Inter-Office Memo - Our Government Clients



Memorandum

To: William Walsh, CPPB

Buyer/ Manager

From: Lymon C. Hunter, CPPB

Commodities Division

Date: August 8, 2012

Subj: Award of RFP – 071I2200180

Janitorial Services for DEQ Offices

BACKGROUND INFORMATION/GENERAL:

The purpose of this RFP is to obtain proposals from experienced, professional janitorial vendors to clean three DEQ field offices; Kalamazoo District Office, Cadillac District Office, and Gaylord Field office. Each facility houses State of Michigan government employees.

The RFP package was placed on the Bid4Michigan website on June 6, 2012. Mandatory site visits were conducted June 20 through June 21 at the aforementioned sites. Bidder questions were due on June 22, 2012. The deadline for responses was June 29, 2012 @ 3:00 p.m.

BID EVALUATION METHOD:

All RFP responses were evaluated by a Joint Evaluation Committee (JEC) comprised of the following individuals:

Lymon C. Hunter, CPPB DTMB-Procurement

Bonita Rae Roche’ DEQ-Department Analyst

BIDDERS

A total of 6 bidders submitted proposals for this RFP by the published due date. Bidders are as follows:

|Bidder |City, State |Michigan Business |CRO |SDVOB |Step 1 |

| | | | | |Pass/Fail |

| |Grand Rapids, MI |Yes | | | |

|Reliable Management Systems | | |No | | |

| | | | |No |Fail |

| |Kalamazoo, MI | |Yes | | |

|MRC Industries, Inc. | |Yes | |No |Fail |

| |Flint, MI | | | | |

|Axium Services, Inc. | |Yes |No |No |Pass |

|Patriot Solutions |Grand Rapids, MI | | | | |

| | |Yes |No |Yes |Pass |

|Cadillac Janitorial |Cadillac, MI | | | | |

| | |Yes |No |No |Pass |

|Customized Cleaning |Hastings, MI | | | | |

| | |Yes |No |No |Fail |

3.4.1 Method of Evaluation

Proposals will be evaluated by a Joint Evaluation Committee (chaired by DTMB-Procurement).

3.4.2 Evaluation Criteria

The following chart represents the scoring of the particular factors:

|Step 1: Pass / Fail Requirements: Bidders who do not pass each of the following mandatory requirements will not be considered for |

|further evaluation in Step 2 or award. |

|Mandatory Requirement: |RFP Authority |

|PASS/FAIL |Attachment B, Bidder Response |

|Site Visit(s) Attendance |Sec. 3.1.1 |

|Step 2: Best Value Evaluation: The proposals that pass step 1 will have the price evaluated with the following RFP criteria and |

|other statutory authority. |

|Item |Criteria & RFP Authority |Weight |

|1 |Price |Best Value |

|2 |1.6.1 Customer Service |Best Value |

|3 |Section: 3.4.5 Reservations |Best Value |

|4 |Article 4 Required Bidder Information |Best Value |

|5 |Section 4.1.12 Business Owned by Qualified Disabled Veteran |Up to 10% |

3.4.3 Technical and Price Evaluation

(a) Only proposals receiving a PASS rating in Step 1 will be considered for award.

(b) Price proposals will only be evaluated from those bidders that the State considers for award in accordance with subsection (a). Evaluation of price proposals includes consideration of a qualified disabled veteran preference. MCL 18.1261 establishes a preference of up to 10% for businesses owned by qualified disabled veterans that are considered for award in accordance with subsection (a).

3.4.4 Award Recommendation

The award recommendation will be made for the bidder that: (a) is considered for award in accordance with Section 3.4.3(a), Technical and Price Evaluation; (b) has its price proposal evaluated under Section 3.4.3(b), Technical and Price Evaluation; and (c) in the State's determination, offers the best value to the State.

