Presentation on theme: "Chapters provide policy and guidance"— Presentation transcript:
1 Chapters provide policy and guidance Design Build ManualChapters provide policy and guidanceAppendices provide forms, templates and examples
2 DOT Design Build Manual-Ch.1 DB is a method of project delivery with a single contract with one entity (the design-builder) for design and construction services.Must define the basic objectives of the design-build project very early in the process.physical components, operational requirements, and performance expectationsdescribe the project in such a way that the design-builder has enough information to deliver the intended projectdesign-builder will propose the total project price based on only the conceptual plans, defined objectives and performance specificationsOne contract or two? The biggest distinction between Design-Bid-Build and Design Build is that DB is a single contract for both design and construction services. Most of the policy and guidance that follows is a result of the single contract structure.The first issue is that the project objectives must be defined very early in the process, at the RFQ/RPF stage. The Design Builder is going to propose a price based on what is in the RFP. You won’t be able to make changes later without paying for them.
3 Make careful selections With projects suitable for design-buildWith language to define the projectWith criteria to evaluate design-builders, their proposals, and their performanceDesign Build is an alternate procurement technique. Success or failure can often be traced back to these three selection points.First, make sure the project is suitable for design build. The best contract administration may not be able to salvage a poor project choice.Second, you won’t get a second chance to define the project. This step will take more time and effort than most people expect. Studies of projects that got into trouble showed that 80% of the problems were due to a poor scope of work. Extra effort here pays big dividends.Third, I don’t have to tell you how important it is to get the best contractor. It is even more important in Design Build. Some contractors are better than others. Put in the effort to get the best contractor for your specific project.
4 DOTPF’s Position on Basic Design-Build Elements DOTPF’s process for design-build contracting is based on two primary principles:Use the Department’s existing systems to the fullest extent possible, changing or adding only as necessary to facilitate the design-build method of contractingMake it work satisfactorily for all parties involved, including DOTPF, consultant design firms, construction contractors, bonding and insurance companies, and other affected state and federal agenciesKeep it simple. Use the existing system to the extent that it makes sense.Keep in mind that all the parties will have to work together to make Design Build contracting a success.
5 DOTPF’s Position-Selection The decision to use design-build contracting is made in two steps with the final determination to issue a design-build contract occurring after the project scope is adequately developed and a risk analysis completedRegional Directors select candidate projects from the STIPThe project team develops the initial risk assessment used in making the concept recommendationThe Chief Contracts Officer makes the final decision to use design-buildThe project selection has two steps. The first step is taken when the project is considered for DB. Since DB is a alternate process, there should be some potential benefit that makes it a candidate for DB. If the project makes this first cut, then the project team should go through the risk assessment and confirm that the project is in fact a good candidate. Remember our first slide, make good project selections. So if it is a suitable project and the risks are reasonable and manageable, then request approval from the CCO.
6 DOTPF Position-Funding Funding must be committed to make payments to the design-builder for both design and constructionFunding for design-build becomes fully committed very early in the project scheduleCarefully consider funding constraintsOne of the impacts of the single contract is that the entire project funding gets committed very early in the process. Review the STIP. Make sure there is sufficient Legislative authorization and STIP funding to award the contract for both design and construction.
7 DOTPF Position-Environmental DOTPF will obtain environmental clearances required for permanent project featuresPermits required for construction trades or for temporary construction impacts of convenience will be assigned to the design-builderThe intent is to provide sufficient permits to construct the department’s conceptual designIf you anticipate problems getting environmental approval prior to advertising the RFP, the project is probably not a good choice for Design Build. More on environmental later.
8 DOTPF Position-Public Involvement The risk of public endorsement should be borne by the DepartmentOnce the public has accepted a project, the design-builder will participate in a public involvement program that requires ongoing information and communicationDon’t confuse public endorsement with public involvement or public participation. In other words, the decision to develop the project and the priority for the project are issues best handled by the department. As we will talk about, the environmental document must be approved prior to release of the RFP. So some public participation may have been required before the DB is even selected. Once the project is underway, the DB can take the lead in the public involvement process. They will know the details of the project and will have to include public comment in their final design.
9 DOTPF Position-Level of Detail DOTPF should have minimal involvement in project designIf DOTPF develops the project too far, then the opportunity to innovate and/or save time and possibly money may be reduced significantly or lostIt may be tempting to advance the design further than absolutely necessary. Take the design only as far as necessary to get Envir approval and ROW. If you take elements of the design too far you will be paying twice for the same work and may lose the opportunity for innovation or efficiency.
10 DOTPF Position-Geotechnical DOTPF may conduct preliminary geotechnical investigations and provide data to the proposersDOTPF will define the requirements for geotechnical investigation and include them in the scope of workProposers may have an opportunity to request supplemental informationProviding all the proposers with the same baseline of geotechnical information makes the proposals directly comparable. During the RFQ/RFP stage, proposers may request additional geotech data. You will have to decide whether to provide it or leave it up to the DBs.
11 Geotech (continued)If the department offers no supplemental program, each proposer will need to obtain all data requiredUltimately, DOTPF may be responsible for changed and differing site conditionsIt may be necessary to establish a baseline for design-builders to develop their technical and price proposalsThe court record for changed conditions is fairly well understood for D-B-B. It is not as well understood for DB. Be thoughtful when you decide how much and what kind of Geo tech information to provide. The same goes for consideration of a supplementary geo program. You should coordinate the release of the RFP with the drilling season if you intend to consider a supp program. Also confirm the availability of the materials crew. Otherwise, DBs will have to do their own investigation. If they can’t get to the site because of time or weather they will have to add money to cover their risk. In any case consider the impact of changed conditions and be prepared to answer questions about geo tech info.
12 DOTPF Position-Unforeseen Conditions Unexpected conditions arising during contract execution will remain DOTPF’s responsibility and should be treated as changed conditionsExamples include differing site conditions, hazardous materials, cultural resource sites, endangered species, or other environmental issuesWhat DOT does or does not provide in the way of Geotech info can have an impact on claims for changed conditions. Geotech info is OK but be careful about making interpretations.This is another case of assigning the risk to the party best able to manage it. A contract could be written to give all of the risks to the contractor. However, it would be a very expensive contract. We don’t to put contractors out of business. We don’t want AK DOT to get a reputation as an unreasonable business partner. These are known unknowns. It is probably best to accept these risks and deal with them if they occur.
