Do you have what it takes to win the next P3 or D-B Project? Steven Kramer, PE Vice President Jacobs

2 Success Factors for Alternative Delivery Projects From the Owner  High level political will and commitment  Clear, open & objective procurement process  Defined selection criteria  Best value selection  Don’t over-scope / allow innovation  Risk sharing between owner & provider

3 Best Practices for Alternative Delivery Projects Desired by Contractors/Engineers  Submission of Alternative Technical Concepts (ATC’s)  Confidentiality of ideas  Private meetings to review/discuss ATC’s  Reasonable stipend that shares cost of proposal efforts

4 Preferred Procurement Approach  Best Value is Preferred  Well Defined Schedule for Each Milestone (Invitation to Bid, Qualifications, Short-List, Proposal and Price)  Bidding handled well - Adequate timing - Few extensions - Limited addenda  Lowest initial cost or highest initial payment may not provide best solution for owner  Inappropriate O&M costs may negate the benefits of low initial cost

5 Lessons Learned from Prior Procurements During Bid Process For the Contractor and Engineer:  Not business as usual  Select partner very early  Extended procurement process as many players still learning – delays likely  Investment proposal costs higher than anticipated  Need to be innovative – Traditional approaches will not win  Co-Locate Team During Bid Process

6 Lessons Learned from Prior Procurements During Bid Process For the Contractor and Engineer:  PM sets tone for success  Conduct team building workshop with all participants / emphasize team effort  Conduct an idea generation workshop with Contractors & Engineers to identify opportunities that provide value & reduce costs  Establish a clear understanding on alternative approaches to be studied & budget for project  Treat the proposal effort as a job