QBS ColoradoQBS Colorado

APA Colorado 2012 ConferenceAPA Colorado 2012 Conference“Planning Out of Bounds” “Planning Out of Bounds”

Introduction to QBSIntroduction to QBS

Qualifications Based SelectionQualifications Based Selection

October 5, 2012October 5, 2012

About QBS ColoradoAbout QBS Coloradowww.qbscolorado.orgwww.qbscolorado.org

The mission of QBSColorado is to promote quality and value in professional design services and in the construction industry. We believe that a professional and constructive relationship between the (government) client and design professional is paramount to ensuring team spirit, quality services, and a public facility that is a credit to your organization and the citizens you serve.

About QBS ColoradoAbout QBS Colorado

QBS best serves the interest of the public who expect value and minimum operational and lifecycle costs for their tax dollar expended on public works and buildings.

University of Colorado Denver Business School;

Presenters

Dan Akin, PE – PLSDan Akin, PE – PLS Dave DiFulvio, PLSDave DiFulvio, PLSPast ChairmanPast Chairman ACEC RepACEC RepQBS ColoradoQBS Colorado QBS ColoradoQBS ColoradoUSDOI, BLMUSDOI, BLM Farnsworth GroupFarnsworth Group

Mike Fink, PEMike Fink, PE Diana Dean, PE, LEED Diana Dean, PE, LEED APAP

Past NSPE RepPast NSPE Rep Past President of NSPE-COPast President of NSPE-COQBS ColoradoQBS Colorado Colorado Dept. of CorrectionsColorado Dept. of CorrectionsCity of Fountain UtilitiesCity of Fountain Utilities

Presentation OutlinePresentation Outline

Introduction and Background Introduction and Background

Legal Basis for use Legal Basis for use

Recent Studies Evaluating Purchasing Methods Recent Studies Evaluating Purchasing Methods

Unstated Reasons for using QBS Unstated Reasons for using QBS

Case Study: Use of QBS by local cities Case Study: Use of QBS by local cities

Sample Project: Team Exercise Sample Project: Team Exercise

QuestionsQuestions

Introduction & BackgroundIntroduction & BackgroundWhat is QBS?What is QBS?

QBS stands for “Qualifications Based QBS stands for “Qualifications Based Selection”. It is a process used to engage Selection”. It is a process used to engage professional services.professional services.

The selection relies solely on qualifications, The selection relies solely on qualifications, without incorporating price in the initial without incorporating price in the initial selection.selection.

Select first, then negotiate scope and fee.Select first, then negotiate scope and fee.

QBS ColoradoQBS ColoradoBasic QBS Process DescriptionBasic QBS Process Description

Step 1Step 1: Issue Request For Qualifications: Issue Request For Qualifications

Step 2Step 2: Receive & Evaluate Submittals: Receive & Evaluate Submittals

Step 3Step 3: Negotiate Scope of Services, : Negotiate Scope of Services,

Terms and Fees with top ranked firmTerms and Fees with top ranked firm Step 4 (if required)Step 4 (if required): Move to second : Move to second

ranked firm and repeat Step 3.ranked firm and repeat Step 3.

ENDORSEMENTSENDORSEMENTS

APWA – See “REDBOOK”APWA – See “REDBOOK”AIAAIAACECACECAGCAGCABA – See Model Procurement CodeABA – See Model Procurement CodeNSPENSPENSPSNSPSASCE – Manual 45ASCE – Manual 45PLSCPLSC

Why QBS?Why QBS? Federal Act was passed because there were Federal Act was passed because there were

too many cases of design issues which were too many cases of design issues which were attributable to poor scope and inadequate attributable to poor scope and inadequate fees.fees.

Today, most states would agree that the Today, most states would agree that the process is superior and apply it regardless of process is superior and apply it regardless of funding source.funding source.

Local agencies are not prohibited from using Local agencies are not prohibited from using the process, and many do.the process, and many do.

Common QuestionsCommon Questions How does QBS control costs or save How does QBS control costs or save

money? money? (design is only about 1% of total life cycle cost, yet has a (design is only about 1% of total life cycle cost, yet has a significant impact on the lifetime cost)significant impact on the lifetime cost)

The federal government still requires The federal government still requires price!price!

How do you know what is “fair and How do you know what is “fair and reasonable”?reasonable”?

How do you select firms?How do you select firms?

