Presented by Mike Coppa Architect / Engineer Procurement Process Chapter 3 Construction and Professional Services Manual September 15, 2012

General Policy on Procuring A/E Services Virginia Public Procurement Act, § to State policy is to contract with a single firm: ◦ Firm may have full ”in-house” capability, or ◦ Firm may subcontract for other disciplines Person having overall responsibility: ◦ Must be a licensed Architect or Professional Engineer ◦ Shall be registered/licensed by the Virginia Department of Professional and Occupational Regulation (DPOR)

Procurement of Related Services Professional Services: – Architects, Engineers – Surveyors – Geotechnical engineers Nonprofessional Services: – Cost Consultants – Testing services – Project administrators – Inspectors/clerk of the works – Value Engineering Services

Project Scope of Work Identify: ◦ Services required ◦ Criteria/limitations/parameters ◦ Describe the product(s) expected Reference applicable standards: ◦ Construction & Professional Services Manual (September 15, 2012) ◦ Applicable VUSBC edition, now 2009 Edition ◦ Applicable accessibility standards, now 2010 ADA Standards for Accessible Design, published September 15, 2010 ◦ NCAA, JCAHO, & others

Advertisements for Professional Services Agency Procurement Office Notice Bulletin Board Legal Notice, Statewide Newspaper Electronically via eVA – eVA website is: – What is eVA? – Electronic Procurement – How do I Register? – See eVA Website

Find solicitations and awards ADDRESS:

Register as a new Vendor

See current Transaction Fee Schedule

eVA Supplier Transaction Fees (as of 05/01/2012) eVA Registered, DMBE-Certified Small Businesses 0.75%, Capped At $500 Per Order eVA Registered Businesses That Are NOT DMBE Certified Small Businesses 0.75%, Capped At $1,500 Per Order Businesses That Are Not eVA Registered But Agree To Pay The Transaction Fee 0.75%, Capped At $1,500 Per Order

Registration Architect/Engineers desiring to provide services to the Commonwealth must: sign up with eVA to be awarded contracts pay the appropriate transaction fees

Benefits Single Vendor Registration - register one time Push Technology - notification of business opportunities Single Source - one place to access business opportunities and procurement information Electronic Ordering - standardization to do business with electronic commerce efficiencies

Requests for Proposal (RFP) Identify: ◦ General nature of the project ◦ Architectural and engineering services sought ◦ Factors which will be used for evaluation ◦ Unique capabilities/qualifications demanded ◦ Method for negotiation of fees ◦ SWaM criteria consistent with the Agency SWaM plan RFP will NOT ask proposers to furnish cost or manhour estimates with their “qualification” proposals

Small Businesses and Businesses Owned By Women and Minorities (SWaM) Proposals with Fee > $100,000: – RFP response should describe past efforts to utilize services from these types of firms – Failure to do so will be non-responsive – See formats on Forms Center Contracts with Fee > $100,000 – Periodic involvement reports are required – Final actual involvement report is required Executive Order # 33 (2006) – Agencies should refer to this Order for policy directives on SWaM participation

Standard Formats for Responses to RFPs A/E Firm Data Forms: ◦ Standard formats for responding to RFPs  reduce effort/expense by A/E to respond to RFP  provide uniform format for Owner’s evaluation ◦ Use of these standard formats is REQUIRED ◦ Electronic versions are available from the DGS Forms Center ◦ Firms interested in Emergency and Small Purchase Procurements should file generic copies with targeted agencies

A/E Firm Data Forms: AE-1Synopsis of Responding Firm AE-1aContinuation Page for Form AE-1 AE 2Consultants/Other Office Data AE-3Project Staffing Plan AE-4Personnel Qualifications AE-5Representative Project Data AE-6Supplemental Information ( these forms are in Excel format ) Open AE Data Forms Standard Formats for Responses to RFPs

Qualifications Based Selection of A/E’s Post Public Notice Issue RFP Receive & Evaluate Responses Select A/E’s Fully Qualified and Suited for the Project Interview and determine “Best Suited” A/E Request Fee proposal and negotiate scope of work and associated fee Post Notice and Award Contract

Agency Building Committee VCCO Owner - Facilities Management Owner - Operations and Maintenance End User OAG and BCOM participate only when requested by the Agency, but: – BCOM representative participates on Design Build and Construction Management panels – OAG representative provides guidance to Building Committee.

