BestValue Procurement EVIT Williams Field Design Selection

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Best-Value Procurement EVIT Williams Field
Design Selection
Performance Based Studies Research
Group www.pbsrg.com
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THIS PRESENTATION IS FOR EDUCATIONAL PURPOSES
ONLY.PLEASE REVIEW THE SOLICITATION / RFP / RFQ
FOR ACCURATE INSTRUCTIONS.
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Agenda

• Review PIPS Selection Process
• Review RFQ
• QA

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EVIT Best-Value Procurement

• EVITs objectives are
• Outsource Design services to an expert
• Allow the expert to do their job
• Allow the expert to maximize their efficiency
• Obtain high performance results (quality, on
  time, no cost increases)
• Win-Win relationship
• EVIT has partnered with ASU/PBSRG to assist them
  in implementing the PIPS Best-Value Program.

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Best Value Procurement

• EVIT has partnered with PBSRG to assist in
  implementing design, beginning with a
  Qualifications Based System/Best-Value selection
  process called the Performance Information
  Procurement System (PIPS) for design
  professionals.
• PIPS has been tested over 600 times, over 2B
  with public and private users with documented
  success
• 98 projects completed on time
• 98 projects completed within budget
• 98 customer satisfaction
• Up to 90 increase in client management
  capabilities
• Tested on construction services, A/E services,
  and non-construction related services.

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What makes this approach unusual..

• Simplistic
• Uses logic
• Efficiency less decision making, less
  management, and better results (best value and
  high profits)
• It is more important for the A/E Firm who does
  the work to know what to do than it is for
  clients representative to know what the A/E Firm
  should do
• Measured

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PIPS Best Value Overview
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PIPS Objectives

• Outsource to experts (not just transfer
  risk...but minimize risk)
• Minimize risk of non-performance
• Complete tasks on time
• Complete with no cost change orders
• Customer satisfaction / No complaints
• No Finger pointing
• Minimize client management and decision making.
• In return, the designers can maximize profit by
  being more efficient

WIN WIN
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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Selection Criteria

• 40 - Interview
• 35 - Project Assessment Plan
• 15 - Past Performance Information
• 10 - Project Duration

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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Past Performance Information

• PPI will be collected on all designers and their
  critical team components.
• Once the PPI is collected, it is stored in a
  database.
• The data collection is a one-time process (the
  vendor can reuse the PPI on future projects).
• Note Designers that have current PPI, do not
  have to re-submit

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Past Performance Information

• Past Performance Information will be collected on
  all critical team components, which include
• Design Firm (Firm)
• Project Manager (Individual)
• Lead Architect (Individual)
• Civil Engineer (Individual)

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Reference List
Prepare Reference List
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The Reference List

• Only submit best past projects
• Projects do not have to be similar to the current
  project
• Maximum number of surveys that you will receive
  credit for is 25

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References

• The reference list must contain different
  projects (you cannot have multiple people
  evaluating the same job).
• You may submit multiple jobs for the same past
  client (must be different projects).

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PPI / Data Collection Process

• Each team component is responsible for sending
  out a survey questionnaire to each reference.
• The designer should contact each reference to
  make sure that they complete the survey and
  return the form by the due date.

Setup and Fax Survey Forms
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Survey Form
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Survey Must Match Reference List
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Survey Questionnaire

• If a reference will be evaluating several
  members, please list all of the members on the
  survey form to get credit for all the areas.
• The codes must match the reference list file.

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Surveys Returned to Designer
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Calculating the Overall Score
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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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PA Plan Objectives

• The PA Plan allows the client to see the
  designers current level of expertise.
• The PA Plan provides an opportunity for the
  designer to differentiate themselves from their
  competitors

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Work Plan Overview

• The Work Plan must show the designers impression
  of the project in terms of scope alignment
  specific to the client budget and schedule
  requirements
• Must identify risks in the project as related to
  the alignment of scope to budget, time, and
  client expectations so that the risks can be
  addressed as part of the Risk Assessment Section
• The designer should also indicate how they know
  that the budget and schedule are achievable or
  not.
• Work Plan should convey how the design
  requirements will be fulfilled in terms of major
  tasks, steps, or work packages.

