Pre Award Phase

1. Pre Award Phase John Savicky Arizona State University May 2013

2. PHASE 1 PHASE 2 PHASE 3 Identification of Potential Best-Value Pre Planning and Quality Control Award | Measurement & Documentation PIPS Best-Value Process

3. It Is More Important For The Proposer To Know What To Do Than It Is For Client To Know What The Proposer Should Do…. 3

4. …But We Must Make Sure That The Proposer Has Laid Out Their Plan!!! 4

5. Note: Phase 2 is Most Critical PHASE 1 PHASE 2 PHASE 3 Identification of Potential Best-Value Pre Planning and Quality Control Award | Measurement & Documentation Proposers Are Experts Verify EVERYTHING!!! 5

6. PIPS Best-Value Process PHASE 1 PHASE 2 PHASE 3 Identification of Potential Best-Value Pre Planning and Quality Control Award | Measurement & Documentation AWARD 6

7. What is the Pre Award Period?(Proactive vs Reactive) Minimize All Surprises!!!

8. What Could Cause a Surprise • Delivering something that doesn’t work • Delivering something that isn’t what the client needed or expected • Requiring the client to do something (that they did not know they had to do) • Requiring things from the client that they cannot provide • Expecting that something will happen as planned • Assuming that things are clear and understandable • Assuming that things will be done as planned • Changes that add more cost • Changes that add more time

9. How Can We Minimize Surprises • Carefully preplan the project in detail • Coordinate the project/service with all critical parties • Prepare a detailed project plan (work plan, staffing, implementation, etc) • Revisit the sites to do any additional investigating • Prepare a detailed project schedule identifying critical milestones • Cost Verification • Detailed cost breakdown • Identify why the cost proposal may be significantly different from competitors • Review big-ticket items • Value added options

10. How Can We Minimize Surprises • Align expectations • Identify any potential deal breakers • Clearly identify what is included and excluded in the proposal • Review selected functional and technical requirements with Client • Review interview statements • Client roles and responsibilities • Any contract terms and conditions • Identify and Mitigate All Risks • Client concerns/risks • Other proposers risks • Previous project risks

11. How Can We Minimize Surprises • Identify all assumptions • Prepare a list of all proposal assumptions (with associated impacts) • Identify all uncontrollable risks • Prepare a list of risks that the Proposer does not control • Identify how the vendor will track and document their performance • Performance metrics • Weekly risk reports

12. End Start Time End Start Time Experts vs Non-Experts

13. Guide Us / Help Us See & Understand

14. If the proposer Can’t or Has a Difficult Time…

15. Words of Visdom “If you can't explain it simply, you don't understand it well enough!” “Simple can be harder to achieve than complex!”

16. Pre Award Document • Financial Summary (financial details, how funding will work, etc) • Complete Project Schedule (a coordinated schedule showing major milestones, risky activities, client actions, client action item list, etc) • Project Risks/Concerns (all controllable risks/concerns, all non-controllable risks, and solutions) • Assumptions (all project assumptions with associated impacts, identify what you need from the client and have a plan for obtaining it, roles and responsibilities of the client, etc) • Performance Metrics (how the vendor will monitor performance, document success, metrics used, frequency, baseline for comparison, how will it assist the client, etc) • Scope of Work (plan of action, detailed work plan, how technical requirements will be met, baseline expectations, implementation plan, transitional plan, data migration plan, staffing plan, communication plan, training plan, organization change plan, what’s included, excluded, etc) • Contract (language, terms and conditions, etc)

17. Must Prepare & Preplan Before You Propose!!! PHASE 1 PHASE 2 PHASE 3 Identification of Potential Best-Value Pre Planning and Quality Control Award | Measurement & Documentation 17

18. PHASE 1 PHASE 2 PHASE 3 Identification of Potential Best-Value Pre Planning and Quality Control Award | Measurement & Documentation PIPS Best-Value Process AWARD

19. How This Works

20. First Step • Review the data and identify if there are any issues/concerns that must be addressed ASAP • Review your notes (RA Plan, VA Plan, Proposal, Demo, Interview). • Identify any major risks/concerns. • Identify any significant/dominant statements that must be clarified • Use common sense / be logical

