Interoffice MemoRFP # 071I1300205

To: / Greg Faremouth, Director
Purchasing Operations
From: / Mark Lawrence, Buyer
Purchasing Operations
Date: / October25, 2011
Subject: / Award of RFP –071I1300205–MiCSES Print and Mail RFP

GENERAL:

The State of Michigan (State) Department of Human Services, through the Michigan Department of Technology, Management & Budget (MDTMB), has issued this Request for Proposal (RFP) to obtain proposals from qualified firms forprint and mail services for the Michigan Child Support Enforcement System (MiCSES).

JOINT EVALUATION COMMITTEE:

The Joint Evaluation Committee (JEC) for this RFP consisted of the following individuals:

Clark, Chris / DTMB / Voting
Lawrence, Mark / DTMB / Voting
Morse, Kelly / DHS / Non-voting
Padgett, Robert / DTMB / Voting
Seaton, Gail / Accenture / Non-voting
Shelagowski, Laura / DHS / Voting
Symington, Tina / DTMB / Non-voting
Thompson, Kristi / DTMB / Non-voting
Trivedi, Pratin / DHS / Voting

BIDDERS:

RFP was posted on the DMB Website on June 29, 2011. Five (5) organizations submitted responses to this RFP by the published due date of August 2, 2011 and were determined responsive (a proposal from RR Donnelly was not considered responsive, because the printing would be done outside of Michigan.

  1. SourceHOV
  2. Informatix
  3. LaserTec
  4. Presort Services
  5. RR Donnelley
  6. Wolverine Solutions

Award Process

Method of Evaluation

Proposals will be evaluated by a Joint Evaluation Committee chaired by MDTMB Purchasing Operations.

Evaluation Criteria

The following chart represents the scoring of the particular factors as located in the RFP.

Weight
1. / Statement of Work – Article 1.104 / 65
2. / Prior Experience Article – 4.014 / 20
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10
4. / Other:
Adherence to Terms & Conditions / 5
TOTAL / 100

Oral Presentation: Oral presentations were made by SourceHOV, Informatix, and Presort Services.

Site Visit: Site visits were made by the JEC team to SourceHOV, Informatix, and Presort Services, to tour and inspect the Bidder’s facilities.

Best and Final Offer (BAFO):

Following the Oral Presentations and Site Visits, the State requested a BAFO from each proposal determined to be in the competitive range.

Price Evaluation

Only those proposals receiving a score of 85 points or more of the total maximum possible score were considered for award.

All price proposals were opened. However, prices were only evaluated from those Bidders meeting the minimum point threshold. Evaluation of price proposals includes consideration for a Qualified Disabled Veteran Preference. Public Act 431 of 1984, as amended, establishes a preference of up to 10% for businesses owned by qualified disabled veterans meeting the minimum point threshold for passing.

Award Recommendation

The award recommendation was made to the responsive and responsible Bidder who offered the best value to the State of Michigan. Best value was 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.

Reservations

The State reserves the right to:

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

(b) 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 will be so served.

(c) 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.

(d) consider overall economic impact to the State in the final award recommendation. This includes considering principal place of performance, number of Michigan citizens employed or potentially employed, dollars paid to Michigan residents, Michigan capital investments, economically disadvantaged businesses, etc.

(e) award to another ‘best value’ contractor in case the original Awardee does not accept the award. This reservation applies for all of our solicitations whether they are quotes, bids, proposals, pre-qualified or pre-registered programs.

(f) give a preference for products manufactured or services offered by Michigan firms if all other things are equal and if not inconsistent with federal statute. (See MCL 18.1261)

(g) disqualify any bid based on Sections 1.1 through 4.1 in the general Certifications and Representations (completed at bidder registration).

Award Decision

Award recommendation was made to the Director of Purchasing Operations for review and approval.

Protests

A Bidder wishing to protest the award recommendation must submit a protest, in writing, by 5:00 p.m. EST 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 click on the “Vendor Information” link.

State Administrative Board

The State Administrative Board (SAB) must approve all contracts and purchase orders in excess of $250,000. 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.

EVALUATION RESULTS:

SourceHOV 95 points

Weight / Score
1. / Statement of Work – Article 1.104 / 65 / 63
2. / Prior Experience Article – 4.014 / 20 / 19
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10 / 8
4. / Other:
Company Information – Article 4.011
Adherence to Terms & Conditions / 5 / 5
TOTAL / 100 / 95

1) Statement of Work - Article 1.104, scored _63_ / 65 points).