Can any agency handle a QBS process?Can any agency handle a QBS process?

Reality:Reality: No two firms are alikeNo two firms are alike Size and service linesSize and service lines

Different individualsDifferent individuals

Track Record/”Experience”Track Record/”Experience”

Policies & ProceduresPolicies & Procedures

RelationshipsRelationships

Staff specialties, education, experience, Staff specialties, education, experience, attitudes & beliefs, personality.attitudes & beliefs, personality.

Scope of Services:Scope of Services: Very difficult to establish complete and accurate Very difficult to establish complete and accurate

version for RFPversion for RFP

Input of selected professional is important and can Input of selected professional is important and can make substantial impact on level of effort, level of make substantial impact on level of effort, level of detail, overall cost, project successdetail, overall cost, project success

““Buy-in” of selected professionalBuy-in” of selected professional

Key element of design is creativity of selected Key element of design is creativity of selected professional and tapping their reservoir of experiencesprofessional and tapping their reservoir of experiences

Legal Basis for Use:Legal Basis for Use:Federal Enabling LegislationFederal Enabling Legislation

See Public Law 92-582, The Brooks Act See Public Law 92-582, The Brooks Act (passed 1972) – see thumb drive(passed 1972) – see thumb drive

Requires Qualifications Based Selection Requires Qualifications Based Selection (QBS) of Design Professionals for all federal (QBS) of Design Professionals for all federal agencies.agencies.

Scope of the Brooks Act

In the Brooks Act, not only are engineers and

architects specifically named, but so are

construction managers, surveyors, mappers,

geotechnical engineers, and generally all

professionals associated with the construction

of facilities for the federal government.

Colorado Enabling LegislationColorado Enabling Legislation

See also Section 24-30-1401 to 1408, See also Section 24-30-1401 to 1408, CRS (1988 & 1991) – see thumb driveCRS (1988 & 1991) – see thumb drive

Commonly referred to as “Mini-Brooks” Commonly referred to as “Mini-Brooks” or “Part 14”or “Part 14”

Legislative Intent for CO Act24-30-1401. Legislative declaration.PART 14 NEGOTIATION OF CONSULTANTS' CONTRACTS

“The purpose of this part 14 is to provide managerial control by the state over competitive negotiations for the acquisition of the professional services provided by architects, industrial hygienists, engineers, landscape architects, and land surveyors. It is hereby declared to be the policy of this state to publicly announce requirements for such professional services, to encourage all qualified persons to put themselves in a position to be considered for a contract, and to negotiate contracts for such professional services on the basis of demonstrated competence and qualification for the types of professional services required and on the basis of the furnishing of such professional services at fair and reasonable fees.”

Reasons for using QBSReasons for using QBS Better quality projects, long term savingsBetter quality projects, long term savings

Design and built on timeDesign and built on time

Built under budgetBuilt under budget

Reduces claims and change ordersReduces claims and change orders

Safeguards public InterestSafeguards public Interest

Pride in what team accomplishesPride in what team accomplishes

Promotes communication & technical Promotes communication & technical innovationsinnovations

Independent StudyIndependent Study Study by ACEC, CU, and Georgia Inst. Of Study by ACEC, CU, and Georgia Inst. Of

Technology in 2008 indicates the use of QBS Technology in 2008 indicates the use of QBS results in…results in… lower overall construction costs,lower overall construction costs, reduced change orders (down to 3% from 10%),reduced change orders (down to 3% from 10%), Fewer schedule delays (down to 3% from 9%),Fewer schedule delays (down to 3% from 9%), better project results, andbetter project results, and more highly satisfied ownersmore highly satisfied owners

93% of owners rated QBS projects as having a high to very

high success rate

Recent Review of State Programs

Reported that 46 states have adopted a “mini-Brooks” act for state agencies

Virtually all state DOT’s and Environmental agencies use QBS to comply with federal regulations

Texas has adopted an ethical prohibition

Wide range of laws and regulations within states

Resources QBS Georgia web site – Georgia Construction Manual QBS Maryland web site – National survey of QBS

laws and regulations QBS/ACEC South Dakota web site – nice white paper

on QBS ASCE – Manual 45 – guidance on selection of

consulting engineers ABA web site – Model Procurement Code APWA Red Book Others? QBS Colorado Web Site

QUESTIONS?QUESTIONS?

