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May 25, 2015
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RFQs AND RFPs: SELECTING THE DESIGN-BUILDER
Mark E. Alpert CH2M HILL
June 10, 2013
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Agenda
• Procurement Processes
– 1 step
– 2 step
• What is in an RFP?
• Evaluation and Selection of Design Build firms
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PROCUREMENT PROCESS
RFP’s: Selecting the Design-Builder
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Basis for Selection Various Procurement Processes
Single-Step Two - Step
Request for Qualifications
Request for Qualifications
Request for Proposals
Request for Proposals
Qualifications only
“Best Value” Qualifications
+ Costs
Request for Qualifications
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
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Single-Step Two - Step
Request for Qualifications
Request for Qualifications
Request for Proposals
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
Request for Qualifications
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
Single Step Qualifications Based Selection
If schedule is a critical driver If maximum
owner/design-builder collaboration is a priority If Owner wants best-
qualified design- builder, not just the lowest initial price If state/local law allow
qualifications only selection 6
Single-Step Two - Step
Request for Qualifications
Request for Qualifications
Request for Proposals
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
Request for Qualifications
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
Single Step Best Value Selection
If schedule is a critical driver
If maximum owner/design-builder collaboration is a priority
If Owner prefers (or if state/local law requires) inclusion of cost as a selection factor
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Basis for Selection
Employ evaluation criteria that are traditionally used for any qualifications-based selection
Owner able to conduct process efficiently
Reduces total time for procurement
Reduces cost of procurement Reduces complexity Potentially allows for a larger pool
of qualified firms to participate
Allows price or costs to be considered with qualifications
Total cost of construction is not a factor
Typical cost considerations include: • Fixed fees or hourly billing rates
for design and preconstruction services
• Design-builder fee or markup percentage of allowable project costs
• Fixed fees or billing rates for General Condition costs
• Project Price for Best Value Fixed Price Approach
Qualifications-based Selection Best-value Selection
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Basis for Selection Various Procurement Processes
Single-Step Two - Step
Request for Qualifications
Request for Qualifications
Request for Proposals
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
Request for Qualifications
Request for Proposals
Qualifications only
“Best Value” Qualifications + Costs
Includes Project Approach
Potentially greater degree of project data provided with RFP
Qualifications only or best value
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WHAT IS IN A REQUEST FOR QUALIFICATIONS (RFQ)
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RFQ Contents
• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. SOQ Submission Requirements
• Section 6. SOQ Evaluation and Selection
• Section 7. Conditions for Respondents
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RFQ Attachments
• A: Definition of Terms
• B: Scope of Design-Builders Services
• C: Draft PDB Contract
• D: Project Background Documents
• E: Project Technical Requirements
• F: Submission Forms
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Single and Two-Step RFQs
• Procurement Schedule
• Single-Step - includes Project Approach and Draft Contract Markup
• Evaluation criteria/weighting
• Selection or short-list
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Required Contents for Submission
• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. SOQ Submission Requirements
• Section 6. SOQ Evaluation and Selection
• Section 7. Conditions for Respondents
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Required Contents for Submission
Design-Builder Profile
• General
• Legal Structure
• Project office location
• Financial condition
• Performance bonds
• Insurance
• Material adverse changes in financial position
• Legal proceedings
• Completion of contracts
• No violation of laws
• Not debarred from bidding
Provides General, Legal and Financial Information Concerning the Design-builder
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Required Contents for Submission
Project Team
• Organization
– Roles and responsibilities of all firms
– Organizational charts
• Key Personnel
– Roles and responsibilities defined if other firms on proposing team
– Resumes
Describes Key Personnel And Additional Firms Organization • Roles and Responsibilities • Resumes
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Required Contents for Submission
Experience
• Reference projects – number specified by owner
• Three categories: – Design – Construction – Design-build
