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City of Arlington Will Velasco, CPPB Procurement Manager

City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

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Page 1: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington

Will Velasco, CPPBProcurement Manager

Page 2: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 2

COA

Procurement Model

Finance Department

Goods/Services and Procurement Policy

City Departments

Professional and Consultant Contracts

Public Works/Water

Construction and Capital Improvement

Projects

Page 3: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

• Oversees the purchase of goods & services

• Ensures all firms have an equal opportunity of obtaining city contracts for goods & services.

• Ensures all firms are treated in a fair & transparent manner.

• Serves as framework for the Procurement Manual (day-to-day activities)

APPROVED BY CITY COUNCIL RESOULTION OCTOBER 7, 2007

City of Arlington, Texas 3

Page 4: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 4

I. Competitive Sealed BidII. Competitive Sealed ProposalsIII. Construction OptionsIV. Professional Services

Page 5: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 5

Two Different Methods:

Low Bid:• Used mostly for the purchase of straight goods• Award to lowest responsive responsible bidder meeting bid specifications

Best Value:• Used where other relevant criteria might be important such as price,

experience, staffing, equipment, etc• Price is firm• Bid providing the items or service at the best value for the City receives

the contract

BID TYPE IS REQUIRED TO BE SPECIFIED IN THE BID PACKET

Page 6: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 6

Texas Local Government Code 252.043(+) STRATEGIC FLEXIBILITY

• Allows for open bid, firm-pricing while acknowledging that price is one of several impacting factors of award.

(+) NATIONALLY RECOGNIZED BEST PRACTICE• The NIGP and NPI recognize SB-BV as a best practice,

offering public entities flexibility while maintaining the intent of open competition.

(+) ADVERTISED CRITERIA and EVALUATION• Texas statute requires that any/all evaluation criteria and

weights are specified in the bid packet, along with the evaluation method; open to all firms.

(+) VENDOR DEBRIEFING and IMPROVEMENT• When an organization uses best value to obtain strategic

contracting benefits, the unsuccessful vendors can obtaintheir scoring through a debriefing process designed tohelp them improve future offerings.

• In a sealed bid, markets dictate the outcome and theremay not be room for improvement.

Page 7: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 7

Long-Term Costs

Price

Experience Quals

Functional Requirements

Operational Plan

Texas Local Government Code 252.021

• Best for service contracts where thescope is not strictly pre-defined

• Used when price is a consideration, butnot the deciding factor

• Cannot be used without Council’s priorapproval

• Prior to advertisement, staff mustconsider the criteria used to determinethe best value for the City

• NEGOTIATION IS ALLOWED ANDSTRONGLY ENCOURAGED (BAFO)

Page 8: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 8

COMMON RFP STEPS

Formulate Scope of Work

Define a Vendor Short List

Set Evaluation Criteria

Vendor Interviews

Pre-Proposal Meeting

Product Demos

Evaluation Team Meetings

Contract Negotiations

The Procurement Division has worked to align the RFP process with best practices

and control application:

• CRITERIA: Ensuring proposal packets identify solid and relevant evaluation criteria

• EVALUATION: Establishing a fair and defendable evaluation process, to include a multi-functional team and pre-set evaluation process shared with the evaluation panel.

• AWARD: Presenting sound, reliable award determinations through use of relevant criteria and a solid evaluation process

• DEBRIEFING: Offered to non-awarded, participating vendors who would like to review their strengths and weaknesses against the winning bid, thus creating stronger submittals in future attempts

Page 9: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 9

Sealed Bid Similar options & processes as described with Goods and Services

Request for Proposal

Similar options & processes as described with Goods and Services

Construction Mgr-Agent

Construction Mgr-At Risk

Design-Build

Design-Build for Certain Civil Works Projects

Job Order Contracts

To provide Admin/Mgmt Services related to property improvement. Award similar to professional service (qualifications/competence)

To serve as GC & Consultant related to property improvement. Award to proposal offering best value; single negotiation allowed

Applies to a facility that is a building or associated structure. Award to proposal offering best value; single negotiation allowed

For a civil works project; specific criteria used to determine use; limit 2-per-year. Select firms based on cost & technical, each evaluated separately; formulaic award; negotiation allowed

For facility upgrades subject to building codes; but not civil projects described under design-build.

Page 10: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 10

STATUTORY SERVICES TLGC 2254

Architects Accounting

Engineers Medicine

Land Surveyors Optometry

Planning

Real Estate Appraising

Professional Nursing

• Statute dictates that a qualification process is used to select these services.

• Award based on demonstrated competence and qualifications to perform at a fair and reasonable price.

• Architects, Engineers and Land Surveyors have additional requirements that include a specific qualification and negotiation process

Determination of status should be performed on a case-by-case basis for anything not specifically

defined in local government code.

Page 11: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 11

Availability & Disparity Study:

• Present to Council September 2020

• Formal MWBE Program established

• Allows us to set targeted goals on all City projects

Current Process Changes:

• Procurement method approved by the Finance Department before posting

• Reviewing our pre-qualification process to allow more opportunities

Page 12: City of Arlington...City of Arlington, Texas 5 Two Different Methods: Low Bid: • Used mostly for the purchase of straight goods • Award to lowest responsive responsible bidder

City of Arlington, Texas 12

Questions and Discussion

Will Velasco, CPPBProcurement Manager