13 Unforeseen Conditions (continued) The department will develop, direct, manage, and monitor the performance of any mitigation plans required by the discoveryIf hazardous materials, cultural resource sites, endangered species, or other environmental issues show up, the dept must get involved to manage the mitigation. You cannot pass all responsibility to the contractor.Mitigation can involve additional time or money. It may include additional ROW or envir involvement. It is impossible to avoid all risk. DB is no different that D-B-B in this regard.
14 DOTPF Position-ROWFor most projects, right-of-way acquisitions required for the project will be complete, or imminent, prior to award of a design-build contractThe design-builder may identify additional beneficial or necessary right-of-way needs and provide the supporting plansYou will have to decide how to handle requests for additional ROW. One position to take is that the DB must design within the existing ROW. DBs may propose additional ROW acquisition for many reasons. Better design, less expense for them, etc. Another position is that DOTPF will consider paying for additional ROW if there is sufficient benefit but there are no guarantees.Additional ROW can have a big impact on the schedule. Consider providing more ROW that the bare minimum if there is a potential for conflicts or improved alignment.
15 ROW (continued)The department will assess the value or need of obtaining additional right-of-way prior to proceeding with the acquisition processAdjustments to the contract may be made if the additional right-of-way is necessary or beneficial to complete the projectRegardless of the wording of the contract, ROW may be an issue as the final design is developed.
16 DOTPF Position-Interagency Inter-governmental agency agreements necessary for the completion of a design-build project will in most cases be obtained by DOTPF, prior to award of the contractIn some instances it may be advantageous to make such agreements part of the design-builder’s scope of workAgreements with utilities and the RR should be considered as early as possible. DOT will often have more leverage than a DB. This is another area that will require some thought up front. Problems with utilities can also have a big impact on schedule.
17 DOTPF Position-Utilities/Railroad DOTPF will obtain most project agreements with utility companies, either formal or informal, for relocation of their facilities prior to advertisementThe design-builder will coordinate arrangements for the actual construction work associated with the relocations to match his or her intended work programThe more work done upfront, the less risk for the DB.
18 Utilities/Railroad (continued) When the construction work/coordination is allocated to the design-builder, it is imperative that the control of the work also lies with the design-builder
19 DOTPF Position-Warranties Product warranties may be used to ensure project qualityMany of the quality assurance/quality control processes traditionally done by DOTPF are transferred to the design-builder, warranties can ensure that high quality standards are being metWarranties can be an effective way to ensure quality. Just be aware that warranties cost money and in the end may cost more than they are worth. Once a contractor demobs and takes on other contracts the cost to return to the job site, especially if it is an out of state contractor, can be prohibitive. If you force them to bid it, you may get a high bid.Further, it is becoming common for DBs to buy out long warranties and return the responsibility back to the DOT. What this means is that the contractor may keep the warranty when the job goes well and try to sell it back when things go bad. Warranties are another tool but make sure you understand the cost and impact of warranties.
20 Warranties (continued) The RFP should have clearly defined performance measures for all warranted itemsIf the contractor is going to bid responsively, he has to know all of the contract terms. If you intend to require warranties, all the details must be spelled out in the RFP. This is another case of not changing your mind or adding additional conditions after the RFP. If you intend to include anything that costs the contractor money, it must be spelled out in the RFP.
21 DOTPF Position-QC/QADOTPF will provide oversight during design and construction in a way that satisfies federal quality assurance requirementsThe construction inspection process is markedly different under DB. Instead on DOT staff performing the construction inspection the DB proposed a QC/QA program.The appendices have a template for a QC/QA program.
22 Design Build Project Delivery Delivering a project using design-build contracting eliminates very few steps when compared to the typical DOTPF design-bid-build processThe same project work tasks and products are required whether performed by DOTPF or the design-builderThe DB process does not eliminate any work. The time savings, if there is one, results from performing some of the tasks in parallel rather than in series. Since the selection process takes longer, the time savings may not be as great as expected.
23 Design Build Project Delivery The most significant difference in the development of a project using design-build versus using design-bid-build is in the documents developed by the project teamInstead of final plans and specifications, the project team is delivering a scope of work, which is the description of the final constructed projectIt is important not to underestimate the time it takes to properly prepare the RFQ and RFP. This is not a trivial task. The success or failure of the project flows directly from how well these documents are prepared and how well they represent DOT’s needs.
24 DB Project Selection Process DOTPF has identified two processes for selecting candidate projects for design-build contracting: a programmatic approach and an in-process approach.ProgrammaticIn-ProcessIdentification of DB projects is a process. That just means that projects don’t just get assigned as DB projects. All the projects in the program are sifted to find suitable DB projects. Looking over the whole program is the programmatic approach. There may also be projects that were not not previously selected as DB projects that are reconsidered. This is the in-process approach. Projects can go from DB candidates to D-B-B projects and vice versa.
25 Programmatic Approach The primary process (programmatic) focuses on selecting candidate projects from an initial screening of the State Transportation Improvement Program (STIP).Nominate projects with attributes that provide significant benefit from using an alternative form of contracting such as design-buildThis first screening does not declare a project to be DB. This just identifies a pool of potential projects that appear suitable. Further analysis must be done before requesting DB approval.
26 In-Process ApproachThe secondary approach (in-process) selects a project already under development in the conventional design-bid-build development process that yields some benefit that makes converting to design-build attractiveReconsidering projects that are already under development just acknowledges that conditions change. Staff availability for example and other issues that were previously a problem get resolved, particularly Envir or ROW may make these projects suitable for DB.
27 Design Build Process· Project identification as design-build candidate· Project attribute assessment and risk assignment· Team formulation· Project scope definition· Data gathering· Final decision to use design-build contracting· Request for Proposal preparation· Selection of design-builder· Administration of contractMore detail is provided in Appendix A, the generic approach to the DB process.
