Interoffice Memo RFP #071I9200238
To: / Greg Faremouth, DirectorPurchasing Operations
From: / Jacque Kuch, IT Buyer
Purchasing Operations
Date: / August 5, 2009
Subject: / Award of RFP - #071I9200238 – DCH Medicaid Cost Settlement
GENERAL:
The purpose of this RFP is to obtain quotations for ongoing maintenance, support and enhancements of existing information technology solutions as well as software and hardware procurement required to support the Michigan Department of Community Health’s Hospital and Health Plan Reimbursement Division, Long Term Care Reimbursement and Rate Setting Section and the Office of Audit. The term of this contract is to cover the period of five years, with up to three (1) one-year optional renewal periods.
JOINT EVALUATION COMMITTEE:
The Joint Evaluation Committee (JEC) for this RFP consisted of the following individuals:
Jacque Kuch, BuyerDepartment of Management & Budget
Purchasing Operations / Sara Williams, Contract Liaison
DIT DLEG/DCH Agency Services
Linda S. Myers
Client Service Director
MDIT, DCH Agency Services / Pam Myers
DCH/Office of Audit
John Donaldson
DCH/LTC Reimbursement & Rate Setting Section / Brian Gallup
DIT/Agency Services
Brenda Fezatte
DCH/Hospital & Health Plan Reimbursement Division / Bill Howell
DIT/Infrastructure Services
BIDDERS:
The RFP was posted on the DMB Web site on 6/17/09, the following three (3) organizations submitted responses to this RFP by the published due date of 7/20/09:
1. EDS, an HP Company
2. System Technology Group
3. WOW Global
3.020 Award Process
3.021 Method of Evaluation
A Joint Evaluation Committee, chaired by DMB Purchasing Operations, will evaluate proposals.
3.022 Evaluation Criteria
The following chart represents the scoring of the particular factors:
Weight1. / Statement of Work – Scope of Work & Deliverables 1.100) / 40
2. / Statement of Work – Staffing & Organization 1.201 / 30
3. / Prior Experience & Past Performance(Article 5) / 30
4.
5.
TOTAL / 100
Oral Presentation
A Bidder may be required to make an oral presentation to the State. This presentation provides an opportunity for the Bidder to clarify their proposal through mutual understanding. If required, Purchasing Operations will schedule the oral presentation.
Site Visit
The State may conduct a site visit to tour and inspect the Bidder’s facilities. Purchasing Operations will schedule these visits, if required.
3.023 Price Evaluation
For the purpose of this RFP, DMB will be utilizing a two-step process for the price evaluation. Only those proposals receiving a score of 80 points or more of the total maximum possible score may be considered for award.
All bid responses will be evaluated on technical, those passing the technical portion (pass/fail) may be invited to oral presentations. After the evaluation of the technical/oral presentations and those vendors who meet the minimum 80-point threshold will be asked to submit their pricing. Those vendors will receive the IT Rate Table for their quote.
Pricing proposals MUST NOT be submitted with the technical proposal. All vendors who reach the maximum points of 80 after technical review and oral presentations will be requested to submit their pricing.
Only those proposals receiving a score of (80) points or more of the total maximum possible score will be considered for award.
3.024 Award Recommendation
The award recommendation will be made to the responsive and responsible Bidder who offers the best value to the State of Michigan. Best value will be determined by the Bidder meeting the minimum point threshold and offering the best combination of the factors stated in Section 3.022, and price, as demonstrated by its proposal.
3.025 Reservations
The State reserves the right to:
· Consider total cost of ownership factors in the award recommendation (transition costs, training costs, etc.).
· Award by item, part or portion of an item, group of items or total proposal, to reject any and all proposals in whole or in part, if, in the Director of Purchasing Operations’ judgment, the best interest of the State would be served.
· Award multiple, optional use contracts. In addition to the other factors listed, offers will be evaluated on the basis of advantages and disadvantages to the State that may result from making more than one award.
3.026 Award Decision
Award recommendation will be made to the Director of Purchasing Operations for review and approval.