Fountain UtilitiesFountain UtilitiesQBS ApplicationsQBS Applications

APA MeetingAPA Meeting

October 5, 2012October 5, 2012

What is Fountain What is Fountain Utilities?Utilities?

Electric Utility serving Fountain, Widefield Electric Utility serving Fountain, Widefield and Security ~ 16,000 Customers – and Security ~ 16,000 Customers – Population 44,000Population 44,000

Water Utility serving Fountain ~ 7,200 Water Utility serving Fountain ~ 7,200 Customers – Population 20,800 Customers – Population 20,800

2012 Budget for both Utilities = $41 Million2012 Budget for both Utilities = $41 Million No Purchasing AgentNo Purchasing Agent Most Capital Project Design Tasked to Most Capital Project Design Tasked to

ConsultantsConsultants City Procurement Policy recognizes QBSCity Procurement Policy recognizes QBS 2009 QBS-Colorado Award2009 QBS-Colorado Award

Fountain QBS Fountain QBS

HISTORYHISTORY Water Engineering QBS Solicitation in Water Engineering QBS Solicitation in

2007 Yielded 6 Firms2007 Yielded 6 Firms 2009 Solicitation for Land Surveying, 2009 Solicitation for Land Surveying,

GeoTech Engineering and Design GeoTech Engineering and Design Engineering ConsultantsEngineering Consultants

2008 Customer Service Center Project 2008 Customer Service Center Project used QBS for Architect Procurementused QBS for Architect Procurement

2007 Engineering Solicitation2007 Engineering Solicitation

Six Firms Responded, all were Six Firms Responded, all were assigned Projectsassigned Projects

Merrick, JPS, JDS Hydro, OWA, Merrick, JPS, JDS Hydro, OWA, ADP and Drexel Barell all ADP and Drexel Barell all completed Projects according to completed Projects according to their Competenciestheir Competencies

2009 Engineering, Surveying & 2009 Engineering, Surveying & GeoTech SolicitationGeoTech Solicitation

Water Engineering QBS Water Engineering QBS Solicitation in 2009 had 26 Firms Solicitation in 2009 had 26 Firms submit SOQ’ssubmit SOQ’s

10 Chosen, 8 have Projects 10 Chosen, 8 have Projects AssignedAssigned

2009 Land Surveying had 13 2009 Land Surveying had 13 FirmsFirms

2009 GeoTech Engineering had 2009 GeoTech Engineering had 12 Firms12 Firms

2008 Architectural Solicitation2008 Architectural Solicitation

13 Firms responded to a 13 Firms responded to a Solicitation for Remodeling an Solicitation for Remodeling an Existing Building for Customer Existing Building for Customer Service CenterService Center

Choice Criteria reflected the Choice Criteria reflected the Scope for the Project - Scope for the Project - – LEEDLEEDTMTM Experience Experience– Renovation ExperienceRenovation Experience– Municipal Building ExperienceMunicipal Building Experience

101 North Main Street Building RenovationQualifications Submittal Format: Original and 3 Copies (marked as such) 30 Pages Maximum Basic Information (Name, Address, etc.) Workload References Project Outline (One Page) Subconsultants Listing Sealed Contract Fee and Expenses Statement

101 North Main Street Building RenovationBasic Qualifications: Renovation Experience – 20% References – 15% Capacity to Perform Project – 5% Project Approach – 10% Historic Renovation Experience – 5% Financial Building Experience – 5% Municipal Building Experience – 5% Asbestos & Haz/Tox Mitigation – 5% Roofing Experience – 10% MEP/FP Experience – 15% LEEDTM as Architect of Record – 5%

101 North Main Street Building Renovation“Extra Credit” Qualifications: LEEDTM Accredited Professional (On Staff) + 1% CEM (On Staff) + 2% GBE (On Staff) + 4% CVS, AVS or VMP (On Staff) +1% Commissioning Experience + 5% Documented Results in Savings +10% Accept Performance-Based Contract + 2%

101 North Main Street Building RenovationResults: 26 Firms attended the Mandatory Pre-

Submittal Meeting 12 Firms submitted SOQ’s H B & A Chosen (Colorado Springs

Architectural Firm) Project Bid in 2011 Phase 1 (Exterior) Construction in 2012 Phase 2 (Interior) Construction in 2013

QUESTIONS ?