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Dealer Pre-Qualification
Information Session
STATE OF MICHIGAN
Department of Technology,Management and Budget
Purchasing Operations
Wednesday, May 5, 2010
1:30 p.m.
State of Michigan • Department of Technology, Management & Budget
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WELCOME!
Dealer Pre-QualificationInformation Session
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Vehicle Purchasing Process
Who purchases vehicles from these contracts?
Michigan Department of Transportation (MDOT)
Fleet Administration and Operations Division
MDOT Authorized Transit Authorities
Bureau of Passenger Transportation Division
Local Units of Government (MiDEAL)
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MiDEAL Program www.michigan.gov/mideal
MiDEAL = Michigan Delivering ExtendedAgreements Locally
Voluntary program that allows local units of governmentto buy off of State contracts
Typical contract = 1 vendor + 1 customer
MiDEAL contract = 1 vendor + 800 customers
Townships
Cities & Villages
Counties
Road Commissions
Non-profit Hospitals
Colleges
Universities
School Districts
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Background - State Vehicle Contracts
How are these customers different?
Customer
Specified
Delivery Terms
MDOT
F.O.B. Destination
(Include Delivery charges in bid price)
MiDEAL
(Includes Transit Agencies)
F.O.B. Dealership
(Delivery charges – maximum of $2per mile)
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Vehicle Purchasing Process
What is the sales potential for YOU?
(March 2008 – December 2009)
*Does not include Cab and Chassis purchases (46 units for $4,200,000.)
Customer
UnitsPurchased
DollarsPurchased
MDOT
209
$4,100,000*
MiDEAL
(includes Transit)
314
$8,100,000
TOTAL
523
$12,200,000
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Previous –
3 year contracts
A lot of paperwork
Not flexible
New –
Pre-qualify dealers
Quarterly bidding
Pricing for 1 model year (with option to “roll-over”)
Flexible to add new models
Delivery fee of $2.00 per mile (No free delivery)
Vehicle Purchasing Process
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Dealer Pre-Qualification Process
Timeline
May 14th:
Pre-Qualification RFP released on Bid4Michigan.com
Interested dealers must read the documentthoroughly
May 14 - 24th: Question and Answer Period
Submit questions via e-mail ONLY to LauraGyorkos at gyorkosL@michigan.gov
Phone calls not accepted
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Dealer Pre-Qualification Process
Timeline
On or before June 1st
The State will post Questions and Answers onBid4Michigan.com
June 1st– 7th
Check Bid4Michigan.com for answers toquestions received during Q & A period
Dealers to complete RFP response
Allow days for mail/courier response (Due onJune 10th)
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Dealer Pre-Qualification Process
Timeline
On or before JUNE 10th at 3:00 p.m.
SUBMIT HARDCOPY RESPONSE ON TIME!
(To the appropriate address)
$1,000 cashier’s check is required
Use checklist
Follow Instructions on Bid4Michigan.comfor registration
Allow ample time for mail and/or courier
LATE RESPONSES ARE NOT ACCEPTED!!
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Dealer Pre-Qualification Process
Timeline
June 10th – July 12th State Evaluation Process:
Dealers evaluated on a Pass/Fail basis
Maximum of 10 dealers per manufacturer
Dealers agree to the terms and conditions
July 12th - 23rd
Notice to dealers of pre-qualification status
Pre-Qualified dealers receive contract for signature
August 4th:
Contracts are executed with Pre-Qualified dealers
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Technology Requirements
Prior to Sept 1st:
Microsoft Office Suite for Excel
Access to scanner
Ability to Scan and save documents
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Quarter
Request toManufacturer
Bid Release
1st Qtr:
10/1/10 – 12/31/10
August 2, 2010
Sept 1, 2010
2nd Qtr:
1/1/11 – 3/31/11
November 1, 2010
December 1, 2010
3rd Qtr:
4/1/11 – 6/30/11
February 1, 2011
March 1, 2011
4th Qtr:
7/1/11 – 9/30/11
May 3, 2011
June 1, 2011
Quarterly Bid Schedule (Price only)
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Quarterly Bids
Timeline
Sept 1st:
Pricing bid released on Bid4Michigan.com
Download and save blank pricing spreadsheet
Sept 1st – 22nd:
Review Specification Book for options
Enter in pricing in electronic format (using Excel)
Enter in discount for options on spreadsheet
Complete and scan truck questionnaire forms
Scan vehicle order confirmation sheets
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Quarterly Bids
Timeline
On or before Sept 22nd at 3:00 p.m.
