Adm 10.01Adm 10.01 Authority. Section 16.705, Stats., requires the department to adopt rules for the procurement of contractual services. Adm 10.01 HistoryHistory: Cr. Register, January, 1983, No. 325, eff. 2-1-83. Adm 10.02Adm 10.02 Purpose. The purposes of this chapter are as follows: Adm 10.02(1)(1) To ensure that contracts for contractual services are entered into only in the best interests of the state. Adm 10.02(2)(2) To ensure that the state will procure at the lowest possible price, without sacrifice in quality, the contractual services required for the optimum performance of state government functions. Adm 10.02(3)(3) To establish policies and procedures for the procurement of contractual services. Adm 10.02(4)(4) To create standards and procedures for conducting a cost-benefit analysis before contracting out for any service procurement involving an estimated expenditure of more than $25,000. Adm 10.03(1)(1) “Bidder” means a person or firm who submits a competitive bid in response to an invitation for bids and a set of specifications. Adm 10.03(2)(2) “Contracting agency” means the state agency that executes a purchase order for contractual services. Adm 10.03(4)(4) “Department” means the department of administration. Adm 10.03(5)(5) “Materials” as used in the definition of “contractual services” in s. 16.70 (3), Stats., and sub. (3) means reports which are incidental to the required performance under the contract but are not a specific end product. Adm 10.03(6)(6) “Procurement commodity bulletin” means the document issued by the department in response to a request for purchasing authority that establishes the procedures to be used in making the procurement. Adm 10.03 NoteNote: A procurement commodity bulletin form AD-P-105 may be obtained from the Department of Administration, Bureau of Procurement, P.O. Box 7867, Madison, Wisconsin 53707.
Adm 10.03(7)(7) “Procuring agency” means the state agency which conducts the purchasing transaction. Adm 10.03(8)(8) “Proposer” means a person or firm who submits a competitive proposal in response to a request for proposals (RFP). Adm 10.03(9)(9) “Purchase order” means a state purchase order form used to offer to contract with a vendor. Adm 10.03 NoteNote: A purchase order form AD-P-10 may be obtained from the Department of Administration, Bureau of Procurement, P.O. Box 7867, Madison, Wisconsin 53707.
Adm 10.03(10)(10) “Request for proposals” or “RFP” means all documents, whether attached or incorporated by reference, utilized for soliciting proposals. Adm 10.03(11)(11) “Request for purchasing authority” or “RPA” means the form and all attached materials that are submitted by a state agency to the department to initiate any procurement of contractual services. Adm 10.03 NoteNote: A request for purchasing authority (RPA) Form AD-P-112 may be obtained from the Department of Administration, Bureau of Procurement, P.O. Box 7867, Madison, Wisconsin 53707.
Adm 10.03(12)(12) “Secretary” means the secretary of the department. Adm 10.03(13)(13) “State agency” or “agency” means any department, board, commission, independent agency, or any other separate entity established by statute or by constitution in the state government, including the legislature. Adm 10.03 HistoryHistory: Cr. Register, January, 1983, No. 325, eff. 2-1-83; corrections in (3) and (5) made under s. 13.93 (2m) (b) 7., Stats., Register January 2004 No. 577. Adm 10.035(1)(1) Analysis. A uniform cost-benefit analysis shall be completed by a contracting agency or its designated agents of each proposed contractual service procurement involving an estimated expenditure of more than $25,000 annually. Each cost-benefit analysis shall include the information set forth in subs. (2) to (6); Adm 10.035(2)(2) Service overview. A cost-benefit analysis shall provide the following: Adm 10.035(2)(a)(a) A justification for the request written in clear, non-technical language that can be understood by persons who may not be directly involved in or familiar with the proposed service, with all acronyms fully defined. Adm 10.035(2)(b)(b) A list and description of any federal mandates, state statutes or administrative rules that dictate how the proposed service must be performed. Adm 10.035(3)(3) Total cost. Each proposed contractual service procurement shall include a total cost component. For each proposed contractual service procurement involving an estimated expenditure of more than $25,000 annually, an agency shall provide a detailed cost-benefit analysis showing that the proposed service can be performed more economically or efficiently by contract rather than by current state employees or by hiring permanent, project or limited term employees. The consideration of relevant costs shall include, but not be limited to, wage and salary costs, fringe benefits costs, administrative overhead costs, other operating costs, material costs, insurance costs, facility costs, contract price, contract monitoring, and one-time conversion costs. The agency shall use and submit the State of Wisconsin Cost Analysis Methodology as set forth in the State Procurement Manual. Adm 10.035 NoteNote: To request the State of Wisconsin Cost Analysis Methodology set forth in the State Procurement Manual, please contact the State Bureau of Procurement, P.O. Box 7867, Madison, Wisconsin 53707-7867 or (608) 266-2605.