Notice of Intent to Award Once fee negotiations are complete, the Agency shall post a Notice of Intent to Award (or Notice of Award, if award has been approved. Notice must be provided a minimum of 10 days prior to award of the contract at the place the Agency normally posts notices. Agency must also post Notice on their website and on DGS’s central procurement website - eVA

General Procedures for A/E Selection Category A, Emergency Selection Procedures ◦ for bona fide emergencies Category B, Small Purchase Procurement ◦ for services with total fee < $50,000 Category C, Standard Professional Procedures ◦ for services with total fee > $50,000 ◦ may be used for smaller fee contracts Term Contracts ◦ for multiple small projects ◦ one year period

Category A - Emergency Selection Agency head provides written determination of emergency and designates selection committee If services are not available from an A/E under a Term Contract, contact one or more capable firms Negotiate with selected firm to provide work on a LUMP SUM or UNIT COST (hourly rate) basis with a “NOT TO EXCEED” amount File signed CO-3.2 with BCOM, noting that work is being awarded on an emergency basis Open CO-3.2

Category B - Small Purchase (fees < $50,000) Agency shall advertise/post notice at least once a year requesting qualifications from interested A/Es RFQ format should be similar to an RFP Require A/Es to provide forms AE-1 to AE-6 Agency should allow A/Es to update forms and accept them on a continuing basis Sort forms by qualifications/capabilities May consider “Set Asides” Identify firms which are “fully qualified” Select not less than 3 firms to interview

Category B - Small Purchase (cont’d) Conduct telephone or personal interviews Consider qualifications, workload, location, capabilities, past performance, SWAM certification, and other factors Consider number and value of prior contracts Rank order A/Es relative to the above factors Negotiate fee using COMPETITIVE NEGOTIATION procedures Award contract and post notice of same File signed Form CO-3.2 with BCOM

Category B - Small Purchase ( fees < $5,000 ) If total fee will be less than $5,000, VCCO is allowed under the “small purchase” process to contact only one firm from the list of fully qualified A/Es who have expressed an interest Repeated selection of the same A/E firm under the “small purchase” process is not allowed Consider SWAM Certification & qualifications

Category C - Standard Procedures (fees > $50,000) Draft an RFP using the content described earlier Advertise/post using the media described earlier Receive, evaluate, and rank the proposals Look up the A/E’s on the DPOR website to verify proper registration and license Look up the A/E’s on the DPS website to assure that they are not enjoined or debarred

Category C - Standard Procedures (fees > $50,000) Assure top ranked firms are “fully qualified” Select not less than 3 of the top ranked firms for interviews Conduct the interviews, avoiding discussion of fees, rates, design costs, etc. After the interviews, re-rank the firms based upon interview responses, prior data submitted, references, past performance, and suitability

Category C - Standard Procedures (cont’d) Negotiate fee using COMPETITIVE NEGOTIATION procedures ◦ Compliance with CPSM requirements is not negotiable ◦ Hourly rates must be provided for additional services If an agreement cannot be reached with the A/E, negotiations must be terminated in writing prior to moving on to negotiations with the next firm Award contract and post notice of same File signed Form CO-3 and the associated MOU with BCOM Open CO-3

A/E Interviews Schedule interviews Agenda: Hear from: – Project Manager – Key Designer Focus on approach to THIS PROJECT Questions / clarifications Why should we select you?

