Procurement Guidelines - New York State Office of General Services

Following completion of the initial technical proposal review, evaluation scores areadjusted and finalized, as provided for in the evaluation instrument.Regardless of the scoring methodology utilized, evaluators must document the basis forthe rating using narrative to explain the proposal’s strengths and weaknesses, thereby justifyingthe score. For example:“The offerer’s proposed Project Director was given the maximum number of pointsbecause this individual has successfully managed a project of similar complexity andhe/she will be critically important to the success of our project.”I. Conducting the Cost EvaluationMethods for calculating costs vary depending on a mix of factors concerning the natureand extent of the services, the costs associated with utilizing the services, and the impact of theservices on agency programs and operations (State Finance Law §§160(5) and (6)).The two most common methods for comparing the cost proposals are:Conversion of Price to a Weighted Point ScorePoints = (Lowest bid divided by the bid being evaluated) x cost pointsComparison of Life Cycle CostsProcurements that entail the expenditure of funds for both the fees associated with theservices to be procured (i.e., price) and costs associated with the introduction of the servicesinto the environment (i.e., indirect costs) could be evaluated by analyzing total life cycle costs,defined as the sum of the fees and indirect costs.An example of life cycle costs for a computer system conversion would be the offer priceof the new system combined with other expenses, such as, but not limited to, upgrades toexisting infrastructure and additional staff requirements if necessary.Once the total life cycle costs for competing proposals have been determined, the lifecycle costs associated with each proposal must be converted to a weighted point score usingthe formula above.NOTE: If an agency wishes to use a cost evaluation method other than those describedabove, such as “banding” or “competitive cost range,” it should contact OSC for furtherdiscussion before proceeding.34New York State Procurement Guidelines