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Risk Assessment Value Added (RAVA) Sections

• Risk Assessment
• Identify major risks
• Explain why the risk is a risk
• Address how the risk impacts time, money or
  satisfaction
• Should be a unique risk to the current project
• Identify solution to avoid / minimize the risk
• Non-technical explanation
• Must explain how risk is avoided
• Value Added
• Propose any options that could increase the value
  (expectation or quality) of their work.

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PA Plan Format

• The PA Plan must NOT have ANY NAMES!
• No firm names (contractor/designer/manufacturer)
• No personnel names
• No project names
• No product names
• No company letterhead
• The PA Plans MUST be blind in order to minimize
  any bias.
• The PA Plan should not be technical or contain
  marketing information
• The PA Plan MUST not exceed 3 pages! (1 Page Work
  Plan and 2 Page RAVA)

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EXAMPLES
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Example of Solutions Risk Concrete Escalation

• RA Plan 1
• The owner can be assured all risks associated
  with material escalations will be eliminated
  because we offer the benefit of an experienced
  project team that includes the most detailed,
  prequalified and extensive list of subcontractors
  and suppliers, from around the world.
• RA Plan 2
• The cost of concrete has been rising drastically.
  Since this project requires a substantial amount
  of concrete, cost is a risk. To minimize this
  risk, we have secured and signed a contract with
  a local concrete manufacturer to prevent any
  increase in cost during the duration of this
  project.

MARKETING INFORMATION
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Example of Solutions Risk Project Drainage

• RA Plan 1
• We will develop various alternative design
  solutions for different storm events. We will
  then evaluate the effect of potential solutions,
  and then decide which one is the best.
• RA Plan 2
• Implementation of a 50-year drainage system
  instead of a 100-year system could save 1
  million in project costs and reduce the
  conveyance capacity requirement by approximately
  30, which will reduce maintenance costs and
  right-of-way requirements.

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Example of SolutionsRisk Noise from Demolition

• RAVA Plan 1
• We will work with the user to minimize the impact
  of noise from demolition.
• RAVA Plan 2
• We have planned to demolition during off hours
  and weekends. This will have a slight impact on
  our cost (less than 1), but the impact to
  customer satisfaction justifies this. We will
  also install rubber sheets on the floors to
  diminish noise and vibrations. Both solutions can
  be performed within your budget.

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Example of SolutionsRisk Design Estimate
Deviation from Actual Cost

• RA Plan 1
• Design estimates often greatly differ from the
  actual construction costs. We have the best
  designers and will seek to minimize this risk
  with our expertise.
• RA Plan 2
• Since design estimates are usually off from the
  actual construction costs (especially in todays
  market) we will contract an estimating consultant
  or a construction contractor to prepare a the
  cost estimate.

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Example of Solutions Risk Getting water to the
site

• RAVA Plan 1
• Coordination with water company is critical.
  We will coordinate and plan with water company
  as soon as the award is made to make sure that we
  get water to the site to irrigate the fields.
• RAVA Plan 2
• We will coordinate and schedule the water with
  water company. However, based on past
  experience there is a high risk they will not
  meet the schedule. We will have temporary
  waterlines setup and ready to connect to the
  nearby fire hydrant to irrigate until water
  company is ready. We will also have water
  trucks on-site if there is problems with
  connecting the lines.

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PA Plan Template Must Be Used
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Things to Avoid

• Marketing data
• Our company is known worldwide as a leader in
  quality design.
• We will use our long history to make sure the
  project is a success.
• We have the best designers in the business.
• Technical data
• The system we propose has 200 elongation and
  600psi tensile strength
• The product will pass the ASTM-568a test.
• Transferring risk back to client
• We will work with the owner to resolve issues
• We will have team meetings / partnering meeting
  with the owner
• General risks and/or general solutions
• We will plan ahead to coordinate activities
• We will plan ahead to get permits

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Example Value Added Items

• Reroofing this building will not stop all water
  leaks. The majority of the leaks are caused by
  cracks in the parapet walls, broken/missing
  glass, and poor caulking. For an additional 20K
  and 3 weeks in schedule we can replace and repair
  all of these items.

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PA Plan Summary

• The PA Plan is 3 pages maximum
• The PA Plan must NOT contain any names.
• No marketing
• No technical information
• Identify why risk is a risk why solutions is a
  good solution
• Identify major risks (dont list pennys) - 1
  Risk on your plan should be the biggest issue you
  see
• Avoid general risks / solutions
• Identify value added options (and explain why)
• The PA Plan becomes part of the final contract.
• The PA Plan provides a high performing designer
  an opportunity to prove their expertise prove
  they are not a commodity.

