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© Lean Construction Institute Evolution of Outcome Based Procurement Malvin Whang, UCSF & Andrew Mittleman, Jacobs Engineering October 5, 2016

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Page 1: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Evolution of Outcome Based ProcurementMalvin Whang, UCSF & Andrew Mittleman, Jacobs EngineeringOctober 5, 2016

Page 2: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Evolution of Outcome Based Procurement

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• ev·o·lu·tion - the gradual development of something, especially from a simple to a more complex form

• out·come – the way a thing turns out; a consequence

• pro·cure·ment - the act of obtaining equipment, materials, or supplies

Page 3: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Objective

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• Understand application of Plan Do Check Adjust (PDCA) process to project procurement

• Analyze procurement processes and their outcomes on projects

• Identify constraints in public contracting processes

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© Lean Construction Institute

Presenters

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• Malvin Whang AIA, LEED AP• Senior Program Manager, Capital Programs• UCSF

• Andrew Mittleman, CCM, LEED Green Associate

• Senior Project Manager• Jacobs Engineering

Page 5: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

UCSF Information

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• University of California San Francisco• University of California• 10 campus University System• Health Science, Graduate schools• Medicine, Nursing, Dentistry & Pharmacy

• 11.56 Million GSF of space• $200M capital projects yearly• $2.7B in the next 5 years

Page 6: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Procurement Methods

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• Project Delivery types• Design Bid Build• CM At Risk• Design Build• Job Order Contracting

• Procurement• Lump Sum• Best Value• Task Order Pricing

Page 7: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Project A

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• CMAR with Design Build MEP

Owner A/E TeamQualifications

CM / GCBest Value

Elec DBBest Value

Mech DBBest Value

SubsLump Sum

Page 8: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Outcome

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• MEP Bridging Documents• Design Assist vs Design Build

• Team selection in silos• Big Room Collaboration

• Lean Journey• Together vs Separate

Page 9: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Project H

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• CMAR with Design Build MEP

Owner A/E TeamQualifications

CM / GCBest Value

Elec DBBest Value

Mech DBBest Value

SubsLump Sum

Page 10: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Outcome

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• Countermeasures -

• MEP Bridging Documents• Design Criteria

• Team selection in silos• Big Room Collaboration

• Lean Journey• Goal alignment workshop

• More issues

• Bids in silos• Optimization of the whole

Page 11: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Project C

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• CMAR with Design Build MEP

Owner A/E TeamQualifications

CM / GCBest Value

Elec DBBest Value

Mech DBBest Value

SubsLump Sum

Page 12: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Outcome

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• Countermeasures -

• MEP DB subs bid in teams• Reduce scope gaps• Optimize the system

• Team selection in silos• Big Room Collaboration

• Lean Journey• Goal alignment workshop

Page 13: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Project O

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• Design-Build with Performance Based Criteria

Owner

Design TeamQualifications

D-B Cont.Qualifications

Elec DBQualifications

StructuralQualifications

Mech / Plumbing

DBQualifications

Page 14: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Objective

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• A starting point to create:• A Quality Work & Learning Environment• A Model of Architectural & Urban Design• A High Performing Building• Environmentally Sustainable• Durable & Long Lasting• Efficiently Serviced & Maintained• A Lean Program and Project Delivery Plan

• A plan and team to work with:• More than 10+ major owners• 6 Major projects within a 3 block radius• Over $1 billion in construction.• An aggressive development timeframe

Page 15: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Process

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Page 16: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Outcome

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• Design Build• Focus on Structural, MEP and Donor

Needs

• Clear Values• Full Design and Performance Criteria• Minimum acceptance levels

• Compatibility• Comprehensive Team Selection

• RFQ• Document Validation• RFP• Multiple Stakeholder Meetings

• Lean Journey• Started with the contract

Page 17: Evolution of Outcome Based Procurement of... · Evolution of Outcome Based Procurement 2 • ev·o·lu·tion-the gradual development of something, especially from a simple to a more

© Lean Construction Institute

Questions?

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