Qualifications Based SelectionQualifications Based Selectionfor Professional Servicesfor Professional Services

Tom Leslie, P.E.

Georgia Engineering Alliance

Georgia City County Managers Association, Columbus, GA November 3, 2005

Overview Agenda

What is Qualifications Based Selection (QBS)?

Why use QBS?

Legislative Basis for QBS

Steps in QBS

Resources

What is QBS?

Qualifications Based Selection is a process for acquisition of A/E Services that yields the highest probability of a successful project.

QBS Steps

Advertise

Review Qualifications from Competing Firms

Evaluate/Shortlist

Interview/Rank

Negotiate with No. 1

Definitions

Bid – Final Selection is based on cost only Purchase of commodities or well defined services

Request for Qualifications – Final Selection is based on the perceived ability of the submitting firms to best achieve the most desired outcome Used for selection of professional services, such as

architects, engineers, lawyers, doctors, etc. Services not well defined and depend on the firm’s

ability to identify and appropriately address the problem or issue.

Request for Technical Proposal – This may be part of a RFQ or it may be a subsequent step. It is a more detailed discussion of how a particular project will be executed.

Definitions continued

“Project” – requires A/E design services Examples:

Roads

Water/Sewer

Landfills

Industrial Park

Court House Renovation

Schools

Fire Station

Legislative Basis for QBS

State Agencies (OCGA 50-22)

Advertise – Georgia Procurement Registry (may also do so in newspaper)

Firms Submit Qualifications Evaluate / Shortlist 3-5 / Interview/

Rank / Negotiate with No. 1 If unsuccessful, terminate

negotiations with No. 1 and go to No. 2

Legislative Basis for QBS continued

Exceptions

Project must be > $1 million in construction cost or > $75,000 in fee

Emergencies Board of Regents Reuse of Plans by Same A/E

State Construction Manual

Stirrings at GSFIC in late 1990s to create uniform/rational design and construction process

Governor’s Commission for a New Georgia in 2004

Governor Perdue’s Executive Order directing GSFIC/BOR complete by end-2005

Includes expansive A/E Procurement Guidelines

Legislative Basis for QBS

Local Governments

Nothing in State Law But, for Transportation:

“A county is prohibited from negotiating a contract except…(5) for engineering or other kinds of professional or specialized services; …”

Check your local CODE!

Require QBS?

Allow QBS?

Date last revised?

Why Qualifications Based Selection?

You've carefully thought out all the You've carefully thought out all the angles. angles.

You've done it a thousand times.You've done it a thousand times. It comes naturally to you.It comes naturally to you. You know what you're doing, its You know what you're doing, its

what you've been trained to do your what you've been trained to do your whole life.whole life.

Nothing could possibly go wrong, Nothing could possibly go wrong, right ?right ?

Think Again...Think Again...

Why Qualifications Based Selection?

Money - Can you afford not to? Headaches –

Change orders Claims Project from h___ Aspirin, tylenol, ibuprofen, loss of sleep

Two things to remember about QBS… Quality Brings Success QBS is the First Step to Quality Projects

Money – Keep Life Cycle Costs in Mind

INITIAL CONSTRUCTION &

LAND COST - 34%

MAINTENANCE & OPERATIONS - 32%

INTEREST COST - 32%

INDIRECT COSTS - 2.5%DESIGN COSTS - 1.5%

Analysis of Claims

Technical Error and/or omission of a technical

nature which resulted in a loss prevention file or claim

Non-technical (involved in 8 out of 10) Breakdown in project or practice

management processes which contribute to a claim

Insurance industry analysis of 24,000 closed claims/files over a 13-year period, worth over $1 billion in claim payments

Top 4 Non-Technical Contributors

13%16%

24%27%

0%

5%

10%

15%

20%

25%

30%

Negotiation /Contracts

Client Selection Project TeamCapabilities

Communication

Percentage of Claims Affected

Unqualified or deficient design staff assigned to project46%

Insufficient number of staff4%Other

6%

Inexperienced or deficient project manager34%

Design firm inexperieced in project type2%

Territory of project outside of firm's "normal" territory4%

Unqualified or deficient on-site staff assigned to project4%

Project Team Issues

Lack of procedures to identify or address conflicts, omissions or errors 64%

Lack of documentation of

scope changes 10%

Project issues & disputes not handled correctly8%

Other4%

Scope of services were not clear4%

Project staff not aware of their responsibilities10%

Communication Issues

Don’t Believe Me…

“Hiring a professional service firm is just like hiring a critical employee”

David Griscom

President APWA Georgia Chapter

Public Works Director, White County

Who Supports QBS?

