state contracting 101 – how michigan businesses can win state awards elise lancaster director of...

State Contracting 101 – How Michigan Businesses Can

Win State Awards

Elise Lancaster

Director of Purchasing Operations

DMB, Acquisition Services 2

Business Resources

• Doing Business Website– www.michigan.gov/doingbusiness

• Entrepreneurship Website– www.michigan.gov/beyourownboss

• Procurement Technical Assistance Centers (PTACs)– www.michigantac.org

• Small Business & Technology Development Centers (SBTDCs)– www.misbtdc.org


Who Buys What?Who? What?Michigan Department of Management & Budget

Purchasing Operations

Goods and Services Valued at $25,000+

Implements state purchasing policy

Individual State Agencies Goods and Services Valued at less than $25,000

Direct and Human Services

Michigan Department of Management & Budget

Print & Graphic Services

Most printing and graphic design contracts


Office of Facilities

Buildings and Land

Michigan Department of Transportation Road and Bridges Maintenance and New Construction


Strategic Asset Management

Leases


Who We Are – Purchasing Operations

• We handle a diverse portfolio of more than 2,200 contracts valued at more than $11.6 billion (yes, billion)

• We act on behalf of state agencies to buy goods and services

• We provide guidance regarding competitive bidding to state agencies

• We report to the legislature regarding statutory purchasing requirements

• We recruit and maintain a diverse, large pool of potential vendors


What We Buy in Purchasing Operations

• Commodities• Services• Information Technology

• General Rule– Orders of $25,000 or more are handled by

Purchasing Operations– Orders of less than $25,000 are handled

by each state agency


Business Opportunities• Contracting / State Vendors

– Michigan based businesses succeed as state vendors

– Small businesses succeed as state vendors– Today’s purchasing is open and accessible– All vendors have a fair and equal chance to win

state business

• Subcontracting with Prime Vendors– Vendor / Sub Fairs in 2006– Future web enhancements to link primes and subs


MiDEAL – Expanding Your Client List• MiDEAL = Michigan Delivering Extended

Agreements Locally• Voluntary program that allows local units of

government to buy off of state contracts

• Typical contract = 1 vendor + 1 client• MiDEAL contract = 1 vendor + 2,661 clients

– Townships– Cities & Villages– Counties– Road Commissions

– Non-profit Hospitals

– Colleges

– Universities

– School Districts


Where Michigan Firms Fit In

• Your registration as a vendor expands and diversifies our pool of potential vendors

• Your research and your visits to our website (www.michigan.gov/doingbusiness) get you prepared to bid

• Your preparation and planning lead to a thorough, complete bid response

• Your competitive bids can win contract awards and help save taxpayer $$$

• Your feedback helps us improve


Doing Business With MichiganStep One: Register as a Vendor

Step Two: Find an Opportunity through


($25,000 or more)

Step Three: Review, Plan, Prepare

Step Four: Submit

Be Competitive – Be Complete – Be Timely

Step Five: Evaluate and Debrief

Step Two: Find an Opportunity through

Agency Buyers

($24,999 or less)

“When the opportunity presents itself, it’s too late

to prepare.”

-Coach Wooden


Research and Preparation• Become familiar with contracts that you are

interested in bidding on• Visit our website:

www.michigan.gov/doingbusiness• Click on “For Vendors” on the left, then click on

“Complete Contract List”– Excel spreadsheet that you can download– Gives contract value, current vendor, expiration

dates, etc– Anticipate projects that you want to bid on


• Example of how to use current contract list to research opportunities– Clean and Sweeps Janitorial Services, LLC

Research and Preparation


Contract/Purchase Order Number

Agency

Buyer Name

TEAM VENDOR_NAME

071B5200027 761 AKM FAC UNITED COMMERCIAL SERVICES INC

– Contract/Purchase Order Number• Identification number

– Agency• Agency the contract is created for

– Buyer Name• Buyer who oversees contract

– Vendor Name• Name of current vendor


– Description• Contract description of goods/services

– Amount• Contract value

– Expiration Date• Contract expiration

Description Amount Expiration Date

(A) JANITORIAL SERVICE DEQ CADILLAC OFC $60,180.00 10/1/2007



• Review Past and Present Contracts – they are public information

• Freedom of Information Act (FOIA) allows you to obtain a copy

• FOIA area of website• Acquisition Services’ FOIA contact

– Mike Bliss– (517) 335-6544– [email protected]



• Public Documents Options to Obtain Through the Freedom of Information Act (FOIA)

– Administrative Board bid tabulation– Existing contract– Joint Evaluation Committee Synopsis– Winning proposal


June 20, 2003

BID TABULATION AND RECOMMENDATION FOR AWARD DEPARTMENT OF MANAGEMENT AND BUDGET

ACQUISITION SERVICES

CONTRACT DESCRIPTION:

071I3000131/431R3000299 - Janitorial Services - Family Independence Agency - Fullerton/Jeffries -

CONTRACT PERIOD: 8/1/03 through 8/1/08 (5 Years)

BIDDERS: BID:

Everglo Janitorial, Southfield, MI $65,200.00 Daniel Abbey Ogunilaj, Detroit, MI $98,455.00 Atlas Janitorial, Detroit, MI $103,861.80 America One Janitorial, Detroit, MI $105,375.00 Hunter's Cleaning, Detroit, MI $123,725.00 DLS Services, Ypsilanti, MI $124,016.25 Carlton Harris, Detroit, MI $126,675.00 IJ Distributor, Chesapeake, VA $140,881.00 Creative Cleaning, Detroit, MI $141,450.00 Klean As A Whistle, Southfield, MI $143,028.03 Mac's Janitorial, Redford, MI $171,625.00 Exquisite Janitorial, Detroit, MI $220,250.00

- Check if AS1 received by Acquisition Services and reviewed by DMB - Check if Sole Source/Best Source. Attach Agency Sole Source/Best Source Justification form.

