RFP vs. IFB
A BASIC APPROACH TO THE BID PROCESS –
WHEN RFPs or IFBs ARE USED
2010 AASBO Spring Pre-Conference Workshop
Rosa Saenz, PGPC, Inc.
Bill Munch, Mesa Public Schools
blmunch@mpsaz.org
Today We Will Be Discussing :
 When to Use the Invitation For Bid (IFB) Process
 When to Use the Request For Proposals (RFP)
Process
 What must be included in each of the type of
Process
 Evaluation Methods
 Differences
 Dangers of Using RFPs
 Protests
USING IFBs
IFBs are used for pricing on material,
various services, and for construction
projects.* The majority of
opportunities will be here.
Examples: classroom furniture, cleaning
supplies, replacing doors and
hardware, repaving the parking lots
*
 Districts can use the Requests for
Qualifications (RFQ) for Construction
Manager at Risk (CM@R), Design
Build or Job Order Contracting (JOC)
method for their construction
projects.
 The RFQ process is another session!
USING RFPs
 Request for proposals are used when
sealed bidding is either not practicable or
not advantageous to the school district.
 The Governing Board or Designee must
authorize each RFP or they can make a
class determination to use the RFP
process.
 RFP method may not be used for
construction contracts
 Examples: Consultants, legal services,
and software
RFP DETERMINATION
RFPs may be used if it is determined in
writing that it is necessary to:
 Use a contract other than a fixed-price
type
 Conduct oral or written
discussions with Offerors
 Afford Offerors an opportunity to revise
their proposals
Determination Con’t.
 Compare the different price, quality, and
contractual factors of the proposals
submitted; or
 Award a contract in which price is not
the determining factor.
IFBs SHALL INCLUDE THE FOLLOWING:
 Specific instructions and information
concerning bid submission, time and date of
bid opening, address where the bids will be
received, the contract term, and any other
special information
 Purchase description, specifications, delivery or
performance schedule, inspection, and
acceptance requirements.
 The factors to be used in the bid evaluation
IFBs Con’t.
 Bid price cannot be changed after bid
opening date.
 Brand names and “or equal” clause.
 Protest procedures.
 Anticompetitive/non collusion clause
 Price sheet with specific information
requested to provide pricing.
RFPs SHALL INCLUDE THE FOLLOWING:
 The type of service required and a
description of the work involved
 The type of contract to be used
 An estimated duration that the
service will be required
 That cost and/or pricing data is
required
RFP Con’t.
 Offerors may designate as proprietary
portions of the proposals (not cost)
 Discussions may be conducted
 Minimum information that a proposal
shall contain
 Closing time and date of receipt of
proposals
RFP Con’t.
 The relative importance of price
and the other evaluation factors
 Usually no proposal cost sheet is
attached. The Offeror submits its
proposal with all information on
qualifications and pricing.
Evaluation of IFBs
 The contract shall be awarded to the
lowest responsible and responsive
bidder whose bid conforms in all
material respects to the requirements
and evaluation criteria set forth in the
Invitation for Bids (IFB).
 No criteria may be used in bid
evaluation that are not set
forth in the invitation for bid.
IFBs Con’t.
 Tax is not a consideration if competing
bidder is located outside of state.
 A product acceptability evaluation shall be
conducted solely to determine whether a
bidder’s product is acceptable to the
requirement specified in the bid.
 Bids will be evaluated to determined which
bidder submits the lowest cost meeting
all specifications in the bid.
IFBs Con’t.
 Award cannot be made to a bidder
submitting a higher quality item than
specified, unless the vendor is also
the lowest bidder.
 Tied bids will be awarded by
drawing lots or toss of a coin, and
documented
 Written notice of bid award shall be
sent to the successful bidder.
Evaluation of RFPs
 The relative importance of price and
the other evaluation factors
 Specific numerical weighting can be used
 Discussions may be conducted with
responsible Offerors
 Letters to disqualified Offerors are sent
before the Best and Final requests are
issued
 Best and Final Offers
DIFFERENCES
IFBs
 Request specific pricing
 Awards based on lowest
cost of
responsive/responsible
bidder
 Bids are opened in front
of public viewing
 Pricing is fixed and
cannot be adjusted or
changed after bid
opening
RFPs
 Request proposal
information for
specialized services,
qualifications of company
and duration of services
 Awards are based on
specific numeric
weighting (qualifications,
background, experience,
and cost)
 RFPs are not opened for
public screening
 Best and Final can be
made
Dangers of Using Only RFPs
 Discredits True Competition –
 Potential Offerors may assume that award will
be made to all Offerors that submit a proposal
 May allow too much “wiggle room” in the
decision process
 May not be in the District’s best interest
 Harder to cover all the issues
 Harder to find the hidden costs
 Requires more work on both sides
PROTESTS
REMEMBER:
 JUST BECAUSE YOU DON’T AGREE
WITH THE DISTRICT’S DECISION IS
NOT GROUNDS FOR A PROTEST!
Legal and actual grounds must be
detailed in writing including copies of
relevant documents where the
District erred in the solicitation.
QUESTIONS?
THANK YOU!!!
Rosa
and
Munch