PROCUREMENT GUIDELINES

Following completion of the initial technical proposal review, evaluation scores are adjusted and finalized, as provided for in the evaluation instrument. Regardless of the scoring methodology utilized, evaluators must document the basis for the rating using narrative to explain the proposal’s strengths and weaknesses, thereby justifying the score. For example: “The offerer’s proposed Project Director was given the maximum number of points because this individual has successfully managed a project of similar complexity and he/she will be critically important to the success of our project.”

I. Conduc ting the Cos t Eva lua tion Methods for calculating costs vary depending on a mix of factors concerning the nature and extent of the services, the costs associated with utilizing the services, and the impact of the services on agency programs and operations (State Finance Law §§160(5) and (6)).

The two most common methods for comparing the cost proposals are:

Conversion of Price to a Weighted Point Score Points = (Lowest bid divided by the bid being evaluated) x cost points

Comparison of Life Cycle Costs Procurements that entail the expenditure of funds for both the fees associated with the services to be procured (i.e., price) and costs associated with the introduction of the services into the environment (i.e., indirect costs) could be evaluated by analyzing total life cycle costs, defined as the sum of the fees and indirect costs. An example of life cycle costs for a computer system conversion would be the offer price of the new system combined with other expenses, such as, but not limited to, upgrades to existing infrastructure and additional staff requirements if necessary. Once the total life cycle costs for competing proposals have been determined, the life cycle costs associated with each proposal must be converted to a weighted point score using the formula above. NOTE: If an agency wishes to use a cost evaluation method other than those described above, such as “banding” or “competitive cost range,” it should contact OSC for further discussion before proceeding.

New York State Procurement Guidelines 34