1. QBS Colorado APA Colorado 2012 Conference “Planning Out of Bounds” Introduction to QBS Qualifications Based Selection October 5, 2012

2. About QBS Colorado www.qbscolorado.org  The mission of QBSColorado is to promote quality and value in professional design services and in the construction industry. We believe that a professional and constructive relationship between the (government) client and design professional is paramount to ensuring team spirit, quality services, and a public facility that is a credit to your organization and the citizens you serve.

3. About QBS Colorado  QBS best serves the interest of the public who expect value and minimum operational and lifecycle costs for their tax dollar expended on public works and buildings. University of Colorado Denver Business School

4. Presenters Dan Akin, PE – PLSDave DiFulvio, PLS Dan Akin, PE – PLSDave DiFulvio, PLS Past ChairmanACEC Rep QBS ColoradoQBS Colorado USDOI, BLMFarnsworth Group Mike Fink, PEDiana Dean, PE, LEED AP Mike Fink, PEDiana Dean, PE, LEED AP Past NSPE RepPast President of NSPE-CO QBS ColoradoColorado Dept. of Corrections City of Fountain Utilities

5. Presentation Outline  Introduction and Background  Legal Basis for use  Recent Studies Evaluating Purchasing Methods  Unstated Reasons for using QBS  Case Study: Use of QBS by local cities  Sample Project: Team Exercise  Questions

6. Introduction & Background What is QBS?  QBS stands for “Qualifications Based Selection”. It is a process used to engage professional services.  The selection relies solely on qualifications, without incorporating price in the initial selection.  Select first, then negotiate scope and fee.

7. QBS Colorado Basic QBS Process Description  Step 1: Issue Request For Qualifications  Step 2: Receive & Evaluate Submittals  Step 3: Negotiate Scope of Services, Terms and Fees with top ranked firm  Step 4 (if required): Move to second ranked firm and repeat Step 3.

8. ENDORSEMENTS APWA – See “REDBOOK” AIAACECAGC ABA – See Model Procurement Code NSPENSPS ASCE – Manual 45 PLSC

9. Why QBS?  Federal Act was passed because there were too many cases of design issues which were attributable to poor scope and inadequate fees.  Today, most states would agree that the process is superior and apply it regardless of funding source.  Local agencies are not prohibited from using the process, and many do.

10. Common Questions  How does QBS control costs or save money? (design is only about 1% of total life cycle cost, yet has a significant impact on the lifetime cost)  The federal government still requires price!  How do you know what is “fair and reasonable”?  How do you select firms?  Can any agency handle a QBS process?

11. Reality: No two firms are alike  Size and service lines  Different individuals  Track Record/”Experience”  Policies & Procedures  Relationships  Staff specialties, education, experience, attitudes & beliefs, personality.

12. Scope of Services: Very difficult to establish complete and accurate version for RFP Very difficult to establish complete and accurate version for RFP Input of selected professional is important and can make substantial impact on level of effort, level of detail, overall cost, project success Input of selected professional is important and can make substantial impact on level of effort, level of detail, overall cost, project success “Buy-in” of selected professional “Buy-in” of selected professional Key element of design is creativity of selected professional and tapping their reservoir of experiences Key element of design is creativity of selected professional and tapping their reservoir of experiences

13. Legal Basis for Use: Federal Enabling Legislation  See Public Law 92-582, The Brooks Act (passed 1972) – see thumb drive  Requires Qualifications Based Selection (QBS) of Design Professionals for all federal agencies.

14. Scope of the Brooks Act   In the Brooks Act, not only are engineers and architects specifically named, but so are construction managers, surveyors, mappers, geotechnical engineers, and generally all professionals associated with the construction of facilities for the federal government.

15. Colorado Enabling Legislation  See also Section 24-30-1401 to 1408, CRS (1988 & 1991) – see thumb drive  Commonly referred to as “Mini-Brooks” or “Part 14”

16. Legislative Intent for CO Act 24-30-1401. Legislative declaration. PART 14 NEGOTIATION OF CONSULTANTS' CONTRACTS “The purpose of this part 14 is to provide managerial control by the state over competitive negotiations for the acquisition of the professional services provided by architects, industrial hygienists, engineers, landscape architects, and land surveyors. It is hereby declared to be the policy of this state to publicly announce requirements for such professional services, to encourage all qualified persons to put themselves in a position to be considered for a contract, and to negotiate contracts for such professional services on the basis of demonstrated competence and qualification for the types of professional services required and on the basis of the furnishing of such professional services at fair and reasonable fees.”

