04/18/2304/18/23

Pre-Proposal MeetingPre-Proposal Meeting

Best Value ModelBest Value Model

This presentation is being provided for educational purposes only

Please refer to the RFP for specific instructions

If 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 ResultsWorldwide as a leader in Best-Value SystemsWorldwide 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

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Best Value Model

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Best Value Model

What are we trying to accomplish?

Selection Based upon Proponent Expertise:

Ability to understand and plan the project

Identify risks to the project

Mitigate risks to the project

Add value to optimize project delivery

Cost Competitive

Selection Steps

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VendorVendor

STEP 1STEP 1RFPRFP

(Risk, Project Plan, Value Added, Cost,

PPI) VendorVendor

STEP 2STEP 2

Interviews

VendorVendor

STEP 3STEP 3

Prioritization

VendorVendor

STEP 4STEP 4

Move forward to Pre Award

Evaluation Weights

100 Points CRITERIA10 Points Price – Fixed Percentage Fee Range45 Points

(15)(15)(15)

Program Capability• Program Plan• Program Risk Assessment• Program Value Added

20 Points Interview• Project Manager

25 Points(12)(13)

Past Performance Information• Construction Management Firm• Project Manager

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2 Proponents selected to the Preferred Supplier List

Blind Submittals – Project Capability

Program Risk

Assess.

Program Risk

Assess.

Value Added

Value Added

Program Plan

Program Plan

= identify, prioritize, and minimize risks to the Program Plan (focus on risks that you DO NOT control)

= plan to execute the program (capability to meet requirements)

= value beyond the specifications(think in the best interest of the client)

Allows Vendors to differentiate themselves based upon their ability to identify and minimize risks to the project.

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Program Plan• Differentiates capability to meet the requirements of this

project

• Plan to execute and support the program and all projects moving forward. May include (but is not limited to):

– General Program Approach– Staffing and Personnel– Resources that will be committed– How project work will be executed– How you will integrate with University Policies

and Procedures

• No names, two pages, no marketing, part of final contract

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Program PlanTemplate

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Program Risk Assessment• Identify major project risks

• Focus on 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, schedule delays, change

orders, or cause dissatisfaction to the client– Should be non-technical– Should be a risk specific to the program

• 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

Program Risk Assessment

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Template

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Program Value AddedValue Added

– Identify value added options “beyond” the standard requirements• Options to adjust the scope or increase the

value of services delivered (expectation, cost, schedule, delivery, owner satisfaction)

– Explain why it is a value add for the University

Program Value Added

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Template

• Plan 1 – We will use our 20 years of experience in working with mechanical

systems to minimize the risk of the heating and cooling system design.

• Plan 2– We have identified the design of the heat/cooling system as a risk. It

has not been used before in the area. Will ensure that the system performance and installation is verified in the pre-award period.

– We have bid using best rated mechanical contractor in the area (rated at 9.8 out of 10.0, next best rated 9.1)

– Mechanical contractor identified modifications to the design to improve output and sustainability of the system with the following impacts (mechanical system cost minimized by 15% - see VA#1)

– Mechanical system will be provided by one manufacturer, and will be commissioned by the manufacturer, contractor, and general contractor, who will take full responsibility of commissioning the system

Example of SolutionsExample of SolutionsRisk: Risk: Design of Heating/Cooling SystemDesign of Heating/Cooling SystemType: Project CapabilityType: Project Capability

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• 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).

Example of Execution Plan SolutionExample of Execution Plan SolutionPlan: Plan: Noise from DemolitionNoise from DemolitionType: Risk that Contractor does controlType: Risk that Contractor does control

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Example of Risk Assessment Solutions Example of Risk Assessment Solutions Risk:Risk: Concrete EscalationType: Risk the Contractor does not control Risk the Contractor 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 subcontractors 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 INFORMATIONMARKETING INFORMATION

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• 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.

Example of Solutions Example of Solutions Risk: Risk: Getting water to the site (utilities)Getting water to the site (utilities)Type: Risk the Contractor does not control Risk the Contractor does not control

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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We are Looking for Vendors Who Can Think Ahead…

……And Act In And Act In The Client’s Best The Client’s Best InterestInterest

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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.