3.027 Protests
Bidder wishing to protest the award recommendation must submit a protest, in writing, by 5:00 p.m. on the date stated on the notice of award recommendation. 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 is available at www.michigan.gov/buymichiganfirst; click on the “Vendor Information” link.
3.028 State Administrative Board
The State Administrative Board (SAB) must approve all contracts/purchase orders in excess of $25,000. The decision of the SAB regarding the award recommendation is final. However, SAB approval does not constitute a Contract. The award process is not complete until the Bidder receives a properly executed Contract or Purchase Order from DMB Purchasing Operations.
EVALUATION RESULTS:
A. EDS, an HP Company
The Joint Evaluation Committee (JEC) determined EDS, based on a score of 95, could meet all the terms of the RFP. This determination was accomplished by evaluating their Statement of Work (Article 1) responses to requirements/specifications, Vendor Information, Prior Experience, Staffing Skill Set of People Assigned, Financial Stability, and Cost & Contract Acceptability. There are many new programs and reimbursement projects in the pipeline for the Hospital and Health Plan Reimbursement Division, the Long Term Care Reimbursement and Rate Setting Section, the Audit Division. The Medicaid program is continually changing due to changes mandated at the federal level. Given the fact that EDS has supported these Divisions in the past and offers all current resources to remain on the project, it is the decision of the JEC to recommend this award to EDS.
1. Statement of Work – Sec 1.100 Scope of Work & Deliverables /40 points
· EDS agrees to meet the service level expectations as defined under Section 1.104 of the RFP.
· EDS is proposing the existing team to support the requirements of RFP, therefore eliminating training requirements and learning curves.
· EDS can accomplish the transition without disruption of services to DCH.
2. Statement of Work – Sec 1.201 Staffing & Organization / 30 points
· Vendor submitted resumes for the required 15 positions. The staff proposed met all the required experience in the RFP (General knowledge of the Medicaid program and hospital and long term care industries are required for all contractor personnel proposed. The contractor and proposed staff must have prior and recent experience (within the last few years) developing, maintaining and operating computer systems and business processes for the cost settlement, rate settings and audits for long-term care and hospital facilities for a state Medicaid program. It is desired that the contractor and proposed staff have a general understanding of the Hospital and Health Plan Reimbursement Division, the Long Term Care Reimbursement and Rate Setting Section, the Audit Division and the information used by each organization.)
3. Article 5 - Prior Experience & Past Performance/ 25 points
· EDS has 23 years experience with the current systems
· EDS is primary contractor for Medicaid programs in 22 various states.
· EDS actively participates in professional healthcare associations, forums, advisory groups and task forces nationwide.
· EDS has identified 22 contracts with the State of Michigan.
· Although EDS provided three prior experiences, all were for the same contract. The State would have preferred the detailed information regarding their other health care experiences identified in their proposal.
The JEC concluded that EDS’s proposal did offer the best value to the State based on their Statement of Work – Sec 1.100 Scope of Work & Deliverables, Staffing & Organization, Prior Experience and Past Performance, and bid price for five years of $10,412,377.78.
B. System Technology Group
The Joint Evaluation Committee (JEC) determined Systems Technology Group, Inc. based on a score of 60, could not meet all the terms of the RFP. This determination was accomplished by evaluating their Statement of Work (Article 1) responses to requirements/specifications, Vendor Information, Prior Experience, Staffing Skill Set of People Assigned, Financial Stability, and Cost & Contract Acceptability.
STG proposed highly qualified technical staff; however, they did not demonstrate any experience in the Health Care and Audit fields as required in the RFP.
1. Statement of Work – Sec 1.100 Scope of Work & Deliverables /40 points
· STG agrees to meet the service level expectations as defined under Section 1.104 of the RFP.
· Transition Plan - will provide free resource manager (Shanta Santaprakash) experienced in Transition, has a framework in place for transition. Vendor demonstrated a solid approach to transition management.
· Vendor demonstrated experience in knowledge transfer.