17. Reasons for using QBS  Better quality projects, long term savings  Design and built on time  Built under budget  Reduces claims and change orders  Safeguards public Interest  Pride in what team accomplishes  Promotes communication & technical innovations

18. Independent Study  Study by ACEC, CU, and Georgia Inst. Of Technology in 2008 indicates the use of QBS results in… lower overall construction costs, lower overall construction costs, reduced change orders (down to 3% from 10%), reduced change orders (down to 3% from 10%), Fewer schedule delays (down to 3% from 9%), Fewer schedule delays (down to 3% from 9%), better project results, and better project results, and more highly satisfied owners more highly satisfied owners 93% of owners rated QBS projects as having a high to very high success rate

19. Recent Review of State Programs   Reported that 46 states have adopted a “mini-Brooks” act for state agencies   Virtually all state DOT’s and Environmental agencies use QBS to comply with federal regulations   Texas has adopted an ethical prohibition   Wide range of laws and regulations within states

20. Resources   QBS Georgia web site – Georgia Construction Manual   QBS Maryland web site – National survey of QBS laws and regulations   QBS/ACEC South Dakota web site – nice white paper on QBS   ASCE – Manual 45 – guidance on selection of consulting engineers   ABA web site – Model Procurement Code   APWA Red Book   Others? QBS Colorado Web Site

21. QUESTIONS?

22. Fountain Utilities QBS Applications APA Meeting October 5, 2012

23. What is Fountain Utilities? Electric Utility serving Fountain, Widefield and Security ~ 16,000 Customers – Population 44,000 Electric Utility serving Fountain, Widefield and Security ~ 16,000 Customers – Population 44,000 Water Utility serving Fountain ~ 7,200 Customers – Population 20,800 Water Utility serving Fountain ~ 7,200 Customers – Population 20,800 2012 Budget for both Utilities = $41 Million 2012 Budget for both Utilities = $41 Million No Purchasing Agent No Purchasing Agent Most Capital Project Design Tasked to Consultants Most Capital Project Design Tasked to Consultants City Procurement Policy recognizes QBS City Procurement Policy recognizes QBS 2009 QBS-Colorado Award 2009 QBS-Colorado Award

24. Fountain QBS HISTORY Water Engineering QBS Solicitation in 2007 Yielded 6 Firms Water Engineering QBS Solicitation in 2007 Yielded 6 Firms 2009 Solicitation for Land Surveying, GeoTech Engineering and Design Engineering Consultants 2009 Solicitation for Land Surveying, GeoTech Engineering and Design Engineering Consultants 2008 Customer Service Center Project used QBS for Architect Procurement 2008 Customer Service Center Project used QBS for Architect Procurement

25. 2007 Engineering Solicitation Six Firms Responded, all were assigned Projects Six Firms Responded, all were assigned Projects Merrick, JPS, JDS Hydro, OWA, ADP and Drexel Barell all completed Projects according to their Competencies Merrick, JPS, JDS Hydro, OWA, ADP and Drexel Barell all completed Projects according to their Competencies

26. 2009 Engineering, Surveying & GeoTech Solicitation Water Engineering QBS Solicitation in 2009 had 26 Firms submit SOQ’s Water Engineering QBS Solicitation in 2009 had 26 Firms submit SOQ’s 10 Chosen, 8 have Projects Assigned 10 Chosen, 8 have Projects Assigned 2009 Land Surveying had 13 Firms 2009 Land Surveying had 13 Firms 2009 GeoTech Engineering had 12 Firms 2009 GeoTech Engineering had 12 Firms

27. 2008 Architectural Solicitation 13 Firms responded to a Solicitation for Remodeling an Existing Building for Customer Service Center 13 Firms responded to a Solicitation for Remodeling an Existing Building for Customer Service Center Choice Criteria reflected the Scope for the Project - Choice Criteria reflected the Scope for the Project - –LEED TM Experience –Renovation Experience –Municipal Building Experience

28. 101 North Main Street Building Renovation Qualifications Submittal Format: Original and 3 Copies (marked as such) 30 Pages Maximum Basic Information (Name, Address, etc.) Workload References Project Outline (One Page) Subconsultants Listing Sealed Contract Fee and Expenses Statement

29. 101 North Main Street Building Renovation Basic Qualifications : Renovation Experience – 20% References – 15% Capacity to Perform Project – 5% Project Approach – 10% Historic Renovation Experience – 5% Financial Building Experience – 5% Municipal Building Experience – 5% Asbestos & Haz/Tox Mitigation – 5% Roofing Experience – 10% MEP/FP Experience – 15% LEED TM as Architect of Record – 5%

30. 101 North Main Street Building Renovation “ Extra Credit ” Qualifications : LEED TM Accredited Professional (On Staff) + 1% CEM (On Staff) + 2% GBE (On Staff) + 4% CVS, AVS or VMP (On Staff) +1% Commissioning Experience + 5% Documented Results in Savings +10% Accept Performance-Based Contract + 2%

31. 101 North Main Street Building Renovation Results : 26 Firms attended the Mandatory Pre- Submittal Meeting 12 Firms submitted SOQ’s H B & A Chosen (Colorado Springs Architectural Firm) Project Bid in 2011 Phase 1 (Exterior) Construction in 2012 Phase 2 (Interior) Construction in 2013

35. QUESTIONS ?