28 Assignment of RiskCenter the project team’s focus on identifying, assessing, and allocating the project risk to the party best able to manage itOne of the main functions of the construction contract is to assign risks to the parties. The D-B-B contract has been used for many years. It is generally well understood and the construction claim decisions are pretty well grounded. DB sets out a different assignment of risk to the parties. The DB contracts tend to be unique. DOT has many decisions to make regarding who assumes certain risks and how much we are willing to pay to have the contractor accept those risks.
29 Assignment of RiskDOTPF will usually retain such high-risk areas as environmental studies, public involvement, right-of-way acquisition, and interagency agreementsBy allocating these risks to the department, all tasks associated with the preparation of the basic project conceptual design (design decisions) still belong to the departmentChapter 3 has the Risk Allocation matrix and Appendix I has a Responsibility Chart. These both serve as a useful checklist to assist in identifying all the risks. Keep in mind all projects are different. Some will have unique risks. After identification of all the risks the key task is to clearly sort out which risks the dept will accept and which ones the dept will pay the contractor to accept.
30 Final ApprovalAfter all risk decisions are made and documented, submit the project documentation to the Chief Contracts Officer for approval to continue design-build developmentThe consideration and assignment of risks is an important step that must be completed prior to requesting approval form the CCO. Use the RAP form. RAP form is Appendix K.
31 Remaining Steps in Process After Chief Contracting Officer ApprovalDocument the risk allocationComplete the project definitionAdvertise the projectContractor selectionContract administrationThe CCO approval is a major milestone in the DB process. Up to that point projects are only being considered as potential DB development. CCO approval is the green light to continue with the DB process with a firm commitment to a DB contract. Things change. So it is possible that projects approved for DB development will be redirected to the conventional D-B-B process. Maybe staff becomes available or issues that appeared to be settled are reopened.
32 Chapter 2-Project Selection Benefit-oriented criteria are first used to determine which projects appear to be likely candidates for design-build contractingPerform a detailed project scope evaluation for fatal flaws that make design-build contracting too risky for either DOTPF or the design-builderChapter 2 provides more detail on the Project Selection process.Initial screening of STIP projects. Are they suitable for Design Build?During the initial project planning, not much detail may be known about the project. As data gathering is underway, consider what benefits might be gained by DB. Does the dept or the public benefit from a shorter project delivery? Is there a potential cost savings if the designer and contractor work more closely?This is also the time to determine if there is some issue that clearly keeps a project out of DB consideration.
33 Project SelectionThe alternative process for identifying candidate design-build projects is initiated by the regional director or project manager during the early stages of design for a conventional design-bid-build project.Unexpected findings or circumstances may make a project not previously identified as a design-build candidate more attractive.Projects can move into or out of the DB program. This is another reminder that projects can be re-directed at any time. Into or out of the DB process as current situation dictates.
34 Project SelectionCarefully weigh the cost and benefits of the partially developed projectA developed project may provide DOTPF more control at the expense of potential innovation and project flexibilityMuch of the potential benefit may be lost if the project is already too far along in the design process.
35 Project BenefitsThe objective of design-build contracting is to deliver projects better, faster, with fewer Department resources than the conventional design-bid-build methodThis objective is likely to be achieved only if certain characteristics are used in the selection processAlways keep in mind the problem you are trying to solve by using DB. Not all projects are suitable candidates for DB.Lower costs are another potential benefit.
36 Primary questions to ask Can significant time savings be realized through concurrent activities?Will higher quality products be realized from designs tailored to contractor capability?Do DOTPF staff resource constraints impact project schedule?Will there be less impact on the public with the use of expedited construction processes?Why DB?It is also important to be specific. For your project, what is the reason you choose DB? The better you understand the reason for selecting DB, the better you can write the Scope of Work and RFP.
37 Unusual or unique requirements Candidate projects must be examined for unusual or unique requirements that could be effectively addressed by a Design-Buildersevere right-of-way limitationsextensive traffic handlingnarrow construction windowstime sensitive stagingThese issues should be considered when determining how the RFP points will be awarded.
38 Completion ScheduleThe overall project delivery schedule is generally the overriding reason for using design-build contractingBy combining design and construction under one contract, the work can be executed concurrently, thus saving calendar time in the delivery of the projectThis is a common but not the only reason people choose DB. If schedule is the over riding reason, consider asking about experience with fast track projects and experience of the designer and contractor working together. DB will only give you the benefits you select for.
39 Other BenefitsA secondary advantage is that the designer and builder work together, with each working to suit the other’s capabilities and methods, which could shorten the actual construction windowThis can result in less impact to the public and may even reduce total costsIf superior design or a unique solution is the goal, make sure that is communicated in the RFP.
40 Outside ConstraintsIf there are outside constraints which could impact project delivery (environmental permits, extensive right of way acquisition, complex third party agreements) then it is possible that delays in addressing these constraints could eliminate any potential schedule advantage from design-buildNot all projects are good candidates for DB.
41 Questions to Ask Must the work begin or end by a specific time? Is the available time unusually short?Are work windows a significant issue?Are certain seasons or dates critical?Are traffic detour and/or closure periods limited?The better you understand all of the issues, not just the technical or engineering issues, the higher your likely hood of success.The RFP template will give you a good starting point.
42 Project ComplexityProjects that are complicated present more challenges and therefore more potential benefits from a design-build approachA best-value solution is often a direct function of the compatibility between the contractor’s capabilities and the features of the designComplex and high dollar value projects are generally the type of projects that benefit from DB.
43 Projects best addressed by DB Does the project include a number of primary features (road, bridge, traffic control system)?Are the features tightly interrelated and/or closely located?Will construction staging be a major issue?Does the site present unique or unusual conditions?Are specialty skills needed for design or construction?Does the project include emerging technology (IT projects)Will extensive temporary facilities be required?The Guidebook provides some direction in finding suitable DB projects.
44 Traffic ManagementConstruction staging that minimizes impacts to the traveling public is one of the most significant issues for any transportation projectIn design-bid-build, the owner typically assesses this work and the method to be used is prescribed in the Contract ProvisionsThe contractor’s capabilities may or may not match the method dictated by the contract, resulting in an unnecessary reduction in the level of service and penalties, if the contractor can’t deliverProjects with complex traffic management issues are good candidates for DB providing there are no fatal flaw issues like ROW or envir.
