pre award phase

Performance Based Studies Research Group

Pre Award PhasePre Award Phase

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Best Value SystemBest Value System

Identification of PotentialBest-Value

Pre Planningand

Risk Management

Measurement ofDeviation from the

Expectation

PHASE 1PHASE 1 PHASE 2PHASE 2 PHASE 3PHASE 3

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Expectations of a Expectations of a Best Value ContractBest Value Contract All efforts are first planned, and then operations are executed. All efforts

are well documented with actual performance measured against the original plan.

Risk and control transferred to the vendor. Risk are planned for before they occur, focusing on risk that is not controllable.

A measured environment, using dominant performance and risk information to optimize the level of service and show value

Accountable client and an accountable service provider

Transparent, simple, and clear

Minimum transactions

3

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Pre Award PeriodPre Award PeriodWhat is it / Why is it importantWhat is it / Why is it important

Period of time allotted to potential best value vendor (aka the Expert) to:

Present their project/service plan

Set a plan for its delivery / 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

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Know how they are being successful and adding value (measurement) What metrics you will use and how you will report them What is the current baseline condition we are comparing against

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

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Coordinate the schedule: client, sub-vendors, consultants, suppliers, designer, etc. etc. etc.

Set up and initiate using the Weekly Risk Report (WRR)

Write the contract in terms of performance information

Get contract signed


What Happens During the What Happens During the Pre Award PhasePre Award Phase Education (video, vendor and PBSRG, client and PBSRG)

Vendor present Draft Plan at the Kickoff meeting (what you proposed based upon), and also addresses any key client concerns, big ticket items, deal breakers, etc.

Set Pre-Award Period Schedule

Initiate the Weekly Risk Report IMMEDIATELY

Work with client to finalize details and set expectations/responsibilities Coordinate the project / transition schedule, complete RMP, etc.

Finalize the financials and contract

Set the baseline / benchmark metrics / performance measurement reporting

Hold the Final Summary Meeting

Sign the contract

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Filter 1Past

PerformanceInformation

Filter 2Current

Capability

Filter 4Prioritization

(Identify Best Value)

Filter 5Cost

Reasonableness

Filter 6Pre-

Planning & Risk Min

Time

Qua

lity

of V

endo

rs

Filter 3Interview

Key Personnel

Awar

d

High

Low

BV ProcessBV Process

Measurement of Risk & Performance During the Contract

No

n-D

etai

led

No

n-D

etai

led

No

n-D

etai

led

No

n-D

etai

led

Det

aile

d

No

n-D

etai

led

Clarification, but No Negotiation


Buyer Controls Vendor Through Contract

Traditional Risk Model

Vendor BuyerContract


Vendor Manages/Minimizes Risk With Contract- Contract is predictive

Best Value Risk Model

Vendor BuyerContract


Pre Award PeriodSta

rt

Very High Level

Cost Verification

Included in Proposal

Excluded from Proposal

Major Assumptions

Major Client Risks/Concerns

High Level

Project Work Plan

Client Risks/Concerns

PA Schedule

Uncontrollable Risks

Response to all risks

Roles and Responsibilities

Value Added Ideas

Coordination

Review Functionality

Mid Level

Performance Reports / Metrics

Additional Documentation

Technical Details

Project Schedule

High level demos

PA Document

End

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Pre Award DocumentPre Award Document(Risk Management Plan)(Risk Management Plan) The PA Document should contain the following:

1. Scope Clear and Detailed Project Scope (what is and what is not included) – Set

Baseline Expectation2. Risks

A list of Risks vendor does not control with plans to minimize Identified Risks List

A list of all client/user risks with plans to minimize & all vendor’s risks

3. Milestone schedule4. Coordination5. Client Action Item List6. Weekly Risk Report 7. Performance Metrics8. Fee9. Other: Agreed to Value Adding Options, Original Plans, Interview Minutes,

etc…

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Note to Vendor and Client -Note to Vendor and Client -Do Not Work in a Vacuum!!!!! Do Not Work in a Vacuum!!!!!

