Check Stock Award - Synopsis.pdf

Version 3 Revised: 5/2019

Award Recommendation

The Department of Treasury has completed the evaluation of Request for Proposal (RFP) 190000002396, Manufacturing of State Treasurer’s Checks, and has recommended an award to CompleteSource Inc in the amount of $1,200,000, pending State Administrative Board approval. More information on the State Administrative Board can be found at: State Administrative Board.

Bidders who were not recommended for the award are encouraged to schedule a debriefing session with the Solicitation Manager. The debriefing session will provide the bidder with the State’s rationale on why the bidder was not recommended for the award. The Solicitation Manager may be contacted as follows:

Adam Zanetti, Solicitation Manager zanettia@michigan.gov 517-636-6817

Background Information:

This Request for Proposal (RFP) was to solicit responses for selection of a Contractor to provide manufacturing of State Treasurer’s checks. The term of this contract is three (3) years with up to two (2), one

(1) year renewal options.

Bidders:

The RFP was posted on SIGMA VSS on June 3, 2019 for 28 days. The following bidders submitted proposals by the published due date of July 1, 2019:

Bidder Address City, State Zip

SDVOB*

CompleteSource

4455 44th Street SE Grand Rapids, MI 49512

No

RR Donnelley

32031 Townley St Madison Heights, MI 48071

No

*SDVOB: Service-Disabled Veteran Owned Business

STATE OF MICHIGAN PROCUREMENT

Department of Treasury 7285 Parsons Dr., Dimondale, MI 48821 https://www.michigan.gov/dtmb/0,5552,7-358-82550_85746_48756---,00.html

Evaluation Synopsis

I. Evaluation Process

A Responsible Vendor is a vendor that demonstrates it has the ability to successfully perform the duties identified by the solicitation. A Responsive proposal is one that is submitted in accordance with the solicitation instructions and meets all mandatory requirements identified in the solicitation.

Solicitation Instructions and Vendor Questions, Section 6, Mandatory Minimum Requirements:

1. The bidder must agree and be compliant with the State Printing Act. See Standard Contract Terms and Conditions #41

Solicitation Instructions, Section 7, Evaluation Process:

Technical Evaluation Criteria Weight

1. Statement of Work Responses – Exhibit A 60

2. Prior Experience – Vendor Question Worksheet 25

3. Staffing – Section 3.1 through 3.7 15 Total 100

The full evaluation process is stated in the RFP Proposal Instructions.

II. Evaluation Method

Responses to this solicitation were reviewed by the Solicitation Manager in collaboration with the Joint Evaluation Committee which consisted of the following individuals:

Voting Advisory

Joseph Avery, Financial Manager Treasury – Office of Financial Services

Julie Collins, Purchasing Manager Treasury – Departmental Services

Kristen Hampton, Director DTMB – Print and Mail Management

Adam Zanetti, Purchasing Analyst Treasury – Departmental Services

Maria Ibarra, Departmental Analyst Treasury – Office of Financial Services

III. Evaluation Results

A. CompleteSource

The Evaluation Team determined that CompleteSource based on a score of 97 did meet the requirements of this RFP. This determination was accomplished by evaluating their responses to the Technical Evaluation Criteria.

1. Statement of Work Responses – Exhibit A:

The Evaluation Team determined that overall the responses were mostly satisfactory but the following deficiencies were noted:

a. No written response in explanation box for Requirements A.1.State Printing Act, although did provide prevailing wage statement on submission of RFP.

b. Did not check answer box on 4.1 Project Plan.

2. Prior Experience – Vendor Question Worksheet:

a. Failed to list specific State of Michigan contract numbers for question 5.

3. Staffing – Section 3.1 through 3.7:

a. Failed to list Dan Smith’s official title in Section 3.5 and could not be inferred from other sections of the RFP.

Total Score: 97/100

B. RR Donnelley

The Evaluation Team determined that RR Donnelley, based on a score of 74, did not meet the requirements of this RFP. This determination was accomplished by evaluating their responses to the Technical Evaluation Criteria.

1. Statement of Work Responses – Exhibit A:

The Evaluation Team noted the following deficiencies:

a. In sections C.8 – C.10, RRD states they cannot imprint the W-1003 manual checks. This was seen as a critical deficiency. It would impact 8 agencies.

b. Throughout the RFP Requirements, RRD provided options for a General Mill watermark without agreeing with the required Artificial Watermark specifications.

Total Score: 74/100

IV. Technical Evaluation Summary

Selection Criteria CompleteSource RR Donnelley

1 Statement of Work Responses – Exhibit A

58 34

2 Prior Experience – Vendor Question Worksheet

24.5 25

3 Staffing – Section 3.1 through 3.7 14.5 15

Total 97 74

V. Pricing Summary

Pricing was evaluated for the bidders who passed technical. The following is a summary of their price proposals:

Deliverable CompleteSource

1 W-1000 Continuous Laser Warrants Size: 9-1/2" x 11" Estimated Annual Quantity:2,880,000

$103,622

2 W-1000 TEST

Continuous Laser Checks Size: 9-1/2" x 11" Estimated Annual Quantity: 30,000

$2,200

3 W-1001 Cut Sheet Laser Checks Size: 8-1/2" x 11" Estimated Annual Quantity: 60,000

$5,965

4 W-1001 TEST Cut Sheet Laser Checks Size: 8-1/2" x 11" Estimated Annual Quantity: 2,000

$1,421

5 Storage price per month for W-1000:

$.48/Carton Average 480 lots/month = $2,765 a year

6 Pricing to apply the toner adhesion coating to the entire document:

$0

7 Pricing of thermochromatic ink add:

$0

8 Alternate pricing for producing less

$ 49.27/m for 728,000 forms than 1,440,000 – W-1000 checks per production run, thus eliminating the need for storage of forms is

9 1,500 W-1003 Base Stock (two lots per year)

$1,101

10 3000 W-1003 Base Stock

$1,176

11 Storage price per month for W-1003

$.48/Carton

12 60,000 W-1004 Base Stock (two lots per year)

$5,755

13 120,000 W-1004 Base Stock

$9,907

14 Storage price per month for W-1004

$.48/Carton

W-1003 Imprinting: W-1004 Production:

VI. Award Recommendation:

Award recommendation is made to the responsive and responsible Bidder who offers the best value to the State of Michigan. Best value is based on the proposal meeting the minimum point threshold and offering the best combination of the factors stated in the Proposal Instructions Evaluation Process section, and price.

CompleteSource was the only bidder to fulfill all requirements of the RFP and offer the best value to the State.

Award Recommendation is made to CompleteSource in the amount of $1,200,000.

Imprinting Cost

(per lot)

250 $ 265.00

500 $ 265.00

1,000 $ 265.00

1,500 $ 270.00

2,000 $ 275.00

2,500 $ 280.00

3,000 $ 295.00

4,000 $ 305.00

5,000 $ 315.00

6,000 $ 325.00

Quantity

Production

Cost

(per lot)

250 $ 265.00

500 $ 265.00

1,000 $ 265.00

1,500 $ 270.00

2,000 $ 275.00

2,500 $ 280.00

3,000 $ 290.00

4,000 $ 305.00

5,000 $ 315.00

6,000 $ 325.00

7,000 $ 335.00

8,000 $ 355.00

9,000 $ 365.00

10,000 + $ 375.00

Quantity