Pre-Proposal Meeting Best Value Model Travel Management Services

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Pre-Proposal MeetingBest Value ModelTravel
Management Services
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This presentation is being provided for
educational purposes onlyPlease refer to the
RFP for specific instructionsIf there are any
inconsistencies, the RFP and Amendments shall
take precedence over this presentation
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Best Value Model
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Best Value Model
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PBSRG Research Results

• Worldwide as a leader in Best-Value Systems
• 18 Years
• 1,600 Projects
• 4.6 Billion Services Construction
• 1.8 Billion Netherlands infrastructure
  construction test
• 5 Increase in Vendor profit
• 98 On-time, On-Budget, Customer Satisfaction
• ASU investments of over 100M due to Best Value
• GSA (largest organization in U.S. delivering
  services) implementation in 2009
• Tests also in Africa, Southeast Asia, Canada,
  Australia

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Best Value Objectives

• Client outsourcing to experts based on value and
  performance
• Minimize risk of non-performance
• Vendors optimize project delivery
• Complete to the expectations
• Customer satisfaction / No complaints
• Minimize the need for client management,
  direction, and decision making.
• In return, the vendors can maximize profit by
  being more efficient

WIN WIN
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Best Value Model
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What are we trying to accomplish?

• Selection Based upon Proponent Expertise
• Ability to understand and plan the service
  delivery
• Identify risks to the service
• Mitigate risks to the services
• Add value to optimize service delivery
• Cost Competitive

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Selection Steps
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Evaluation Weights
100 Points CRITERIA
20 Points Price Fees
30 Points Project Capability Technical Capability Risk Assessment Value Added
45 Points Interview District / Area Manager Account Representative Technical Lead On Line Tool Demonstration
5 Points Past Performance Information Travel Management Firm District / Area Manager Account Representative Technical Lead
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Blind Submittals Project Capability
Allows Vendors to differentiate themselves based
upon their ability to identify and minimize risks
to the project.
Technical Capability
capability to meet requirements
Risk Plan
Simple, concise, actionable plans
risks you dont control
Value Added
added scope
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Part 1 Technical Capability

• Differentiate capability to meet the requirements
  of this project
• Risks that have been minimized before the project
  begins due to the Vendors expertise.
• Explain why the risk is a risk
• How it is minimized with the Vendors expertise
• Should be a risk that is specific to the current
  project
• For high score solution should contain
  performance information best value practices
• No names, two pages, no marketing, part of final
  contract

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Part 1 Technical Capability

• Template

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Part 2 Risk Assessment

• Identify major project risks
• Risks that have not yet been minimized before the
  start of the project (risks that the Vendor DOES
  NOT control)
• Explain why the risk is a risk
• May cause cost increases, transition delays,
  change orders, or cause dissatisfaction to the
  client
• Should be non-technical
• Should be a risk specific to the current project
• Identify solution to avoid / minimize the risk
• Non-technical explanation
• Must explain how risk is avoided or minimized
  from occurring
• For high score solution should contain
  performance information best value practices

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Part 2 Risk Assessment
Template
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Part 3 Value Added

• Value Added
• Propose any options that could increase the value
  (expectation, cost, schedule, delivery,
  satisfaction) of the project.
• Outside the specific requirements and/or base
  proposal cost.

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Part 3 Value Added
Template
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Examples
Part 1 Project Capability
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Example of SolutionsRisk Decline in Customer
Service Standards Type Project Capability

• Plan 1
• We will use our 20 years of experience in
  bookstore services to minimize the risk of
  declining customer service standards.
• Plan 2
• Sales associate training is key. We have a formal
  training program for new employees (and an annual
  refresher training for current employees) that
  has been successful at 5 previous service sites
  of similar size and scope.
• We will implement a secret shopper program to
  ensure we maintain our company-wide 88 positive
  rate and our 93 positive local rate.
• We will also conduct annual customer service
  satisfaction surveys with direct end-users.
  Suggestions and complaints will be incorporated
  in a proposed annual performance review meeting
  with the Owner group to reassess opportunities to
  add value after each year during the contract.

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Example of SolutionsRisk Availability of Online
Self-Service Portal for Online Housing
Applications Type Project Capability

• Plan 1
• Vendor will evaluate existing Owner software
  platforms to ensure integration and availability
  of the Online Self-Service Solution
• Plan 2
• Vendor will provide a Portal Framework for all
  online self-service solutions. This Portal does
  not require any 3rd party web development
  software or web development expertise by the
  Owner.
• This approach minimizes risk of error and
  downtime that would normally occur if the Owner
  was required to use html templates, dedicate a
  web developer, or have to modify html code
  directly.
• The Portal Framework has been used on three
  previous projects with zero downtime events.

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Example of Execution Plan SolutionPlan Noise
from Demolition Type Risk that Vendor does
control

• Plan 1
• We will work with the user to minimize the impact
  of noise from demolition.
• 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.
• Both solutions have been used on multiple
  previous projects w/ high levels of customer
  satisfaction (9.4/10).