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We are Looking for Designers Who Can Think Ahead
And Act In Our Best Interest
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Project Schedule (10)
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How The Submittal Process Works
Average Score
Evaluation Members
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Rating Process

• Evaluation Committee shall only receive PA Plans
• Evaluation Committee will rate the PA Plans
  individually (not as a group rating)

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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Interview Format

• The client will actually interview each
  individual.
• All designer individuals must be interviewed
  separately.
• Generally, interview times should last 15 minutes
  per individual
• A standard set of questions is generated and
  asked to each individual.
• The client has the option to clarify any answers
  (or ask additional questions to clarify an
  answer).
• QA should be non-technical

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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Must Submit All Requirements(Pass or Fail)
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Criteria Weights

• Pass/Fail All requirements in proper format
• 40 Interview
• 35 Project Assessment Plan
• 15 PPI
• 10 Schedule

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Identifying Potential Best Value
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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Who/What is Your Greatest Risk?
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Objective of the Pre Award Phase

• Performed by only 1 designer (the potential
  best-value)
• The objective is for the designer to
• Preplan the design
• Minimize risk before the design project begins
• List of all risks that the designer does not
  control, along with a plan to minimize the risk
• List of all client actions / tasks that the
  designer requires from the client (name, due
  date)
• Coordinate / preplan the project before the
  project begins

• The Client does not want to be surprised after
  award is made. If the Client is surprised, this
  will impact designers final rating.

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Pre Award Phase Components
PA Kickoff Meeting
PA Period
PA Meeting
QC Plan
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Quality Control Plan

• The QC Plan should contain the following
• List of all risks that the designer does not
  control, along with a plan to minimize the risk
• Detailed project schedule identifying critical
  milestones
• List of all risks and plan to minimize
• List of all client actions/tasks (name, due date)
  

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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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PIPS Process
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Weekly Reporting System

• Excel Spreadsheet that tracks only unforeseen
  risks on a project
• Client will setup and send to designer once
  Award/NTP issued
• Design firm must submit the report every week
  (Friday).
• The final project rating will be impacted by the
  accuracy and timely submittal of the WRS

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Best Value PIPS CMAR Process
Designer Weekly
Adjust Scope To Fit GMP
Finalize Design
Design Intent
Designer Selection
5
9
10
1
6
2
Selection -PPI -Firm -Project,
Managing Arch -Design Arch
-Structural Eng -Landscape
Arch -RAVA -Schedule -Photographic Evidence of
Design
Shortlist -Interview
Pre Award -Final Scope -Fee -Risks -CAIL -Schedule
w/ CAIL
A W A R D
Begin Construction
CM Selection
4
7
8
3
Selection -PPI -Firm -PM -Site
Super. -RAVA -Subcontractor Selection
Plan -Schedule
Shortlist -Interview
Pre Award -Cost -Risks -CAIL -Schedule w/ CAIL
Scope w/ Cost
Verify/Modify
A W A R D
Contractor Weekly
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Summary
Filter 6 Weekly Report Post-Rating
Filter 1 Past Performance Information
Filter 2 Proposal PA Plan
Filter 4 Prioritize (Identify Best Value)
Filter 5 Pre-Award Phase (Pre-Plan)
Filter 3 Interview
High
Quality of Vendors
Award
Low
Time
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Final Rating

• After the project is complete, the client will
  evaluate the project.
• The Final Rating will be heavily impacted by
• Cost increases due to design
• Project delays due to design
• Owner surprises due to design
• Complaints due to design
• In Best-Value Procurement, the designers goal is
  to get a high rating in order to stay
  competitive.

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50 Modification
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Schedule

• 5/20/09 - Project Announcement
• 5/28/09 - Pre Submittal Conference
• 6/9/09 - Qualifications Due 1000 AM
• 6/12/09 - Notification of Shortlisted Finalist
  (If Applicable)
• 6/15/09 - Interview of Shortlisted Finalist (If
  Applicable)
• 6/16/09 - Identification of Potential Best Value
• 6/17/09 - Kick Off Meeting
• 6/24/09 - Pre Award Meeting
• 6/29/09 - Project Award (Design Services)

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Comments / Questions
W W W . P B S R G . C O M Brad.Carey_at_asu.edu