Overview John Savicky Arizona State University May 2013

Introductions Your Name Your Organization Your Position What you hope to learn 2

3 About PBSRG Team of Researchers and Educators – Arizona State University – School of Sustainable Engineering We are the worldwide leaders in value-based procurement and measurements We provide organizations with tools and education to enhance their contract strategies, risk management, project management, procurement, and performance measurements

4 PBSRG’s Research Results Worldwide as a leader in Best-Value Systems  19 Years  210+ Publications  550+ Presentations  Projects  $6+ Billion Services & Construction  98% Customer Satisfaction  Various Awards (PMI, NIGP, IFMA, COAA, IPMA)  Clients: Federal, State, Local, School Districts, Private

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Tested Application Areas Construction & Design/Engineering – Large GC, infrastructure, municipal, laboratory, education, hospital, etc. – Small GC, renovation, repair, maintenance, roofing, demolition, etc. – DBB, CMAR, DB, IDIQ, JOC, Low Bid, IPD IT – Networking, Data Centers, Software (COTS, custom), ERP, etc. Facility Services – Maintenance, industrial moving, custodial, waste management, services, etc. Business, Municipal, & University Services – Dining, Document Management, Multi-Media Rights, Fitness Equipment, Online Education, Bookstores, Material Recycling, Furniture, etc. Other (Health Insurance, Medical Services, Manufacturing)

7 Brief History Began as a set of concepts. People stated that they were incorrect. So we ran a pilot project in roofing and had high results (1994) We were told that the results were a fluke. So we tested some more. We were told that roofing was too easy and that it wouldn’t work on other types of projects. So we tested it out on other areas (mech, elec). We were told that the system could only work with private entities, so we partnered with public agencies with high success. We were told that the system could not work on large projects or new buildings. So we implemented on multi-million dollar projects. We were told that the ideas were only specific to construction, so we tested in non-construction areas (janitorial, copy machine, food, radio)

National Science Foundation (2003) ABOUT NSF – The NSF is an independent federal agency created by Congress in 1950 "to promote the progress of science; to advance the national health, prosperity, and welfare; to secure the national defense…" – With an annual budget of about $6 billion, NSF is the source for approximately 20 percent of all federally supported basic research conducted by America's colleges and universities. DRMS OBJECTIVE: – To support research which is grounded in theory – Support research for increasing the understanding of problem solving, information processing, and decision-making. – Topics to be studied may include the role of decision analysis and decision support systems in improving the way individuals and groups make choices under conditions of risk and uncertainty.

Reviewer Comments “This proposal has very little intellectual merit” “This process hardly seems like a conceptual breakthrough.” “The proposal contains no details that might convince me that the author actually knows what he is doing.” “We are treated to somewhat audacious statements that PIPS minimizes risk by using less expertise, less decision-making, and less management.” “I know several people in the construction management business who would take issue with the statement that construction management has not made an impact” “If the proposed work really did lead to an improved mechanism for deliver, it could have very significant impacts across a broad range of economic activities.”

10 Why Are There Skeptics? Process seems too easy Process goes against industry standards / status quo People can’t understand what they are doing differently People assume that their project is very difficult / technical / unique People think their organizations are different from others Rule of the Seminar – Don’t take anything personal

Our Goals 1.Minimize Cost by becoming more efficient 2.Become more efficient in three ways: 1.Hire people who know what they are doing 2.Preplan before the contract is signed 3.Measure for positive accountability 3.Teach the thinking, concepts, tools, and processes to organizations 11

Your Goals (Typical) Walk away with greater knowledge (justify the cost of listening) Demonstrate Value! (Implement new ideas) Enhance preplanning and performance measurement techniques Add another tool in your toolbox (best-value) Have higher levels of accountability / breakdown organizational silos 12

13 Agenda Session 1 – Information Measurement Theory Overview Session 2 – Introduction to Best Value PIPS Session 3 – Risk Assessment and Value Assessment Proposals Session 4 – Past Performance Information Session 5 – Interviewing Session 6 – Identifying the Best Value Session 7 – Pre Planning Session 8 – Post Award Functions Session 9 – Getting Started Session 10 – Case Studies

14 Comments / Questions W W W. P B S R G. C O M