Performance Based Studies Research Group Pre Award Phase

W W W. P B S R G. C O M 2 Best Value System Identification of Potential Best-Value Pre Planning and Risk Management Measurement of Deviation from the Expectation PHASE 1 PHASE 2 PHASE 3

W W W. P B S R G. C O M Expectations of a Best Value Contract All efforts are first planned, and then operations are executed. All efforts are well documented with actual performance measured against the original plan. Risk and control transferred to the vendor. Risk are planned for before they occur, focusing on risk that is not controllable. A measured environment, using dominant performance and risk information to optimize the level of service and show value Accountable client and an accountable service provider Transparent, simple, and clear Minimum transactions 3

W W W. P B S R G. C O M 4 4 Pre Award Period What is it / Why is it important Period of time allotted to potential best value vendor (aka the Expert) to:  Present their project/service plan  Set a plan for its delivery / clarify that your proposal is accurate  Identify the risks and issues that could cause the plan to deviate  Identify what you don’t know and when you will know it and how the plan could change based upon what you discover  Set plans to minimize those risks from occurring  Address all the concerns and risks of the client

W W W. P B S R G. C O M 5 5 Pre Award Period What is it / Why is it important Period of time allotted to potential best value vendor (aka the Expert) to:  Know how they are being successful and adding value (measurement)  What metrics you will use and how you will report them  What is the current baseline condition we are comparing against  Identify what you need from the client and have a plan for getting it  Have completely aligned expectations between all parties so everyone knows what is going to transpire and what they are supposed to do

W W W. P B S R G. C O M 6 6 Pre Award Period What is it / Why is it important Period of time allotted to potential best value vendor (aka the Expert) to:  Coordinate the schedule: client, sub-vendors, consultants, suppliers, designer, etc. etc. etc.  Set up and initiate using the Weekly Risk Report (WRR)  Write the contract in terms of performance information  Get contract signed

W W W. P B S R G. C O M What Happens During the Pre Award Phase Education (video, vendor and PBSRG, client and PBSRG) Vendor present Draft Plan at the Kickoff meeting (what you proposed based upon), and also addresses any key client concerns, big ticket items, deal breakers, etc. Set Pre-Award Period Schedule Initiate the Weekly Risk Report IMMEDIATELY Work with client to finalize details and set expectations/responsibilities  Coordinate the project / transition schedule, complete RMP, etc. Finalize the financials and contract Set the baseline / benchmark metrics / performance measurement reporting Hold the Final Summary Meeting Sign the contract

W W W. P B S R G. C O M 8 Filter 1 Past Performance Information Filter 2 Current Capability Filter 4 Prioritization (Identify Best Value) Filter 5 Cost Reasonableness Filter 6 Pre- Planning & Risk Min Time Quality of Vendors Filter 3 Interview Key Personnel Award High Low BV Process Measurement of Risk & Performance During the Contract Non-Detailed Detailed Non-Detailed Clarification, but No Negotiation

W W W. P B S R G. C O M Buyer Controls Vendor Through Contract Traditional Risk Model VendorBuyer Contract

W W W. P B S R G. C O M Vendor Manages/Minimizes Risk With Contract - Contract is predictive Best Value Risk Model Vendor Buyer Contract

W W W. P B S R G. C O M Pre Award Period Start Very High Level Cost Verification Included in Proposal Excluded from Proposal Major Assumptions Major Client Risks/Concerns High Level Project Work Plan Client Risks/Concerns PA Schedule Uncontrollable Risks Response to all risks Roles and Responsibilities Value Added Ideas Coordination Review Functionality Mid Level Performance Reports / Metrics Additional Documentation Technical Details Project Schedule High level demos PA Document End

W W W. P B S R G. C O M 12 Pre Award Document (Risk Management Plan) The PA Document should contain the following: 1.Scope  Clear and Detailed Project Scope (what is and what is not included) – Set Baseline Expectation 2.Risks  A list of Risks vendor does not control with plans to minimize  Identified Risks List  A list of all client/user risks with plans to minimize & all vendor’s risks 3.Milestone schedule 4.Coordination 5.Client Action Item List 6.Weekly Risk Report 7.Performance Metrics 8.Fee 9.Other: Agreed to Value Adding Options, Original Plans, Interview Minutes, etc…

W W W. P B S R G. C O M 13 Note to Vendor and Client - Do Not Work in a Vacuum!!!!! The Pre Award period is a time for the client and Vendor to interact  Maximize effort BEFORE the event begins The Vendor should not work in a vacuum  There should be regular meetings between vendor and client (weekly)  An Outcome of first meeting: PA Period Meeting Schedule Agreed to  Vendor should come prepared with a proposed schedule that will be coordinated Complete honesty Optimize within client constraints Vendor should be the leader/driver All critical parties/groups should be coordinated with

W W W. P B S R G. C O M Scope Projects need to have clear scope at the start of the service Everything within the expectation/budget  Minimize/Eliminate Client/User Scope Changes Detailed Scope  Scope identifies what is included and what is not included to meet the client’s intent  Conservative is best If risks exists between scope and client intent they must be identified  Resolve alignment and expectations before signing the contract  Identify path to identifying unknowns during contract

W W W. P B S R G. C O M Financials Cost clarified if needed – NO NEGOTIATION!!!!!!! Clear and simple movement of money identified Linked to performance metrics/expectations (set by vendor) Model can have “scenarios” for various outcomes Model can be adjusted based upon value adding options  Risk Plans  Additional risk elimination actions

W W W. P B S R G. C O M Milestone Schedule Project schedule that can be worked from  Simple to read  Simple to use Intent: Minimize Risk = Help All Parties be more efficient and accountable Contents  Major Activities, Deliverables, and Milestones (linked to metrics)  Client Action Items clearly identified (e.g. red)  Risky areas / decision points clearly identified (e.g. green)

