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RFPs and RFQs: Selecting the Design-Builder

May 25, 2015

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CH2M Hill's Mark Alpert discussed the procurement process for design-build contracts at the American Water Works Association's ACE13 Annual Conference & Exposition.
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Page 1: RFPs and RFQs: Selecting the Design-Builder

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Page 2: RFPs and RFQs: Selecting the Design-Builder

RFQs AND RFPs: SELECTING THE DESIGN-BUILDER

Mark E. Alpert CH2M HILL

June 10, 2013

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Page 3: RFPs and RFQs: Selecting the Design-Builder

Agenda

• Procurement Processes

– 1 step

– 2 step

• What is in an RFP?

• Evaluation and Selection of Design Build firms

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Page 4: RFPs and RFQs: Selecting the Design-Builder

PROCUREMENT PROCESS

RFP’s: Selecting the Design-Builder

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Page 5: RFPs and RFQs: Selecting the Design-Builder

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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Page 6: RFPs and RFQs: Selecting the Design-Builder

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

Page 7: RFPs and RFQs: Selecting the Design-Builder

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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Page 8: RFPs and RFQs: Selecting the Design-Builder

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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Page 9: RFPs and RFQs: Selecting the Design-Builder

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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Page 10: RFPs and RFQs: Selecting the Design-Builder

WHAT IS IN A REQUEST FOR QUALIFICATIONS (RFQ)

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Page 11: RFPs and RFQs: Selecting the Design-Builder

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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Page 12: RFPs and RFQs: Selecting the Design-Builder

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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Page 13: RFPs and RFQs: Selecting the Design-Builder

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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Page 14: RFPs and RFQs: Selecting the Design-Builder

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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Page 15: RFPs and RFQs: Selecting the Design-Builder

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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Page 16: RFPs and RFQs: Selecting the Design-Builder

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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Page 17: RFPs and RFQs: Selecting the Design-Builder

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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Page 18: RFPs and RFQs: Selecting the Design-Builder

WHAT IS IN A REQUEST FOR PROPOSALS (RFP)

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Page 19: RFPs and RFQs: Selecting the Design-Builder

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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Page 20: RFPs and RFQs: Selecting the Design-Builder

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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Page 21: RFPs and RFQs: Selecting the Design-Builder

• 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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Page 22: RFPs and RFQs: Selecting the Design-Builder

• 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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Page 23: RFPs and RFQs: Selecting the Design-Builder

• 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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Page 24: RFPs and RFQs: Selecting the Design-Builder

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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Page 25: RFPs and RFQs: Selecting the Design-Builder

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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Page 26: RFPs and RFQs: Selecting the Design-Builder

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)

Page 27: RFPs and RFQs: Selecting the Design-Builder

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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Page 28: RFPs and RFQs: Selecting the Design-Builder

EVALUATION CRITERIA Evaluation Criteria and Scoring Methodology

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Page 29: RFPs and RFQs: Selecting the Design-Builder

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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Page 30: RFPs and RFQs: Selecting the Design-Builder

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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Page 31: RFPs and RFQs: Selecting the Design-Builder

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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Page 32: RFPs and RFQs: Selecting the Design-Builder

DISCUSSION RFP’s: Selecting the Design-Builder

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