Two-Tier Contracting

Presented by

Bart Potter Marci Disken

Scott Geist

Oct. 30, 2013

Two-tier contracting process

• A procurement within a procurement– The first tier is similar to a typical master

contract and (usually) results in a competitively pre-qualified vendor pool

– The second tier involves separate competition, conducted by you, the customer, for specific work as needed, similar to a typical single contract

First tier vs. second tier

When might the state consider two-tier contracts?

– When the scope of work varies significantly from project to project

– When the vendor community and/or the service or commodity is rapidly changing

– When it offers savings to the state

Why two tiers?

• Take a look at the original RFP or IFB before you begin writing your second-tier solicitation

• Don’t duplicate what has been done for

you already

Second tier time-saving tip:

Every two-tier contract is a little different, but there is one common denominator:

All two-tier contracts require a second-tier competitive process

Second tier process

You cannot just pick your vendor from the qualified vendor pool*. All vendors in the pool must be given an opportunity to win your business.

* DES is considering options to allow customers to choose from a pre-qualified list if the project falls under the direct-buy limit.

Point to remember

Procurement reform is changing the look of two-tier contracts.

MCC and its customers recognized the first-tier process has been lengthy for customers. Proposed changes include:

•The first tier will not require customers to help evaluate bids. Customers will be asked to help develop the mandatory requirements (“checklist”) for a solicitation

Changes to two-tier contracting

Changes we’ve already made:

•In the second tier:– Customers identify specifications and scope of work for

their specific project or purchase– Customers design their own evaluation criteria, which can

include references and work histories, interviews, resumes, terms and conditions, etc.

Changes to two-tier contracting

Proposed changes include:

•Vendor pools will have open enrollment several times a year to add established vendors to the pool

Changes under consideration:

Thank you

Any questions?

For follow-up questions:Bart Potter bart.potter@des.wa.govMarci Disken marci.disken@des.wa.govScott Geist scott.geist@des.wa.gov