The Importance of the Qualifications Based Selection (QBS) Process

1. The Importance of the Qualifications Based Selection (QBS) Process Kodi Jean Church, P.E., Esq., F.NSPE Vice President National Society of Professional Engineers

2. What is Qualification-Based Selection (QBS)? • Process by which engineering and architectural firms are selected based on their qualifications, rather than price • The procuring agency reviews the qualifications submitted by interested individuals and firms, ranks respondents, and then negotiates with the most qualified firm for a mutually agreeable contract • First established on a national level by 1972 Brooks Act, which requires federal agencies to use a QBS process when procuring design services

3. QBS Process • Selection of most qualified firm • Defined scope of services • Fee and contract negotiations

4. How do you determine who is most qualified? • Training • Expertise • References • Experience • Availability

5. Why Use QBS • If you needed an organ transplant, would you choose the cheapest doctor???

6. Why use QBS ?(cont.) • QBS ensures that projects are designed in a manner that is safe, innovative, environmentally sound, and cost-effective to construct and maintain over the life cycle of the facility

7. Why use QBS? (cont.) • QBS allows for life-cycle costs, such as construction, operations, and maintenance to be factored into project design

8. Why use QBS? (cont.) • QBS projects are designed by the most qualified firm versus the low bidder • QBS interviews allow agencies meaningful interaction with the design team • QBS negotiations provide for mutual scope definition

9. Why use QBS? (cont.) • QBS allows for the quality the owner wants at the price he is willing to pay • QBS creates mutual understanding of the services needed

10. Why use QBS? (cont.) • QBS promotes communication and technical innovation, as owners have the opportunity to fully define the project during the selection and negotiation process • QBS process results in a project that is fully thought-through, and fosters innovative, creative, cost-saving and timesaving approaches

11. Why use QBS? (cont.) • QBS increases the likelihood that the procuring agency will select the most qualified firm because respondents are required to submit information on their qualifications for the proposed project

12. Tangible Advantages for QBS • American Council of Engineering Companies study (see January 18, 2010 Engineering News Record): • University conducted study of 41 projects • Owner rated project success rates “high” or “very high” in 93% of cases using QBS • QBS projects lowered project change order rates from 10% to 3% • QBS projects lowered schedule growth from 8.7% to 3%

13. QBS Beneficial in NM? • You Bet! • Applicable Law - Procurement for professional services in New Mexico is guided by New Mexico Procurement Code (Section 13-1-120). The Procurement Code authorizes agencies to conduct multiple step procurement for Request for Proposals (RFP)-based procurements. This means that the agency can review the proposals submitted and select finalist(s) based on qualifications.

14. What is the law in NM? • In addition, pursuant to Chapter 81, Laws of 2006, any prospective contractor (engineer or architect) seeking to enter into a contract with any state agency or local public body must file a Campaign Contribution Disclosure Form with that state agency or local public body. This form must be filed by the prospective contractor with their response to the request for proposals. The prospective contractor must disclose whether they, a family member, or a representative of the prospective contractor has made a campaign contribution to an applicable public official of the state or a local public body during the two years prior to the date on which the contractor submits a proposal.

15. What is the law in NM? (cont.) • The QBS ProcessBy utilizing QBS, professional service firms are weighed first on competence, creativity, and performance and second on negotiation of a fair and reasonable fee. The process begins with the owner establishing evaluation criteria and soliciting statements of qualifications from professional service firms. The owner reviews these statements on the basis of qualifications, experience, reputation, current workload, and any other project specific factors.

16. What is the law in NM? (cont.) • The QBS ProcessThe owner then selects the three to five most qualified firms to make brief presentations explaining their unique approach to the project. On the basis of these presentations, the owner ranks the most qualified firms numerically in order of preference. The owner and the top-ranked firm then negotiate a scope of services, which specifies the full range of services the firm will provide, the personnel it will commit to the project, and the schedule describing when the work is to be completed.

17. What is the law in NM? (cont.) • The QBS ProcessWhen an agreement is reached on the scope of work, the owner and professional proceed to negotiate a fee that is fair and reasonable to both parties. If an agreement on compensation is reached, a contract is consummated. If an agreement cannot be reached, negotiations with the top ranked firm are terminated, and the owner attempts to negotiate a contract with the second ranked firm. The process can be repeated as necessary until the contract is negotiated.

18. What is the law in NM? (cont.) Additional Benefits of Using QBS • Saves the owner time and money through an organized approach that gets the engineer on board early enough to improve project planning. By using their expertise and professional knowledge, the engineer is better able serve the owner to achieve project goals and to maximize budget dollars. • Helps engineering firms respond better to the owner’s needs because they know how to better prepare and plan for interviews based on a uniform set of criteria and information shared with all firms. • Encourages the development of a productive partnership and team effort between the public owner and the selected engineer, thus fostering improved communication. • Promotes improved project quality by ensuring that both the client and engineer clearly understand the scope of work required.

19. How do you determine who is most qualified? • Training • Expertise • References • Experience • Availability

20. QBS is Used • At the federal level • By 47 states

21. Position of NSPE • The National Society of Professional Engineers (NSPE) Supports QBS Process

22. Position of NSPE (cont.) • “NSPE believes qualified engineers, on the basis of design ability, experience, and integrity should perform all engineering services. NSPE supports the procurement of design professional services on the basis of qualifications and strongly supports Public Law 92-582 (the Brooks A/E Act of 1972) which requires federal agencies to use qualifications based selection procedures when obtaining design professional services.

23. Position of NSPE (cont.) • NSPE also supports the adoption of “mini-Brooks” laws at the state and local level. NSPE coordinates its activities in support of qualifications based selection with the Council of Federal Procurement and Architectural and Engineering Services, a coalition of five professional organizations.”

24. Who Endorses QBS? • The American Public Works Association • The American Bar Association in their Model Procurement Code • The American Institute of Architects • The National Society of Professional Engineers • The American Council of Engineering Companies (ACEC) • Numerous Engineering Technical Societies such as the American Society of Civil Engineers

25. Typical QBS Process • Short-list • Interview • Scope of Services • Contract negotiation

26. Questions?