Agenda Overview

Why Qualifications Based Selection? Elements of the Request for

Qualifications Initial Questions Example 1 - General Stretch Break!!! Example 2 Short and Sweet Advertisement Example 3 Combined RFQ/RFP Evaluation Process

Why Qualifications Based Selection?

You've carefully thought out all the

angles.

You've done it a thousand times. It comes naturally to you.

You know what you're doing, its what

you've been trained to do your whole life.

Nothing could possibly go wrong, right ?

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

DESIGN COSTS - 1.5%
INDIRECT COSTS - 2.5%

INITIAL CONSTRUCTION & LAND COST - 34%

INTEREST COST - 32%

MAINTENANCE & OPERATIONS - 32%

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 7 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

30% 25% 20% 15% 10% 5% 0%
Negotiation / Client Selection Project Team Communication Contracts Capabilities

Percentage of Claims Affected

27% 24%

16% 13%

Communication Issues
Project staff not aware of their responsibilities 10% Scope of services were not clear 4% Lack of documentation of scope changes 10%

Project issues & disputes not handled correctly 8% Other 4%

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

Project Team Issues

Unqualified or deficient on-site staff assigned to project 4% Design firm inexperieced in project type 2%

Inexperienced or deficient project manager 34%

Unqualified or deficient design staff assigned to project

46%

Territory of project outside of firm's "normal" territory 4%

Other 6%

Insufficient number of staff 4%

Dont 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

Todays Topics
Information Required Prior to

Advertisement Advertisement of Project /Prequalification Requirements Request for Qualifications/Proposals Procurement Committee Appointment Evaluation of Applying Firms Development of Shortlist Notification of Firms on the Shortlist Oral Presentations

Definitions
Bid Final Selection is based on cost only Purchase of commodities or well defined services Request for Proposal Final Selection is based

on proposed services or goods as well as cost

Use when the services or goods are not well defined. Allows for creative responses

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 firms ability to identify and appropriately address the problem or issue.

Information Required Prior to Advertisement

Project Description Expected Use and Users

Schedule
Funding Plan Special Performance Requirements

Project Implementation Plan

Check your local CODE!

Require QBS? Allow QBS? Date last revised?

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

Request for Qualifications

Construction Delivery type selected will

dictate how to prepare. If the advertisement is the RFQ, changes cannot be made without re-advertising

Notification/Advertisement of Project
RFQ Request for Qualifications

contains all information necessary for firms to submit Qualification Statements

RFI Request for Interest contains

enough information to indicate scope of project and provides contact information to receive full Request for Qualifications document

Procurement Committee Appointment

Determine early, but can be delayed until

submittals are received. Include at least two people. Include user agency representatives. Agree on evaluation criteria. Keep records of scoring and notes. Notify firms of the short list. Deliver recommendations to Management and/or Board

Free Stuff - Examples You Can Use!

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

Evaluation of Applying Firms

Each member evaluates all submissions

Group should meet, compare scoring, and

try to reach consensus on top two 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

Firm Reference Checking

INTERVIEWER:________________ FIRM:________________________

DATE:________________________ REFERENCE:__________________

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

How would you rate XYZs 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 XYZs 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 presentation 15 questions and answers 5 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).

Interview or Technical Proposal?

Interviews less time and cost for both parties,

opportunity for interaction with key staff, relies on communication skills of AE, does not require technical staff for the Owners interview team.
Technical Proposal More opportunity for the AE to

discuss technical approach.

Both

The Interview
AE presents benefits to the Owner versus

features in the Qualifications Package. AE 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 Risk belongs to the Owner Price depends on risk

Negotiations

Set schedule for negotiations Involve the decision makers Focus on scope, risks, and contingencies Dont forget contract terms Allow for QAQC and response to Questions Identify third party players (contingencies) Agree in pieces. Whole will follow. Is the construction budget realistic? Remember: schedule-price-qualitypick two. Dont negotiate by ultimatum and remember the relativity of design cost to life cycle costs.

What If We Cant Agree?

Termination of

negotiations is formal. You cant go back. The price from the 2nd ranked firm may be more. Notify and debrief unsuccessful firms

Thats Almost All Folks Two Final Thoughts

Quality Brings Success
QBS is the first step to quality projects

All documents available in Word format from www.QBSGeorgia.org, as well as QBS Help!