3.4.5 Reservations

The State reserves the right to:

(a) consider total cost of ownership in the final award recommendation (i.e. transition costs, training costs, etc.);

(b) award by item or part of an item;

(c) reject any proposals in whole or in part;

(d) award multiple, optional-use contracts. The State may evaluate offers based on advantages and disadvantages that may result from making more than one award;

(e) consider overall economic impact. This includes considering principal place of performance, number of Michigan citizens employed or potentially employed, money paid to Michigan residents, Michigan capital investments, etc;

(f) award to another bidder if the recommended bidder does not accept the award;

(g) give a preference for products manufactured or services offered by Michigan-based firms if all other things are equal and if consistent with federal statutes. (MCL 18.1261);

(h) disqualify any bid based on the failure to complete the Certifications and Representations in the Bid4Michigan registration; and

(i) disqualify any bid based on the information provided in the Certifications and Representations in the Bid4Michigan registration and responses from vendor references.

(j) the State reserves the right to modify the Contract Term stated in Section 2.1.1 and Section 2.1.2 of the RFP Document

3.4.6 Award Decision

Award recommendation will be made to the Director of DTMB-Procurement.

3.4.7 Protests

If a bidder wishes to protest the award recommendation, the bidder must submit a written protest by 5:00pm Eastern Time on the date stated on the notice of recommendation to award. The bidder must include the RFP number and clearly state the facts believed to constitute error in the award recommendation along with the desired remedy. More information about the bidder protest process is available at buymichiganfirst; click on the "Vendor Information" link.

3.4.8 State Administrative Board

State Administrative Board (SAB) approval is required for all Contracts or Purchase Orders of $250,000.00 or more. The decision of the SAB is final; however, SAB approval does not constitute a Contract. The award process is complete when the bidder receives a properly executed Contract or Purchase Order from DTMB-Procurement.

Evaluation Results (PASS / FAIL):

Reliable Management Systems

1. Step 1 Pass/Fail Requirements

|Pass / Fail Requirements: Bidders who do not pass each of the following mandatory | |Pass/Fail |

|requirements will not be considered for further evaluation in Step 2 or award. | | |

|Mandatory Requirement: |RFP Authority |Evaluation | |

|PASS/FAIL |Attachment B |Evaluation of proposal was not conducted |Fail |

| | |due to failure of Bidder to respond to | |

| | |Attachment B. | |

| Site Visit(s) Attendance |Sec. 3.1.1 |Attended Kalamazoo District Office Only |Pass |

MRC Industries, Inc.

1. Step 1 Pass/Fail Requirements

|Pass / Fail Requirements: Bidders who do not pass each of the following mandatory | |Pass/Fail |

|requirements will not be considered for further evaluation in Step 2 or award. | | |

|Mandatory Requirement: |RFP Authority |Evaluation | |

|PASS/FAIL |Attachment B | Evaluation of proposal was not conducted|Fail |

| | |due to failure of Bidder to respond to | |

| | |Attachment B. | |

| Site Visit(s) Attendance |Sec. 3.1.1 |Attended Kalamazoo District Office Only |Pass |

Customized Cleaning Services

1. Step 1 Pass/Fail Requirements

|Pass / Fail Requirements: Bidders who do not pass each of the following mandatory | |Pass/Fail |

|requirements will not be considered for further evaluation in Step 2 or award. | | |

|Mandatory Requirement: |RFP Authority |Evaluation | |

|PASS/FAIL |Attachment B |Evaluation of proposal was not conducted |Fail |

| | |due to failure to respond to mandatory | |

| | |Attachment B. | |

| Site Visit(s) Attendance |Sec. 3.1.1 |Attended Kalamazoo District Office Only |Pass |

Patriot Solutions

1. Step 1 Pass/Fail Requirements

|Pass / Fail Requirements: Bidders who do not pass each of the following mandatory | |Pass/Fail |

|requirements will not be considered for further evaluation in Step 2 or award. | | |

|Mandatory Requirement: |RFP Authority |Evaluation | |

|PASS/FAIL |Attachment B |All Mandatory Requirements Checked Yes |Pass |

| Site Visit(s) Attendance |Sec. 3.1.1 |Attended All Facilities |Pass |

2. Step 2 Best Value Evaluation

|Step 2: Best Value Evaluation: The proposals that pass step 1 will have the price evaluated with the following RFP criteria and other statutory authority. |

|Item |Criteria & RFP Authority | |

|1 |Attachment A - Price Proposal |Kalamazoo-$67,965.00, Gaylord - |

| | |$54,885.00, Cadillac- $64,386.00 |

|2 |Section: 1.6.1 |Information was provided, however there |

| | |was a reference to “MSI contact” in this |

| | |section. |

|3 |Section: 3.4.5 Reservations |No exceptions noted |

|4 |Article 4 Required Bidder Information |Information was provided. Relevant |

| | |experience of subcontractor including |

| | |three federal government customers and |

| | |several state agencies which have been |

| | |serviced in the previous 3 years as |

| | |required in the RFP. |

|5 |Section 4.1.12 Business Owned by Qualified Disabled Veteran |Bidder is a SDVOB |

Axium Services, Inc.