The Pre Award period is a time for the client and Vendor to interact Maximize effort BEFORE the event begins

The Vendor should not work in a vacuum There should be regular meetings between vendor and client (weekly) An Outcome of first meeting: PA Period Meeting Schedule Agreed to

Vendor should come prepared with a proposed schedule that will be coordinated

Complete honesty

Optimize within client constraints

Vendor should be the leader/driver

All critical parties/groups should be coordinated with

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1. Scope1. Scope Projects need to have clear scope at the start of the service

Everything within the expectation/budget Minimize/Eliminate Client/User Scope Changes

Detailed Scope Scope identifies what is included and what is not included to meet the

client’s intent Conservative is best

If risks exists between scope and client intent they must be identified Resolve alignment and expectations before signing the contract Identify path to identifying unknowns during contract

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2. Financials2. Financials Cost clarified if needed – NO NEGOTIATION!!!!!!!

Clear and simple movement of money identified

Linked to performance metrics/expectations (set by vendor)

Model can have “scenarios” for various outcomes

Model can be adjusted based upon value adding options Risk Plans Additional risk elimination actions

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3. Milestone Schedule3. Milestone Schedule Project schedule that can be worked from

Simple to read Simple to use

Intent: Minimize Risk = Help All Parties be more efficient and accountable

Contents Major Activities, Deliverables, and Milestones (linked to metrics) Client Action Items clearly identified (e.g. red) Risky areas / decision points clearly identified (e.g. green)

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4. Identified Risks Lists4. Identified Risks Lists List of Risks that have been previously identified

All other bidders’ risks All client technical concerns, risk, issues, and bugaboos All user concerns, risk, issues, etc.

Same format as for Uncontrolled Risks List Risk Solution/Plan to Minimize Action if Risk Occurs Impact is Risk Occurs

If a risk is not a risk, just say why it is not a risk…

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4. Uncontrolled Risks List4. Uncontrolled Risks List List of Risk Vendor does not control

From RAVA and any place else

Example Format Risk #1: Description of risk (or why it is a risk)

Solution: Provide your solution. Because this document is not constrained by a page limit, it is acceptable to add more detail to your previous solution provided in your RAVA plan. Make sure it is identified at what point you have done everything reasonably possible. Identify the impact if the risk still exists after you have done everything reasonably possible.

Step 1: Step 2: Step 3: Step 4: Step 5: Etc.

Action If Risk Occurs: Similar to above, but a list of action items once risk occurs

Expected Impact if Risk Occurs: For example, “If we have done the above X steps and the risk still exists, there will be an impact to the …budget…schedule…of $XX.XX…XX days.”

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5. Client Action Item List5. Client Action Item List Client Action Item List

List of all actions/tasks that the vendor requires from the client Each Action Item will have a:

Activity Person Accountable in the Client organization Agreed to Due Date


ExampleExample

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6. Weekly Risk Reports6. Weekly Risk ReportsWhat is it / Why is it importantWhat is it / Why is it important

What is it: Excel Spreadsheet that tracks unforeseen risks on a service

Why is it important: Allows vendors to document unresolved client issues Allows vendors the ability to show they can manage a service through

risk minimization Allows vendors to document all client decisions Provides PM a weekly/monthly analysis of all services Will be used to monitor the progress and performance of the entire client

organization (this isn’t just for a specific contractor or a specific service...there is a bigger picture)

How much effort: Minimal (less than 5-15 minutes), unless contractor did not preplan, or

client making decisions

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Weekly Reporting System (Sample)Weekly Reporting System (Sample)

Excel Spreadsheet that tracks unforeseen risks on a service

The client will setup and send to vendor once Award/NTP issued

Vendor must submit the report every week (Friday).

The final service rating will be impacted by the accuracy and timely submittal of the WRS

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6. Weekly Risk Report6. Weekly Risk Report

We will be starting a weekly risk report for the pre-award period

Contents: Contact Info Pre-Award Schedule Risks/Issue Tracking

PBSRG can provide specific detailed education individually with the vendor

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7. Performance Metrics7. Performance Metrics

Performance Metrics Metrics established Baseline numbers (starting point) of current performance Reporting period Linked to project plan (milestones) Linked to project schedule Possibly financial model (adjustments)

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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• Risk• Unforeseen Risks

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

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8. Other8. Other All other items of importance

Including Value Adding Options agreed to Original Plans Interview Minutes Any specifications Any other pertinent information

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Pre Award Final Pre Award Final Summary MeetingSummary 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 Final Meeting is to summarize all of the coordination that has been complete and walk through the PA Document/RMP

Upon successful completion of the PA Final Meeting, the client will make the award

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Filter 1Past


Filter 2Current

Capability



Filter 5Cost

Reasonableness &Dominance Check

Filter 6Pre-

Planning & Risk Min

Time

Qua

lity

of V

endo

rs

Filter 3Interview

Key Personnel

Awar

d

High

Low

BV Process - AwardBV Process - Award


W W W . P B S R G . C O M 29

Filter 1Past


Filter 2Current

Capability



Filter 5Cost

Reasonableness &Dominance Check

Filter 6Pre-

Planning & Risk Min

Time

Qua

lity

of V

endo

rs

Filter 3Interview

Key Personnel

Awar

d

High

Low


Post Project RatingPost Project Rating

Updating of PPI

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Final RatingFinal Rating After the project is complete, the client will evaluate the project.

The Final Rating will be heavily impacted by: Performance Owner surprises Complaints Ability to submit accurate and timely weekly reports

In Best-Value Procurement, the vendors goal is to get a high rating in order to stay competitive.


Unique to this ProjectUnique to this Project You have a highly successful incumbent vendor, and a satisfied customer

We are trying to move to a best value environment, where the vendor is the project lead, has complete accountability, and risk is measured.

Challenges will not be in transitioning, setting up procedures, QC/QA, etc.

Challenges will be managing the contract via risk, focusing on what needs to be improved, implementing changes, client trying to not direct and manage the service, the vendor not asking “what would you like us to do”

31

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Immediate Action ItemsImmediate Action Items Prep for Kick Off Meeting & Conduct the Kickoff Meeting

Draft Plan (focus on differences from current service) Address any Critical Client Concerns or clarification needs Pre-Award meeting schedule Initiate Pre-Award Period Weekly Risk Reporting

Recommended to Hold a weekly phone call Review schedule Review issues/risks This carries forward into the project

Risk Minimization - Lists of risks/concerns/issues from the client, users, etc.

Begin Pre-Award and RMP development – will become functional pieces of contract


Best Value Vendor CharacteristicsBest Value Vendor Characteristics

Preplans and Minimizes Risk on Each Initiative Has a plan and knows the risks to the plan Is transparent Communicates clearly Asks good questions, knows what they don’t know

Measures Performance and drives accountability

Uses Dominant Information to Differentiate themselves/show value added

Educates the Client and helps the client be a better client

Educates themselves and has a continually enhanced vision Holds themselves and the client accountable Their plan is aligned so that when they win, the client automatically wins

33


Best Value Client CharacteristicsBest Value Client Characteristics

Ensures their needs and concerns are known by the vendor Ensures the vendor has a plan that addresses each need/concern/risk Is a facilitator to the vendors development of the plan(s) Enforces the best value structure

Weekly risk reporting is being done Each risk is given a client satisfaction rating Measurements by vendor are being done Do not be pulled into making decisions you do not need to make

Educates themselves and the vendor Avoids reversion to previous practices Transfers risk and control

Holds the vendor and themselves accountable Ensures the plan is aligned so they win and the vendor wins

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Comments / QuestionsComments / Questions


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Uncontrollable Risk 1Uncontrollable Risk 1 The client has agreed to move storage boxes prior to the NTP. The

boxes are blocking the wall where we will install the new electrical equipment. If the material is not moved we will not be able to install the equipment. If material is not moved we will perform the following:

1. Immediately notify the client and track in our weekly report. We will mobilize and perform other functions. However, if material is not moved by 2nd week, this will cause delays.

2. If the client cannot get the material moved, we can move the material into another room (on the same floor) at no additional cost or time delay. The client will have to move the material back.

3. Or, we can rent a storage container for the duration of the project and move the material into storage and back into the room after completion. This will cost $1,500 and add 1 week to our schedule.

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Uncontrollable Risk 2Uncontrollable Risk 2 One of the biggest risk on this service is falling debris from the roof deck onto

personnel or equipment below the deck. On this service, the personnel and equipment are protected since there is a dropped ceiling beneath the deck. The PM (client) has assured us that these tiles have been installed properly and we have randomly spot checked areas to determine that they will perform. However, if for some reason the ceiling tile fails, we will perform the following:

Immediately stop all work and determine the extent of damage Identify if work can proceed as is, or if additional protection is needed We can modify our schedule to work off-hours to protect falling debris

from hitting personnel, but this will not protect equipment. There will be no impact to cost or time if we have to work off-hours.

We can purchase large tarps (100’x100’) and place them beneath the ceiling tiles. This will protect both personnel and equipment. These special tarps will cost an additional $5K and will take an additional 2 weeks to setup and move.

Identify any actions required from the client

pre award phase

Documents