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Examples
Part 2 Risk Assessment
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Example of Risk Assessment Solutions Risk
Material Price EscalationType Risk the Vendor
DOES NOT control

• Risk Solution 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 subVendors and
  suppliers, from around the world.
• Risk Solution 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 Getting water to the
site (utilities) Type Risk the Vendor DOES NOT
control

• Risk Solution 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.
• Risk Solution 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 (the water company does not
  meet schedule over 90 of the time).
• 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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Examples
Part 3 Value Added
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Example of Value Added
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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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Example Value Added Items

• Dining Services Contract
• We may be able to increase revenues to the
  University by an additional 5 per year, if we
  are allowed to install and operate our own
  vending machines throughout campus.

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We are Looking for Vendors Who Can Think Ahead
And Act In The Clients Best Interest
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Things to Avoid

• Marketing Information
• Our company is known worldwide as a leader in
  online education.
• We will use our long history to make sure the
  project is a success.
• We will use state-of-the-art process to make it a
  success.
• 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 classes scheduled and
  created
• Overly Technical data
• The system we propose has 200 increase in PRX
  bandwidth modularity.

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Submittal Requirements
Submittal Document Maximum Page Length
Technical Capability Two (2) pages
Risk Assessment Two (2) pages
Value Add Plan Two (2) pages

• Must NOT contain ANY identifying information
  (names, company names, project names, product
  names, etc.)
• Must use the provided template (can submit as
  many risks as fit within the 2 page limits of
  each submittal)
• List Risks in order of priority

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Selection Steps
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Past Performance Information (PPI)

• PPI collected on all Proponents and their
  critical team components.
• Once the PPI is collected, it is stored in a
  database.
• Project Close Out ratings from Client updates
  PPI for future work

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Critical Components

• Past Performance Information will be collected
  on
• Travel Management Firm 5 References Maximum
• District / Area Manager 3 References Maximum
• Account Representative 3 References Maximum
• Technical Lead 3 References Maximum

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Past Performance Information

• 3 Parts
• Survey Questionnaire
• Reference List
• PPI Score
• Survey Scores are 1-10 and used in Evaluation
  Criteria
• All individuals and firms must have separate
  reference lists.
• Each individual will be treated as a separate
  entity.

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PPI Process
Past Client Evaluates and Returns

• The Proponent is responsible for sending out a
  survey questionnaire to each of their past
  clients.
• The survey must be faxed/emailed back to the
  Proponent
• The Proponent will submit all surveys to the
  Owner with their submittal.

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Survey Form
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Dont Forget to Add Your Email and verify
signature
Dont forget to have the evaluator sign the form
Fax or Email
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Example Survey (Firm and Individuals)
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PPI Reference List
NO PAST CLIENT NAME PERSON COMPLETING THE SURVEY PHONE NUMBER EMAIL PROJECT INFO Final Cost of Project (Including CM Fees GST) Month, Date, Year Completed
1 ABC University Joe Smith 602-488-6129 joe.smith_at_abc.com Classroom Renovation 850,00 Jan 31, 2010
2 Tempe College Todd Sayles 602-897-1122 tsayles_at_tempeco.edu Lab Fume Hoods 1,250,000 Dec 12, 2011
3 Biltmore Plaze Judy Smith 555-555-5646 judy_at_biltmore.com SMART Classroom 740,000 Mar 13, 2011
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• Firm and each individual must submit a Reference
  List (which identifies all past projects
  submitted)

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Survey Must Match Reference List
1 ABC University Joe Smith 602-488-6129 joe.smith_at_abc.com Classroom Renovation 850,00 Jan 31, 2010
2 Tempe College Todd Sayles 602-897-1122 tsayles_at_tempeco.edu Lab Fume Hoods 1,250,000 Dec 12, 2011
3 Biltmore Plaze Judy Smith 555-555-5646 judy_at_biltmore.com SMART Classroom 740,000 Mar 13, 2011
3/15/2011
SMART Classroom
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References

• The reference list must contain different
  projects
• You may submit multiple jobs for the same past
  client

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Enter Survey Scores
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PPI Summary

• The vendor should pick their own references
• The vendor should collect all surveys
• The vendor and individuals must create a
  Reference List and prepare and send out survey
  forms.
• Close out ratings at the end of the contract will
  be used to update PPI scores going forward at
  UofA

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Selection Steps
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Pricing

• Option A University Travel (excluding
  Athletics)
• Option B Athletics Travel (excluding
  University)
• Option C Both University and Athletics
• Option C submissions MUST also submit Options A
  C
• Option D Proponent-Generated Solution
• Propose the optimal financial structure

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Option A University Travel (excluding Athletics)
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Option B Athletics Travel (excluding University)
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Option C University and Athletics Travel
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Option D Proponent-Generated Solution
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Option D Proponent-Generated Solution

• If you were the University, how would you
  recommend structuring the contract that is best
  for both parties?
• (given the constraints)

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Option D Proponent-Generated Solution

• Content Should
• Be Financially-Based
• Pricing Structure
• Note any unique or significant changes to RFP
  Scope of Services
• Roles and Responsibilities
• Address Major Items
• Simple, easy to read

