INDIANAPOLIS (September 28, 2009) -  The Indiana Department of Administration (IDOA) announced today that businesses hoping to win state contracts had better keep a bigger eye on the bottom line. Effective Oct. 1, responses to requests for proposals (RFPs) let by state agencies will be scored against a new pricing standard that emphasizes reducing the state's current costs.

 

State agency RFP responses are scored on a 100-point scale. Points are available in five categories: business and technical proposal, cost proposal, Indiana economic impact, Buy Indiana, and minority and women's business enterprise subcontractor participation. The cost category is valued at between 20 and 35 percent of an RFP's score.

 

Previously, the respondent with the lowest cost was awarded all possible points available in the cost category, with all other cost proposals scored proportionally. Moving forward, the state will use the current cost paid by the state as the baseline for evaluating cost proposals, emphasizing the state's goal of reducing costs year-over-year.

 

"The state wants Hoosier taxpayers to benefit from the better deals being offered by suppliers in these difficult times. Measuring a proposal's costs against current expenditures makes it clear that business as usual doesn't cut it," said IDOA Commissioner Mark W. Everson. "Pure and simple, we want to drive down the cost of State contracts."

 

As of Oct. 1, in order to earn the maximum number of points in the cost category, RFP responses will need to show at least a 10 percent cost reduction to the state. Responses that maintain current (baseline) pricing levels will receive no points in the cost category. Responses that propose increased costs to the state will have points deducted from their score, making it more difficult for the priciest vendors to earn a contract award.

 

"This change seems minor, but it will have a direct impact on contract awards-especially in those cases where the differences between vendor pricing is pronounced," said IDOA Deputy Commissioner Rob Wynkoop.

 

About IDOA

The Indiana Department of Administration (IDOA) provides support services to state agencies. IDOA centrally manages activities related to state purchasing, the vehicle and aviation fleet, state travel, real estate leases, and property dispositions, among others. Through its operations, IDOA helps to ensure the smooth function of state government, finding efficient, effective solutions to government-wide needs.

 

 

-30-

« Back to News Release List

Link to this event: