Agenda Overview

2. 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

3. 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 ?

4. Think Again...

5. 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

6. 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%

7. 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

8. Top 4 Non-Technical Contributors Percentage of Claims Affected

9. Communication Issues

10. Project Team Issues

11. 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

13. 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

14. 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.

15. Information Required Prior to Advertisement • Project Description • Expected Use and Users • Schedule • Funding Plan • Special Performance Requirements • Project Implementation Plan

16. Check your local CODE! • Require QBS? • Allow QBS? • Date last revised?

17. 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

18. 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

19. 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

20. 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

21. 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

23. 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

24. Development of Shortlist • How many should be included? • Use standard reference checking form

25. 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?

26. Notification of Firms on the Shortlist • Notifying firms – all or just short listed? • In writing or by email or telephone?

27. 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

28. 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).

29. 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…

30. 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.

31. 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…”

32. 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

33. 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

34. 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.

35. 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

36. 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!