City of Rochester 2 nd Street Upgrade

1. City of Rochester2ndStreet Upgrade Dean Kashiwagi, PhD, PE Jake Smithwick Arizona State University

2. This presentation is for educational purposes only.Please refer to the final RFQ for specific instructions

3. RFQ Requirements

4. Summary of DB Process

5. RFQ Schedule

6. Selection Criteria

7. Three Phases PHASE 1 PHASE 2 PHASE 3 CLARIFICATION RFQ RFP

8. Best Value System(alignment of expertise, minimization of effort) Vendor is an Expert Vendor is an Expert CLARIFICATION Vendor is NOT an Expert

9. Performance Information Procurement System Vendor is an Expert Vendor is an Expert CLARIFICATION Vendor is NOT an Expert Clarification Both parties may walk Risk Management Quality Control Quality Assurance Dominant Simple Differential

10. Event Initial conditions Final conditions Laws Laws Time (Control, impact, and influence)

11. Me vs. Them Us Technical Scope Don’t Control Don’t Control Technical Scope Paradigm Shift: contractors should have minimal technical risk and minimize risk that they do not control Risks Risks

12. Industry Structure High III. Negotiated-Bid II. Value Based Owner selects vendor Negotiates with vendor Vendor performs Best Value (Performance and price measurements) Quality control and quality assurance Performance I. Price Based IV. Unstable Market Specifications, standards and qualification based Management, direction, and control Decision making Technical expertise on client’s side Perceived Competition Low High

13. Selection Process Vendor is an Expert Filter 5 Filter 3 Interview Proposed Design Value Added Price Filter 2 Pre-Award Period Filter 4 Prioritize (Identify Best Value) Filter 1 Past Performance Information High Blind Rating Project Capability Risk (no control) Dominance Check Ratings are dominant Best value is within high and low cost ranges BV vendor has dominant information Criteria PPI Interview Technical Risk Value Added (?) Financials Proposed Design PA Docs WRR RMP Technical Documents AWARD QUALITY OF VENDORS Low RFQ RFP Vendor is not an expert 13

14. RFQ Criteria • Past Performance Information (PPI) • Blind review • Project Capability Plan • Risk (vendor does not control) • Resource Availability (Pass / Fail) • Legal and Financial (Pass / Fail)

15. Project Capability Overview • Differentiate their capability to meet the technical requirements of this project • Identify "vision” or “plan” for the alignment of expertise over the duration of the project Evaluation • Support statements of performance with experience in design and construction of urban street and underground utility projects (metrics, numeric scores, deviation rates, etc.) • Use either verifiable performance metrics or best value practices with performance measurements or references of best value practices

16. Risk Plan • List and prioritize major risk items on this project that the submitter does not control • Explain how proposer will mitigate, manage, and/or minimize the risk from occurring • mitigation plan was used previously, and the impact on performance in terms of customer satisfaction and the number of times it was used • Tracking all deviations on the project • Method of minimizing contract transactions • Performance measurements, past performance measurements, measurements that define performance • Submitter has implemented the mitigation plan before • Submitter has been successful in mitigating time and cost deviation of their past projects. • previous clients have been very satisfied with Submitter's results. • projects were similar to the current project being advertised.

17. Blind submittals are simple • The what, but not the how • Supported by verifiable performance information or best value practice with performance information (if no verifiable performance information, receive an average rating) • Rating dominant performance, average, and dominantly poor • No names • 2 page limits

18. Blind submittal examples • Simple • Example 1: The project manager being proposed on this project is very experienced in design-build, mechanical system type and innovative projects. • The what, but not the how • Example 2: the mechanical subcontractor can install a system that minimizes the installation time by 20% and the system minimizes the annual energy consumption by 15% • Supported by performance information • Example 1: PM record over the past 5 years, 10 DB projects, $250M average scope, customer satisfaction is 9.5/10.0, deviation rate is less than 1% • Example 2: Last five projects, customer satisfaction is 9.5/10, deviation rate is less than 1%, 20% earlier finish, installed system have average energy consumption 15% under average consumption, references available on request.

21. 2 pages max!

22. 2 pages max!

23. 1page max!

24. A note on formatting… • Project Capability and Risk Plan must NOT contain names • Page limits • Attachment C (Risk): Two (2) pages max • Attachment D (Project Capability): Two (2) pages max • Attachment E (Resource Availability): One (1)pages max • Not allowed to re-create, re-format, or modify the template (cannot alter font size, font type, font color; add colors, pictures, diagrams, etc)

26. Step 1 VENDOR Prepare Reference List Vendor Step 2 Prepare and Send Survey Questionnaires to Past Clients Step 3 Phase 1 Collect/Receive Completed Surveys Step 4 Enter data into Reference List Step 5 Package all material(Reference List and Surveys) and Submit PPI Submittal

27. PPI Details PPI will be collected on all vendors and their critical team components. Critical Team “Components”: Contractor / Design-Builder (firm) Engineering Company (firm) Project Manager (individual) Project Engineer (individual) Project Superintendent (individual) Project Lead Design Engineer (individual) Phase 1

28. Phase 1 Step 1: Prepare Reference List Profile sheet Past Project Info sheet

29. Phase 1 Step 2: Prepare & Send Surveys Past Project Info Profile Send List Project Manager & Site Superintendent on each survey! Client

30. Step 2 cont’d: Survey Form Phase 1

31. Step 2 cont’d: Add Your Fax #! Phase 1

32. Step 2 cont’d: Surveys MUST Be Signed Phase 1

33. Phase 1 Step 3: Collect & Receive Surveys Client Fax, Email, Mail Contractor

34. Phase 1 Step 4: Enter Data into Reference List

35. Phase 1 Step 5: Scan Surveys & Burn CD Reference Lists Returned Surveys Excel (XLS) file scanned to PDF CD-ROM

36. Phase 1 I already have PPI… ?

37. Phase 1 Summary of PPI Requirements • Require number of surveys submitted: • Firms: Five (5) • Individuals: Three (3) • Projects must be 100% complete (final payment received) • Project list must contain different projects • The survey must be signed • Turn in electronic copies of surveys (PDF) and Reference Lists (XLS) • Projects do not need to be similar

38. Other Documentation Proposal Form (1 page) Phase 1 Contracting Officer Contracting Officer Risk Plan, Project Capability Plan Proposal Form (1 page) Submittal How The Submittal Process Works Average Score Evaluation Members 38

39. 2012 Best Value Annual ConferenceFeb 13-17, 2012 in Tempe, AZ Train the trainer advanced curriculum Certification of trainers Meet most visionary clients and vendors Lessons Learned from all projects including services, IT, and construction Organization measurement and optimization How to implement change How to reduce size without increasing risk Job opportunities in Asia in best value environments Early Registration before Dec 15, 2011: For more details visit us at www.pbsrg.com

40. Comments / Questions Jake.Smithwick@asu.edu www.pbsrg.com