45 Traffic ManagementAlternatively, the contractor may submit a “value engineering” or “cost reduction” proposal, which would allow for a change in the contract requirementsUsing the design-build contract to set the performance standard, and allowing the contractor to combine his expertise with the designer, maximizes the potential benefitsGood example of just turning the issue over to the DB. Why design a complex traffic management plan only to have the contractor request an alternate plan.
46 Project SizeProject size has both positive and negative connotations for design-build contractingLarger projects, measured in dollar value, usually offer the greatest overall potential benefits (and greatest risks)They may also limit the number of potential ProposersGenerally large projects are more suitable for DB. There is more opportunity for innovation and more potentail benefit.
47 Project SizeDesign build may be the only project delivery method available on very large projects due to workforce constraintsThe use of design-build on smaller projects with lower risks may still achieve the benefits of reduced schedule, lower contracting costs, and so onAnother benefit is that smaller firms can compete and gain experience in the method
48 Workload LevelingAt times, the projects in the program may exceed the capacity of DOTPF staff to deliver using the traditional design-bid-build process.Design-build contracting may be useful to shift workload to Design-Builders
49 Workload LevelingBe aware that scope definition and proposer selection requires a greater effort and impact project success more in design-build delivery than in design-bid-build deliveryWhile it is true that DOTPF’s overall manpower efforts are less with design-build, the effort expended and expertise required during project development is significantly more intensive than the equivalent phase in design-bid-buildThe upfront effort to write the RFQ/RFP can be greater than expected. Consider hiring a bridging consultant to fill the gap between DOT staff and the DB. Some consulting firms have a lot of experience in this area.
50 Project RisksUnderstanding the Department’s position on risk allocation is necessary in determining responsibility for individual tasksAllocation of the risks inherent in highway projects will also define ownership and responsibility for each task of the project delivery processOne of the primary functions of the contract is to allocate risk to the parties. DOT policy is to assign risks to the party best able to manage them. Use the templates and risk matrix to assess and allocate the project risks.
51 Project RisksIn design-build, the guiding principle should be one of assigning risk to the party (owner or Design-Builder) that can most economically handle the risk“How much is the Department willing to pay a Design-Builder to assume risk that DOTPF typically owns?”This question may be asked for each individual task to tailor the design-build contracting approach to each specific project
52 Project RiskProject risk is the defining issue that permeates all decisions related to developing the contract provisionsIf all goes well, no one cares about risk. When things go bad, this will be the most important decision you’ve made. Revisit the risk matrix at important points in the project development to make sure that nothing has changed.
53 High Risk ItemsHigh-risk items that will usually remain the responsibility of DOTPF and must be addressed prior to awarding a design-build contract include:Environmental studiesPublic endorsementUtility agreementsRight-of-way acquisitionFunding
54 FundingCarefully assess program-funding impacts when the candidate projects are identifiedLack of complete funding may be a fatal flaw for projects attempting to be switched from design-bid-build delivery to design-buildFunding commitments are made early in DB contracts. If the total construction funding is not available early, it is probably not a good DB project.
55 FHWA InvolvementUntil the current Highway Bill was passed SEP 14 Approval was required for Design Build projects under $50 million ($5 million for IT projects)To encourage more projects to use Design Build contracting, SAFETEA-LU eliminates the $50 million floor on the size of eligible contractsFinal rule for DB has not been approved. Best to confirm with FHWA if you are considering anything unusual.
56 FHWA InvolvementNEPA processes should be finalized and approved by FHWA prior to project advertisementUnder certain circumstances, FHWA will authorize design and construction for the project, and obligate the funds, as long as these federal activities are conditioned on getting final NEPA action before the contractor proceeds with final design or construction of any permanent improvementGet FHWA ApprovalIt is no longer required to have NEPA approval before issuing the RFP but it is still a good idea.If you are considering issuing the RFP, awarding the contract or issuing any NTP for preliminary design, you MUST get FHWA approval.
57 FHWA InvolvementProjects between $100,000,000 and $500,000,000 require a Financial PlanProjects over $500,000,000 require both a Financial Plan and a Project Management PlanGood idea to coordinate with FHWA on large dollar projectsThis is not a DB issue. This applies to all projects in this price range.
58 Chapter 3-Project Development Assemble the Project TeamThe Project Manager should have a complete understanding of the entire project delivery processIncluding construction engineering and contract administrationChapter three takes the selected project up to the contractor selection..Regardless of who takes the lead, it is a good idea to have team members familiar with both the design and construction process.
59 The Project TeamWhile individual members of the assigned project team may transfer or promote, the core project team should be fully committed to a design-build project from initial development through final constructionIt can be very disruptive when major players change. We require the DB to get written approval before substituting key individuals. We should maintain the same discipline. It would be beneficial to get informal commitment from key staff that they intend to stay until project completion.
60 Develop Owner Requirements A design-build project differs from a traditional project in that the project team must establish the final project expectations, goals, and desired quality at the outset.Writing the RFP is the most significant task performed by DOT staff. It can be more work than expected. Make sure the schedule allows ample time to prepare the RFP/Owner’s Requirements. The Appendices contains templates for the RFQ, RFP, Scope of Work, etc. Each one will have to be reviewed and edited to fit your project. They are good starting points but will need a thorough review.
61 Project Risk Allocation Matrix On each design-build project, the team must determine how far to carry the preliminary design. Development of a risk allocation matrix is the key to making this determinationIdentify potential risks associated with the projectAssign responsibility for each of these risks either to DOTPF or to the design-builderThe risk allocation matrix is a useful communication tool. Besides formally assigning the various risks, it is a reminder on how far to develop all the elements of the preliminary design. Don’t take the design any further than necessary to understand the issue and assign the risk.
62 Design IssuesIn the traditional design-bid-build format, DOTPF bears the entire responsibility and risk for any design-related issuesIn design-build, several of these responsibilities shift to the design-builderThe risks assignments have to be well understood and clearly communicated. The Risk Matrix and Responsibility chart can be contract documents to clearly spell out each parties responsibilities.