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Proponent-Generated Solution Example
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Option D Proponent-Generated Solution

• How to Be Successful
• Best Value favors conservative and realistic
• Strongly recommend involving Operations
  Personnel
• Will discuss Option D further as a part of the
  Interviews

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How The Submittal Process Works
Total Score
Evaluation Members
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Selection Steps
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Shortlisting

• If necessary short listing will be conducted
  prior to interviews (depending on the number of
  vendors)
• Interviews
• District / Area Manager
• Account Manager
• Technical Lead

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Interview Format

• The client will actually interview each
  critical individual. This is not a
  presentation
• All individuals will be interviewed separately.
  The client will not allow group interviews with
  the vendors team. The client will not allow any
  other individuals to be present during interviews
• A standard set of questions will be generated and
  asked to each individual.
• Generally, interview times will last about 15-30
  minutes per individual
• The client has the option to clarify any answers
  (or ask additional questions to clarify an
  answer).
• No substitutions will be allowed. Individuals
  listed on Proposal Form must be present. If a
  team member is not present for the interview,
  they will jeopardize the teams competitiveness.

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Primary Questions

• Why were you selected for this project?
• How many similar projects have you worked on?
  Individually and as a Team?
• Describe a similar project you have
  developed/worked on to the current project.
• What is different about this project from other
  projects that you have worked for?
• Draw out the process for this project by major
  milestone activities.
• Identify, prioritize, and how you will minimize
  the risks of this project.
• What risks dont you control? How will you
  minimize those risks?
• What do you need from the client and when do you
  need it?
• How are you going to measure your performance
  during the project?
• What value do you bring to the project in terms
  of differences based on dollars, quality,
  expertise, or time?

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Demonstration of Online Booking Tool

• Demonstrate an online booking tool that is
  currently working for a client
• Must be nearly the same as the system being
  proposed for the University
• Ask the client to demonstrate basic functionality
• Set up online web-interface / real-time
  demonstration
• More specific details will be provided upon Short
  Listing

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Selection Steps
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Simple Excel Analysis
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Selection Steps
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Evaluation Weights
100 Points CRITERIA
20 Points Price Fees
30 Points Program Capability Program Plan Program Risk Assessment Program Value Added
45 Points Interview District / Area Manager Account Representative Technical Lead Demonstration
5 Points Past Performance Information Travel Management Firm District / Area Manager Account Representative Technical Lead
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Best Value Model
Not Detailed
Detailed
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Pre Award PeriodWhat is it / Why is it important?

• Period of time allotted to potential best value
  vendor (aka the Expert) to
• Present their project plan / clarify that your
  proposal is accurate
• Identify the risks and issues that could cause
  the plan to deviate
• Identify what you dont know and when you will
  know it and how the plan could change based upon
  what you discover
• Set plans to minimize those risks from occurring
• Address all the concerns and risks of the client
• Identify what you need from the client and have a
  plan for getting it
• Have completely aligned expectations between all
  parties so everyone knows what is going to
  transpire and what they are supposed to do
• Coordinate the schedule

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Pre Award / Clarification Period
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Pre Award Deliverables

• Scope
• Clear and Detailed Project Scope (what is and
  what is not included) Set Baseline Expectation
• Uncontrolled Risks List
• A list of Risks Vendor does not control with
  plans to minimize
• Identified Technical Risks List
• A list of all project risks with plans to
  minimize
• Milestone schedule
• Client Action Item List
• Weekly Risk Report
• Performance Metrics
• Fee
• Other Agreed to Value Adding Options, Original
  Risk submittals, Interview Minutes, etc.

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Pre Award Summary Meeting

• Is not a QA meeting
• All issues resolved
• All coordination complete
• All risks that are not in vendors control have
  been identified
• All value added options have been addressed
• PA Meeting is to summarize all of the
  coordination that has been complete and walk
  through the PA Document
• Upon successful completion of the PA Meeting, the
  client will make the award

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Best Value Model
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Weekly Risk Report

• Excel Spreadsheet that tracks unforeseen risks
  that impact the project
• Client will setup and send to vendor once the
  Award is issued. ASU will provide additional
  training.
• The final project rating will be impacted by the
  accuracy and timely submittal of the WRR

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Measurement of Deviation from the
ExpectationManagement by Risk Minimization
Unforeseen Risks
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Post Contract Performance Rating
Pre-Award Period
Filter 1 Past Performance Information
Filter 2 Capability
Filter 4 Prioritize (Identify Best Value)
Filter 5
Filter 3 Interview
High
Dominance Check Ratings are dominant Best value
is within high and low cost ranges BV Vendor has
dominant information
PA Docs WRR RMP Technical Documents
Criteria PPI Interview Project Capability Risk Val
ue Added Financials
AWARD
QUALITY OF PROPOSERS
Blind Rating Project Capability Risk Value
Added Financials
Low
Update PPI
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Procurement Schedule
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Questions?
Tamice Froehler Team Lead Procurement
Services tamice.froehler_at_ualberta.ca Fax (780)
492-6501