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Pre-Proposal Meeting Best Value Model

Pre-Proposal Meeting Best Value Model. This presentation is being provided for educational purposes only Please refer to the RFP for specific instructions If there are any inconsistencies, the RFP and Amendments shall take precedence over this presentation. Best Value Model. Best Value Model.

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Pre-Proposal Meeting Best Value Model

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  1. Pre-Proposal MeetingBest Value Model

  2. This presentation is being provided for educational purposes onlyPlease refer to the RFP for specific instructionsIf there are any inconsistencies, the RFP and Amendments shall take precedence over this presentation

  3. Best Value Model

  4. Best Value Model

  5. PBSRG Research Results Worldwide as a leader in Best-Value Systems • 18 Years • 1,600+ Projects • $4.6 Billion Services & Construction • $1.8 Billion Netherlands infrastructure construction test • 5% Increase in Vendor profit • 98% On-time, On-Budget, Customer Satisfaction • ASU – investments of over $100M due to Best Value • GSA (largest organization in U.S. delivering services) implementation in 2009 • Tests also in Africa, Southeast Asia, Canada, & Australia

  6. Best Value Objectives • Client outsourcing to experts based on value and performance • Minimize risk of non-performance • Vendors optimize project delivery • Complete to the expectations • Customer satisfaction / No complaints • Minimize the need for client management, direction, and decision making. • In return, the vendors can maximize profit by being more efficient WIN WIN

  7. Best Value Model

  8. Best Value Model

  9. What are we trying to accomplish? Selection Based upon Proponent Expertise: • Ability to understand and plan the project • Identify risks to the project • Mitigate risks to the project • Add value to optimize project delivery • Cost Competitive

  10. STEP 1 RFP (Risk, Project Plan, Value Added, Cost, PPI) STEP 2 Interviews STEP 3 Prioritization STEP 4 Move forward to Pre Award Vendor Vendor Vendor Vendor Selection Steps

  11. Evaluation Weights 2 Proponents selected to the Preferred Supplier List

  12. Blind Submittals – Project Capability Allows Vendors to differentiate themselves based upon their ability to identify and minimize risks to the project. Program Plan = plan to execute the program (capability to meet requirements) Program Risk Assess. = identify, prioritize, and minimize risks to the Program Plan (focus on risks that you DO NOT control) Value Added = value beyond the specifications (think in the best interest of the client)

  13. Program Plan Differentiates capability to meet the requirements of this project Plan to execute and support the program and all projects moving forward. May include (but is not limited to): General Program Approach Staffing and Personnel Resources that will be committed How project work will be executed How you will integrate with University Policies and Procedures No names, two pages, no marketing, part of final contract

  14. Program Plan Template

  15. Program Risk Assessment Identify major project risks Focus on Risks that have not yet been minimized before the start of the project (risks that the Vendor does not control) Explain why the risk is a risk May cause cost increases, schedule delays, change orders, or cause dissatisfaction to the client Should be non-technical Should be a risk specific to the program Identify solution to avoid / minimize the risk Non-technical explanation Must explain how risk is avoided or minimized from occurring For high score solution should contain performance information & best value practices

  16. Program Risk Assessment Template

  17. Program Value Added Value Added Identify value added options “beyond” the standard requirements Options to adjust the scope or increase the value of services delivered (expectation, cost, schedule, delivery, owner satisfaction) Explain why it is a value add for the University

  18. Program Value Added Template

  19. Example of SolutionsRisk: Design of Heating/Cooling System Type: Project Capability • Plan 1 • We will use our 20 years of experience in working with mechanical systems to minimize the risk of the heating and cooling system design. • Plan 2 • We have identified the design of the heat/cooling system as a risk. It has not been used before in the area. Will ensure that the system performance and installation is verified in the pre-award period. • We have bid using best rated mechanical contractor in the area (rated at 9.8 out of 10.0, next best rated 9.1) • Mechanical contractor identified modifications to the design to improve output and sustainability of the system with the following impacts (mechanical system cost minimized by 15% - see VA#1) • Mechanical system will be provided by one manufacturer, and will be commissioned by the manufacturer, contractor, and general contractor, who will take full responsibility of commissioning the system

  20. Example of Execution Plan SolutionPlan: Noise from Demolition Type: Risk that Contractor does control • Plan 1 • We will work with the user to minimize the impact of noise from demolition. • Plan 2 • We have planned to demolition during off hours and weekends. This will have a slight impact on our cost (less than 1%), but the impact to customer satisfaction justifies this. • We will also install rubber sheets on the floors to diminish noise and vibrations. • Both solutions can be performed within your budget. • Both solutions have been used on multiple previous projects w/ high levels of customer satisfaction (9.4/10).

  21. Example of Risk Assessment Solutions Risk:Concrete EscalationType: Risk the Contractor does not control • Risk Solution 1 • The owner can be assured all risks associated with material escalations will be eliminated because we offer the benefit of an experienced project team that includes the most detailed, prequalified and extensive list of subcontractors and suppliers, from around the world. • Risk Solution 2 • The cost of concrete has been rising drastically. Since this project requires a substantial amount of concrete, cost is a risk. To minimize this risk, we have secured and signed a contract with a local concrete manufacturer to prevent any increase in cost during the duration of this project. MARKETING INFORMATION

  22. Example of Solutions Risk: Getting water to the site (utilities) Type: Risk the Contractor does not control • Risk Solution 1 • Coordination with [water company] is critical. We will coordinate and plan with [water company] as soon as the award is made to make sure that we get water to the site to irrigate the fields. • Risk Solution 2 • We will coordinate and schedule the water with [water company]. However, based on past experience there is a high risk they will not meet the schedule (the water company does not meet schedule over 90% of the time). • We will have temporary waterlines setup and ready to connect to the nearby fire hydrant to irrigate until [water company] is ready. • We will also have water trucks on-site if there is problems with connecting the lines.