Strengths

  • The bidder provided a solution that provides the State with a cost saving initiative. It is the capability to combine mailings to the same house in a single envelope, given various state-provided criteria (householding). It is a convenience for the customer, and reduces postage costs. (p. 24)
  • The bidder demonstrated an efficient problem escalation process. (p. 33)
  • The bidder provided a thorough explanation of special projects, and their strong capabilities to do them. (p. 33-34)
  • As the vendor of the current MiCSES Print and Mail contract, the transition task, and transition risks, would be low (p. 23).
  • The bidder demonstrates a thorough QA process. The bidder is SAS 70 Type 2 certified. The bidder adheres to the Total Quality Management Process (TQM), Lean Sigma, and Six Sigma Guidelines. (p. 23)
  • The bidder has an on-site US postal service sub-station, their own zip code, and utilizesthe USPS Postal1 Transportation module. This reduces the risk of delay or mis-handling in the transfer of the mail from the vendor to the US Postal Service. (attachment 1.104 B Process reconciliation)

Weakness

  • The bidder did not meet the requirement to provide a “sample acceptance form”, for the transition. There is a table titled “Accountabilities and Contributions” that could be modified to serve the same purpose. (p.23, section 1.104, A, 1. Services to be provided)

2) Prior Experience Article – 4.014.-– scored __19 / 20 points).

Strengths

  • Ford Credit has comparable volume and scopeof print and mail to the requirements of this RFP.
  • Vangent has comparable volume and scopeof print and mail to the requirements of this RFP.

Weakness

  • The reference for “State of Michigan – MEAP” did not provide information on the volume of print and mail.

3) Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes -– scored __8/ 10 points)..

Project Manager

  • The PM met requirements, except for possessing PMP certification.
  • The PM is acting in the same role on the active MICSES Print and Mail contract
  • The PM will allocate 15% of their time to this contract.
  • The PM has received training for the PMP certification.

Quality Analyst

  • The QAmet requirements.
  • The QA will allocate 10% of their time to this contract.
  • The QA has an MBA degree.
  • The QA has received training in 6 Sigma, TQM, and Lean Sigma.

4) Adherence to Terms and Conditions -– scored __5 / 5 points).

  • The bidder accepted Article 2, Terms and Conditions.

Price: $11,695,025.00

B. Informatix 85 points

Weight / Score
1. / Statement of Work – Article 1.104 / 65 / 57
2. / Prior Experience Article – 4.014 / 20 / 15
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10 / 8
4. / Other:
Company Information – Article 4.011
Adherence to Terms & Conditions / 5 / 5
TOTAL / 100 / 85

1) Statement of Work - Article 1.104, scored _57_ / 65 points).

Strengths

  • The bidder provided a solution that provides the State with a cost saving initiative. It is the capability to combine mailings to the same house in a single envelope, given various state-provided criteria (householding). It is a convenience for the customer, and reduces postage costs. (p. 22 & 28)
  • NCOA (USPS’ National Change of Address system) may be useful, although more evaluation would be needed before it can be put into production. (p. 29 Forwarding or change of address)
  • The bidder demonstrated and understanding of the reports. (p. 34 – 36)
  • The bidder provides anarchive of County Detail Reports for at least 3 months. The reports identified were required reports. There was no requirement that specified the length of time the reports are retained/archived by the bidder. This is astrength because the bidder demonstrated the potential need for issue resolution in their QA process description. (p. 48)
  • The bidder uses a “statistically accurate amount of documents”. Reconciliation and Production Control) A statistically valid and demonstrable QA sampling methodology provides more confidence that the QA processes are comprehensive enough to identify problems in a print run. (p. 53)

Weakness

  • If the separate files (83 PDF files, receive via the XML 24-hour file and XML 48-hour file)are combined into one large file, then the bidder may not be able to meet the 24-hour requirement for certain documents. (p. 26 File Consolidation, 1st sentence)
  • The Bidder did not explain the differences in processing 24 & 48- hour mail. Each has unique needs, and processing considerations. (p. 26)
  • The “enhancement” to identify defective mail would shift the cost of printing that mail to the counties. The State would have savings, but the counties would have increased costs. (p.33 No Mail Distribution Services)

2) Prior Experience Article – 4.014.–scored __15 / 20 points).

Strengths

  • Michigan State Disbursement Unit (MiSDU) – the prior experience demonstrates knowledge andunderstanding of the MICSES’ program. Similar activity of printing and mailing is currently performed, although not at the same volumes in the RFP.

Weakness

  • Kentucky - the prior experiencedoes not demonstrate comparable print and mail volumes to the requirements of this RFP.
  • Texas - the prior experiencedoes not demonstrate comparable print and mail volumes to the requirements of this RFP.

3) Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes –scored __8 / 10 points)..