“EPD is a strong supporter of the QBS process to retain the services of a design professional. This is the process we use and it works well for us. We think it will work for other State agencies and local governments also.”

David Word

Assistant Director

Environmental Protection Division

Who Supports QBS?

“… the Department strongly endorses QBS as the preferred method of selecting qualified, competent, and experienced professional engineering firms. We have a long history with QBS, and we are committed to its continued use at GDOT.”

Harold E. LinnenkohlCommissionerGeorgia Department of Transportation

Who Supports QBS? “We are fortunate in Georgia to have

progressive state law that supports QBS. Georgia’s QBS policy provides a structured tool for state agencies to use to select design professionals fairly in an open, lawful process. We fully appreciate that design services are professional services that should not be purchased as a commodity based upon price, but should be selected based upon provider qualifications.”

Gena L. AbrahamDirector and Executive SecretaryGeorgia State Financing & Investment Commission

Who Supports QBS?

“GDTAE uses QBS on all its facilities projects. QBS provides the level of professional expertise required for top level architectural and engineering services. It makes sense to base your A/E selection on qualifications, not low fee.”

Tony Bruehl

Director-Facilities Management

Georgia Department of Technical and Adult Education

Who Supports QBS?

“The American Public Works Association believe that the public interest is best served when governmental agencies select architects, engineers, and related professional technical consultants for projects and studies through Qualifications Based Selection procedures. Basing selection on qualifications and competence (rather than price) fosters greater creativity and flexibility, and minimizes the potential for disputes and litigation. ”

National APWA Policy Statement

Who Supports QBS?

“QBS is the process of selecting… an architect (or) engineer… whereby competing firms are evaluated on the basis of their qualification (and) ranked in priority order. Contract terms, including price, are negotiated with the top ranked firm on the basis of a fully developed scope of work. If a county… is unable to reach agreement with the first firm, it terminates negotiations and begins negotiations with the second ranked firm… ACCG endorses the use of QBS for procurement of design professional services as an effective and efficient alternative to traditional low-bid procedures.”

Association County Commissioners of Georgia

2004-05 Platform

Who Supports QBS?

“Experience has proven that selecting design professionals on the basis of price alone can often result in unmet project expectations and higher overall project costs. QBS, on the other hand, properly focuses the selection process on factors most critical to a project’s success: experience, competence and reliability. As stewards of public resources, all local officials should strive to provide the very best value to their constituents, and that is really what QBS is all about..”

Jim HigdonExecutive DirectorGeorgia Municipal Association

Who Supports QBS?

“Sec. 902. The Congress hereby declares it to be the policy of the Federal Government to publicly announce all requirements for architectural and engineering services on the basis of demonstrated competence and qualification for the type of professional services required and at fair and reasonable prices.”

Brooks Act (PL 92-582, 1972)Mandatory QBS for all A/E

Procurements

Who Supports QBS?

41 states mandate QBS for state projects.

22 states mandate QBS for local government projects – including MS, TN, NC, SC, and FL.

Steps in QBS

Information Required Prior to Advertisement Advertisement of Project /

Prequalification Requirements Request for Qualifications/Technical Proposals Procurement Committee Appointment Evaluation of Applying Firms Development of Shortlist Notification of Firms on the Shortlist Oral Presentations Rank in Priority Order Negotiate

Information Required Prior to Advertisement

Project Description Expected Use and Users Schedule Funding Plan Special Performance Requirements Project Implementation Plan

Prepare the Project for Public Advertising

Project description and location Budgeted construction cost (if known) Specific disciplines sought – special requirements Contact person for technical questions (phone #,

email, fax, hours) Statement that QBS will be used Submission date Special contract terms Description of qualification package Rating criteria – list

Statement of Qualifications

Stipulate expectations, “such as”

Length – number of pages – total/each section Project Descriptions – must be similar/completed

in last 5 years/located in Georgia (or SE) Personnel – name project manager/key

specialists and provide resume No/limited marketing brochures Expect response to each evaluation criteria Prescribe outline/organization/table of contents/

other preferences

Evaluation Criteria

From State QBS law – “such as”

Ability of professional personnel Past performance Willingness to meet time requirements Project location Office location Current/Projected workload Project approach QC procedures Involvement by MBE

Procurement Committee Appointment

Determine committee early. Include at least three people. Include user agency representatives. Early agreement on evaluation criteria. Keep records of scoring and notes. Notify firms of the short list. Deliver recommendations to

Management and/or Board.

