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Michigan.gov/MiProcurement
Michigan.gov/MiProcurement
AWARD RECOMMENDATION
| Notice of Intent to Award Number: 240000001218 |
| Notice of Intent to Award Date: Click or tap to enter a date. |
The Department of Technology, Management, & Budget’s Procurement office has completed the evaluation of RFP 240000000955, Principal Residence Exemption Audit Services and has recommended an award to Reason Consulting in the amount of $10,333,436.48, pending State Administrative Board approval, if applicable. 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:
Melissa Beck, Solicitation Manager.
BeckM3@michigan.gov 517-897-1502 Public copies of all bidder proposals can be found here: DTMB - Bid Proposals (michigan.gov) Background Information:
This Request for Proposal (RFP) was to solicit responses for selection of a Contractor to provide the services of a Contractor, to act as the authorized representative of the State of Michigan (State), to design an audit methodology, and then conduct audits of PREs for any number of counties, up to all 83 counties. The Contractor must provide the State with invalid PREs based on their audits. The term of this contract is Five years, with up to Five one-year renewal options.
Bidders:
The RFP was posted on SIGMA VSS on Thursday, May 23, 2024, for 36 days. The following bidders submitted proposals by the published due date of Friday, June 28, 2024.
| Bidder |
| Address, City, State, Zip Code |
| SDVOB* |
| GDBE** |
| Reason Consulting – Brighton Office |
| 8571 W Grand River Ave., Suite 100, Brighton, MI 48116 |
| No |
| No |
*SDVOB: Service-Disabled Veteran Owned Business **GDBE: Geographically Disadvantaged Business Enterprise
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.
Proposal Instructions: Evaluation Process
| Technical Evaluation Criteria |
| Weight |
| 1. |
| Schedule A, Statement of Work, Sections 1-3 |
| 40 |
| 2. |
| Schedule A, Statement of Work, Sections 4-8 |
| 20 |
| 3. |
| Vendor Questions Worksheet |
| 40 |
Proposals receiving 80 or more technical evaluation points will have pricing evaluated and considered for award.
The full evaluation process is stated in the RFP Proposal Instructions.
II. Evaluation Method Responses to this solicitation were reviewed by Solicitation Manager in collaboration with Joint Evaluation Committee, which consisted of the following individuals:
| Larry Steckelberg, Community Services Division, Treasury |
| Cassandra Huguelet, Business Relationship Manager, Treasury |
| Christopher Mida, Manager, Treasury |
| Lance Kingsbury, Manager, Treasury |
Chelan Burks-Andrew, State Assistant Administrator, Treasury
Melissa Beck, Solicitation Manager, DTMB
III. Evaluation Results A. Reason Consulting The Evaluation Team determined that Reason Consulting based on a score of 99, did meet the requirements of this RFP This determination was accomplished by evaluating their responses to the Technical Evaluation Criteria.
1. Schedule A, Statement of Work, Sections 1 – 3 (40/40) The Evaluation Team determined that overall, the responses were satisfactory.
2. Schedule A, Statement of Work, Sections 4 - 8 (20/20) The Evaluation Team determined that overall, the responses were satisfactory.
3. Vendor Questions Worksheet (39/40) The Evaluation Team determined that overall, the responses were mostly satisfactory, but the following deficiencies were noted:
a. Did not list annual sales as requested.
Total Score:99/100 IV. Technical Evaluation Summary
| Selection Criteria |
| Reason Consulting |
| 1 |
| Schedule A, Statement of Work, Sections 1 - 3 |
| 40 |
| 2 |
| Schedule A, Statement of Work, Sections 4 - 8 |
| 20 |
| 3 |
| Vendor Questions Worksheet |
| 39 |
V. Pricing Summary Pricing was evaluated for the bidder who passed technical. The following is a summary of their price proposal:
| Deliverable |
| Reason Consulting |
| 1 |
| Quick payment terms |
| 5%/30 days |
| Description |
| Year 1 |
| Year 2 |
| Year 3 |
| Year 4 |
| Year 5 |
| Subtotal |
| a |
| Data Aggregation (all counties) |
| $300,000.00 |
| $309,000.00 |
| $318,270.00 |
| $327,818.10 |
| $337,652.64 |
| $1,592,740.740 |
| b |
| BS&A Export Support |
| $24,800.00 |
| $25,544.00 |
| $26,310.32 |
| $27,099.63 |
| $27,912.62 |
| $131,666.57 |
| c |
| FTP for County Data |
| $24,800.00 |
| $25,544.00 |
| $26,310.32 |
| $27,099.63 |
| $27,912.62 |
| $131,666.57 |
| d |
| Queries |
| $125,000.00 |