21. If There Are No Deal Breakers… Start Finish Very High Level Clarify Proposal Major Client Risks/Concerns Big Ticket Items/Deal Breakers Verify Cost / Financial Info Included in Proposal Excluded from Proposal Assumptions Cost/Schedule Analysis Pre Award Schedule High Level Client Risks/Concerns Uncontrollable Risks Response to All Risks/Concerns Roles and Responsibilities Value Added Ideas Coordination / Pre Plan Review Tech requirements Align Expectations Revisit the site Compensation Model Benefits Projections Mid Level Detailed Demos End Client Site Visits Technical Details Performance Reports/Documentation Project Documents / Deliverables Fully Resource Loaded Work Plan Review Interview Statements Project Plan (staffing, communication, training, Implementation, organization change, business requirements) Project Schedule Contract

22. If There Are Deal Breakers… Start Finish Very High Level Clarify Proposal Major Client Risks/Concerns Big Ticket Items/Deal Breakers Verify Cost / Financial Info Included in Proposal Excluded from Proposal Assumptions Cost/Schedule Analysis Pre Award Schedule High Level Client Risks/Concerns Uncontrollable Risks Response to All Risks/Concerns Roles and Responsibilities Value Added Ideas Coordination / Pre Plan Review Tech requirements Align Expectations Revisit the site Compensation Model Benefits Projections Mid Level Detailed Demos End Client Site Visits Technical Details Performance Reports/Documentation Project Documents / Deliverables Fully Resource Loaded Work Plan Review Interview Statements Project Plan (staffing, communication, training, Implementation, organization change, business requirements) Project Schedule Contract STOP

23. Focus On The Major Things First • Purchasing Uniforms for Troops • Durability - How long the material will last? • Location of where material is made? • How many pockets the uniform has? • The ability of the uniform to be warm/cold? • Purchasing a new SUV • How many full-size people can fit? • The MPG or capacity of the gas tank? • The type of safety equipment? • The type of headlights we getting? • Darkness of the tint? 23

24. Example 1 Restroom Renovation

25. Example 2 Building Renovation • Average Bid Cost (8 firms) = $540,000 • Average Project Duration (8 firms) = 115 days 25

26. Example 3 – Hospital Roof

27. Example 4 – Software Project

28. What Is Clients Role During Pre-Award??? 28

29. To Enforce the Best-Value Structure and Facilitate the Proposer 29

30. Must Enforce BV Structure • Proposer is accustom to traditional thinking “Customer is always right” • Make them realize that this is not a traditional procurement • Don’t tell them what to do • Don’t tell them what you think the best option is • Minimize your decisions • Require the proposer to tell you the best option and why • Provide the proposer with your needs, concerns, and risks • Require the proposer to be very simple and logical with their solutions and recommendations • Require the proposer to make all the decisions • Make them understand that they are responsible and accountable • You are the facilitators 30

31. What Should You Expect? Do they have a plan? Does their plan address cost, time, and deliverables Is it logical / Does it make sense? (VA Plan example) Is it simple and understandable? Do they know how they will measure their success? Are they being accountable (are you being accountable)? 31

32. Impact of Pre-Award(General Services Administration) • For within BV projects, also tested “<1 week” PA vs “>1 week” PA • Longer PA had 33% lower change order rate (73% reduce overall) • Longer PA had 69% lower delay rate (73% reduce overall)

33. Lessons Learned • Pre Award period takes additional time during procurement (typically takes 2-4 weeks on small projects | 4-6 weeks on complex projects) • Most clients are in a rush to make the award ASAP • Don’t allow adequate time • Don’t get all the critical information • Allow proposer to provide information after award • Proposer sees the pre-award as just another step before they get the award (they are still focused on trying to ‘get’ the award instead of laying out their plan). • Pre Award Period is not easy for IT proposers to perform • Pre Award maybe the first time the proposer is actually looking at your project in detail

34. Lessons Learned Proposers are more concerned with telling you what you want to hear (customer is always right) rather than being honest. Proposers have a difficult time describing things in a simple/dominant manner It is very easy to revert back to the traditional thinking/relationship. The client must enforce the structure so that the proposer acts as a true expert. Research has shown that the more time you invest during the Pre Award, cost increases and schedule delays are both reduced significantly LL – Take your time. This will payoff in the end 34

35. Comments / Questions W WW . P B S R G . C O M