Transcript How to Prepare A Request For Qualifications
Agenda Overview
Why Qualifications Based Selection?
Elements of the Request for Qualifications Initial Questions Example 1 - General Stretch Break!!!
Example 2 – Short and Sweet Advertisement Example 3 – Combined RFQ/RFP Evaluation Process
Why Qualifications Based Selection?
You've carefully thought out all the angles.
You've done it a thousand times.
It comes naturally to you.
You know what you're doing, its what you've been trained to do your whole life.
Nothing could possibly go wrong, right ?
Think Again...
Why Qualifications Based Selection?
Money -
Can you afford
not
Headaches
– to?
Change orders Claims Project from h___ Aspirin, tylenol, ibuprofen, loss of sleep Two things to remember about QBS…
Q
uality
B
rings
S
uccess QBS is the
First Step to Quality
Projects
Money
– Keep Life Cycle Costs in Mind
DESIGN COSTS - 1.5% INDIRECT COSTS - 2.5% INITIAL CONSTRUCTION & LAND COST 34% INTEREST COST 32% MAINTENANCE & OPERATIONS 32%
Analysis of Claims
Technical Error and/or omission of a technical nature which resulted in a loss prevention file or claim Non-technical (involved in 7 out of 10) Breakdown in project or practice management processes which contribute to a claim Insurance industry analysis of period, worth over
$1 billion 24,000
closed claims/files over a 13-year in claim payments
Top 4 Non-Technical Contributors
30% 25% 20% 15% Percentage of Claims Affected 24% 13% 16% 27% 10% 5% 0% Negotiation / Contracts Client Selection Project Team Capabilities Communication
Communication Issues
Other 4% Project issues & disputes not handled correctly 8% Project staff not aware of their responsibilities 10% Scope of services were not clear 4% Lack of documentation of scope changes 10% Lack of procedures to identify or address conflicts, omissions or errors 64%
Project Team Issues
Unqualified or deficient on-site staff assigned to project 4% Design firm inexperieced in project type 2% Inexperienced or deficient project manager 34% Unqualified or deficient design staff assigned to project 46% Territory of project outside of firm's "normal" territory 4% Other 6% Insufficient number of staff 4%
Don’t Believe Me…
“Hiring a professional service firm is just like hiring a critical employee”
David Griscom President APWA Georgia Chapter Public Works Director, White County
Today’s Topics
Information Required Prior to Advertisement Advertisement of Project /Prequalification Requirements Request for Qualifications/Proposals Procurement Committee Appointment Evaluation of Applying Firms Development of Shortlist Notification of Firms on the Shortlist Oral Presentations
Definitions
Bid – Final Selection is based on cost only Purchase of commodities or well defined services Request for Proposal – Final Selection is based on proposed services or goods as well as cost Use when the services or goods are not well defined. Allows for creative responses Request for Qualifications – Final Selection is based on the
perceived ability
of the submitting firms to best achieve the
most desired outcome
Used for selection of professional services, such as architects, engineers, lawyers, doctors, etc. Services not well defined and depend on the firm’s ability to identify and appropriately address the problem or issue.
Information Required Prior to Advertisement
Project Description Expected Use and Users Schedule Funding Plan Special Performance Requirements Project Implementation Plan
Check your local CODE!
Require QBS?
Allow QBS?
Date last revised?
Prepare the Project for Public Advertising
Project description and location Budgeted construction cost (if known) Specific disciplines sought – special requirements Contact person for technical questions (phone #, email, fax, hours) Statement that QBS will be used Submission date Special contract terms Description of qualification package Rating criteria – list
Request for Qualifications
Construction Delivery type selected will dictate how to prepare.
If the advertisement is the RFQ, changes cannot be made without re-advertising
Notification/Advertisement of Project
RFQ – Request for Qualifications – contains all information necessary for firms to submit Qualification Statements RFI – Request for Interest – contains enough information to indicate scope of project and provides contact information to receive full Request for Qualifications document
Procurement Committee Appointment
Determine early, but can be delayed until submittals are received.
Include at least two people.
Include user agency representatives.
Agree on evaluation criteria.
