The Art of QBS Qualifications-Based Selection (QBS): Procuring Intellectual Services the Smart Way Claude Paul Boivin, ACEC Canada Title #1

When Hiring An Engineer, Choose Quality and Avoid Fall Economies Title #2

Title #3 The High Cost of Cheap Design

We Have Met The Enemy And He Is Us Pogo, 1972 Title #4

Generic Mission Statement “We exist to make our member firms more successful!

What guarantees success? Client gets quality Client gets value Client gets a product designed to last How to guarantee success? Client selects the right design team –Qualified Engineers

Choosing the Right People is an Art Intellectual services, such as engineering expertise, cannot be procured in the same way as commodities like pencils and paper.

Would you choose your heart surgeon based on the lowest price?

You would not hire an employee based on the lowest salary proposed, would you?

Then why allow engineers to be selected on price, especially with People’s health and safety often at stake?

Why are these facilities so successful? Well-designed Well-built Well-maintained

Qualifications-Based Selection (QBS) Means… Accountability Transparency Effective use of public funds QBS for Public Procurement Means… Quality Value Savings

Select a Firm Based On… Proven performance Technical excellence Proposed approach Personnel and resources Applicable knowledge or experience Understanding of client’s needs The right team for the right project

Good Design Means Savings

QBS Means Quality Selection focuses on client’s needs Quality

Enemies of our Industry and Profession Low price bidding Reverse auctions

Benefits of (QBS) A) Results in appropriate and wise investment at design stage which: Fosters creativity Selects best design team and most appropriate technology Provides long-term value by reducing construction and life-cycle maintenance costs B) Places emphasis on the client’s objectives and expectations of quality, well adapted to current conditions and future trends. C) Provides a transparent selection system that focuses on competence, creativity and proven performance. DANGERS of low-bid selection A) Results in low investment at design stage which: Discourages innovation and evaluation of alternative approaches Results in use of less experienced personnel and fewer resources devoted to the project Leads to missed opportunities for savings in construction and life- cycle maintenance costs B) Places emphasis on acceptable standards instead of expected quality C) Selection focuses on lowest possible effort and lowest call on intellectual, conceptual and design resources.

The High Cost of Cheap Design Low use of available resources Lost opportunity for innovation Long-term higher cost Low value Low Price Means…

QBS Process 1.List qualified consultants 2.Request proposals 3.Select firm 4.Confirm scope 5.Negotiate fee based on confirmed scope

Did You Say “Negotiate the Fee”? Best case scenario for both parties –Expected services performed within client budget –Fair and reasonable fee

Who Supports QBS? FIDIC – QBS is the optimal way to select a consultant United States government - QBS is the law (Brooks Act) The Canadian Council of Professional Engineers (CCPE), which defends the public interest

Top Ten Reasons for QBS 1.High Quality 2.The Experts you Need 3.Savings 4.Sound Public Policy 5.More Cost Certainty 6.Transparency 7.Fees Correlate to Services 8.Competitive Merit Based Process 9.Better Scope Definition 10.Opportunities for Innovation

What Can You Do?