Adm 10.035(4)(4) Quality. A description of the proposed service to be performed, a list of items to be delivered, any specific conditions to be required of the contractor, and how the agency will ensure that the contractor will provide services and quality as promised without financial losses to the State. Adm 10.035(5)(a)(a) Capacity. A description whether agency employees have the capacity to perform the proposed service. Adm 10.035(5)(b)(b) Expertise. A description whether the agency employees have the expertise to perform the proposed service. Adm 10.035(6)(a)(a) Timeliness. A complete schedule and timetable for the proposed service. Adm 10.035(6)(b)(b) Project term. A statement indicating whether the proposed service is a short-term project or is a long-term need for the agency. Adm 10.035 HistoryHistory: Emerg. cr. eff. 7-1-06; CR 06-090: cr. Register December 2006 No. 612, eff. 1-1-07. Adm 10.037Adm 10.037 Continued appropriateness of contracting. The department or its designated agents shall review periodically, and before any renewal, the continued appropriateness of contracting under each contractual service agreement involving an estimated annual expenditure of more than $25,000. Adm 10.037 HistoryHistory: Emerg. cr. eff. 7-1-06; CR 06-090: cr. Register December 2006 No. 612, eff. 1-1-07. Adm 10.038Adm 10.038 Submittal of cost-benefit analysis. The department or its designated agents shall submit the original cost-benefit analysis in s. Adm 10.035 and continued appropriateness of contracting periodic reviews in s. Adm 10.037 to the department of administration, bureau of procurement. Adm 10.038 HistoryHistory: Emerg. cr. eff. 7-1-06; CR 06-090: cr. Register December 2006 No. 612, eff. 1-1-07. Adm 10.039Adm 10.039 Effective date. The requirements of this rule apply to all contracts for which solicitation of interest date is after June 30, 2006. Adm 10.039 HistoryHistory: CR 06-090: cr. Register December 2006 No. 612, eff. 1-1-07. Adm 10.04(1)(1) Application. Prior to taking any contractual services procurement action, an agency shall file an RPA with the department, that includes the information specified in s. Adm 10.05 (1), the proposed method of procurement, the proposed evaluation procedure and the method of selecting the membership of any evaluation committee. Adm 10.04(2)(2) Consolidation of transactions. An agency may consolidate repetitive and similar transactions into a general request for prior approval. Such general prior approval may be issued by the department for a specific period of time, not to exceed one calendar year. Adm 10.04(3)(3) Procurement commodity bulletin. The department shall issue a procurement commodity bulletin if it approves the RPA. Adm 10.04(4)(4) Prohibition. No contract for contractual services shall be entered into and no payment to any contractor shall be made unless the department has issued a procurement commodity bulletin for that contract. Adm 10.04 HistoryHistory: Cr. Register, January, 1983, No. 325, eff. 2-1-83. Adm 10.05(1)(1) Contents of justification. Each RPA shall include the following: Adm 10.05(1)(a)(a) A reference to the federal law or regulation or state law which requires or authorizes the procurement of the contractual services; Adm 10.05(1)(b)(b) A description of the services to be performed, a list of any items to be delivered, complete schedules and timetables, and any other specific conditions to be required of the contractor; Adm 10.05(1)(c)(c) A statement showing why the services can be performed more economically or efficiently by contract rather than by current state employees or by hiring permanent, project, or limited term employees. The consideration of costs shall include, but not be limited to, the costs of salaries, fringe benefits, training and unemployment compensation payments; Adm 10.05(1)(d)(d) A statement showing why the proposed procurement is in compliance with the applicable state collective bargaining agreements and that the labor organization or organizations representing the appropriate certified collective bargaining unit or units have been notified of the proposed procurement; Adm 10.05(1)(e)(e) A statement showing why it is not possible to have the services performed by another state agency; and Adm 10.05(1)(f)(f) A statement indicating that competitive bidding will be used or why competitive bidding cannot be used and the justification for using the proposed alternative. Adm 10.05(2)(2) Office of state employment relations. If the department is not satisfied with the justification required by sub. (1) (c), (d) and (e), the department shall submit the RPA to the director of the office of state employment relations for review and shall notify the labor organization or organizations representing the appropriate certified collective bargaining unit or units. The RPA may not be approved unless the director of the office of state employment relations or his or her designee determines that the RPA complies with the provisions of s. 16.705 (3), Stats. Adm 10.05 HistoryHistory: Cr. Register, January, 1983, No. 325, eff. 2-1-83; corrections made under s. 13.93 (2m) (b) 6., Stats., Register January 2004 No. 577. Adm 10.06Adm 10.06 Competitive bidding. Competitive bidding is the preferred method for procuring contractual services, and shall be used in every case that permits the preparation of specifications or standards, or both, that can be used as the basis for award. Adm 10.06 NoteNote: For information on competitive bidding, see State Procurement Manual, section PRO-C, “The Bidding Process”.