  23. Example of Value Added

  24. Example: Value Added Items Reroofing this building will not stop all water leaks. The majority of the leaks are caused by cracks in the parapet walls, broken/missing glass, and poor caulking. For an additional $20K and 3 weeks in schedule we can replace and repair all of these items.

  25. We are Looking for Vendors Who Can Think Ahead… …And Act In The Client’s Best Interest 25

  26. Things to Avoid • Marketing Information: • Our company is known worldwide as a leader in online education. • We will use our long history to make sure the project is a success. • We will use state-of-the-art process to make it a success. • Transferring risk back to client: • We will work with the owner to resolve issues • We will have team meetings / partnering meeting with the owner • General risks and/or general solutions: • We will plan ahead to coordinate activities • We will plan ahead to get classes scheduled and created • Overly Technical data: • The system we propose has 200% increase in PRX bandwidth modularity.

  27. Submittal Requirements • Must NOTcontain ANY identifying information (names, company names, project names, product names, etc.) • Must use the provided template (can submit as many risks as fit within the 2 page limits of each submittal)

  28. STEP 1 Risk, Project Plan, Value Added, Cost, PPI STEP 2 Interviews STEP 3 Prioritization STEP 4 Move forward to Pre Award Vendor Vendor Vendor Vendor Selection Steps

  29. Past Performance Information (PPI) • PPI collected on all Proponents and their critical team components. • Once the PPI is collected, it is stored in a database. • Project Close Out ratings from Client as part of PSL program – updates PPI for future work

  30. Critical Components Past Performance Information will be collected on: • Construction Management Firm – 7 References Maximum • Project Manager – 5 References Maximum

  31. PPI • Similar CM projects during last three (3) years • 9/1/2009 to 8/31/2012 • Past projects of $5M or less per project • Firms/ individuals who have completed a project at UA must identify the most recent CM project completed during the last 3 years • May provide more than one project that was completed at UA • UA references must be authorized via Pat Jansen or Hugh Warren

  32. PPI Process The Proponent is responsible for sending out a survey questionnaire to each of their past clients. The survey must be faxed/emailed back to the Proponent The Proponent will submit all surveys to the Owner with their submittal. Proponent Vendor Setup and send Survey Forms Past Client Vendor Past Client Evaluates and Returns

  33. Past Performance Information 3 Parts: • Survey Questionnaire • Reference List • PPI Score • Survey Scores are 1-10 and used in Evaluation Criteria • Firm (as the Proponent) and the Project Manager must have separate reference lists.

  34. Survey Form

  35. Don’t Forget to Add Your Email and verify signature Don’t forget to have the evaluator sign the form Fax or Email

  36. Vendor Past Client Past Client Vendor Example Survey (Firm and Individuals)

  37. Firm (as the Proponent) and the Project Manager will create a “Reference List” (which identifies all projects being surveyed) PPI Reference List 37

  38. Survey Must Match Reference List 3/15/2011 SMART Classroom

  39. References • The reference list must contain different projects • You may submit multiple jobs for the same past client

  40. Enter Survey Scores

  41. PPI Summary PPI is a one time step. The vendor and individual do not need to repeat on every project. The vendor and individual must create a “Reference List” and prepare and send out survey forms. The vendor should pick their own references The vendor should collect all surveys Close out ratings from completed projects within the CM program will be used to update PPI scores going forward 41

  42. PricingRFP 42

  43. How The Submittal Process Works Proposal Form, $, & Other Documentation Proposal Form (1 page) Contracting Officer Contracting Officer Plans Proposal Form (1 page) Submittal Total Score Evaluation Members 43

  44. STEP 1 Risk Assessment, PC, Value Add, Cost, PPI STEP 2 Interviews STEP 3 Prioritization STEP 4 Move forward to Pre Award Vendor Vendor Vendor Vendor Selection Steps

  45. Shortlisting • If necessary short listing will be conducted prior to interviews (depending on the number of vendors)

  46. Interview Format The client will actually “interview” each critical individual. This is not a “presentation” All individuals will be interviewed separately. The client will not allow group interviews with the vendors team. The client will not allow any other individuals to be present during interviews A standard set of questions will be generated and asked to each individual. Generally, interview times will last about 15-30 minutes per individual The client has the option to clarify any answers (or ask additional questions to clarify an answer). No substitutions will be allowed. Individuals listed on Proposal Form must be present. If a team member is not present for the interview, they will jeopardize the teams competitiveness.

  47. Primary Questions Why were you selected for this project? How many similar projects have you worked on? Individually and as a Team? Describe a similar project you have developed/worked on to the current project. What is different about this project from other projects that you have worked for? Draw out the process for this project by major milestone activities. Identify, prioritize, and how you will minimize the risks of this project. What risks don’t you control? How will you minimize those risks? What do you need from the client and when do you need it? How are you going to measure your performance during the project? What value do you bring to the project in terms of differences based on dollars, quality, expertise, or time?

  48. STEP 1 Risk Assessment, Value Add, Cost, PPI, Schedule STEP 2 Interviews STEP 3 Prioritization STEP 4 Move forward to Pre Award Vendor Vendor Vendor Vendor Selection Steps

  49. Simple Excel Analysis

  50. STEP 1 Risk Assessment, Value Add, Cost, PPI, Schedule STEP 2 Interviews STEP 3 Prioritization STEP 4 Move forward to Pre Award Vendor Vendor Vendor Vendor Selection Steps

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