Evaluation of Applying Firms

Each member evaluates all submissions Group should meet, compare scoring, and

try to reach consensus on top three to five firms

Assign 1 or 2 members to check references of higher ranked firms

Members should not discuss outcome with submitting firms

Debriefing of firms should be provided by committee chair

Development of Shortlist

How many should be included?

Use standard reference checking form

Skip interviews?

Request technical proposals?

Firm Reference Checking

INTERVIEWER:________________ DATE:________________________ FIRM:________________________

REFERENCE:__________________

Develop 4-6 standard questions to ask each reference. Personally call and interview assigned references.

How would you rate XYZ’s overall performance on your project(s)?

Did XYZ in any way negatively impact the project schedule? Did XYZ in any way negatively impact the project budget? Was there continuity in XYZ’s team throughout the project? Would you hire XYZ to do another project for you future? Did XYZ meet bid package deadlines? Did XYZ work collaboratively with the contractor on value

analysis?

Notification of Firms on the Shortlist

Notifying firms – all or just short listed?

In writing or by email or telephone?

Preparation for Oral Presentations

Let firms know the arrangements and rules Provide agenda to firms Questions, content, participants Time limits and transitions Room set up Allow time for scoring and discussions

between and/or after interviews Allow time for breaks

Interview Format Recommendations

Time - an hour is usually sufficient (…all you can take…)5 setup 30 presentation15 questions and answers5 knockdown.

Conduct all interviews the same day Have same evaluation team at all interviews! Complete evaluation before adjournment. Media – provide guidelines on what you will allow

Boards and/or computer/projector are commonly used Handouts – slides, food?

Presenters - Three to five usually sufficient (Principal, Project Manager, key Project team members).

The Interview

A/E presents “benefits” to the Owner versus “features” in the Qualifications Package.

A/E answers the question, “How can my experience and approach benefit the Owner?”

Owner answers the question, “Which firm is the best fit for my project?”

Subjective process but necessary to create a ranking.

Interview Scoring

Score sheets for each panel member and one for the full panel as a group.

Keep records Agree on weighting before interviews Discuss scoring between interviews Try for a consensus on a group score

sheet Consolidate notes for later debriefings “We the jury…”

Scope and Contract Negotiations with the Recommended Firm

May ask for scope tasks first Meet (communicate) so that there is a meeting

of the minds. Take notes Discuss “ball park” costs and budgets Discuss schedules and submittals Discuss check lists, standards, reviews,

permits, etc. Discuss contingencies and contract details Discuss anything else that may affect price

The Price Proposal

Sufficient detail to show level of effort Consider value pricing to share risks

and rewards Consider incentives for schedule

improvements and savings List possible costs of contingent

services How is risk allocated between Owner

and A/E Price depends on risk allocation

Negotiations

Set schedule for negotiations Involve the decision makers Focus on scope, risks, and contingencies Don’t forget contract terms Allow for QA/QC and response to “Questions” Identify third party players (contingencies) Agree in pieces. Whole will follow. Is the construction budget realistic? Remember: schedule-price-quality…pick two. Don’t negotiate by ultimatum and remember the

relativity of design cost to life cycle costs.

What If We Can’t Agree?

Termination of negotiations is formal.

You can’t go back. The price from the 2nd

ranked firm may be more. Notify and debrief

unsuccessful firms

Resources

Requests for Qualifications from real owners that use QBS

Simple checklist and reference table Generic advertisement (use w/detailed RFQ) Ad with project specific requirements Project specific Request For Qualifications

All documents available in Word or PDF format from www.QBSGeorgia.org

Resources

www.QBSGeorgia.org

Facilitator Program APWA Redbook – “Selection and Use

of Engineers, Architects and Professional Consultants, Guidelines for Public Agencies”

GSFIC A/E Procurement Guidelines

Qualifications Based SelectionQualifications Based Selectionfor Professional Servicesfor Professional Services

Tom Leslie, P.E.

Georgia Engineering Alliance

Georgia City County Managers Association, Columbus, GA November 3, 2005