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 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 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

13%16%

24%27%

0%

5%

10%

15%

20%

25%

30%

Negotiation /Contracts

Client Selection Project TeamCapabilities

Communication

Percentage of Claims Affected

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

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

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

Today’s 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 firm’s

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:________________ 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).

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 Don’t 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-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

That’s 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!