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Assigning Points Based on a Percentage of Cost for Local Product Proposed

 

In this example the school needs to procure prime vendor to supply the school with a variety of locally produced/grown products. The school decided to use “geographic preference” which is allowable for unprocessed locally grown and locally raised agricultural products. When developing the solicitation document the decision to use geographic preference was based on the following concerns and considerations;

  • Due to large out of state producers putting competitive pressure on local producers to sell at or below cost, the school decided it could afford to pay a little extra if needed for locally grown apples.
  • Also local school board was concerned about the carbon footprint for shipping the apples hundreds of miles for such a small purchase.
  • Although it wasn’t mandatory, teachers and nutritional staff from the school’s food service department wanted to work together to educate students on how apples are grown and it would be nice if a producer would be able to do a presentation. 

Base on the above concerns and considerations the school developed the following Request for Proposal (RFP) evaluation matrix for procuring apples:

Criteria

Maximum Score

Producer A

Producer B

Producer C

RFP Checklist and Submittal Page

Mandatory

Passed

Passed

Passed

Qualifications and Company History

Mandatory

Passed

Passed

Passed

Qualified Product

Mandatory

Passed

Passed

Passed

Delivery Conditions

10 points

10 points

10 points

10 points

Product Specifications and Availability

10 Points

8 points

7 points

7 points

Ordering Procedure

5 Points

4 points

3 points

4 points

Invoice/Payment Method

5 points

5 points

4 points

5 points

Availablity of producer for a presentation at school 

5 points

0 points

5 points

5 points

Geographic Preference (all products)

5 points

5 points

5 points

1.2 points

Calculation of Points

(Based on Proposed Cost)

 

 

 

$6,935.00/$6,935.00 = 1 or 100%

1 x 5 points = 5 points

$6,915.00/$6,915.00 = 1 or 100%

1 x 5 points = 5 points

$1,500.00/$6,675.00 = 0.23 or 23%

0.23 x 5 points = 1.2 points

Equation for assuming point to geographic preference based on costs:

(Cost of local products proposed/Evaluated Cost) X (number of points possible) = assigned points

 

Cost of local products used:

Producer C was able to provide local pears, however apples and cherries were not local. Only costs for pears could be used for geographic preference with Producer C. ($1,500 was the proposed cost of pears in Producer C's proposal).

Points for Technical Score 40 points 32 points 34 points 32.2 points
Points for Costs 60 points 57.8 points 57.9 points 60 points
Proposed Costs   $6,935.00 $6,935.00 $1,500.00

Calculation of Points 

(Based on Proposed Cost)

 

$6,675.00/$6,935.00

= 0.96 or 96%

0.96 x 60 points =

57.8 points

$6,675.00/$6,915.00

= 0.97 or 97%

0.97 x 60 points =

57 points

$6,675.00/$6,975.00

= 1 or 100%

1 x 60 points =

60 points

Equation for assigning points to cost:

(Lowest Cost/Evaluated Cost) X (number of points possible) = assigned points

TOTAL SCORE

(Points for Technical Score + Points for Costs)

100 points

89.8

92.9

92.2

Awarded Contract To:

 

 

X

 

Notes: All producers were responsive and responsible producers;

  • Producer C was not able to provide local apples and cherries but was able to provide local pears (even without geographic preference for apples and cherries producer C had a very competitive proposal)
  • Producer B was awarded the contract for purchasing apples, cherries, pears based on highest number of points after geographic preference was applied.
  • Producer B will be paid based on the proposed pricing in its proposal.
  • All producers were notified of the outcome of the procurement.