63 Design Issues-DOTDOTPF is still responsible for establishing the scope, project definition, design criteria, performance measurements, and existing conditions of the site (initial geotechnical investigation, subsurface conditions).In DB, these issues are more important than in D-B-B. Any changes to the scope after the RFP, become change orders. In a D-B-B project, there is time for the project to evolve, priorities can change and design elements can change as more information becomes available. In DB, everything must be communicated to the DB at the time the RFP is published. Changes past that point will cost money.
64 Design Issues-Design Builder The design-builder usually has the responsibility for any project specific geotechnical or subsurface investigations beyond what DOTPF providesAs the designer of record, plan accuracy, conformance with established standards, and constructability rest with the design-builderWhen DOT staff perform design reviews they must limit their review comments to conformance with the RFP. Specific design solutions are up to the DOR. Be careful not to impose preferences. Under a DB contract, DOT is giving up the right to determine the detailed final design. You must understand and accept this if you are part of the DB team.
65 Design IssuesSince the design-builder is ultimately responsible for the design, wherever possible DOTPF project personnel should resist the temptation to insert their preferences or solutions into the RFPThis will be a difficult problem for some people. If we want to retain the right to have things done a particular way, DB is not the right choice.The M/V Kennicott was one of DOT’s first DB projects. It ultimately resulted in a construction claim (for many reasons). One of the major claim issues was ‘meddling’ in the design process. Hundreds of review comments seen by the contractor as the Dept trying to impose it’s design preferences on the contractor.If you can’t give up control of the details, DB is probably not a good choice.
66 ConstructionThe contractor has always had responsibility for the construction. However, in a design-build environment, the owner (DOTPF) no longer represents the designer (formerly DOTPF, now the design-builder)Resolving issues of design intent are between the DOR and the contractor. As long as the solution is in accord with the RFP and proposal, the contractor can proceed.
67 ConstructionMany of the traditional materials testing and inspection responsibilities transfer to the design-builder. Items such as surveying and maintenance of traffic shift entirely to the design-builder’s responsibilityThis shifting of responsibility is addressed in the Risk Allocation Matrix. It is important that all parties understand their roles.
68 Differing Site Conditions DOTPF owns the site of the project and performs the initial site investigation. Responsibility for differing or changed site conditions remains with DOTPF unless this is explicitly changed in the contractKeep this in mind when you consider the geotech program. Decide how much data to gather and if you intend to have a supplemental geotech program during the RFP stage.
69 Completion and Warranty Ultimately, the final responsibility and ownership of a project will transfer to DOTPF. This final responsibility and ownership may occur at the completion of the project or at the completion of any project-specific warranty
70 Chapter 3-Activities Plan the Project Collect Base Data Project Design ElementsEnvironmentalSchedule AnalysisFunding AnalysisConduct Public Involvement ProcessMaterials (Product Warranty)AgreementsThe Final Decision to Use Design-BuildValue EngineeringThese are the some of the major activities during project development. Most are the same as D-B-B.We haven’t gone over all of them.
71 Value EngineeringDepartment policy requires that all projects with an estimated value equal to or greater than $4 million be considered for a value engineering studyValue engineering analysis is required for all projects on the NHS with an estimated total cost of $25 million or moreValue Engineering is still required. There is some question about the appropriate timing and method of conducting a VE study on a DB project.
72 Value Engineering-DB Projects FHWA’s position on Value Engineering for Design Build projects:State Transportation Departments shall fulfill the value engineering requirement by performing a value engineering analysis prior to the release of the Request for ProposalsConsider discussing this will FHWA if you are planning on conducting a standard VE study prior to releasing the RFP.
73 Ch 4-The Design Build Contract Starts with the RFQ and RFPThe RFQ will focus exclusively on the design-builder’s understanding of the project and qualificationsThe RFP Package describes the project, the requirements for submitting Final Proposals, the selection process, the technical requirements for designing and constructing the project, and the contract termsDB is the Project Delivery System.The two step selection process is the Procurement Method.There are several variations to the two step process.Not all DB contracts are selected by a two step process. Not all two step processes are Best Value.The Guidebook describes the standard two step selection process. Step one is the qualification based RFQ. Step two is the technical proposal, RFP.
74 RFQ and RFPThe RFQ and RFP Packages contain a number of inter-related documents that completely describe the project, the technical requirements for designing and constructing the project, the methods for selecting the Design-Builder, and the means to administer the contract. The various components are combined into a document resembling DOTPF’s current proposal package.Preparing an adequate RFQ/RFP takes time, but it is the most significant task (for the owner) in the DB process.
75 Performance CriteriaThe Project Team efforts in developing a design-build project are specifically related to developing adequate performance criteria. Establish, through narrative descriptions, conceptual drawings, design criteria, and performance based specifications, exactly what it is the Department wants the project to accomplishScope of Work template.
76 The Evaluation TeamThe Evaluation Team includes all individuals who will be involved in the evaluation of either the SOQ or the Final ProposalDifferent team members will participate at different times and to different degreesSOQ-Statement of Qualifications. This is the response to the RFQ.The point of the RFQ is to reduce the field to 3-5 most highly qualified firms. It costs a lot to prepare a good proposal. If there are only 3 shortlisted firms, each firm has a 1 in 3 chance of winning. If there are 5, then it is 1 in 5 chance. If there chance of success is too low some firms may decline to participate.
77 Design-Builder Selection Team Contracting OfficerProposal Evaluation CommitteeTechnical Evaluation CommitteePrice Evaluation TeamManagement & OrganizationalThis is a typical DOT selection team. It can include area expert advisors as well as evaluators.The SOQ team will likely be smaller than the tech proposal evaluation team.Work Plan/ScheduleTechnical Solutions
78 Contracting Officer (CO) The CO should have DOTPF authority over both project development and construction where the proposed project is located.Since both design and construction are present in the submittals, this official must oversee and have authority over both areas
79 Role of the Contracting Officer The role of the CO is to oversee formulation of the team, appoint responsible and qualified personnel to manage the process, officiate over any evaluation team disputes, and review the final selection. The Contracting Officer’s decisions are based on the recommendations of the Proposal Evaluation Committee (PEC)
80 Proposal Evaluation Committee (PEC) The PEC is comprised of upper-level management in Design and Construction in the Region and the Project Manager. The responsibilities of the PEC include evaluating and scoring the SOQs for initial shortlisting
81 Technical Evaluation Committee (TEC) The first major TEC role is to assess (and change if deemed appropriate) the raw score recommendations of each of the Technical ExpertsThis applies to projects that are complex enough to require technical experts.
