Presentation on theme: "NEGOTIATIONS AND PARTNER SELECTION Karen J. Hedlund Partner UNITED NATIONS SU/SSC TRAINING COURSE Arlington, VA September 19, 2006."— Presentation transcript:
NEGOTIATIONS AND PARTNER SELECTION Karen J. Hedlund Partner UNITED NATIONS SU/SSC TRAINING COURSE Arlington, VA September 19, 2006
1 Partner Selection Challenges Attracting teams that are financially and technically strong Attracting well-developed proposals meeting agency policies and objectives Developing appropriate criteria Maintaining a competitive process Achieving transparency Allocating risks to each party appropriately Getting buy-in from funding partners Meeting regulatory challenges
2 Proposal Solicitation –First Steps International Advertising Road Shows TxDOT European Tour Website Request Letters of Interest Industry Information Meetings Circulate Draft Documents
3 Requests for Qualifications – Key Criteria Experience with Similar Projects Comparable type, size, contract methodology Completed on time? Completed within original budget? References – Call them!
4 Requests for Qualifications – Key Criteria Ability to Perform the Work Does the team possess the necessary financial, staffing, equipment, and technical resources to successfully complete the project? Do the team and/or member firms have competing financial or workforce commitments that may inhibit successful follow-through? What are plans for obtaining sufficient staff and labor supply? Training programs?
5 Requests for Qualifications – Key Criteria Leadership Structure Is one firm designated as lead on the project? Does the organization of the team indicate a well thought out approach to managing the project? Is there a written agreement in place between members? Does the Project Manager have experience leading this type and magnitude of project? Have the primary functions and responsibilities of the management team been identified?
6 Requests for Qualifications – Key Criteria Liability Is the liability structure among the team members clearly specified? Is there a written commitment to joint and several liability? Are there adequate parent company guarantees? Are there limits or caps on the proposers liability and indemnification of the Department?
7 Requests for Qualifications – Key Criteria Financial Strength Supply financial information regarding the private entity or Team and each Major Partner that includes, if available, the most recent independently audited financial statements which demonstrates their ability to perform the work. Non-public firms request confidentiality.
8 Requests for Qualifications – Key Criteria Past Performance bankruptcy filings fines, assessments or penalties judgments or awards in contract disputes contract defaults, contract terminations license revocations, suspensions, disciplinary actions prior debarments or suspensions denials of prequalification, findings of non-responsibility safety performance data violations of criminal or civil law criminal indictments or investigations legal claims filed by or against the firm
9 Request for Tender – Contract Components Performance-based specifications allows flexibility in design promotes innovation promotes cost-saving techniques reduces opportunities for change orders based on design errors Value engineering incentivize by sharing cost savings
10 Contract Component: Risk Allocation Design Inflation, Currency Risk changes in key materials prices Geotechnical – differing site conditions hazmat, archeo-paleo Utility relocations / unknown utilities actions by utility owners Permits and governmental approvals Change in law Force Majeure
11 Contract Component Dispute Resolution - Goals Contractor/Lenders want streamlined process that is not biased against contractor Ability of concessionaire to pursue claims quickly through expeditious process Ability to resolve disputes through a means other than having Agency unilaterally making the determination
12 Contract Component: Dispute Resolution Choice of law; choice of venue Partnering Management Review Mediation Arbitration Courts Early notice to avoid prejudice Forced combination of related claims
13 Contract Component Workforce Development Minority, local outreach Training Programs Reporting Safety Wage rate regulation/commitments
14 Negotiation Options Select on best value, – schedule, technical - not just lowest cost BAFOs Maintaining confidentiality of proposals is critical Rank proposers Incorporation of ideas proffered by unsuccessful bidders get rights in stipend agreement Scope/contract clarifications and refinements Reserve right to reject proposal and negotiate with next highest-ranked proposer
15 Evaluation Process: Selection Committee Written evaluation guidelines Separate price and technical submission Technical subcommittees Role of financial, legal advisors Submit questions, comments in writing Technical subcommittees report to Evaluation Committee Evaluation Committee makes final recommendation based on combination of price and technical factors
16 Contact Karen J. Hedlund, Esq. Partner Nossaman Guthner Knox & Elliott LLP 2111 Wilson Blvd., Suite 600 Arlington, Virginia Phone: (703) Fax: (703)