Project Manager

  • The PM met requirements, except for possessing PMP certification.
  • The PM will allocate 45% of their time to this contract.
  • The PM has acted in the same role on the Michigan State Disbursement (MiSDU) contract.

Quality Analyst

  • The QAmet requirements.
  • The QA has acted in the same role on the Michigan State Disbursement (MiSDU) contract.
  • The QA will allocate 50% of their time to this contract.

4) Adherence to Terms and Conditions –scored __5 / 5 points).

  • The bidder accepted Article 2, Terms and Conditions.

Price: $12,776,532.00

C. Lasertec 48 points

Weight / Score
1. / Statement of Work – Article 1.104 / 65 / 30
2. / Prior Experience Article – 4.014 / 20 / 5
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10 / 8
4. / Other:
Company Information – Article 4.011
Adherence to Terms & Conditions / 5 / 5
TOTAL / 100 / 48

1) Statement of Work - Article 1.104, scored _30_ / 65 points).

Strengths

  • The bidder proposed a tracking system that would improve customer access to information (p. 29 tracking)
  • The bidder provided report samples that were very descriptive (p. 44 Reporting)

Weakness

  • The bidder’s proposal for managing the postage costs does not meet the requirements of the RFP. In addendum #1, the State clarifies that it did not want to participate in the postage process. The bidder wanted the SOM to either provide a postage indicia or provide up front postage costs – neither of which the state is willing or easily able to do on a monthly basis. (p. 26, postage model)
  • The bidder provided very little explanation of the State or Contractor roles in the Transition. (p. 25, Transition plan)
  • A preliminary transition checklist was required, but was not provided by the bidder. There is a transition plan. (p. 27)
  • A sample acceptance form was required. There is a reference to finding it at Appendix D. However, Appendix D is missing. There is a “customer acceptance form” in Appendix B. This is confusing. (p. 27. And Appendix B)
  • The bidder uses a sub-contractor for the co-mingling and sorting of mail (to maximize postal discounts). This relationship needed to be explained in more detail, to ensure that quality and control is maintained. (p. 150)

2) Prior Experience Article – 4.014.—scored __5 / 20 points).

Weakness

  • Proctor Financial Insurance. This prior experience lacks the volume of print and mail required by this RFP.
  • Daily Notices – Genisys Credit Union and Lake Michigan Credit Union. This prior experience lacks the volume of print and mail required by this RFP.
  • Property Assessments & Tax Bills. This prior experience lacks the volume of print and mail required by this RFP.

3) Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes –scored __8 / 10 points)..

Project Manager

  • The PM met requirements, except for possessing PMP certification.
  • The PM will allocate 50% of their time to the contract.

Quality Analyst

  • The QAmet requirements.
  • The PM will allocate 50% of their time to the contract.

4) Adherence to Terms and Conditions –scored __5 / 5 points).

  • The bidder accepted Article 2, Terms and Conditions.

Price: $ pricing was not evaluated.

D. Presort services 88points

Weight / Score
1. / Statement of Work – Article 1.104 / 65 / 60
2. / Prior Experience Article – 4.014 / 20 / 15
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10 / 8
4. / Other:
Company Information – Article 4.011
Adherence to Terms & Conditions / 5 / 5
TOTAL / 100 / 88

1) Statement of Work - Article 1.104, scored _60_ / 65 points).

Strengths

  • The bidder provided a solution that provides the State with a cost saving initiative. It is the capability to combine mailings to the same house in a single envelope, given various state-provided criteria (householding). It is a convenience for the customer, and reduces postage costs. (p. 18)
  • The bidder offered the services of a “team of skilled USPS design consultants” to “assist the State in all aspects of mail piece design at no additional cost”. (p. 28 Response, D)
  • The biddermaintainsmail-related certifications, such as Mail Preparation Total Quality Management (TPTQM) (p. 29, B. Quality Assurance)
  • The bidder has daily on-site postal verification in both Lansing and Grand Rapids facilities. This ensures that service timelines are met. (p. 31)
  • The bidder demonstrated a thorough understanding and compliance with regulatory bodies for print and mail services, such as FDIC, HIPAA, Graham- Leach-Bailey Act. (p. 32 – 33)
  • The bidderdemonstrated a thorough Issue Management process. (p. 50)
  • The bidder demonstrated a thorough Risk Management process. (p. 54)

Weakness

  • Bidders were required to describe their understanding of the transition requirements. The bidder provided process flows; however more detail and narrative was needed to support them. (p.12, 1.104, A, 1.Transition of Business Operations)
  • Bidders were required to describe their processes used in fulfilling the documentation requirements. With process flows and the narrative in separate sections, and having to go back and forth reading them, it was difficult to understand the bidder’s approach. Also, the flowsseemed to differ somewhat from the narrative. (ie Fed Ex, p. 20 vs Airborne, p. 17.) (p.15, 1.104, A, 2.Documentation)
  • The RFP required a description of state and contractor roles; these were not clearly described (p. 19)
  • The bidder used acronyms, which were not explained. (such as 8-D process, why-why analysis) (p. 27)

2) Prior Experience Article – 4.014.—scored __15 / 20 points).