82 Technical Evaluation Committee The second major role of the TEC is to evaluate the Technical Proposals in the following major factor areas:Management and Organizational QualificationsProject work Plan and ScheduleTechnical Solutions (overall)The entire TEC should debate and agree by consensus on a score for each of the three major subfactor areas above
83 Technical ExpertsThe role of these advisors is to provide recommended raw scores for relevant technical areas, and to provide expert technical advice as requested by the Technical Evaluation Committee
84 Prepare RFQThe Request for Qualifications (RFQ) is used in the qualification step of the two-step selection processThe goal of the RFQ is to select the three to five top-ranked Proposers based on their experience in specific areas that are important for the project and their understanding of the projectA generic RFQ can be found in Appendix C (RFQ)
85 RFQ QuestionsEvaluate the proposed questions to ensure responses will be useful in selecting a short list of proposers, and not just interesting to the evaluatorsConsider the cost of responding to each questionIs the information you are asking for worth the cost to prepare it?
86 RFQ An “approach” section should not be included in the RFQ Any solutions offered in the RFQ will not likely be fully investigated and will not be guaranteed due to the amount of design related work that would be required to adequately address this topic
87 RFQStructure the RFQ to request information about a Proposer’s experience that can be evaluated in an objective mannerRequest information about key team members and for individuals filling specific roles
88 Selection CriteriaThe selection criteria used to evaluate the SOQ must be related to the important aspects of the project, be clearly stated, and be measurableThe RFQ should define the ideal type of experience needed to obtain the maximum score, with a commensurate lowering of points for lesser experience
89 Selection Criteria Project Understanding (300 points) Proposer Project Team, Key Personnel and Processes (300 points)Proposer’s Past Performance (200 points)Quality Control Program (100 points)Safety Program (100 points)Total 1000 pointsProposed criteria and points
90 Selection CriteriaConsider the following type of qualifiers when reviewing the RFQ requirements:Experience in the execution of fast-track projectsIndividual experience of team members with Design-Build contractingCorporate experience with Design-Build contractingHistory of the proposed team working togetherSpecialized design capability for the key project elementsSpecialized construction capability for the key project elementsExperience with complex construction staging, traffic control, site conditionsSafety record
91 Selection CriteriaStaff available (Project Manager, Design Manager, Construction Superintendent, etc.)Quality performanceQA/QC organizationBonding record or proof of bonding abilityPast performance on awarded contracts (completion, liquidated damages, quality, claims, fines, scheduleFinancial capacityExperience with formal partnering activitiesExperience in similar types of work.
92 Selection CriteriaHistory of performance (unsubstantiated claims, fines, suits, quality, accuracy, schedule)Understanding local environmentResource capacity and availabilityScheduling and control systems to track and manage projectSpecialized expertise that reduces risk and assures quality of work
93 Request For ProposalsFormulation of the RFP Package is a significant effort that should not be overlooked in project scheduling, or underestimatedThis is the portion of the contract in which DOTPF has the opportunity to properly define the desired outcome
94 Proposal General Requirements The Proposal General Requirements detail how the Proposers will respond to the RFP and formulate the Final Proposal. A generic version of this component is shown in Appendix D and will require modification for use in a specific project
95 Technical Proposal Contents The Technical Proposal Contents and Evaluation Criteria describes the specific contents of the Final Proposal and how each of the requested details will be evaluatedA generic version of this component is shown in Appendix E
96 Scope of WorkThe Scope of Work contains the Project Description and other technical criteria for doing the design and construction related workThe technical criteria provide definition of required design criteria, references and methodologies, contract administration, QC/QA, construction maintenance, and product warrantiesA Commentary and generic Scope of Work are contained in Appendix F
97 Revisions to the Standard Specifications The Revisions to the Standard Specifications (Revisions) are similar to the Standard Specification but written specifically for design-build contractingCombined with the Special Provisions they describe the necessary changes to the Standard Specifications for Division 1A generic version is contained in Appendix G
98 Special ProvisionsThe Special Provisions are modifications to the Standard Specifications Division 1 that are project specificPlace any modifications to Divisions 2 through 9 in this componentAny specific provision of the Standard Specification may be modified by either the Revisions or the Special Provisions, but not bothA version is contained in Appendix H
100 Technical Proposal Contents and Evaluations Criteria The purpose of the RFP is to provide directions for Proposers to prepare a Final Proposal that describes their proposed approach to the technical aspects of the project and to present the associated priceA generic Technical Proposal Contents and Evaluations Criteria is contained in Appendix E
101 Evaluation ProcessThe evaluation process is intended to provide the Evaluation Team with a thorough understanding of the Proposer’s approach to the project and to assess its value relative to the proposed priceThe goal of this process is to determine which proposal provides the “best value” to DOTPF
103 Price ProposalThe Price Proposal represents the total project cost to the Department, as defined by the criteria specified in the RFPThe price includes design, construction, management, insurance, bonding, warranties, and maintenance agreements, all as specified in the Contract Provisions
104 Best ValueThe best value approach to contract award selects the Final Proposal in which the combination of technical, quality, operating, and pricing factors most closely meet or exceeds the owner’s requirementsDB is the project delivery process.Best Value is the Contractor Selection method. You can have DB without Best Value and you can have Best Value without DB.
105 Best ValueThis could result in a simple, straightforward solution with a relatively low cost, or a more complex solution with greater benefits but a higher cost, being selectedThe lowest price proposal may not be the lowest cost solution to the owner when maintenance, operating, and replacement costs are considered
106 Best ValueOne of the most difficult parts of pricing and awarding a contract relates to establishing a method of evaluating the technical content and price of proposals in a way that accurately determines the “best value”.How much extra is a better solution worth?
