City of RochesterCity of Rochester22ndnd Street Upgrade Street Upgrade

04/20/2304/20/23

Dean Kashiwagi, PhD, PEDean Kashiwagi, PhD, PEJake SmithwickJake SmithwickArizona State UniversityArizona State University

2

This presentation is for This presentation is for educational purposes only.educational purposes only.

Please refer to the final RFQ Please refer to the final RFQ for specific instructionsfor specific instructions

RFQ Requirements

33

Summary of DB Process

44

RFQ Schedule

55

Planned Date Action

August 18, 2011 Issue RFQ

September 22 RFQ Educational Meeting

September 29, 2:00pm RFQ Questions due

October 11 SOQs Due

October 17 Notify short-listed Submitters

October 18 Issue RFP

November 3 RFP Educational Meeting

January 18 Interviews

February 2012 Pre-Award Period

March 2012 Notice to Proceed

Selection Criteria

66

Weight Criteria Rated? Attachment

RFQ Phase

20 Points Past Performance Information No Exhibit 1

50 Points Project Capability Plan Yes D

50 Points Risk Plan Yes C

Pass / Fail Resource Availability No

Pass / Fail Legal & Financial No Appendix B

RFP Phase

~100 Points Proposed Design Schematic Yes ?

~75 Points Interview Yes ?

~5 Points Schedule Yes ?

Three Phases

77

PHASE 1 PHASE 2 PHASE 3

CLARIFICATION

RFQRFP

Best Value System(alignment of expertise, minimization of effort)

88

CLARIFICATION

Vendor is an Expert

Vendor is NOT an Expert

Vendor is an Expert

Performance Information Procurement System

99

CLARIFICATION

Vendor is an Expert

Vendor is NOT an Expert

Vendor is an Expert

DominantSimpleDifferential

Clarification Both parties may walk

Risk ManagementQuality ControlQuality Assurance

Initial conditions

Final conditions

Event

Time

Laws Laws

(Control, impact, and influence)

Us

RisksRisks RisksRisks

Technical Scope Don’t

ControlTechnical

Scope

Don’t Control

Me vs. Them

Paradigm Shift: contractors should have minimal technical risk and minimize risk that they do not control

Industry Structure

High

I. Price Based

II. Value Based

IV. Unstable Market

III. Negotiated-Bid

Specifications, standards and qualification based

Management, direction, and control

Decision making

Technical expertise on client’s side

Best Value (Performance and price measurements)

Quality control and quality assurance

Perceived Competition

Pe

rfo

rman

ce

Low

High

Owner selects vendor

Negotiates with vendor

Vendor performs

Selection Process

13131313

Filter 1

PastPerformanc

eInformation

Filter 2 Filter 4

Prioritize (Identify

Best Value)

Filter 5

Pre-AwardPeriod

QU

ALI

TY O

F V

EN

DO

RS

Filter 3

Interview

Proposed Design

Value Added

Price AW

AR

D

High

Low

Blind Rating

Project Capability

Risk (no control)

PA DocsWRRRMP

Technical Documents

CriteriaPPI

InterviewTechnical

RiskValue Added (?)

FinancialsProposed Design

DominanceCheck

Ratings are dominant

Best value is within high

and low cost ranges

BV vendor has dominant information

Vendor is an Expert

Vendor is not an expertRFQ RFP

RFQ Criteria• Past Performance Information (PPI)

• Blind review– Project Capability Plan– Risk (vendor does not control)

• Resource Availability (Pass / Fail)

• Legal and Financial (Pass / Fail)

Project CapabilityOverview•Differentiate their capability to meet the technical requirements of this project

•Identify "vision” or “plan” for the alignment of expertise over the duration of the project

Evaluation•Support statements of performance with experience in design and construction of urban street and underground utility projects (metrics, numeric scores, deviation rates, etc.)

•Use either verifiable performance metrics or best value practices with performance measurements or references of best value practices

Risk Plan• List and prioritize major risk items on this project that the

submitter does not control

• Explain how proposer will mitigate, manage, and/or minimize the risk from occurring

– mitigation plan was used previously, and the impact on performance in terms of customer satisfaction and the number of times it was used

• Tracking all deviations on the project

• Method of minimizing contract transactions

• Performance measurements, past performance measurements, measurements that define performance

– Submitter has implemented the mitigation plan before– Submitter has been successful in mitigating time and cost deviation of their

past projects.– previous clients have been very satisfied with Submitter's results.– projects were similar to the current project being advertised.

Blind submittals are simple

• The what, but not the how

• Supported by verifiable performance information or best value practice with performance information (if no verifiable performance information, receive an average rating)

• Rating dominant performance, average, and dominantly poor

• No names

• 2 page limits

Blind submittal examples• Simple

– Example 1: The project manager being proposed on this project is very experienced in design-build, mechanical system type and innovative projects.

