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CE 558 Transportation Systems Development and Management Lab.

CE 558 Transportation Systems Development and Management Lab. AKA: A simulation of the delivery of professional services to local governments. Disclaimer.

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CE 558 Transportation Systems Development and Management Lab.

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  1. CE 558 Transportation Systems Development and Management Lab. AKA: A simulation of the delivery of professional services to local governments

  2. Disclaimer THIS IS ONLY A STUDENT PROJECT. ALL RECOMMENDATION AND GUIDANCE PROVIDE THROUGH THIS CLASS IS ONLY ADVISORY AND ADVISE FROM A LICENSED PROFESSSIONAL SHOULD BE SOUGHT BEFORE TAKING ANY ACTIONS.

  3. Subject City – Perry, Iowa

  4. Local Map

  5. Perry Facts - Demographics • Population (year 2000): 7,633, • Est. population in July 2004: 8,642 (+13.2% change) • Iowa Population grew during the same period by < 1%Males: 3,777 (49.5%), Females: 3,856 (50.5%) • Races in Perry: • White Non-Hispanic (72.9%) • Hispanic (24.5%) • Other race (13.2%) • Two or more races (1.7%) • Black (1.1%) • American Indian (0.6%) • Races in Des Moines • White Non-Hispanic (79.6%) • Black (8.1%) • Hispanic (6.6%) • Other race (3.5%) • Two or more races (2.2%) • Other Asian (1.6%) • Vietnamese (1.1%) • American Indian (0.8%)

  6. Class Steps • Meet with City to identify issues • Divide into teams and pick a team leader • Develop and deliver a proposal • Develop and deliver an interview • Conduct work • Prepare weekly progress reports • Prepare team report • Prepare class report • Deliver findings to city council

  7. Proposal preparation • Your understanding of the problem or issue • Background information • Scope and tasks • Project management • Team member qualification • Similar projects • Schedule • Budget

  8. Methods for Selecting a Professional Service

  9. Selection of Firms For Professional Services - Solicitation • Solicitation for a single project • Wide-open Request for Proposals • Unlimited List of Pre-qualified list of Firms • Limited List of Qualified Firms – usually with limited competitive requirements • Indefinite delivery, indefinite quantity contracts

  10. Selection of Firms For Professional Services – Selection Criteria • Qualification Based Selection (QBS) • Two Envelope Approach • Post selection negotiation • Best Value – scoring that includes price • Screened based on Qualification and low price

  11. Selection of Firms For Professional Services – Process • Agency lets professional firms know that they need professional service • Request for Proposal • Request for Qualification • Request for Notification of Interest • Agency Score and Ranks Proposal/Qualifications • Makes a selection • Interview most qualified

  12. Indefinite quantity contracts • Usually smaller projects where a competitive solicitation would be inefficient • Selection • Limited competition proposals • Limited competition interviews • Rotation mixed with qualifications and project attributes • Rotation mixed with capacity to do work

  13. Problems with this process • Large investment for proposers • Cost inefficiencies • Large investment for agencies • For non-routine project, it may be difficult to price • Repetitive interrogation of public officials by consultants • It is difficult to be impartial • Rewards current professional firm partners • It is difficult to enter new geographical markets

  14. Cost inefficiencies of competitive process • Must maintain marketing and promotion staff • Must maintain some excess capacity • Capabilities will be underutilized to fit work flow • Consultants must maintain a back log of work to keep staff utilized and buffer against risk • Results in high overhead = (direct costs)+(direct costs*Ohrate) = total costs • Results in high multiplier = (direct labor costs)*multiplier = total costs

  15. Homework Get on the Iowa DOT web page professional services web page (http://www.prof-tech-consultant.dot.state.ia.us/) and identify how a consultant becomes qualified and selected to provide professional services for the Iowa DOT then get on the Minnesota DOT web page (http://www.dot.state.mn.us/consult/index.html) for professional services and identify how a consultant is selected to provide professional services for the Minnesota DOT. Compare and contrast the two states. Don’t be afraid to call either state’s consultant coordinator.

  16. Homework continued • Find the maximum allowed consultant overhead allowed at five DOTs. • Find the maximum allowed consultant profit at five DOTs. • Define QBS and state the reasons why selection based on qualifications is important to the professional services industry.

  17. Class Web Site http://www.ctre.iastate.edu/educweb/ce_558/

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