2016 SAME Small Business Conference - Atlanta Developing Alternate Acquisition Strategies for Public Works Construction Projects By Jerry Shoemaker, P.E., M-SAME President/CEO – RH Shackelford, Inc. (RHSI)

Developing Alternate Acquisition Strategies for Public Works Construction Projects Presentation Topics: Acquisition Planning Traditional Design Bid Build (DBB) Contracts Job Order Contracts (JOC) Indefinite Delivery Indefinite Quantity (IDIQ) Contracts Multiple Award Contracts (MAC) Best Value Contracts Design Build (DB) Contracts Construction Management Agent (CM) Construction Management At-Risk (CM At-Risk) Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Acquisition Planning Acquisition Planning - the process for coordinating and integrating the activities with an overall strategy for managing the acquisition, including administration of the contract after award. Nature of the work Civil (Streets, Utilities, Storm Water, Bridges, etc.) Facilities (Buildings, Parks & Recreation Facilities covered by International Building Code) Agency Regulations and Funding Requirements Repetitive Nature of Procurement Milestones and Project Timelines Risk Analysis for the Acquisition Selection flowcharts are available at various websites Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Traditional Design Bid Build (DBB) Contracts Application: All projects – Civil, Facilities, Buildings, etc. Advantages: Simple advertisement process for owner and contractor Clear and simple evaluation process/requirements Well known and established procedures Disadvantages: Price predominant factor Limited consideration of contractor past performance, quality and schedule Potential misinterpretation of construction documents and conflicts Not suitable for fast track projects Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Job Order Contracts (JOC) Application: Facilities & Buildings covered by Intl. Building Codes Advantages: Fast Track projects Nominal evaluation requirements using Pre-established Unit Prices Books with City Cost Indexes and contractor adjusted bid Coefficients Allows consolidation of multiple projects under one award with standardized construction requirements and specifications Early Contactor Involvement and partnering improving cost effectiveness Improved Customer Service and Responsiveness Multiple year contract for long term owner-contractor-AE relationships Disadvantages: Requires more active participation by Owner-Engineer Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Indefinite Delivery Indefinite Quantity (IDIQ) Contracts Application: Civil projects; Streets, Utilities, Earthwork, etc. Advantages: Moderate evaluation requirements on experience, past performance, schedule, quality and contractor unit pricing Fixed Contractor Unit Bid Prices with Emergency Coefficients for ideal scoping and cost effectiveness Allows consolidation of multiple projects under one award with standardized construction requirements and specifications Maximizes Early Contactor involvement and partnering to improve cost effectiveness Multiple Delivery Orders based on successful contractor performance Multiple year contract for long term owner-contractor-engineer relationships Disadvantages: Requires more active participation by Owner-Engineer Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Multiple Award Contracts (MAC) Application: All projects – Civil, Facilities, Buildings, etc. Advantages: Nominal evaluation requirements Establishes a Pre-qualified list of contractors May establish Unit Prices and contractor Coefficients Facilitates Early Interaction with long term owner-contractor-engineer relationships Multiple Delivery Orders based on successful contractor performance Disadvantages: Requires more active participation by Owner-Engineer Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Best Value Contracts Application: Advantages: Disadvantages: Larger complex projects – Civil, Facilities, Buildings, etc. Advantages: Evaluation can consider contractor price, experience, past performance, schedule, and quality Opportunity for 2-step selection process which can include contractor interviews/presentations Encourages select contractor base Disadvantages: More complex requirements and cost for development of RFP’s More complicated evaluation requirements Require more advanced staff experience Subjective cost to quality perceptions Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Design Build (DB) Contracts Application: Select Projects - Civil, Facilities, Buildings, etc. Advantages: Fast Track with Bid & Design Phases Shifts Liabilities to Contractor-AE team Optimizes Early Contractor Involvement Evaluation based on contractor price, experience, past performance, schedule, and quality 2-step selection process with contractor interviews Encourages select contractor base Disadvantages: Most sophisticated owner staff requirements Reduces traditional balance of AE-Owner relationship and AE construction administration/oversight Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

CM Agent Contracts Application: Advantages: Disadvantages: All Projects - particularly for more complexity capital projects Advantages: Potential to Fast Track Design and Construction Provides Owner advanced experience and skills to oversee Design and Construction Phases Potentially improves Contractor Early Involvement 2-step selection process with evaluation based on CM price, experience, past performance, schedule, and quality Preserves basic balance of AE-Owner relationship Disadvantages: Increases procurement phase requirements Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

CM At-Risk Contracts Application: Advantages: Disadvantages: Select Projects - Civil, Facilities, Buildings, etc. Advantages: Fast Track Guaranteed Maximum Price Maximizes Contractor Early Involvement and increases contractor responsibility and risk Evaluation based on contractor price, experience, past performance, schedule, and quality 2-step selection process with vigorous contractor interviews Preserves balance of AE-Owner relationship Disadvantages: Requires advanced owner staff knowledge/qualifications Reduces traditional balance of AE-Owner relationship and AE construction administration/oversight More extensive procurement process Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Summary Hosted by the Society of American Military Engineers Factors Traditional Low Bid JOC IDIQ MAC DB CM CM At-Risk Time Sensitive No Yes Multiple Awards Multi-Year Options Multiple Contractors Complex Advanced Staff Reqt Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Summary Application: Advantages: Disadvantages: Select Projects - Civil, Facilities, Buildings, etc. Advantages: Eliminates Bid Phase requirements & Design Phase Timelines Shifts Liabilities to Contractor-AE team Optimizes Early Contractor Involvement Evaluation based on contractor price, experience, past performance, schedule, and quality 2-step selection process with contractor interviews Encourages select contractor base Disadvantages: Most sophisticated owner staff requirements Reduces traditional balance of AE-Owner relationship and AE construction administration/oversight Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)

Questions: Contact Info: Jerry Shoemaker, P.E. jshoemaker@rhsitx.com (361) 400-2929 Hosted by the Society of American Military Engineers RH Shackelford, Inc. (SDVOSB)