Getting the Best Value out of Professional Services

1. Getting the Best Value outof Professional Services Dave Maxwell, Chief Operating Officer Occam Engineers Inc. Professional Technical Advisory Board (PTAB)

2. Key Presentation Topics • Qualifications-Based Selection • Procuring Professional Services • Developing a Request for Proposals (RFP) • Utilizing PTAB (Professional Technical Advisory Board) • Negotiating the Agreement

3. Advantages ofQualifications-Based Selection

4. Qualifications-Based Selection • Qualifications-Based Selection or QBS • Brooks Act • Enacted by Congress in 1972 • Established a QBS process for federal agencies when procuring architectural and engineering services • Places the emphases on technical qualifications and competence rather than cost

5. Qualifications-Based Selection • Competitive procurement process • Engineers and architects submit qualifications to the procuring agency/owner • Agency/owner assesses the expertise of each competing firm and compares them against each other • The most qualified firm is selected to negotiate the project scope and associated fee

6. Qualifications-Based Selection • QBS has been so successful at the federal level that it has been adopted by 44 states • New Mexico added surveying and landscape architecture

7. Qualifications-Based Selection • Merits of QBS • Streamlined project delivery • Owner and firm develop scope of work together • Owner and firm can determine approach together • Promotes a higher level of innovation • Incorporates the latest technology • Enhances the quality of a project • Lower life-cycle costs

8. Qualifications-Based Selection • Merits of QBS • Lowers risk for complex projects • More likely to incorporate sustainability aspects • Addresses the issues and concerns of more stakeholders • Protects public health and safety • Keeps work in New Mexico for New Mexico firms

9. Qualifications-Based Selection • Merits of QBS • Negotiates a fair and reasonable price with the most-qualified firm because project fees are identified prior to the signing of the contract • Owner receives the best value

10. Qualifications-Based Selection • Disadvantages of Selection Based on Cost • Leads to a poor-defined and incomplete scope • Seeking the cheapest design produces a poor-quality project • May save the owner a small amount on up front design costs, but can lead to significantly higher construction costs, increased change orders, and higher maintenance costs over the life of the project

11. Procuring Professional Servicesin New Mexico

12. Procuring Professional Services • State Law requires that professional design services be procured through the Qualifications-Based Selection (QBS) process for local public works projects. • New Mexico State Procurement Code Section 13-1-120 • Professional Services: Engineers, Architects, Landscape Architects, Surveyors • Local Public Works Project: a project of a local public body; $60,000 or more for architectural or engineering services; $10,000 or more for landscape architectural or surveying services

13. Procuring Professional Services • “Owner’s Manual for Qualifications-Based Selection (QBS)” • www.nmenv.state.nm.us/cpb/documents/OwnersManualforQBS01-13.pdf • NMED Programs Construction Programs Bureau Technical Services Professional Technical Advisory Board

14. Procuring Professional Services • The QBS Process STEP 1 The general scope of work is identified. STEP 2 The selection timeframe is established. STEP 3 The RFP is developed and published. STEP 4 A pre-proposal meeting and tour may be held to answer all questions at one time. STEP 5 Proposals are received and evaluated. All firms are informed of their rating and ranking. STEP 6 A short list of firms to be interviewed is determined (if necessary). STEP 7 Interviews are conducted and the firms are ranked for selection. STEP 8 *Negotiations are conducted relative to scope, services, fee and payment schedules. A contract covering the negotiated items is executed.  All firms involved receive post-selection communication.

15. Developing a Request for Proposals (RFP)

16. Developing a Request for Proposals (RFP) • Sample Request for Proposals (RFP) • www.nmenv.state.nm.us/cpb/TechnicalServices.htm • NMED Programs Construction Programs Bureau Technical Services Professional Technical Advisory Board RFP Form • Most current RFP: Revised January 2013 • Easy to fill out sections

17. Developing a Request for Proposals (RFP) • Key Items within RFP • Funding Type (p. 1) – Verify your funding sources!

19. Developing a Request for Proposals (RFP) • Key Items within RFP • PROJECT DESCRIPTION (p. 3) – Be as detailed as possible! • Project scope • Background • Requirements of professional • Schedule • Funding sources

20. Project Description - Example The Small Communities MDWCA (Association) was organized in 2002 to assist property owners south of Big Town including the unincorporated villages and subdivisions of Richardson, Johnson, King, Caruthers and Anaya. The current number of homeowners in and near Richardson is approximately 85 families. However, the service area will be larger and divided in phases according to need, community interest and commitment, eventually including approximately 185 families. Currently we are all on individual or shared domestic wells. 18 wells have gone dry in the last 4 months. The Association wishes to obtain the services of a Professional Engineer to provide planning, design and construction management services to construct a public water system. Assistance with determining and securing water rights is also needed. Proposal must include information that demonstrates the Offeror’sability to provide planning, design and construction management services for rural New Mexico water systems, ability to assist with water permits and paperwork, study of water availability, experience with funding agencies in our state, experience with regional collaboration, and knowledge of New Mexico Drinking Water Regulations, specifically ground water sources.

22. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Specialized Design and Technical Competence • Capacity and Capability • Past Record of Performance • Familiarity with the Contracting Agency • Work to be Done in New Mexico* • Current Volume of Work with the Contracting Agency Not 75% Complete • Other Contracting Agency Criteria (if desired)

24. Note: Items in bold are required by the Procurement Code. Example of Optional Item

25. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Enhancing RFPs • 1. Specialized Design and Technical Competence • Relevant Experience with Specific Components of Project • Relevant Experience with Project Funding Source Requirements • Understanding of the Project Scope • Work Plan to Perform the Required Services

26. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Enhancing RFPs • 1. Specialized Design and Technical Competence • Specialized Problem-Solving Capabilities • Innovative Practices/Ideas • Cost-Saving and Time-Saving Techniques Points for each EVALUATION CRITERIUM can be allocated to sub-categories

27. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Enhancing RFPs • 2. Capacity and Capability • Brief Resume for the Project Manager • Project Manager’s List of Current Projects • Brief Resumes for the Project Team and Their Relevant Experience • Percentage of Time Each Project Team Member Can Dedicate to the Project

28. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Enhancing RFPs • 2. Capacity and Capability • Identify Subconsultants and Their Relevant Experience • Organization Chart • Current Workload of the Project Team • Ability to Respond to the Project Requirements

29. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Enhancing RFPs • 3. Past Record of Performance • Relevant Project Experience by Firm • References • Past Examples of Quality Control, Schedule Control, and Cost Control

30. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • Enhancing RFPs • 4. Familiarity with the Contracting Agency • Previous Work with the Contracting Agency • Familiarity with the Project Area

31. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • 5. Work to be Done in New Mexico* • State Funding vs. Federal Funding • Know your funding sources! • Know your funding sources’ rules and regulations! • Don’t jeopardize your funding

32. Developing a Request for Proposals (RFP) • State Funding vs. Federal Funding • If the project has State Funding ONLY • Include 5. Work to be Done in New Mexico* • Include Resident Business Preference • 5% of the total possible points may be awarded to an Offeror who qualifies as a Resident Business • OR • Veteran Resident Business Preference • Based on Revenues; 7%, 8%, or 10% of the total possible points may be awarded to an Offeror who qualifies

33. Developing a Request for Proposals (RFP) • State Funding vs. Federal Funding • If the project ALSO has Federal Funding • Cannot include 5. Work to be Done in New Mexico* • Cannot include Resident Business Preference or Veteran Resident Business Preference

34. Developing a Request for Proposals (RFP) • State Funding vs. Federal Funding • You cannot ignore the State Funding requirements: • 5. Work to be Done in New Mexico* • Resident Business Preference and Veteran Resident Business Preference • in the hope that future Federal Funding will be obtained. • If future Federal Funding is obtained, a new RFP will have to be developed and advertised/distributed for what the Federal Funding covers.

35. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • 6. Current Volume of Work with the Contracting Agency Not 75% Complete • Effort to Spread Work Around • 75% Complete is Typically Point When Design is Complete

36. Developing a Request for Proposals (RFP) • Key Items within RFP • EVALUATION CRITERIA (p. 11) • 7. Other Contracting Agency Criteria (if desired) • Public Involvement Experience • Ability to Obtain Project Funding • Knowledge of Funding Sources and Requirements

37. Developing a Request for Proposals (RFP) • Key Items within RFP • Campaign Contribution Disclosure Form • Fill in the Name(s) of Applicable Public Official(s) if any

40. Utilizing PTAB

41. Utilizing PTAB • PTAB (Professional Technical Advisory Board) • Assists agencies/entities in developing RFPs to ensure compliance with State Procurement Code • Helps in the selection and hiring of design professionals through the QBS process • Any local public body which does not have on staff a licensed professional engineer, surveyor, architect or landscape architect shall have appointed to it....an individual to serve as a professional technical advisor • Services are free!

42. Utilizing PTAB • A Professional Technical Advisor • Provides assistance to local public bodies as part of the QBS process • Volunteer • Trained and governed by PTAB • Licensed/registered professional with at least 10 years in responsible charge

43. Utilizing PTAB • Requesting a Professional Technical Advisor • Identify a need or draft a RFP • Email the request to PTAB@acecnm.org or call (505) 888-6161 • PTAB will ask for verification of funding sources and will request a Professional Technical Advisor • A Professional Technical Advisor is precluded from pursuing the RFP • Allow up to 2 weeks to identify a Professional Technical Advisor

44. Utilizing PTAB • Requesting a Professional Technical Advisor • Once a Professional Technical Advisor is identified, PTAB will email the requesting agency and the Professional Technical Advisor • The Professional Technical Advisor and agency work together and coordinate between each other to review the RFP • Allow 1 week to review the RFP • Include PTAB on correspondence • Email PTAB the final RFP

45. Utilizing PTAB • Once RFP is finalized, advertise and follow additional steps identified in the “Owner’s Manual for Qualifications-Based Selection (QBS)” • PTAB and Professional Technical Advisors are available throughout the entire RFP and selection process

46. Utilizing PTAB • Contact: • Dawn Tibbetts, Executive Director • (505) 888-6161 • PTAB@acecnm.org

47. Negotiating the Agreement

48. How do I Negotiate an Agreement ? • Ask Design Professional for a detailed scope and approach (Including Schedule) • Once agreement is reached upon scope and approach ask Design Professional for detailed cost proposal • Negotiate scope and cost • Execute Agreement • Model engineering agreement available on NMED CPB website is used for CDBG, NMFA, and funding programs administered through NMED • The EJCDC Agreement Form must be used for RUS projects

49. Four Critical Elements of the Professional Contract Make sure contract contains a clear description of the scope of work to be performed by the Engineer (planning, design, etc.) The contract should explicitly state the deliverables to be produced by the Engineer (PER, plans and specifications, etc.) and standards (i.e.: RUS PER outline). A schedule should be included that states when the deliverables are due (date or days from start). The cost for services should be clearly stated as well as payment method (hours, milestones, etc.)

50. Negotiation of Scope and Compensation • Compensation is influenced by project size, complexity and the service provided. • Negotiate only as far ahead as the scope of work can be clearly defined. • Negotiate the scope of work and the compensation concurrently – See spreadsheet