Adm 10.06 HistoryHistory: Cr. Register, January, 1983, No. 325, eff. 2-1-83. Adm 10.07(1)(1) Waiver requirement. Any procurement of contractual services that is not made by competitive bidding requires a waiver of bidding. The request for a waiver shall contain a complete explanation of why competitive bidding cannot be used and the proposed alternative procedure. Procurements estimated to exceed $10,000 require waivers by the governor. Procurements estimated to total $10,000 or less may be waived by the secretary or his or her designee. Adm 10.07(2)(2) General waiver. Agencies may consolidate repetitive and similar transactions into a general waiver request. General waivers are issued for a specific period of time not to exceed one calendar year. Adm 10.07 NoteNote: For information on waivers, see State Procurement Manual, sections PRO-C-9, “Waiver of Bidding Process”, PRO-C-10, “Bid Waiver Transmittal Letter”, and PRO-C-11, “General Waiver”.
Adm 10.07 HistoryHistory: Cr. Register, January, 1983, No. 325, eff. 2-1-83. Adm 10.08(1)(1) Request for proposals (RFP). The preparation of an RFP is mandatory. The RFP shall be written in clear, concise and measurable terms. The RFP shall: Adm 10.08(1)(a)(a) State the name and address of the contracting agency or the procuring agency, or both, and the names, addresses, titles and telephone numbers of persons to whom questions concerning the proposals should be directed; Adm 10.08(1)(b)(b) State how sealed proposals are to be delivered, the date and time by which they must be received and the name and address of the person who is to receive them; Adm 10.08(1)(c)(c) Contain the date and time of the pre-proposal conference, if any, and the period of the contract or contracts; Adm 10.08(1)(d)(d) Clearly describe the scope of the services requested and shall provide prospective contractors with performance criteria, including quantity of each service required and delivery schedules for those services; Adm 10.08(1)(e)(e) State the factors to be considered in evaluating proposals and the relative importance of each factor. Factors that may be considered when evaluating proposals include; Adm 10.08(1)(e)1.1. Responsiveness of the proposals. The proposal should clearly state the proposer’s understanding of the work to be performed. Adm 10.08(1)(e)2.2. Technical experience and resources of the firm or individual submitting the proposal. Adm 10.08(1)(e)3.3. Experience and professional activities of the firm or individual submitting the proposal. Adm 10.08(1)(e)4.4. Size and structure of the firm or individual practice of the proposer. Adm 10.08(1)(f)(f) State that the procuring agency reserves the right to reject for cause any and all proposals submitted and to request additional information for purposes of clarification only from proposers; and Adm 10.08(1)(g)(g) State that any award made shall be made to the firm which, based on the evaluation by the procuring agency, is best qualified. Adm 10.08(2)(2) Legal notice. When the estimated cost exceeds $10,000, a Class 2 notice under ch. 985, Stats., inviting competitive sealed proposals shall be published. The advertisement shall describe the services to be purchased, the intent to solicit proposals rather than bids, any requirement for surety and date the proposals will be opened. Adm 10.08(3)(3) Proposal evaluation. Proposals shall be evaluated using a predetermined method to determine which proposer best meets the needs of the procuring agency. A description of the process of evaluation should be included with the RFP. The RFP should state, whenever possible, whether oral presentations by proposers will be part of the evaluation process. Adm 10.08(4)(4) Evaluation committee. Before an RFP is distributed to prospective contractors, the procuring agency shall establish an evaluation committee. Each committee shall consist of 3 or a larger number of members, depending on the complexity and scope of services being procured. At least one member or a person advising the committee, shall be trained in procuring contractual services. An evaluation committee shall:
