1. Best Practices for Design Build Procurement
Presentation to
2010 FAA Worldwide Airport Technology Conference
Atlantic City, NJ
April 22, 2010
Jim Hall, PE, PhD
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2. IPRF Project 01-G-002-06-1 Review Panel
Jim Lafrenz (IPRF)
Craig Rutland (HQ AFCESA/CEOA)
Gary Mitchell (ACPA)
Carlton Lambiasi (FAA)
Bob Benko (FAA)
Susan Winslow (Delta Airport Consultants)
Dean Rue (CH2M Hill)
Mike Devoy (RW Armstrong)
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3. Project Team Jim Hall (ARA) Dave Hein (ARA) Chris Olidis (ARA)
Justin Jones (PBSJ)
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4. Project Objectives
Assess, document and compare merits and deficiencies between D/B and D/B/B
Document myths and realities of D/B
Develop a suitability template for D/B
Develop a D/B best practices document
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5. Project Approach IPRF identified list of airfield D/B projects
Each was contacted; completed questionnaire and personal interview
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6. D/B versus D/B/B
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7. Key Aspects of D/B
D/B projects move from conception to commission much faster than D/B/B
Design and construction integration/overlap allows compression of schedule critical path
Projects with higher level of complexity better suited
Allows innovation
Promotes sense of ownership of final product
Less cost creep than traditional D/B/B
Not always least cost approach
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8. Role of Design Engineer
The design engineer is contracted to the D/B Entity
Does not have a direct relationship with the Owner
Designer retained by D/B contractor not an issue in projects reviewed
Some advantages to have contractor personnel be an integral part of the design team
May work best when D/B is joint venture between design firm and contractor
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9. Project Development
Owners should have a clear understanding of what they want and ask for it
A risk allocation matrix helps identify the responsibilities of owner and contractor
Owners preliminary design should allow a contractor to do preliminary estimating
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10. Risk Allocation Matrix
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11. Risk Allocation Matrix
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12. Minimum Information to be Provided to Prospective Bidders
Performance specifications
Geotechnical information
Topographical survey
Environmental Impact Statement (EIS)
Record of Decision (ROD)
Design parameters (traffic, design life, etc)
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13. Typical RFP Information
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14. Project Development
30 percent design sufficient to describe owner’s requirements
Procurement evaluation criteria should include decision parameters and ratings
Pre-qualify no more than three D/B teams
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15. Project Development
Consider a suitable stipend to short-listed bidders commensurate with size and complexity of project
A 3-year warranty was considered reasonable
An arbitration procedure for dispute resolution should be included in the D/B contract
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16. Contract Management
Partnering session to establish / understand all aspects of the project
Regular meetings to review issues and contingency items, ensure no surprises
Deal with any financial issues immediately
Design submissions need to be largely complete and accurate and have contractor buy-in before being submitted to the owner for review
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17. Project Management
Owners project team must be committed to the D/B process
Owners should retain an independent firm to review the design submittals (unless Owner has in-house capabilities)
Owner design reviewers to be highly experienced in the subject matter due to compressed schedule
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18. Quality Management
D/B lead responsible for overall project QC and QA checks of the subcontractors’ QC
QMP should include:
organizational details
quality procedures
inspection and testing frequencies
corrective action plans
reporting requirements, etc
ISO 9000 Guidelines good reference
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19. Quality Management Subcontractors responsible for QC of their own work
Owner and/or owner’s representative should provide QA oversight
QA/QC information and test results should be readily available to all parties
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20. Quality Plan Requirements
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21. Quality Plan Requirements
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22. Project Suitability for D/B
Large airport projects may be up to 3 years in the planning and funding stages
Legislation to allow D/B Procurement
Primary Considerations
Time constraints for project delivery
Environmental impact complete
Project complexity
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23. Project Suitability for D/B
Secondary Considerations (partial list)
Well defined scope - clear performance requirements
Project size
Owner experience and resources
Contractual restraints (complexity)
Allocation of risks
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24. Project Suitability for D/B
Other Considerations (partial list)
Operational constraints
Budget
Unforeseen subsurface conditions
Roles and responsibilities
Surety/bonding/insurance, etc
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25. Project Suitability Template
Considers primary, secondary, and other factors
Assigns appropriate weighting factors
Weighting factors based on Owner’s needs and expectations
Outcome can range from 0 to 100
> 65, suitable for D/B
50 to 65, can be considered
< 50, not considered suitable
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27. Design/Build Flowchart
Step 1
Determine Suitability
Evaluate fatal flaws
Complete suitability matrix
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28. Design/Build Flowchart
Step 1
Determine Suitability
Step 2
Procurement Plan
Project description
Assess risk
Develop schedule and planning budget
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29. Design/Build Flowchart
Step 1
Determine Suitability
Step 2
Procurement Plan
Step 3
Develop RFQ
Pre-qualification requirements
Selection criteria and weighting
Shortlist qualified proposers
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30. Design/Build Flowchart
Step 1
Determine Suitability
Step 2
Procurement Plan
Step 3
Develop RFQ
Step 4
Develop RFP
Contractor does not accept risk, he prices it.
Create knowledgeable selection panel
Establish design guidelines
Balanced contract language
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31. Design/Build Flowchart
Step 1
Determine Suitability
Step 2
Procurement Plan
Step 3
Develop RFQ
Step 4
Develop RFP
Step 5
Evaluate and Award
Separate evaluation of technical and financial submission
Promptly award contract
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32. Design/Build Flowchart
Step 1
Determine Suitability
Step 2
Procurement Plan
Step 3
Develop RFQ
Step 4
Develop RFP
Step 5
Evaluate and Award
Step 6
Monitor Performance
Hold chartering sessions
Undertake auditing and monitoring
Final acceptance
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33. Technical Report and Best Practices
IPRF website
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34. Draft ACC and UFC Documents
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35. QUESTIONS
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