Keep records of scoring and notes.
Notify firms of the short list.
Deliver recommendations to Management and/or Board
Free Stuff - Examples You Can Use!
Requests for Qualifications from
real owners that use QBS
Simple checklist and reference table Generic advertisement (use w/detailed RFQ) Ad with project specific requirements Project specific Request For Qualifications All documents available in Word or PDF format from
www.QBSGeorgia.org
Evaluation of Applying Firms
Each member evaluates all submissions Group should meet, compare scoring, and try to reach consensus on top two to five firms Assign 1 or 2 members to check references of higher ranked firms Members should not discuss outcome with submitting firms Debriefing of firms should be provided by committee chair
Development of Shortlist
How many should be included?
Use standard reference checking form
Firm Reference Checking
INTERVIEWER:________________ FIRM:________________________ DATE:________________________ REFERENCE:__________________ Develop 4-6 standard questions to ask each reference. Personally call and interview assigned references.
How would you rate XYZ’s overall performance on your project(s)?
Did XYZ in any way negatively impact the project schedule?
Did XYZ in any way negatively impact the project budget?
Was there continuity in XYZ’s team throughout the project?
Would you hire XYZ to do another project for you future?
Did XYZ meet bid package deadlines?
Did XYZ work collaboratively with the contractor on value analysis?
Notification of Firms on the Shortlist
Notifying firms – all or just short listed?
In writing or by email or telephone?
Preparation for Oral Presentations
Let firms know the arrangements and rules Provide agenda to firms Questions, content, participants Time limits and transitions Room set up Allow time for scoring and discussions between and/or after interviews Allow time for breaks
Interview Format Recommendations
Time an hour is usually sufficient (…all you can take…) 5 setup 30 presentation 15 questions and answers 5 knockdown. Conduct all interviews the same day Have same evaluation team at all interviews!
Complete evaluation before adjournment.
Media – provide guidelines on what you will allow Boards and/or computer/projector are commonly used Handouts – slides, food?
Presenters - Three to five usually sufficient (Principal, Project Manager, key Project team members).
Interview or Technical Proposal?
Interviews – less time and cost for both parties, opportunity for interaction with key staff, relies on communication skills of AE, does not require technical staff for the Owners interview team.
Technical Proposal – More opportunity for the AE to discuss technical approach.
Both…
The Interview
AE presents “benefits” to the Owner versus “features” in the Qualifications Package.
AE answers the question, “How can my experience and approach benefit the Owner?” Owner answers the question, “Which firm is the best fit for my project?” Subjective process but necessary to create a ranking.
Interview Scoring
Score sheets for each panel member and one for the full panel as a group.
Keep records Agree on weighting before interviews Discuss scoring between interviews Try for a consensus on a group score sheet Consolidate notes for later debriefings “We the jury…”
Scope and Contract Negotiations with the Recommended Firm
May ask for scope tasks first Meet (communicate) so that there is a meeting of the minds. Take notes Discuss “ball park” costs and budgets Discuss schedules and submittals Discuss check lists, standards, reviews, permits, etc.
Discuss contingencies and contract details Discuss anything else that may affect price
The Price Proposal
Sufficient detail to show level of effort Consider value pricing to share risks and rewards Consider incentives for schedule improvements and savings List possible costs of contingent services Risk belongs to the Owner Price depends on risk
Negotiations
Set
schedule
for negotiations Involve the
decision makers
Focus on scope,
risks
, and contingencies Don’t forget contract terms Allow for QAQC and response to “Questions” Identify third party players (contingencies) Agree in pieces. Whole will follow.
Is the construction budget realistic?
Remember:
schedule-price-quality
…pick
two
. Don’t negotiate by ultimatum and remember the relativity of design cost to life cycle costs.
What If We Can’t Agree?
Termination of negotiations is formal.
You can’t go back.
The price from the 2 nd ranked firm may be more. Notify and debrief unsuccessful firms
That’s Almost All Folks Two Final Thoughts…
Quality Brings Success
QBS is the first step to quality projects All documents available in Word format from www.QBSGeorgia.org
, as well as QBS Help!