· Item to note, under Transition Plan – STG states that it will not charge for the first 60 days of the Transition, page 43 of 96. On page 81 of 96, Section 4.5.6 2nd bullet under assumptions, it states that if the State terminates this contract and/or reduces the number of fulltime resources below 15, the State will pay for the free services provided during the Transition period. The RFP clearly states Section 1.201 Staffing Placements, that the State reserves the option to reduce staff.
2. Statement of Work – Sec 1.201 Staffing & Organization / 0 points
· Vendor submitted resumes for the required 15 positions.
· The staff proposed did not meet the required experience in the RFP (General knowledge of the Medicaid program and hospital and long term care industries are required for all contractor personnel proposed. The contractor and proposed staff must have prior and recent experience (within the last few years) developing, maintaining and operating computer systems and business processes for the cost settlement, rate settings and audits for long-term care and hospital facilities for a state Medicaid program. It is desired that the contractor and proposed staff have a general understanding of the Hospital and Health Plan Reimbursement Division, the Long Term Care Reimbursement and Rate Setting Section, the Audit Division and the information used by each organization.)
3. Article 5 - Prior Experience & Past Performance/ 20 points
· The projects submitted for consideration do not reflect health care and audit work that is a requirement of this RFP.
· STG has listed 17 contracts with the State of Michigan.
The JEC concluded that System Technology Groups proposal did not offer the best value to the State based on their Statement of Work – Sec 1.100 Scope of Work & Deliverables, Staffing & Organization, Prior Experience and Past Performance.
C. WOW Global
The Joint Evaluation Committee (JEC) determined that WOW Global, based on a score of 30, could not meet all the terms of the RFP. This determination was accomplished by evaluating their Statement of Work (Article 1) responses to requirements/specifications, Vendor Information, Prior Experience, Staffing Skill Set of People Assigned, Financial Stability, and Cost & Contract Acceptability.
1. Statement of Work – Sec 1.100 Scope of Work & Deliverables /20 points
· Vendor agrees to all statements presented in Section 1.104, but provided no supporting details.
· Vendor provided a limited transition plan.
· Although Vendor states they have expertise in transition, proposal did not provide the needed detail to support this statement.
· Vendor proposed a 36 day transition plan; however, the State has determined that due to the complexity of the requirements identified in the RFP this is an unrealistic statement. RFP noted a 90 day transition.
2. Statement of Work – Sec 1.201 Staffing & Organization / 0 points
· Vendor submitted resumes for the required 15 positions.
· Staff proposed did not meet the required experience in the RFP (General knowledge of the Medicaid program and hospital and long term care industries are required for all contractor personnel proposed. The contractor and proposed staff must have prior and recent experience (within the last few years) developing, maintaining and operating computer systems and business processes for the cost settlement, rate settings and audits for long-term care and hospital facilities for a state Medicaid program. It is desired that the contractor and proposed staff have a general understanding of the Hospital and Health Plan Reimbursement Division, the Long Term Care Reimbursement and Rate Setting Section, the Audit Division and the information used by each organization.)
3. Article 5 - Prior Experience & Past Performance/ 10 points
· Section 5.014 Prior Experience, vendor provided 3 prior experiences as required in the RFP but failed to provide sufficient details regarding their activities on these projects.
· The projects submitted for consideration do not reflect health care and audit work that is required under this RFP.
· Provided multiple contracts but only one was for the State of Michigan.
The JEC concluded that WOW Global’s proposal did not offer the best value to the State based on their Statement of Work – Sec 1.100 Scope of Work & Deliverables, Staffing & Organization, Prior Experience and Past Performance.
Evaluation Summary
Statement of Work Sect 1.100 / 40 / 40 / 40 / 20
Sect 1.201 Staffing & Organization / 30 / 30 / 0 / 0
Prior Experience & Past Performance / 30 / 25 / 20 / 10
TOTAL / 100 / 95 / 60 / 30
Award Recommendation is made for EDS, based on their Statement of Work – Sec 1.100 Scope of Work & Deliverables, Staffing & Organization, Prior Experience and Past Performance, and bid price for five years of $10,412,377.78.
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