Alternative Project Delivery Amy Schroeder Idaho Transportation Department Innovative Contracting Manager

Outline Overview Project Selection Design-Build Procurement Process CMGC Procurement Process

Authority Design-Build: Idaho Code § 40-904 CMGC: Idaho Code § 40-905 20% limit of annual highway program ~$60 million annually

Contracting Methods Design-Bid-Build CM/GC Design-Build Design Bid Construction Design RFP Construction CM/GC Select Early Procurement Packages Design Design-Build RFQ RFP Construction Select

Relationships with Department Design-Bid-Build Construction Manager / General Contractor Design-Build (DBB) (CMGC) (DB) Owner Owner Owner Designer Contractor Designer CM/GC Design-Build Firm

Project Nomination Criteria Complexity / Innovation Delivery Schedule Level of Design Risk Factors Agency Factors Market Factors Third Party Coordination

Risk Assessment and Allocation

Procurement Requirements Design-Build: two phase procurement process RFQ for qualifications-based (short-list) RFP for technical and price proposals CMGC: single phase procurement process RFP for qualifications-based and technical/price proposal

Stipend (DB only) Based upon the estimated project costs Can be increased for complexity if needed TABLE Non-responsive proposals are not eligible If accepted, Department owns the work products Contract Value (CV) Stipend Base (SB) Stipend Rate Stipend Range Max % $0 - $5M = CV x 0.3% - 15,000 0.30 $5M - $10M = SB + (CV - $5M) x 0.20% 25,000 0.25 $10M - $20M = SB + (CV - $10M) x 0.15% 40,000 0.20 $20M - $40M = SB + (CV - $20M) x 0.10% 60,000 0.15 > $40M = SB + (CV - $40M) x 0.05%  

Design-Build Methods Best Value: Price proposal divided by the technical proposal score, awarded to the lowest overall score Fixed Price, Best Design: Highest technical proposal score Lowest Price, Technically Acceptable: Lowest price proposal that meets minimum technical and designer qualifications requirements Generally, innovation or alternatives are required No right-of-way, utility or railroad permits obtained by the design-build firm Department obtains the required environmental clearances Preliminary design is completed and the design-build firm’s role is limited to completing the design and constructing the project

RFQ Information Project goals Project scope Estimated cost Design and construction or fixed price Maximum time allowed for project Design and construction Description of the evaluation criteria and process Requirements for key personnel

RFQ Evaluation Criteria Construction-related experience and performance Specialized experience and technical competence Key personnel Designer experience and qualifications Performance on similar projects Qualifications and relevant experience Financial, personnel and equipment resources Proposed plan to manage design and construction Understanding of and approach to the project Other appropriate qualifications-based selection factors

Designer Qualifications Project complexity Project’s level of design completeness prior to the RFP Potential for design innovation and alternatives Project impacts to the public during construction and operation

RFP Information Project goals & scope Estimated cost Maximum time allowed for project Base concept Performance and technical requirements (specifications) Required deliverables Description of the selection and award criteria Copies of the contract documents Critical path method

RFP Evaluation Criteria Project-specific technical and quality factors Design and construction qualifications Innovation* Design and construction quality* Time of completion* Price *optional or integrated into other criteria

RFP Contract Provisions Payment/performance bond, proposal guaranty, insurance Standards, rules, guidelines, and special provisions Design and construction requirements, including specifications and environmental regulatory requirements Final documents upon completion of the project Submittal date for technical and price proposals Date for opening the sealed price proposals

Alternative Technical Concepts Encourage innovation and tailor delivery and project to proposer’s means and methods Equal to or better than the base concept Improve project quality and/or reduce project costs A proposed ATC is not acceptable if it merely seeks to reduce quantities, performance or reliability, or seeks a relaxation of the contract requirements

Alternative Technical Concepts Preapproved to include in technical and price proposal Each proposer shall submit only one proposal Price proposal shall reflect any incorporated ATCs The proposal may not otherwise contain exceptions to or deviations from the requirements of the RFP Proposals with ATCs are evaluated against the same technical criteria as those without Preapproved ATCs incorporated in a proposal become part of the contract upon award

DB Proposals Technical and price proposal submitted concurrently Evaluation committee evaluates the technical proposals based upon established criteria Time-adjusted price (value of the time factor) Total time value = total number of days to complete the project * time factor Time-adjusted price is the total time value plus the total price proposal amount Each proposer gets a summary of scores of all proposers and their own evaluation worksheets

CM/GC Process Competitive procurement process Qualifications component Price component Both qualifications and price are rated on a point-scale Highest ranking firm gets contract Two part contract Design services & assistance Construction GMP

2-Phase Contract Design services Construction services Life-cycle cost considerations Scheduling Cost estimating Constructability Alternative construction options for cost savings Sequencing of work Construction services Awarded after the plans have been sufficiently developed Guaranteed maximum price (GMP)

RFP Information Description of project Including programmatic, performance, technical requirements and specifications Description of the qualifications to be required of the firm Description of the requirements of key personnel Description of the process the department will use to evaluate proposals Schedule of unit prices requiring pricing Approach to pricing The form of the contract to be awarded

RFP Evaluation Criteria Ability and qualifications of key personnel Financial, labor and equipment resources and availability Ability to meet time and budget requirements Scope of work to be self-performed and ability to perform that work Approach to working collaboratively with the department Construction experience in similar projects Unit prices and approach to pricing

CMGC Proposals Technical and price proposal submitted concurrently Evaluation committee evaluates the technical proposals based upon established criteria Price proposal score combined with technical score Highest overall score is successful proposer Each proposer gets a summary of scores of all proposers and their own evaluation worksheets

Department’s Progress Outreach: Districts, AGC, others DB pilot project awarded September 2012 Next steps Project nominations by districts and bridge section Approval by Transportation Board and FHWA

Additional Information ITD Innovative Contracting Unit Website and Advertisement Announcements: ITD.Idaho.Gov Doing Business With ITD Alternative Contract Procurement Services Sharepoint (internal to ITD): Division: Highways, ICU Amy Schroeder, Innovative Contracting Manager Amy.Schroeder@itd.idaho.gov (208) 334-8772