SUBMIT YOUR PRICING BIDS!
Refer to electronic submittal instructions on Bid4Michigan
Allow time to navigate on Bid4Michigan.com!
Bid4Michigan.com will not accept late bids!
Submit completed pricing Excel spreadsheet
Submit scanned truck questionnaire forms
Submit scanned vehicle order confirmation sheets
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Quarterly Bids
Timeline
Sept 22nd – 30th State Evaluation Process:
Combination of meeting specifications and lowest price ofthe vehicle
Options will be based on dealer invoice from Kelley BlueBook (Consistent with current contracts)
Delivery fee will not be evaluated – maximum of $2.00per mile for Mideal members
The State reserves the right to award by region if deemedin the best interest of the State
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Quarterly Bids
Timeline
Oct 1st:
Publish pricing schedule (excel spreadsheet) with awarded dealers.
Quarterly pricing is a change notice to dealer’s contract.
Pricing is valid for one model year with option to “roll-over” foradditional model years.
Model year is defined as the current model year at the time of the bidrelease.
Dealers are obligated to provide the vehicle at the bid price as longas that model year is produced.
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Questions
The question and answer period is from:
May 14 -24, 2010.
You can submit your questions in writing to:
Laura Gyorkos: gyorkosL@michigan.gov
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Preparation Steps
Register Online: (This is new for everyone – even dealers with current contracts)
By May 14th
www.Bid4Michigan.com
Optional fee for e-mail notifications or check website yourself for free
THIS IS WHERE ALL BID INFORMATION WILL BE POSTED!!
No longer using any other website to post bid solicitations
Posting of Request for Proposal (RFP) for Pre-qualification
--Questionnaire for Dealers
Posting of Request for Quote (RFQ) for quarterly vehicle pricing bids
Use instructional hand-out for reference after today’s session
Keep records of passwords for future access
Helpdesk available (800) 677-1997
The Request for Proposal (RFP) for Pre-Qualification will be released onBid4Michigan.com on Friday, May 14th
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Preparation Steps
By July 1st:
Register as a vendor with the State of MI
(Dealers with current contracts don’t need to worry about this step)
-Click on “Vendor Information” on left side of screen
-Registration required in order to receive payment
-All dealers must be EFT compliant
-2 Week process
-Keep records of passwords for future access
-Help Desk Available (888) 734-9749
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Register as a Vendor
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Vehicle Program Summary
Dealer Pre-Qualification Process
Current contracts expiring 9/30/10
Pre-qualification cycle only every 5-7 years
Pre-qualification responses will be submitted hardcopy
Quarterly Pricing Bids
Available only for Pre-qualified dealers
Electronic response (Excel) submitted via Bid4Michigan.com
Pricing good for one model year with option to “roll-over”
Delivery fee is capped at $2.00 per mile
Register On-line
www.Bid4Michigan.com
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Dealer Checklist
Dealer Participation
Checklist
Pre-Qualification Process
Prior to
May 14
Register on-line at Bid4Michigan.com
May 14
Pre-Qualification RFP released onBid4Michigan.com
May 14-24
Questions and Answer Period
June 10
Dealer Responses to RFP
-Pre-Qualification Questionnaire Due
July 1
Register as a vendor onwww.michigan.gov/buymichiganfirst
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Dealer Checklist
Dealer Participation
Checklist
Quarterly Bids
August 4
Contracts w/ Pre-Qualified Dealers Begin
Sept 1
First Quarterly Bid released onBid4Michigan.com
Sept 22
Dealers Submit Pricing Bids Electronicallyvia Bid4Michigan.com
October 1
Effective date of new pricing
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THANK YOU!