1. Best Practice Innovation in the Purchasing Practice 45th Annual Conference May 13 – 16, 2012 - Tampa, Florida Marian H. Pace, CPPO, CPPB, FCCM Procurement Manager City of Punta Gorda, Florida New Methodology for soliciting, awarding and implementation of an Engineering Library

2. Thanks to our CCNA Warrior…… STEVE CARNELL!!

3. L IBRARY C ONSIDERATIONS The procedures did not allow price competition for the lower levels of utilization Firms were allowed to submit hourly rates based on their position structure Agreements did not include a liquidated damage clause Negotiation of hourly rates were not as successful or aggressive

4. N O P RICING OR B EST V ALUE Reviewed past specific authorizations (SA) that were under CCNA thresholds Several construction estimates were under $325,000 for design and $35,000 for planning/study activities. Why couldn’t Punta Gorda compete and award these small projects based on Best Value? Developed a utilization structure for: Minor SA - $150,000 construction estimate for design and $25,000 studies – Selection by specific qualifications of consultant or lottery Best Value SA – Under $325,000 construction estimate for design and $35,000 studies. Allows pricing as a % of score. Major SA – CCNA all the way!

5. J OINING THE RANKS – 1 ST FICE LETTER ! I kindly advised FICE to reference sections of the solicitation, which were non- compliant to CCNA. Their response was we just want to make sure you understand CCNA!

6. W HY C OMPENSATE H IGH P OSITIONS FOR L OWER L EVEL SERVICES ??? Standardized positions for all consultants Individual consultants have there own positions schedules Very difficult to negotiate hourly rates for library and compare position/fee schedules for SA Why pay the Principle to perform Project Manager level services? Each firm was required to comply with the standardized position schedule, provide list of staff that is qualified to perform each schedule, and propose an hourly fees If a staff member was qualified to perform multiple positions they were to be listed with each position. Position list contained 50 positions

7. A GGRESSIVE N EGOTIATIONS OF H OURLY F EE S TRUCTURE This process began with a study of recent Agreement rates for engineering services. A goal and maximum hourly rate was established Since this library covered both standard and utility disciplines the goal and max was increased by 15% for higher technical utility positions. All consultant’s proposed rates had to fall below the maximum fees or they would not be included in the library. Outcome: Standard Fees averaged 76% below or at goal Utility Fees averaged 66% below or at goal

8. L IQUIDATED D AMAGES If the CONSULTANT fails to complete the work within the times or milestones specified in this Agreement, or any written extension, the CONSULTANT shall pay to CITY as liquidated damages to be determined based on the specific authorization, but not as a penalty, per calendar day for each day of delay in the completion of any portion of the work. The total liquidated damages payable by the Consultant shall not exceed ten percent (10%) of the total Agreement value. Only a few consultants had heartburn over this clause and tried to change or remove in its entirety. Outcome ….. No changes and will not remove. Accept or negotiations closed!

9. F INAL RESULTS 49 nine responses received 20 engineering disciplines in Library 2 firms rejected as non-responsive 47 firms qualified initially 3 rounds of negotiation allowed 3 firms did not meet deadlines of negotiation – negotiations closed 2 firms failed to finalize contract process 42 firms awarded Agreement 1 st minor SA resulted in over $2,000 in savings!

12. Marian Pace, CPPO, CPPB, FCCM Procurement Manager City of Punta Gorda (941) 575-3348 mpace@pgorda.us