State reviews, revises RFP process
The state has new practices in place to evaluate requests for proposals over $3 million that it hopes will clarify bidding on state contracts and reduce the number of appeals of high-value state awards.
Jennifer Smith, director of legislative affairs and communications for the state's Department of Administrative and Financial Services, says the changes come from recommendations of a special review team set up by Gov. Paul LePage late last year in response to recent appeals of high-value contracts and concerns about the process.
The team — comprised of staff from the state's Bureau of General Services and other departments — reviewed 991 competitive RFPs from state agencies between 2008 and 2012 and found that around 2%, or 22, of those decisions were appealed by bidders and nine appeals were upheld. The main reasons for those appeals were perceived flaws in RFP design and the review process and highly complex RFPs.
The revised process, in place since late last fall, requires special review of contracts over $3 million — or of any RFP identified by the director of the Division of Purchases — using a new questionnaire that aims to assess and reduce the risk that a particular contract award will be appealed.
Last year, the state had multiple high-profile appeals of state contract awards, including a battle over a $32.4 million 911 call system contract awarded to FairPoint Communications after two appeals and a contract fight that continues between two natural gas companies that want to supply Augusta. The state also plans to renegotiate another high-value contract this year to run the state's liquor distribution.
In crafting an RFP, the requesting department will work with the state's Division of Purchases. The new questionnaire requires additional information from the requesting department such as the department's past experience with similar purchases, the members of the evaluation team for the RFP and specific guidelines for evaluating submitted proposals.
The review group made other recommendations as well, including that the departments do not bypass the question-and-answer portion and pre-bidder conference portions of the RFP process for high-risk RFPs.
The review group included Bureau of General Services Director Donald McCormack, Chief Information Officer Jim Smith, Maine Revenue Services Executive Director Jerome D. Gerard, State Controller Terry Brann and Division of Purchases staff.
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