AWARD RECOMMENDATION: Klean As A Whistle - Check if Award Recommendation is a Michigan-based Business NOTIFICATION LETTER DATE: June 23, 2003 PROTEST EXPIRATION DATE: July 7, 2003 DESCRIPTION OF PURCHASE: Purpose/Business Case: The purpose of this Invitation to Bid is to establish a contract for Janitorial Services for FIA – Fullerton/Jeffries. There were 20 bids mailed out, 12 responses were received. Each proposal was evaluated on criteria required in the ITB. Everglo Janitorial submitted an identical work plan as two other locations that were

Ad Board Bid Tab

Ad Board Bid Tab


Contract Cover Sheet

Contract Cover Sheet


ITB NO. 071I 4001387

JOINT EVALUATION COMMITTEE

EVALUATION SHEET

Bidder Name: Selection Criteria Points 1. Work Plan/Project Management (20 points). (Section 1.1 and 1.3) Comments:

2. Capabilities/Experience (35 points). (Section 4.301 and 4.302) Comments:

3. Personnel Qualifications (35 points). (Section 4.303) Comments:

4. Other Considerations: (Total 10 points). Past Performance (Section 4.501) and Financial Stability (Section 4.502)

Evaluation Sheet Page 2

Total Score: Does bidder meet minimum point threshold to be considered for award (85 pts)?

Yes. No. Comments:

JEC Members Signature(s): Signature Date

Points Summ

ary

Points Summ

ary


Finding Current Solicitations

• Make Us Part of Your Weekly Routine!

• Bookmark Our Web Address– www.michigan.gov/doingbusiness

• Select “Bids & Proposals”

• Select “Commodities & Services”

• Review Invitations to Bid (ITBs)


Finding Current Solicitations

• Example of how to find a Invitations to Bid (ITBs) that apply to your company– Amusement and Carnival Services

• Search– Browse through list– If ITB # is known, type in search box

• View and Print Documents– “ITB Document”– “ITB Attachments”


Invitation to Bid

Invitation to Bid


Vendor Registration

• Registration is an important first step for businesses who want to be state vendors

• Visit our website: www.michigan.gov/doingbusiness

• Select “For Vendors”

• Select “How to Register as a Vendor”

• Follow the instructions to register online


Vendor Registration

• Allot 10-15 minutes

• Have business information and banking information handy

• Questions?– Contact the Vendor Registration Help Desk– (517) 373-4111 or (888) 734-9749– Monday – Friday from 7:00 a.m. – 5:00

p.m.


Submitting Winning Proposals

• Internal Environment– Know your business & know yourself– Be prepared to convey what makes you unique

and qualified to win a contract award

• External Environment– Know your industry & know your competition– Be prepared to convey what makes you better and

MORE qualified than your competitors


Submitting Winning Proposals

• Use FREE resources that are available to you!– Procurement Technical Assistance Centers (PTACs)

www.michigantac.org – Small Business Technology & Development Centers

www.misbtdc.org

• Review the ENTIRE Invitation to Bid, with all attachments!– Attend mandatory pre-bid meetings and site visits – Review question and answers (posted with ITB)

• Ask questions, especially if specifications are tight


The Wrong Way

• Frills (such as fancy-schmancy binders and pretty extras)

• Offers to help the buyer write proposals during the bid process

• Offers to take buyers to lunch

• Offering gifts to buyers

• Contacting buying agencies after the Invitation to Bid has been posted


The Right Way

• Attend pre-bid meetings and site visits– These will be specified on the Invitation to Bid or

the attachments on our website

• Follow Invitation to Bid directions completely• Follow format requirements exactly• Direct questions or concerns to Purchasing

Operations’ buyer specified on the Invitation to Bid

• Be Competitive – Be Complete – Be Timely


Persevere!

• If at first you don’t succeed….– Schedule a debriefing (follow-up meeting)

with buyer– Determine areas that need improvement

for your next bid response– Review other bid submissions – Freedom of Information Act information

noted at the beginning of presentation


Persevere!

• Debriefing is the recommended first step

• If you still think we made a mistake with the award– Challenge the process with a formal

protest– Protests must be in writing– Direct protests to Elise Lancaster, Director

of Purchasing Operations


Celebrate!

• If you win…– Sign contract within 10 days of receipt– Make sure certifications and

representations are on file



• Integrity First

• Quality Service Daily

• Responsible Spending Always


Contact

Purchasing Operations2nd Floor, Mason BuildingLansing, MI 48909

Phone: 517.335.0230Fax: 517.335.0046Email: [email protected]/doingbusiness

state contracting 101 – how michigan businesses can win state awards elise lancaster director of...

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