• The what, but not the how– Example 2: the mechanical subcontractor can install a system

that minimizes the installation time by 20% and the system minimizes the annual energy consumption by 15%

• Supported by performance information– Example 1: PM record over the past 5 years, 10 DB projects,

$250M average scope, customer satisfaction is 9.5/10.0, deviation rate is less than 1%

– Example 2: Last five projects, customer satisfaction is 9.5/10, deviation rate is less than 1%, 20% earlier finish, installed system have average energy consumption 15% under average consumption, references available on request.

1818

1919

2020

2121

2 pages 2 pages

max!max!

2 pages 2 pages

max!max!

11 page

max!

A note on formatting…• Project Capability and Risk Plan must NOT

contain names

• Page limits– Attachment C (Risk): Two (2)Two (2) pages max– Attachment D (Project Capability): Two (2)Two (2) pages

max– Attachment E (Resource Availability): One (1)One (1) pages

max

• Not allowed to re-create, re-format, or modify the template (cannot alter font size, font type, font color; add colors, pictures, diagrams, etc)

2424

PPI Submittal

VendorVendorVENDORVENDOR

Prepare and Send Survey Questionnaires to Past Clients Step 2

Step 3Collect/Receive Completed Surveys

Prepare Reference ListStep 1

Enter data into Reference ListStep 4

Package all material (Reference List and Surveys) and SubmitStep 5

Phase 1

2727

PPI Details

• PPI will be collected on all vendors and their critical team components.

• Critical Team “Components”:– Contractor / Design-Builder (firm)– Engineering Company (firm)– Project Manager (individual)– Project Engineer (individual)– Project Superintendent (individual)– Project Lead Design Engineer

(individual)

Phase 1

Step 1: Prepare Reference List

2828

Profile sheet

SURVEY CODE

FIRST NAME LAST NAME PHONE FAXCLIENT NAME

PROJECT NAMEDATE

COMPLETED COST OF PROJECT

PROJECT TYPE

                                                                                                                                                                                              

Past Project Info sheet

Phase 1

Step 2: Prepare & Send Surveys

Past ProjectInfo

Profile

List Project

Manager &

Site

Superintenden

t on each

survey!

2929

Client

Phase 1

3030

Step 2 cont’d: Survey Form

NO CRITERIA UNIT RATING

1 Ability to manage the project cost (minimize change orders) (1-10)

2 Ability to maintain project schedule (complete on-time or early) (1-10)

3 Quality of workmanship (1-10)

4 Professionalism and ability to manage (1-10)

5 Close out process (1-10)

6 Communication, explanation of risk, and documentation (1-10)

7 Ability to follow the users rules, regulations, and requirements (1-10)

8 Overall customer satisfaction and comfort level hiring again (1-10)

Phase 1

3131

Step 2 cont’d: Add Your Fax #!Phase 1

3232

Step 2 cont’d: Surveys MUST Be SignedPhase 1

Step 3: Collect & Receive Surveys

3333

Fax, E

mail, M

ail

Client

Contractor

Phase 1

Step 4: Enter Data into Reference List

3434

Phase 1

Step 5: Scan Surveys & Burn CD

3535

Reference Lists Returned Surveys

scanned to PDF

CD-ROM

Exce

l (XL

S) fi

le

Phase 1

I already have PPI…

3636

?

Phase 1

Summary of PPI Requirements• Require number of surveys submitted:

– Firms: Five (5)– Individuals: Three (3)

• Projects must be 100% complete (final payment received)

• Project list must contain different projects

• The survey must be signed

• Turn in electronic copies of surveys (PDF) and Reference Lists (XLS)

• Projects do not need to be similar

3737

Phase 1

How The Submittal Process Works

383838

Submittal

Evaluation Members

Proposal Form(1 page)

Other Documentation

Proposal Form(1 page)

Risk Plan, ProjectCapability Plan

Average Score

ContractingOfficer

ContractingOfficer

Phase 1

2012 Best Value Annual ConferenceFeb 13-17, 2012 in Tempe, AZ

Train the trainer advanced curriculumCertification of trainersMeet most visionary clients and vendorsLessons Learned from all projects including services, IT, and constructionOrganization measurement and optimizationHow to implement changeHow to reduce size without increasing riskJob opportunities in Asia in best value environments

Early Registration before Dec 15, 2011:For more details visit us at www.pbsrg.com

Comments / Questions

4040

Jake.Smithwick@asu.eduJake.Smithwick@asu.edu

www.pbsrg.comwww.pbsrg.com