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How To Bid On Contracts
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Government Contracts For Bid: Process To Government Contract Bids By Lazaro Covington
57 Airport sponsors select business partners through various bidding procedures (see Figure 8-1). Some processes lend themselves to a bidding process, where the desired product can be so well specified that the only differentiating factor is price. Others require evaluation more than price and are better suited to a Request for Proposal (RFP). In some cases, price is not considered as part of the selection process and a Request for Qualification (RFQ) is used. Finally, in some cases the RFI process is used as an initial step to identify a pool of potential applicants without having to submit a full proposal. Examining the chapters of this guide reveals some common themes. First, airport managers often feel torn between the desire to make the proposed guidance document as comprehensive as possible and to keep it concise and manageable. Second, airport managers are often frustrated with respondents, and sometimes governing bodies (such as boards of directors, city councils and county commissions), who overrule staff decisions or otherwise undermine the integrity of the process. Finally, airport managers often find timing and scheduling a major challenge in the process. These themes emerge in the discussion of critical issues below. 8.1 Best Practices in the Quotation/Bidding/Ordering Process The airport strives to ensure that the process is not hampered by controllable factors. Instructions and requirements are explicit in many applications today so that potential respondents understand what is being asked of them. P A T E K 8 8 Bidding and Bidding Documents Figure 8-1. Type of bidding process.
8.1.1 Date, Time and Timetable The tender document must contain details of the tender submission deadline, including the date, time and location. Some offers also specify how the official time is determined. See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, Excerpts from AUS and FLL Offers. 58 Guide to Developing and Administering Airport Contracts Best Practices RFP Content Clear guidelines and requirements to ensure potential respondents understand what is required of them. • Proposal Deadlines and Timings • Selection Schedule • Service Commencement and Delivery Schedule • Required Information and Format • Background Information • Proposal Evaluation • Minimum Qualifications ⢠ACDBE Requirements ⢠Scope of Services and Key Requirements Best Practices for Structuring the Bid/Proposal Process . Clear instructions and requirements to ensure potential respondents understand what is required of them. ⢠Timing â Set deadlines, times and locations â Appoint official timekeepers â Prepare selection process steps and expected dates â Identify expected work start dates, milestones and completions ⢠Bid/proposal conferences • Sponsor contact • Information for respondents • Background information • Public/Confidential Information • Operational Information • ACDBE Requirements • Proposal/Bid Certificates • Attachments • Airport Sponsor Protection • Contract Waiver and Compliance with Contract Terms • Interpretation Rights • Validity Period • Disqualification and Objections
It is also important to create a timeline for the process so that potential respondents know not only the deadline for proposals, but also the speed at which they are expected to enter into contracts and construction activities. Many sponsors include a schedule in the RFP that describes activities up to and including the proposal deadline. See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, Excerpt from Sample PHX Retail Offer for details on pre-bid activities. However, it is better to include activities beyond the approval and formalization of the lease agreement. See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, for an excerpt from a sample AUS offer. In addition to these details, airport sponsors should also consider including specific dates for board meetings, board meetings or other regularly scheduled meetings. The ability to inform potential respondents of the board’s meeting schedule can help ensure they are clear on when they will be attending the meeting. 8.1.2 Pre-Bid/Proposal Conferences Pre-bid or proposal conferences provide an opportunity for airport sponsors to provide additional information to potential respondents. This is especially useful if the conference includes a guided tour of the facility or facilities related to the opportunity. Next, potential respondents are given the opportunity to ask questions to the employees. Staff should ensure that participants understand that oral answers to questions raised at the bid/proposal conference are non-binding – binding answers will be given in a written addendum to be published after the pre-bid conference. Many airports believe that bid/proposal conferences are more efficient if the request for bids or bid documents explicitly ask written questions before the bid conference. Some airports also use bid/proposal conference participation to develop additional recipient lists. Airports should consider logistics when planning bid/proposal conferences. The room should be large enough to accommodate as many participants comfortably as expected. If there is no such venue, participation shall be limited to the number of regular participants per company. Airports may also consider adding provisions that allow them more flexibility in interpreting proposals from entities that did not participate in the bid/proposal conference. See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, Excerpts from the RDU and PHX RFP for good examples of RFP language describing the pre-bid conference process. 8.1.3 Objectivity/Sponsor Relations Part of the airport’s efforts to ensure an objective and unbiased selection process depends on its approach to potential respondent contacts during the offer/bid preparation period. Airport sponsors are encouraged to clearly identify the circumstances under which potential respondents may contact the sponsor, the individual employees who may be contacted and when contact may occur. It is especially useful to know how the relationship might arise on issues outside of the offer in question to help respondents avoid further confusion. Proposal and tender documents 59
See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, Excerpts from the PHX RFP for contract policies and parameters for discussion with staff and board members during the bidding process. 8.1.4 Scope of Services Bid documents for the selection of consultants need a clear scope of services to help potential respondents understand what is being asked of them and the effort required to perform the work or provide the service. Accordingly, the scope of this service should be as detailed as possible, taking into account the fact that certain details may be withheld to obtain a different description of the work approach. See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, an excerpt from PHX’s Flight Services Consultant Agreement, which provides a detailed scope of services. 8.1.5 Background information In contract documents, airports always do a fairly good job of providing potential respondents with the necessary background information. This information is usually tailored to the type of offer and will help any respondent who may not have regular access to it. Over time, companies doing business at airports have become more sophisticated in their approach and expressed a desire for more detailed information in tender documents. Some airport sponsors provide information on historical operations, nature of air services, airline market share, gate assignments, passenger profiles, socio-economic indicators of air service areas and other airport benefits. See CRP-CD-81 (attached here), Chapter 8, Bidding and Bidding Documents, Appendix for detailed background information on the 2010 SFO bid for bookstore operators. 8.1.6 Public/Confidential Information In order to obtain sufficient information to evaluate bids or offers, airports often request detailed financial information, often considered proprietary by respondents. With this in mind, it is important for sponsors to clearly explain how confidential information will be handled. Although some airports believe that all information contained in an offer or request is public information and should not be protected, most airports try to protect such information because it is believed to lead to a higher number of high-quality responses. However, airports should also disclose the possibility of required disclosures and disclaim any liability for accidental or mandatory disclosures. See CRP-CD-81 (attached here), Appendix Chapter 8, Bidding and Bidding Documents, Excerpts from RDU’s RFP regarding the public record of the proposal and the authority’s willingness to use reasonable efforts to protect information designated as confidential. 60 Guide
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