Submittal RequirementsSubmittal Document Maximum Page Length

Program Plan Two (2) pages

Program Risk Assessment Two (2) pages

Program Value Added Two (2) pages

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• Must NOTNOT 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)

Selection Steps

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VendorVendor

STEP 1STEP 1

Risk, Project Plan, Value Added,

Cost, PPI VendorVendor

STEP 2STEP 2

Interviews

VendorVendor

STEP 3STEP 3

Prioritization

VendorVendor

STEP 4STEP 4

Move forward to Pre Award

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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 as part of PSL program – updates PPI for future work

Critical ComponentsPast Performance Information will be collected

on:

Construction Management Firm – 7 References Maximum

Project Manager – 5 References Maximum

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PPI– Similar CM projects during last three (3) years

• 9/1/2009 to 8/31/2012

– Past projects of $5M or less per project

– Firms/ individuals who have completed a project at UA must identify the most recent CM project completed during the last 3 years

– May provide more than one project that was completed at UA

– UA references must be authorized via Pat Jansen or Hugh Warren

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PPI Process

• 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.

Setup and send Survey Forms

Past Client Evaluates and Returns

VendorVendorPast ClientPast ClientVendorVendorProponentProponent

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Past Performance Information3 Parts:

– Survey Questionnaire– Reference List– PPI Score

• Survey Scores are 1-10 and used in Evaluation Criteria

• Firm (as the Proponent) and the Project Manager must have separate reference lists.

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Survey Form

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Don’t Forget to Add Your Email and verify signature

Don’t forget to have the evaluator sign the form

Fax or Email

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Example Survey (Firm and Individuals)

VendorPast Client

VendorPast Client

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• Firm (as the Proponent) and the Project Manager will create a “Reference List” (which identifies all projects being surveyed)

PPI Reference ListNO

PAST CLIENT NAME

PERSON COMPLETING THE SURVEY

PHONE NUMBER

EMAILPROJECT INFO

Final Cost of Project(Including CM Fees &

GST)

Month, Date, Year

Completed

1 ABC University Joe Smith 602-488-6129 joe.smith@abc.com Classroom Renovation

$850,00 Jan 31, 2010

2 Tempe College Todd Sayles 602-897-1122 tsayles@tempeco.edu Lab Fume Hoods

$1,250,000 Dec 12, 2011

3 Biltmore Plaze Judy Smith 555-555-5646 judy@biltmore.com SMART Classroom

$740,000 Mar 13, 2011

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1 ABC University Joe Smith 602-488-6129 joe.smith@abc.com Classroom Renovation

$850,00 Jan 31, 2010

2 Tempe College Todd Sayles 602-897-1122 tsayles@tempeco.edu Lab Fume Hoods

$1,250,000 Dec 12, 2011

3 Biltmore Plaze Judy Smith 555-555-5646 judy@biltmore.com SMART Classroom

$740,000 Mar 13, 2011

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Survey Must Match Reference List

SMART Classroom

3/15/2011

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References• The reference list must contain different projects

• You may submit multiple jobs for the same past client

Enter Survey Scores

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PPI Summary• PPI is a one time step. The vendor and individual do

not need to repeat on every project.

• The vendor and individual must create a “Reference List” and prepare and send out survey forms.

• The vendor should pick their own references

• The vendor should collect all surveys

• Close out ratings from completed projects within the CM program will be used to update PPI scores going forward

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Pricing

RFP

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How The Submittal Process Works

Submittal

Evaluation Members

Proposal Form(1 page)

Proposal Form, $, & Other Documentation

Proposal Form(1 page)

Plans

Total Score

ContractingOfficer

ContractingOfficer

Selection Steps

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VendorVendor

STEP 1STEP 1

Risk Assessment, PC, Value Add,

Cost, PPI VendorVendor

STEP 2STEP 2

Interviews

VendorVendor

STEP 3STEP 3

Prioritization

VendorVendor

STEP 4STEP 4

Move forward to Pre Award

Shortlisting

• If necessary short listing will be conducted prior to interviews (depending on the number of vendors)

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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.

Primary Questions1. Why were you selected for this project?

2. How many similar projects have you worked on? Individually and as a Team?

3. Describe a similar project you have developed/worked on to the current project.

4. What is different about this project from other projects that you have worked for?

5. Draw out the process for this project by major milestone activities.1. Identify, prioritize, and how you will minimize the risks of this project.2. What risks don’t you control? How will you minimize those risks?3. What do you need from the client and when do you need it?

