2. 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

3. Why Qualifications Based Selection? You've carefully thought out all the angles. You've carefully thought out all the angles. You've done it a thousand times. You've done it a thousand times. It comes naturally to you. It comes naturally to you. You know what you're doing, its what you've been trained to do your whole life. You know what you're doing, its what you've been trained to do your whole life. Nothing could possibly go wrong, right ? Nothing could possibly go wrong, right ?

4. Think Again...

5. Why Qualifications Based Selection? Money - Can you afford not to? Headaches – Change orders Claims Project from h___ Aspirin, tylenol, ibuprofen, loss of sleep Two things to remember about QBS… Quality Brings Success QBS is the First Step to Quality Projects

6. Money – Keep Life Cycle Costs in Mind INITIAL CONSTRUCTION & LAND COST - 34% MAINTENANCE & OPERATIONS - 32% INTEREST COST - 32% INDIRECT COSTS - 2.5% DESIGN COSTS - 1.5%

7. 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 24,000 closed claims/files over a 13-year period, worth over $1 billion in claim payments

8. Top 4 Non-Technical Contributors Percentage of Claims Affected

9. Communication Issues

10. Project Team Issues

11. 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

13. 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

14. 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.

15. Information Required Prior to Advertisement Project Description Expected Use and Users Schedule Funding Plan Special Performance Requirements Project Implementation Plan

16. Check your local CODE! Require QBS? Allow QBS? Date last revised?

17. 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

18. 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

19. 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

20. 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

21. 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

23. 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

24. Development of Shortlist How many should be included? Use standard reference checking form

25. Firm Reference Checking INTERVIEWER:________________DATE:________________________ FIRM:________________________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?

26. Notification of Firms on the Shortlist Notifying firms – all or just short listed? In writing or by email or telephone?

27. 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

28. Interview Format Recommendations Time - an hour is usually sufficient (…all you can take…) 5setup 30presentation 15questions 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).

29. 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…

30. 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.

31. 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…”

32. 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

33. 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

34. 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.

35. 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

36. 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! www.QBSGeorgia.org