Highways & Infrastructure Best Value Construction Procurement Presentation November, 2017

Presentation Objectives What is Best Value procurement Reasons why bids are not successful Tips on how to better respond to MHI tenders The Debrief process Question and Answer time

Why Best Value?

What is Best Value? What is Best Value? Priority Saskatchewan definition: “best value” means structuring the specific procurement opportunity, as determined by the public entity, so that the evaluation and award to a successful vendor results in the greatest overall benefit to the public entity.

Why Pursue Best Value? Lowest bid price isn’t always: the greatest overall benefit the lowest life cycle cost Opportunity to impact project challenges Cabinet directive via Priority Saskatchewan Bill 188 gives MHI authority to seek Best Value

The Basics – Why bids are not successful

Top 10 Reasons bids are not successful #1 Late bids - date, time and location We do not accept late bids

Top 10 Reasons Continued - #2 Not addressing mandatory criteria This is a show stopper - mandatory means mandatory

Top 10 Reasons Continued - #3 Not addressing rated requirements May not be a show stopper but the quality of the response will determine your standing in the competition. The failure of a Bidder to completely fill out a template may result in that bid being disqualified.

Top 10 Reasons Continued - #4 Not following the requested format Bidding with a different format will make it more difficult for evaluators There is a risk the evaluator will not find pertinent information if it is not where they expect to find it .

Top 10 Reasons Continued - #5 Not accepting the stated terms and conditions Normally bidders must accept the terms and conditions detailed in the tender

Top 10 Reasons Continued - #6 Miscalculation of price Unit price prevails where there is an error

Top 10 Reasons Continued - #7 Wanting to change bid after closing Your bid is irrevocable once the competition closes

Top 10 Reasons Continued - #8 Making assumptions rather than asking a question The best advice is to make no assumptions If you have a question - ask it

Top 10 Reasons Continued - #9 Not providing detailed information We can only evaluate what has been submitted

Top 10 Reasons Continued - #10 Evaluation criteria and selection method Look to the solicitation document to determine how your bid will be evaluated

Current Process

Relevant Work Experience If possible provide examples of past projects: That were of similar work type and had the same major bid items; Which you were the prime contractor; That were similar in size; and That were similar in complexity.

Local Knowledge Describe your familiarity working with ministry procedures and indicate how it was obtained. Describe your knowledge of specifications relevant to the project being tendered and indicate how it was obtained.

Local Knowledge Describe your experience with site conditions that are similar to the project being tendered. If you have worked in close proximity to this project, please indicate. If you have worked with similar conditions (traffic, pits, soil) please indicate. Describe what the project(s) was and how it was similar.

Local Knowledge Describe your experience with third parties that are relevant to the project being tendered. Make your answer specific to this project. Who will you need to deal with on this project and have you dealt with them in the past?

Project Plan Quality and detail of work plan. Provide a schedule that includes key milestone dates, and production rates. The work plan should include enough detail to demonstrate a good understanding of the project and it’s key activities and should be proportionate to the project complexity. The onus is on you to demonstrate your plan is viable and you have the capability and capacity to perform the work.

Project Plan Risk identification and mitigation strategy. Provide all risks associated with the project being tendered. Potential risks may include: Traffic (include project specific concerns) Safety Soil conditions Weather Steep slopes

Project Plan Demonstrated capacity Identify the current schedule for all crews with their committed work and show the crew and schedule for this specific tender. List active projects and provide timelines for those projects. Indicate how this project would be coordinated with other active projects.

Project Plan Key personnel and their relevant experience Personnel assigned to this project, their role, and their experience in this role. Provide relevant experience for subcontractors who are estimated to provide services over 20% of the total contract value.

IMPORTANT REMINDERS We can only assess what is in your bid even if it is known information Bid as though your submission will be reviewed by someone who has never heard of you Provide details of your experience – both company and personnel experience Include important milestones in your project plan

Debriefing Process The first step is to request a debrief You will get feedback on the strengths and weakness of your bid This will help you on the next competition It is not a debate or a complaint process You only get feedback on your bid

Summary Read the document carefully Follow all instructions If you have a question ask it Win or lose ask for a debrief

Questions I would be pleased to answer any questions you have THANK YOU FOR YOUR INTEREST

Contractor Performance Evaluation

Contractor Performance Evaluation Working on details regarding how to evaluate contractor performance 2017 contract award letters noted that project performance would be evaluated on: Schedule Quality Project Delivery Safety & environment

Contractor Performance Evaluation Will be evaluating projects awarded in 2017 Slowly introducing that information as part of the contract award process

Thank You