| $128,750.00 |
| $132,612.50 |
| $136,590.88 |
| $140,688.60 |
| $663,641.98 |
| e |
| Generate Leads List |
| $12,400.00 |
| $12,772.00 |
| $13,155.16 |
| $13,549.81 |
| $13,956.31 |
| $65,833.28 |
| f |
| Sending Questionnaires* |
| $136,400.00 |
| $140,492.00 |
| $144,706.76 |
| $149,047.96 |
| $153,519.40 |
| $724,166.12 |
| g |
| Processing Questionnaires and Reseach Accounts* |
| $372,000.00 |
| $383,160.00 |
| $394,654.80 |
| $406,494.44 |
| $418,689.28 |
| $1,974,998.52 |
| h |
| Research Leads from Treasury/Local Units |
| $35,000.00 |
| $36,050.00 |
| $37,131.50 |
| $38,245.45 |
| $39,392.81 |
| $185,819.76 |
| i |
| Contact Center (Denial Processing and Appeals)* |
| $325,000.00 |
| $334,750.00 |
| $344,792.50 |
| $355,136.28 |
| $365,790.36 |
| $1,725,469.14 |
| j |
| Return Mail Processing |
| $29,800.00 |
| $30,694.00 |
| $31,614.82 |
| $32,563.26 |
| $33,540.16 |
| $158,212.24 |
| Subtotal |
| $1,385,200.00 |
| $1,426,756.00 |
| $1,469,558.68 |
| $1,513,645.44 |
| $1,559,054.80 |
| $7,354,214.92 |
| a |
| Monthly Audit Progress Report |
| $5,000.00 |
| $5,150.00 |
| $5,304.50 |
| $5,463.64 |
| $5,627.54 |
| $26,545.68 |
| b |
| Monthly Contact Center Report |
| $5,000.00 |
| $5,150.00 |
| $5,304.50 |
| $5,463.64 |
| $5,627.54 |
| $26,545.68 |
| c |
| Annual Audit Cycle Report |
| $4,400.00 |
| $4,532.00 |
| $4,667.96 |
| $4,808.00 |
| $4,952.24 |
| $23,360.20 |
| Subtotal |
| $14,400.00 |
| $14,832.00 |
| $15,276.96 |
| $15,735.27 |
| $16,207.33 |
| $76,451.56 |
| a |
| Maintenance |
| $208,000.00 |
| $214,240.00 |
| $220,667.20 |
| $227,287.22 |
| $234,105.83 |
| $1,104,300.25 |
| b |
| Hosting |
| $60,750.00 |
| $62,572.50 |
| $64,449.68 |
| $66,383.17 |
| $68,374.66 |
| $322,530,.01 |
| Subtotal |
| $268,750.00 |
| $276,812.50 |
| $285,116.88 |
| $293,670.38 |
| $302,480.49 |
| $1,426,830.26 |
| 4 |
| Security and Security Audits |
| a |
| Systems Development and Maintenance |
| $42,900.00 |
| $44,187.00 |
| $45,512.61 |
| $46,877.99 |
| $48,284.33 |
| $227,761.93 |
| b |
| Operations Development and Maintenance |
| $93,100.00 |
| $95,893.00 |
| $98,769.79 |
| $101,732.88 |
| $104,784.87 |
| $494,280.54 |
| c |
| Colocation and Hardware |
| $0.00 |
| $0.00 |
| $0.00 |
| $0.00 |
| $0.00 |
| $0.00 |
| d |
| Facilities Upfit |
| $0.00 |
| $0.00 |
| $0.00 |
| $0.00 |
| $0.00 |
| $0.00 |
| e |
| Documentation and Process Coordination |
| $28,600.00 |
| $29,458.00 |
| $30,341.74 |
| $31,251.99 |
| $32,189.55 |
| $151,841.28 |
| f |
| SSAE SOC 2 Annual 3rd Party Audit |
| $77,600.00 |
| $79,928.00 |
| $82,325.84 |
| $84,795.62 |
| $87,339.48 |
| $411,988.94 |
| g |
| Annual Treasury Security Audit |
| $35,800.00 |
| $36,874.00 |
| $37,980.22 |
| $39,119.63 |
| $40,293.22 |
| $190,067.07 |
| Subtotal |
| $278,000.00 |
| $286,340.00 |
| $294,930.20 |
| $303,778.11 |
| $312,891.45 |
| $1,475,939.76 |
| a |
| Proserv System Enhancements |
| $300,000.00 |
| $300,000.00 |
| $300,000.00 |
| $300,000.00 |
| $300,000.00 |
| $1,500,000.00 |
| b |
| Maintenance |
| $15,000.00 |
| $30,000.00 |
| $45,000.00 |
| $45,000.00 |
| $45,000.00 |
| $180,000.00 |
| c |
| Hosting |
| $9,600.00 |
| $24,000.00 |
| $24,000.00 |
| $24,000.00 |
| $24,000.00 |
| $105,600.00 |
| Subtotal |
| $324,600.00 |
| $354,000.00 |
| $369,000.00 |
| $369,000.00 |
| $369,000.00 |
| $1,785,600.00 |
| Total without Optional Services |
| $1,946,350.00 |
| $2,004,740.50 |
| $2,064,882.72 |
| $2,126,829.20 |
| $2,190,634.07 |
| $10,333,436.48 |
| Total with Optional Services |
| $2,270,950.00 |
| $2,358,740.50 |
| $2,433,882.72 |
| $2,495,829.20 |
| $2,559,634.07 |
| $12,119,036.48 |
| Escalation Rate |
| 6.29% |
| 3.00% |
| 3.00% |
| 3.00% |
| 3.00% |
* This pricing is based on sending follow-up questionnaires.
** ProServ maintenance and hosting has been adjusted for the current application size and hosting costs.
VI. Negotiations Second round pricing resulted in 5% quick payment terms being added.
VII. 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.
Reason Consulting provided the best value to the State. Best value factors for Award Recommendation include current experience with Contractor and favorable pricing.
As part of the best value determination, overall economic impact to the State of Michigan was considered and is not a determinative factor in making this award.
Award Recommendation is made to Reason Consulting in the amount of $10,333,436.48.
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