Term Contracts (Code of Virginia, § , Competitive Negotiations)

Term Contracts Effective/useful tool for: ◦ Planning and scoping for projects ◦ Maintenance projects ◦ Small renovations ◦ Emergency situations ◦ Multiple small projects Limitations: ◦ one-year term, plus 4 one year renewal options ◦ do not use for any project exceeding $2,000,000 in total project cost

Term Contracts (cont’d) RFPs: ◦ An agency may issue separate RFPs for similar work ◦ An agency may have several term contracts, however, only one term contract may be awarded to any one firm ◦ An A/E under term contract with an Agency is not prohibited from responding to single project RFPs issued by the Agency ◦ Agency must treat each RFP separately --- responses, evaluations, Selection Panel interviews ◦ Multiple contract awards from a single RFP are allowed if stated in the RFP.

Project Order/Contract Award: – 1st Project Order shall be issued at contract execution – There is no guarantee that additional orders will be issued during the contract term Project Order Fees: ◦ lump sum basis ◦ if lump sum not feasible, hourly basis with a “not-to- exceed” amount ◦ fee for any single Project Order shall not exceed $200,000 ◦ aggregate total of fees for all Project Orders shall not exceed $1,000,000 in a Term. Term Contracts (cont’d)

Contract Term: ◦ Relates to the period in which new Project Orders may be issued ◦ Calculated as the earlier of:  one year from the date of the A/E Term Contract, or  when the cumulative total of fees for all Project Orders reaches the maximum fee amount, or  when the Contract is terminated in writing by the owner ◦ When the “term” has concluded, no new Project Orders may be issued by the Owner or accepted by the A/E, however, all existing Project Orders shall survive beyond the term until the work is completed Term Contracts (cont’d)

Renewals: ◦ are allowed only if option to renew was indicated in RFP ◦ are at the sole discretion of the Owner ◦ are allowed for 4 additional one year terms ◦ the Renewal Contract Term begins on the earlier of:  when Agency exercises option at end of term year or  when Agency exercises option to renew because dollar limit is approached ◦ a new aggregate limit of $1,000,000 applies, regardless of the amount of Project Orders issued during previous term ◦ any unused amounts from previous term are forfeited and do not carry over into the next term Term Contracts (cont’d)

Draft an RFP using the content described earlier Advertise/post using the media described earlier Receive, evaluate, and rank the proposals Look up the A/E’s on the DPOR website to verify proper registration and license Look up the A/E’s on the DPS website to assure that they are not enjoined or debarred Term Contracts Selection Procedure

Select not less than 3 of the top ranked firms for interviews Conduct the interviews, avoiding discussion of fees, rates, design costs, etc. After the interviews, re-rank the firms based upon interview responses, prior data submitted, references, past performance, and suitability Negotiate with the selected A/E: ◦ special terms and conditions ◦ hourly rates ◦ offer first Project Order for fee proposal Term Contracts Selection Procedure (cont’d)

After receipt of fee proposal for first Project Order, negotiate fee and, if successful, award Contract If an agreement cannot be reached with the A/E, negotiations must be terminated in writing prior to moving on to negotiations with the next firm Award contract File signed contract (Form CO-3.1), the associated MOU, and the initial Project Order (Form CO-3.1A) with BCOM Open CO-3.1Open CO-3.1A Term Contracts Selection Procedure (cont’d)

Miscellaneous BCOM is available to provide assistance to agencies during the A/E procurement process Copies of the standard forms (CO-3, 3.1, 3.1A, and CO-3.2) are available on the DGS “Forms Center”. The Terms and Conditions of the AE Contract (CO-3a) shall be made a part of all contracts for professional services. Neither the Forms nor the Terms and Conditions may be modified without the approval of Agency’s legal council and the Director of DEB.

Presented by Mike Coppa Architect / Engineer Procurement Process Chapter 3 Construction and Professional Services Manual September 15, 2012