107 Evaluation CriteriaIt is not DOTPF’s desire to have design-builder’s “guess” at how much value is being placed on an individual component. If a design-builder guesses incorrectly in preparing the Final Proposal, it is possible that the project selected would not be the overall best value to the public but instead is the one that guessed the best
108 Technical PointsProject staff should focus on the specific areas in which innovation or cost cutting is most desired when allocating the technical pointsAreas which will receive technical points will vary with each project
109 Technical PointsIf a project’s goal is to have minimum public impact due to construction traffic, then requiring clear, well defined work zone traffic control strategies/commitments is very appropriateIf a project is very rigidly defined due to outside commitments for geometrics, then requiring PS&E level details for geometrics would not be appropriate
110 Best Value/PriceTheoretically, the means of achieving best value is to describe the acceptable or ideal qualification or quality of a product and the “value” of the ideal through an allocation of pointsThe approach presumes that the technical quality is directly proportional to the price
111 Project DescriptionThe Project Description is a written summary of the Project Team’s definition of the project scopeThe Project Description is like an executive summaryThe description provides the who, what, when, where, and “how much” of the project
112 Scope of WorkThe primary goal in the development of the Scope of Work is to define, obtain, or develop all pertinent information required to describe performance-based criteria for the Design-Builder to use in designing and constructing the project featuresExamples of items to consider include operational requirements, performance expectations, design standards, project limits, available budget, regulatory requirements, and schedule restrictionsAppendix F
113 Scope of WorkDeveloping language that describes the requirements of a project feature is a different approach than creating design drawings and technical specifications
114 Revisions to the Standard Specification and Special Provisions A draft version of the Standard Specifications has been created for Division 1 of the Standard Specifications to use with design-build contractingAppendix G
115 Design-Build Special Provisions A generic version of Design-Build Special Provisions is contained in Appendix HThe Revisions and Special Provisions are wholly complementary; not redundant or conflicting. No subsection has a corresponding subsection in the other component
116 Revisions and Special Provisions The intent of having two documents modifying the Standard Specifications is to emulate the current design-bid-build processThe Revisions are intended to contain universal changes that are relevant to all design-build projects while the Special Provisions are intended to be project specific
117 Chapter 5-Design Builder Selection The Project Manager will be the point of contact for all outside correspondence in the same manner that they are in the design-bid-build advertisement phaseAs some of the individuals involved with the evaluation process may not be familiar with contract administration this method of communication shall be made clear to everyone involved with the evaluationConfidentiality and Security
118 Requests for Information The development of the Final Proposal does involve extensive design effort and will likely generate a larger number of Information/Clarification requests than a standard design-bid-build projectThe process for responding to RFIs should become formal during the selection process. Define the formal process adopted in the RFQ and RFP Proposal General RequirementsRFQ (Section 1.4, Appendix C) and RFP Proposal General Requirements Section 3.2 (Appendix D)
119 Evaluate SOQsThe CO will make an initial determination as to whether the SOQ is responsiveThe Proposal Evaluation Committee will assess how well the evaluation criteria were met and score accordinglyThe team should independently review each of the proposalsFollowing this independent review the team should discuss and agree by consensus on a final score for each SOQ
120 Scoring SOQsA point matrix should be constructed prior to the submittal of the SOQsAn ideal answer to each scoring section should be provided to evaluatorsIt is recommended that the group score the proposals togetherThe Proposal Evaluation Committee will then make a recommendation to the Contracting Officer of the top three to five Proposers to be asked to prepare a Final ProposalConsider developing an Evaluation Handbook. Examples available.
121 Short ListThe choice of three, four, or five Proposers is left to the PECIf the number of qualified submittals is less than three, approval to proceed with an RFP will require approval from the Chief Contracts OfficerThe short-listed Proposers will be provided with a final RFP and asked to prepare Final Proposals
122 Evaluate Technical Proposals The evaluation of the Technical Proposal is the most important and significant exercise the Department will undertake in the design-build contracting processThe evaluation represents a design review
123 Proposal SelectionSelection of a proposal represents acceptance of the proposed design, equivalent to the “Design Approval” of the design-bid-build processThe Department is also evaluating the proposed construction process
124 Technical Proposal Review In the design-bid-build process, the review of the final plans is a rigorous exercise; evaluating the Technical Proposal is the equivalent step in the design-build process
125 Proposal Scoring Technical experts recommend raw score Technical experts brief Evaluation TeamTEC develops final scores for each technical areaThe weighted raw scores are combined using a pre-determined formula to arrive at a composite Technical Solutions scoreTEB Technical Evaluation Board
126 Scoring SystemDevelop a system or scale for use by the Technical Experts and TEC in determining the scoringEstablish a basis for the scoring such as the minimum acceptable score for meeting the requirements of the contract
127 ScoringConsider using a non-numbered scale to judge each criterion with judgment positions identifiedExample: unacceptable (non-responsive), acceptable (meets criteria), exceptional (exceeds criteria)TEC can use these scaled judgments to actually assign point values
128 Oral PresentationsThe Proposal General Requirements contains a provision that allows Proposers an opportunity to present presentations of their proposalsThe oral presentations shall not be used to fill-in missing or incomplete information that was required in the written proposal
129 Price Proposal The Price Proposal is opened at a predetermined time The values of the Price Proposals are opened and entered into the scoring matrix
130 Calculate Highest Score The equation suggested in the Manual is a simple division of the technical score by the proposed price
131 Calculation of Best Value The total possible for the technical score is 1000 points. The technical score is adjusted by a factor to create an order of magnitude similar to the price. For example, with a $10 million project and a 1000-point system, multiply the technical score by 1,000,000 to get to a useful whole number final score
132 Best Value Formula Total Score = (Technical Score x 1,000,000)/Bid price ($)
133 Example Team Score Price A 930 10,937,200 B 890 9,000,000 D ,700,000Team A has the highest tech score.Team D has the lowest cost.
134 A x 106 = 8510,937,200B x 106 = 999,000,000C x 106 = 989,600,000D x 106 = 948,700,000Proposer B would be chosen in this example, even though C has the highest technical score and D has the lowest bid.
135 Other Best Value Scoring The Technically Acceptable/Low Bid method is appropriate when many different technical solutions are possible and the Department does not care which one is usedThe Technical Proposal is evaluated on a pass/fail basis
136 Technically Acceptable/Low Bid Each evaluation factor in the RFP would be judged Acceptable, Marginally Acceptable or UnacceptableFor a proposal to be judged as Technically Acceptable a ranking of “Acceptable” must be obtained in at least three of the evaluation categories, and “Marginally Acceptable” in no more than two categoriesJust one proposed method. A simple pass/fail in each category could also be used. This method was used on the Fast Vehicle Ferry.