• Information provided for each project: – Name of owner – Year started and completed – Owner reference and contact
information
• Information provided for each project: – Firms and key personnel that
participated in the project – Description of the project
• One–page summary table to cross reference the projects with project team (firms and key personnel)
Provides Detailed Information on Relevant Design, Construction, Design-Build Projects Including Safety
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WHAT IS IN A REQUEST FOR PROPOSALS (RFP)
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Request for Proposals
• Used for both Qualifications-based selection and Best Value selection
• RFP for Single-Step also includes requirements outlined in Single-Step RFQ
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RFP Contents
• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. Proposal Submission Requirements
• Section 6. Proposal Evaluation and Selection
• Section 7. Conditions for Respondents
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• A: Definition of Terms
• B: Scope of Design-Builders Services
• C: Draft Project Agreement
• D: Project Background Documents
• E: Project Technical Requirements
• F: Price Proposal Form
RFP Attachments
Not used if “Qualifications Only” selection
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• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. Proposal Submission Requirements
• Section 6. Proposal Evaluation and Selection
• Section 7. Conditions for Respondents
Required Contents for Submission
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• Transmittal Letter
• Executive Summary
• Project Approach
• Draft Project Agreement Markup
• Fee and Rate Proposal
• Updated Qualifications
Required Contents for Submission
Not used if “Qualifications Only” selection
Not used in Single-Step process
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Required Contents for Submission
Project Approach • Can include discussion
on: – How collaborative
relationship with the Owner would be established
– How the design and construction processes will interface
– Critical work components for success
– The process for GMP development
• May include discussion on approach to: – Communications with
owner and stakeholders
– Quality management
– Risk management
– Adherence to the GMP and schedule
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Required Contents for Submission
Draft Project Agreement Markup
• Allows proposers to revisions to the contract that would more efficiently allocate: – Risk
– Improve parties understanding of risk allocation
– Improve clarity
• Owner is not obligated to accept any of the suggested revisions
Provides a Description and Discussion of the Rationale for Proposed Revisions to the Draft PDB Contract
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Required Contents for Submission
Cost Proposal
• Permitting, design, and services during construction
• Detailed breakdown of cost of construction including self-performance, subcontracts, vendors, and general conditions
• Professional fees
• Markup on direct cost of construction
• Direct cost of construction – Subcontracts
– Vendors
– General Conditions
• Bonds and Insurance 26
Best-value (Fixed Price) Best-value (GMP)
Required Contents for Submission Updated Qualifications
• Any proposed changes to the SOQ
• Resumes of additional personnel proposed
• Proposed changes subject to acceptance of owner
Confirm Prior SOQ and Describes Any Changes to Project Team or Key Personnel and Explains Reason for Change
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EVALUATION CRITERIA Evaluation Criteria and Scoring Methodology
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Evaluation Criteria and Scoring Methodology EVALUATION CRITERIA
• Fair • Clear • Transparent
• Pass/Fail – Performance bond – Net worth – Material adverse
conditions – Licensing and registration – Design experience – Construction experience – Design-build experience – Safety record
Should be Designed to Select a Design-Builder with the Highest Probability of Achieving an Owner’s Project Objectives
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Evaluation Criteria and Scoring Methodology
Procurement Approach
Do
cum
en
t
Qu
als
Be
st V
alu
e
Design-Builder
Key
Personnel
Organization, Management
and Safety
Project Approach
Cost /Fee &
Rate Proposal
RFQ 1200 X l l l l
RFP 1300 X l l l l l
RFQ 1400 X l l l
RFP 1500 X l l l l l
RFP 1500 X l l l l
Experience and capabilities
Two - Step
Single-Step
Evaluation Criteria
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Typical/Suggested Scoring Methodology
Procurement Approach
Do
cum
en
t
Qu
als
Be
st V
alu
e
Design-Builder
Key
Personnel
Organization, Management
and Safety
Project Approach
Fee &
Rate Proposal
RFQ 1200 X 40% 30% 15% 15%
RFP 1300 X 30% 20% 15% 15% 20%
RFQ 1400 X 40% 40% 20%
RFP 1500 X 30% 20% 15% 15% 20%
RFP 1500 X 40% 30% 15% 15%
Experience and capabilities
Two - Step
Single-Step
Evaluation Criteria
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DISCUSSION RFP’s: Selecting the Design-Builder
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