2 Value-Based Project Delivery ContractAwardBecoming more efficient in 3 ways: Objectives of each PhaseDifferentiate Expertise: value proposition (plan, people, price)Pre-Planning Before Award: focused on operational risk & clarificationPerformance Measurement: positive accountability & sustained performanceImpacts tracking = this Is what gives you sustained performance
3 Value-Based Project Delivery Filter 1ProposalEvaluationsFilter 2Interview Key PersonnelFilter 3Prioritization(IdentifyBest Value)Filter 4CostReasonablenessCheckFilter 5Pre-Award &ClarificationProject ExecutionRisk Reporting & Close Out Rating1122Contract Award33FILTERS44Evaluation CriteriaPrice / Cost / FeeProject CapabilityRisk AssessmentValue AddedPast PerformanceInformation (PPI)Pre Award ActivitiesTrainingKickoff MeetingPlanning &ClarifyingSummary MeetingProject Execution- Weekly Risk Report- Director Report- Performance Meas.- Close Out RatingsShort Listprior toInterviews(if necessary)Total Evaluation Scores are determinedLogic check to confirm Selection of the potential Best Value ProponentCopyright Arizona State Univ. 2013
4 Project ManagementCommon Service Delivery Challenge - Sustaining PerformanceWeekly Risk ReportTool for documenting risk that impacts the projectMeasurement in terms of cost, schedule, and client expectationPerformance evaluationClient closeout evaluation of vendor performanceUpdates Past Performance Information
6 What is the Weekly Risk Report? The Weekly Risk Report, or WRR, is a project measurement tool that:Contains a summary of the original project plan with known potential risks (RMP)Tracks all project deviations (risk) from the original contract planTracks the resolution & responsibility of each riskWRR is filled out by Vendor, weeklyEven if there are no risks to report, it is still submittedThe WRR is not a action items list, meeting minutes tracker, or a “whoopsies report”
7 Definition of a riskA risk is anything that impacts money, time, or the expectation
8 Weekly Risk Report System Excel Spreadsheet that is setup by the Client and sent to the vendor once Award/NTP has been issuedVendor must submit the report every week (Friday) until project is complete888
9 Purpose of the WRR Purposes Client Benefits Vendor Benefits Identifies performance of a projectIdentifies and summarizes all project risksIdentifies why risk, cost impact, and/or delays occurredIdentifies who caused the risksComplete documentation of risk & resolutionsClient BenefitsWeekly analysis of project(s)Dominant information for each project’s statusEasy analysis for areas of improvementHelps drive accountabilityUsed to measure performance of entire organizationVendor BenefitsAllows vendor to document all impacts to cost/scheduleAllows vendor to document unresolved issues (client included)Allows vendor to document all client decisions/changes/directives
10 Measurement of Deviation from the Expectation Management by Risk Minimization Unforeseen RisksPROJECT PLANRiskRisk MinimizationScheduleWEEKLY REPORTRiskUnforeseen RisksMETRICSTime linkedFinancialOperational/Client Satisfac.EnvironmentalPERFORMANCE SUMMARYVendor PerformanceClient PerformanceIndividual PerformanceProject Performance
11 Example Weekly Risk Report We will now review the actual Weekly Report file.
12 Using the WRR in a Meeting Best Practices for Weekly Meetings include:Vendor conducts meetingVendor sends out WRR and meeting agenda 2 days in advance (minimum)Agenda sent out in the body of an , with individual names identified for updates(People don’t open the WRR)Participants inform Vendor of items they would like added to the agendaVendor sets final agendaSample meeting agendaReview project plan / schedule and current statusReview Unresolved RiskStatus – updates from responsible partiesActions needed (identified by person)Review any New RisksAddress other agenda itemsOpen ForumAdjourn
14 Example of a Risk Resolution ASU Academic Calendar Change Information received somehowASU informs Aramark of the academic calendar changeVendor assess information if it is a risk (if it is not obvious)Initially ASU did not think this was a riskAramark thought it wasVendor’s responsibility to show that a risk is a riskAramark maps out calendar and clearly shows additional days of services requiredCalendar change is a risk as the meal plan pricing has already been set before the additional days of service were added (same price for more services – negative impact to Aramark)Vendor-Lead contacts Client-Lead, preps for risk, lets them know it is coming(the first time the client finds out about a risks should not be on the WRR)
15 Consultant Feedback Debriefs in Edmonton (February 2013) Weekly Risk Reporting“It’s a very streamlined process. We put what we need into the weekly risk report and it’s given to us”"We’ve now implemented [the weekly risk report] system on every job""We found that if somebody saw their name on that report, they wanted to get their name off very quickly. So distributing that to the team ... put the onus on to everybody to do their job"
27 Research from Contractor Delays Contractor Risks%Delivery of Materials Delayed28%Installation errors26%Incorrect material ordered or delivered11%Alteration of installation needed9%Manufacture didn't have sufficient materialsMisunderstanding of Construction Documents6%Door Frames incorrect size4%Soil compaction2%52%of risks due to errors in materials delivered
29 The Power of Performance Information Must be simple and dominantCriteriaYear 1(From Incumbent)Year 2(From Year 1)Year 3(From Year 2)Year 4(From Year 3)Sales14% Increase11% Increase24% Increase13.5% IncreaseCommission23% Increase6% Increase20% Increase22% IncreaseASU Management RequirementReduced 79%--Student Satisfaction37% Increase1% Decrease9% Increase 3% Increase*Data from ASU Dining Services