6. How are you going to measure your performance during the project?

7. What value do you bring to the project in terms of differences based on dollars, quality, expertise, or time?

Selection Steps

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VendorVendor

STEP 1STEP 1

Risk Assessment, Value Add, Cost,

PPI, Schedule VendorVendor

STEP 2STEP 2

Interviews

VendorVendor

STEP 3STEP 3

Prioritization

VendorVendor

STEP 4STEP 4

Move forward to Pre Award

Simple Excel Analysis

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Vendor A Vendor B Vendor C Vendor A Vendor B Vendor C1 Proposal Cost 250 57,000$ 65,000$ 55,000$ 241 212 2502 Interview Rating 350 8.5 5.1 5.1 350 210 2103 NTR Rating 150 9.5 6.5 5.1 150 103 814 TC Rating 100 9.1 9.5 9.9 92 96 1005 VA Rating 100 5.0 8.5 5.0 59 100 596 PPI Rating 50 9.8 9.8 9.9 49 49 50

941 770 749

RAW DATA FINAL POINTSCRITERIA WEIGHTSNO

Selection Steps

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VendorVendor

STEP 1STEP 1

Risk Assessment, Value Add, Cost,

PPI, Schedule VendorVendor

STEP 2STEP 2

Interviews

VendorVendor

STEP 3STEP 3

Prioritization

VendorVendor

STEP 4STEP 4

Move forward to Pre Award

Evaluation Weights

100 Points CRITERIA10 Points Price – Fixed Percentage Fee Range45 Points

(15)(15)(15)

Program Capability• Program Plan• Program Risk Assessment• Program Value Added

20 Points Interview• Project Manager

25 Points(12)(13)

Past Performance Information• Construction Management Firm• Project Manager

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2 Proponents selected to the Preferred Supplier List

Selection Summary

100 Points CRITERIA70 Points Fixed Percentage Fee – competitive bid20 Points

(15)(05)

Specific Project Capability• Project Risk Assessment• Project Value Added

10 Points Past Performance Information – closeout rating from previous UA CM based on projects awarded for this program)

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Project Evaluation Criteria

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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 don’t 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

Pre Award / Clarification Period

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Pre Award Deliverables1. Scope

• Clear and Detailed Project Scope (what is and what is not included) – Set Baseline Expectation

2. Uncontrolled Risks List • A list of Risks Vendor does not control with plans to

minimize3. Identified Technical Risks List

• A list of all project risks with plans to minimize4. Milestone schedule5. Client Action Item List6. Weekly Risk Report 7. Performance Metrics8. Fee9. Other: Agreed to Value Adding Options, Original Risk

submittals, Interview Minutes, etc.

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Pre Award Summary Meeting• Is not a “Q&A” 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 Award/NTP issued. PBSRG will provide additional training.

• The final project rating will be impacted by the accuracy and timely submittal of the WRR

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Unforeseen Risks

PERFORMANCE SUMMARY• Vendor Performance• Client Performance• Individual Performance• Project Performance

RISK MANAGEMENT PLAN• Risk• Risk Minimization• Schedule

WEEKLY REPORT• Unforeseen Risks• Risk

METRICS• Time linked• Financial• Operational/Client Satisfac.• Environmental

Measurement of Deviation from the ExpectationMeasurement of Deviation from the ExpectationManagement by Risk MinimizationManagement by Risk Minimization

Post Project Rating

Update PPI

Filter 1

PastPerformanc

eInformation

Filter 2

Capability

Filter 4

Prioritize (Identify

Best Value)

Filter 5

Pre-AwardPeriod

QU

ALI

TY O

F PR

OPO

SER

S

Filter 3

Interview

AW

AR

D

High

Low

Blind Rating

Project Capability

Risk

Value Added

Financials

PA DocsWRRRMP

Technical Documents

CriteriaPPI

InterviewProject

CapabilityRisk

Value AddedFinancials

DominanceCheck

Ratings are dominant

Best value is within high

and low cost ranges

BV contractor has dominant information

Procurement Schedule

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Pre-Proposal Information Session 8/29/2012

Last Date for Questions 9/7/2012

RFP Closing Date 9/12/2012

Interviews for Short Listed (tentative) 9/25/2012

Selection of 2 Suppliers 9/26/2012

Pre Award Phase 9/26/2012

Effective Date for PSL 9/27/2012 to 10/3/2012

Questions?

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Chris MillerContracting Specialist

chris.miller@ualberta.caFax: (780) 492-0607