Strengths

  • The bidder provided 3 references that demonstrate comparable mail work as required in the RFP. (p. 105)
  • The prior experience of Maximus has similar scope of work as required in the RFP.

Weakness

  • All references did not contain print volume information, so that the scope of work could not be assessed as comparable to the requirements of the RFP.

3) Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes –scored __8 / 10 points)..

Project Manager

  • The PM met requirements, except for possessing PMP certification.
  • The PM will allocate 25 - 50% of their time to this contract.

Quality Analyst

  • The QAmet requirements.
  • The QA will allocate 20% of their time to this contract.

4) Adherence to Terms and Conditions –scored __5 / 5 points).

  • The bidder accepted Article 2, Terms and Conditions.

Price: $12,109,060.00

E. RR Donnelley n/a points

Weight / Score
1. / Statement of Work – Article 1.104 / 65 / n/a
2. / Prior Experience Article – 4.014 / 20 / n/a
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10 / n/a
4. / Other:
Company Information – Article 4.011
Adherence to Terms & Conditions / 5 / n/a
TOTAL / 100 / n/a

The RR Donnelly proposal was not evaluated.

Per the RFP section 1.001 Project Request: “In conformance with Public Act 153 of 1937 (MCL 24.61) all printing for the State of Michigan, except that which is printed for primary school districts, local government units and legal publications for elective state officers, must be printed in Michigan.”)

Price: $ pricing was not evaluated.

F. Wolverine Solutions 47 points

Weight / Score
1. / Statement of Work – Article 1.104 / 65 / 30
2. / Prior Experience Article – 4.014 / 20 / 5
3. / Statement of Work – Staffing Capabilities Article 1.201, Article 4.015, Templates and Resumes / 10 / 7
4. / Other:
Adherence to Terms and Conditions / 5 / 5
TOTAL / 100 / 47

1) Statement of Work - Article 1.104, scored _30_ / 65 points).

Strengths

  • The bidder’s facility has an on-site USPS presence (p. 5 Introduction)

Weakness

  • The RFP required a preliminary transition checklist and sample acceptance form. These were not provided. (p. 6, 1.104, A. 1.)
  • The RFP required a description of the “proposed approach and plan to meet this service, including State roles and contractor roles.” This was not provided. (p. 6, 1.104, A. 1.)
  • The RFP required the bidder to describe their “capabilities to generate required and additional reports”, and to “include sample reports or graphical representations as necessary.” This was not provided. (p. 13, 1.104, A.5.)
  • The “Problem Investigation and Quality Assurance” requirement is that “problem investigation efforts should be overseen by independent teams…”. Per the bidder’s response, the team is “comprised of individuals from each department that processes the product”. The requirement is not met. (p. 16 , 1.104, A.6.D Problem Investigation and Quality Assurance)
  • The RFP required a “detailed description of y problem identification, investigation, mitigation, and corrective action processes.” This was not provided, in sufficient detail. How is an issue logged - is there a computerized system, or a paper form? How is the corrective action documented - by a computerized system, or a paper form? How is the corrective action implemented company-wide - by training, updating company form, updating software? Who coordinated the corrective action? (p. 16)
  • For Special Projects, the RFP requires that the bidder provide the “proposed capabilities and approach to meet this service”. That was not provided. (p. 18)
  • The RFP requires that the bidder provide “the audit period of the last SAS-70 or SOC2 report.” What is provided does not meet the requirement. It is a proposal dated May 1, 2011 to conduct the audit. There is nothing to indicate that an audit has already been done. (p.19, 1.104, C.)
  • The RFP required the bidderto “provide a detailed description of the business continuity, facilities, and security processes”. The proposal did not provide this. (p. 19 1.104, C part 4)
  • The proposal states that the backup facility will be used only for outages greater than 72 hours. That exceeds the service level requirements of 24 and 48 hours. (p.57, backup processing center )
  • The RFP requires an Executive Summary. The proposal responds with “See Executive Summary”. The Executive Summary could not be located. (p. 67, 1.104, E)
  • The RFP requires a preliminary project plan; this was not provided. (p. 71)

2) Prior Experience Article – 4.014.—scored __5 / 20 points).