only those in competitive range
Transition
Include transition requirements in Scope of Work Initiate transition meetings immediately of award of contract Require participation of on-site managers and responsible superior manager Document agreements reached in meetings If vehicle maintenance/condition involved, consider independent maintenance expert Critical issues: vehicle maintenance and physical condition, transfer of phone lines, access to current employees for information/interviews/training, other?
Workshop in Effective Contract Management CalACT 2010 Spring Conference
Review, question and refine monthly reporting; Establish regular monthly review meeting with standing agenda; Document meeting discussion, follow-up & action items; If performance standards, penalties or incentives included in contract, monitor and follow through; and Conduct annual review of contractor performance.
Workshop in Effective Contract Management CalACT 2010 Spring Conference
Work to develop a partnership both parties must succeed; Manage, dont micro-manage; Dont get between company and its employees; Strive for consistency and clear direction; and Be familiar with actual operations, employees, services.
George Sparks, Pomona Valley Transportation Authority Mark Wall, Mark Wall Consulting Sandi Schmidt, Transportation Concepts Ron Bushman, Veolia Transportation