1. Step 1 Pass/Fail Requirements

|Pass / Fail Requirements: Bidders who do not pass each of the following mandatory | |Pass/Fail |

|requirements will not be considered for further evaluation in Step 2 or award. | | |

|Mandatory Requirement: |RFP Authority |Evaluation | |

|PASS/FAIL |Attachment B |All Mandatory Requirements Checked Yes |Pass |

| Site Visit(s) Attendance |Sec. 3.1.1 |Attended All Facilities |Pass |

2. Step 2 Best Value Evaluation

|Step 2: Best Value Evaluation: The proposals that pass step 1 will have the price evaluated with the following RFP criteria and other statutory authority. |

|Item |Criteria & RFP Authority | |

|1 |Attachment A - Price Proposal |Kalamazoo-$48,495.00, Gaylord - |

| | |$39,576.00, Cadillac - $50,106.00 |

|2 |Section: 1.6.1 |Information submitted is sufficient. |

|3 |Section: 3.4.5 Reservations |No exceptions noted |

|4 |Article 4 Required Bidder Information |Information was provided. Relevant |

| | |experience including one government |

| | |customer & two school districts which has |

| | |been serviced in the previous 3 years as |

| | |required in the RFP. |

|5 |Section 4.1.12 Business Owned by Qualified Disabled Veteran |Bidder is not a SDVOB |

Cadillac Janitorial

1. Step 1 Pass/Fail Requirements

|Pass / Fail Requirements: Bidders who do not pass each of the following mandatory | |Pass/Fail |

|requirements will not be considered for further evaluation in Step 2 or award. | | |

|Mandatory Requirement: |RFP Authority |Evaluation | |

|PASS/FAIL |Attachment B |All Mandatory Requirements Checked Yes |Pass |

| Site Visit(s) Attendance |Sec. 3.1.1 |Attended All Facilities |Pass |

2. Step 2 Best Value Evaluation

|Step 2: Best Value Evaluation: The proposals that pass step 1 will have the price evaluated with the following RFP criteria and other statutory authority. |

|Item |Criteria & RFP Authority | |

|1 |Attachment A - Price Proposal |Kalamazoo-$46,890, Gaylord - $43,755.00, |

| | |Cadillac - $60,204.00 |

|2 |Section: 1.6.1 |Information submitted is sufficient. |

|3 |Section: 3.4.5 Reservations |No exceptions noted |

|4 |Article 4 Required Bidder Information |Information was provided. Relevant |

| | |experience including two government |

| | |customers & one bank customer which has |

| | |been serviced in the previous 3 years as |

| | |required in the RFP. Failed to provide |

| | |years serviced, # of facilities serviced &|

| | |annual $$ volume. |

|5 |Section 4.1.12 Business Owned by Qualified Disabled Veteran |Bidder is not a SDVOB |

Pricing Summary:

Pricing was based on the estimated service frequencies specified on the location specification sheet. Buyer conducted further negotiations with the three respondents passing step 1 as noted in the evaluation tables above. The 10% preference was applied to the SDVOB when determining Official Low Bid responses in this pricing evaluation.

Award Recommendation

The split award recommendation is made based on low bid by location per second round pricing to Axium Services, Inc. for the Gaylord Field Office in the amount of $39,576.00 and the Cadillac District Office in the amount of $50,106.00; Cadillac Janitorial for the Kalamazoo District Office in the amount of $46,890.00, as the responsive and responsible Bidders who passed Step 1 and offers the BEST VALUE to the State of Michigan.

Signatures:

____________________________  

Signature Date

____________________________  

Signature Date

( Reviewed and approved by: ___________________

( Reviewed and approved by: ___________________

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