137 Low Bidder WinsTechnically Acceptable bidders are ranked by price with the lowest bid being ranked Number 1.
138 Another MethodThe Normalized Ranking method is appropriate when the Department wants to clearly indicate the relative importance between the technical proposal and the costTechnical points are normalized to a percentage of the highest technical score obtainedThis is a ranking method. Proposals are compared to the best proposal
140 Lowest proposal cost Proposal cost Cost ScoreThe costs are converted to a cost score by normalizing the costs as a percentage of the lowest cost proposerCost Score (CS) =Lowest proposal cost Proposal cost
141 Overall ScoreThe Overall Score is calculated by applying a percentage multiplier to the NTPS and the CSFor example, if the Technical proposal is worth 25% and the Cost is 75%, the formula would be:Overall Score =(0.25 x NTPS) + (0.75 x CS)The advantage here is that the weight of the technical score and the weight of the price can be easily adjusted.
142 Chapter 6-Contract Administration DOTPF’s responsibilities for contract administration involve monitoring contract compliance and schedules, processing progress payments, performing quality assurance activities, assisting in permitting and right-of-way acquisitions, negotiating contract amendments, and resolving disputes.
143 Quality AssuranceThe focus of the Department’s quality assurance program is on product compliance with contract documents, verification of the Design-Builder’s quality control measures, and meeting Federal quality requirementsQuality assurance activities focus on monitoring contract execution with respect to a negotiated Quality Control Plan
144 Authority of the Engineer The Project Manager has the authority to enforce the provisions of the design-build contractThe Design-Builder, not DOTPF, creates the final plans that are a component of the contract
145 Conformance with Design Criteria The Project Manager and the Project Team are limited to checking the plans and specifications for conformance with the design criteria and the constructed work against the final plans and specifications submitted by Design-BuilderChanges to the design drawings and specifications can only be required if they do not conform to the terms of the contract documents
146 Construction Documents The Department will have the opportunity to review the reports prepared by the Design-Builder but will not interfere with the design processDepartment comments given to the Design-Builder from any reviewer will be in line with the Scope of Work description of the Department role
147 Plan Review and Oversight The Department’s typical design-bid-build process involves a “Design Approval” decision point that is not relevant to the design-build processBy awarding the design-build contract, the Department is approving and accepting the design; thus, approval of design is inherent in the selection process
148 Plan ReviewIf the proposed design meets the requirements of the contract documents, no significant changes can be made without a corresponding contract change orderThe details necessary for DOTPF approval of design must be requested in the RFP and supplied in the Final ProposalThe acceptance of the proposal authorizes production of final plans
149 Reviews There is no pre-defined review period for the Department The Design-Builder and the Department will decide on the appropriate timing of reviews during execution of the contract
150 Review CommentsOnly comments related to non-conforming design elements not meeting the contract requirements will be incorporatedAll other comments are for the Design-Builder’s consideration onlyThe decision to incorporate Department comments of a “preferential” nature resides with the Design-Builder
151 Materials TestingThe transition from design-bid-build prescriptive specifications and plans to design-build performance specifications requires a change in methods of measurement of qualityThe Department has set the requirements the Design-Builder must adhere to in developing a QC/QA Program, which defines the quality controls procedures for the products associated with the project
152 Materials TestingSome quality assurance monitoring and control functions are under the Department’s control to comply with FHWA policiesDepartment tasks will include verification testing, independent assurance sampling, and fabrication inspection (off-site)The Design-Builder’s responsibilities include materials testing; review working drawings, and full time construction inspection
153 Construction Inspection The primary role is to monitor the progression of the construction against the Construction Documents submitted by the Design-BuilderThe inspector’s authority has not changed, although his work will be coordinated with the Design-Builder inspector
154 AKDOT DB Material Testing Some quality assurance monitoring and control functions are under the Department’s control to comply with FHWA policies.Department tasks include:verification testing, independent assurance sampling, and fabrication inspection (off-site).The Design-Builder’s responsibilities include:materials testing, review working drawings, and full time construction inspection.
155 Hold Points & Witness Points Copies of the working drawings will be forwarded to the Department for use in independent assurance inspectionMandatory inspections-called Hold Points will be agreed to by the partiesConstruction inspection oversight- called Witness Points will also be agreed to by the partiesAppendix F, Scope of Work Section Witness and Hold Points
156 Chapter 7-Contract Closure A design-build project ends when all conditions of the contract have been fulfilledThis includes design activities and record drawings, construction activities, QC/QA work, project documentation, and any warranty periods
157 CompletionDOTPF will conduct a final inspection and provide the design-builder with a list of corrective or incomplete work itemsA design-build project that is described and specified using performance parameters is “accepted” by DOTPF based on the design-builder’s final plans and technical specifications
158 AcceptanceDuring execution of the contract, acceptance of the project’s components occurred through the QA/QC program. If the QA/QC plan was followed, the execution should lead to an acceptable final product, aside from typical minor corrective work
159 WarrantyWarranty requirements will extend beyond the completion of construction and will be monitored for compliance on the specific objectives of the warrantyFinal acceptance of the project provides confirmation that the completed product meets the contract terms
160 Contract ClosureThe tasks associated with the contract closure lie almost entirely with the DepartmentThe Department will establish substantial and/or physical completion of the work as described in the revisions to the Standard SpecificationsDetermination of physical completion signifies the end of liquidated damages
161 The Appendices Appendix A: Generic Approach Chart Appendix B: Evaluation Team ChartAppendix C: RFQ TemplateAppendix D: Proposal General Req’sAppendix E: RFP TemplateAppendix F: Scope of Work TemplateAppendix G: Revisions to the Std Specs
162 Appendices Appendix H: Special Provisions Appendix I: Responsibility ChartAppendix J: Design Build P&PAppendix K: DB Approval Request FormAppendix L: DB RegulationsAppendix M: RFP Checklist
163 Final Comments or Questions Future TrainingRevisions to the ManualProject specific, Team members, Evaluation HandbookThe appendices will continue to evolve and develop