W W W. P B S R G. C O M Identified Risks Lists List of Risks that have been previously identified  All other bidders’ risks  All client technical concerns, risk, issues, and bugaboos  All user concerns, risk, issues, etc. Same format as for Uncontrolled Risks List  Risk  Solution/Plan to Minimize  Action if Risk Occurs  Impact is Risk Occurs If a risk is not a risk, just say why it is not a risk…

W W W. P B S R G. C O M Uncontrolled Risks List List of Risk Vendor does not control  From RAVA and any place else Example Format  Risk #1: Description of risk (or why it is a risk)  Solution: Provide your solution. Because this document is not constrained by a page limit, it is acceptable to add more detail to your previous solution provided in your RAVA plan. Make sure it is identified at what point you have done everything reasonably possible. Identify the impact if the risk still exists after you have done everything reasonably possible.  Step 1:  Step 2:  Step 3:  Step 4:  Step 5:  Etc.  Action If Risk Occurs: Similar to above, but a list of action items once risk occurs  Expected Impact if Risk Occurs: For example, “If we have done the above X steps and the risk still exists, there will be an impact to the …budget…schedule…of $XX.XX…XX days.”

W W W. P B S R G. C O M Client Action Item List Client Action Item List  List of all actions/tasks that the vendor requires from the client  Each Action Item will have a:  Activity  Person Accountable in the Client organization  Agreed to Due Date

W W W. P B S R G. C O M Example 20

W W W. P B S R G. C O M Weekly Risk Reports What is it / Why is it important What is it:  Excel Spreadsheet that tracks unforeseen risks on a service Why is it important:  Allows vendors to document unresolved client issues  Allows vendors the ability to show they can manage a service through risk minimization  Allows vendors to document all client decisions  Provides PM a weekly/monthly analysis of all services  Will be used to monitor the progress and performance of the entire client organization (this isn’t just for a specific contractor or a specific service...there is a bigger picture) How much effort:  Minimal (less than 5-15 minutes), unless contractor did not preplan, or client making decisions

W W W. P B S R G. C O M 22 Weekly Reporting System (Sample) Excel Spreadsheet that tracks unforeseen risks on a service The client will setup and send to vendor once Award/NTP issued Vendor must submit the report every week (Friday). The final service rating will be impacted by the accuracy and timely submittal of the WRS

W W W. P B S R G. C O M Weekly Risk Report  We will be starting a weekly risk report for the pre-award period  Contents:  Contact Info  Pre-Award Schedule  Risks/Issue Tracking PBSRG can provide specific detailed education individually with the vendor

W W W. P B S R G. C O M Performance Metrics  Performance Metrics  Metrics established  Baseline numbers (starting point) of current performance  Reporting period  Linked to project plan (milestones)  Linked to project schedule  Possibly financial model (adjustments)

W W W. P B S R G. C O M 25 Unforeseen Risks PERFORMANCE SUMMARY Vendor Performance Client Performance Individual Performance Project Performance RISK MANAGEMENT PLAN Risk Risk Minimization Schedule WEEKLY REPORT Risk Unforeseen Risks METRICS Time linked Financial Operational/Client Satisfac. Environmental Measurement of Deviation from the Expectation Management by Risk Minimization

W W W. P B S R G. C O M Other All other items of importance Including  Value Adding Options agreed to  Original Plans  Interview Minutes  Any specifications  Any other pertinent information

W W W. P B S R G. C O M 27 Pre Award Final Summary Meeting Is not a “Q&A” meeting  All issues resolved  All coordination complete  All risks that are not in vendors control have been identified  All value added options have been addressed PA Final Meeting is to summarize all of the coordination that has been complete and walk through the PA Document/RMP Upon successful completion of the PA Final Meeting, the client will make the award

W W W. P B S R G. C O M 28 Filter 1 Past Performance Information Filter 2 Current Capability Filter 4 Prioritization (Identify Best Value) Filter 5 Cost Reasonableness & Dominance Check Filter 6 Pre- Planning & Risk Min Time Quality of Vendors Filter 3 Interview Key Personnel Award High Low BV Process - Award Measurement of Risk & Performance During the Contract

W W W. P B S R G. C O M 29 Filter 1 Past Performance Information Filter 2 Current Capability Filter 4 Prioritization (Identify Best Value) Filter 5 Cost Reasonableness & Dominance Check Filter 6 Pre- Planning & Risk Min Time Quality of Vendors Filter 3 Interview Key Personnel Award High Low Measurement of Risk & Performance During the Contract Post Project Rating Updating of PPI

W W W. P B S R G. C O M 30 Final Rating After the project is complete, the client will evaluate the project. The Final Rating will be heavily impacted by:  Performance  Owner surprises  Complaints  Ability to submit accurate and timely weekly reports In Best-Value Procurement, the vendors goal is to get a high rating in order to stay competitive.

W W W. P B S R G. C O M Unique to this Project You have a highly successful incumbent vendor, and a satisfied customer We are trying to move to a best value environment, where the vendor is the project lead, has complete accountability, and risk is measured. Challenges will not be in transitioning, setting up procedures, QC/QA, etc. Challenges will be  managing the contract via risk,  focusing on what needs to be improved,  implementing changes,  client trying to not direct and manage the service,  the vendor not asking “what would you like us to do” 31

W W W. P B S R G. C O M 32 Immediate Action Items Prep for Kick Off Meeting & Conduct the Kickoff Meeting  Draft Plan (focus on differences from current service)  Address any Critical Client Concerns or clarification needs  Pre-Award meeting schedule  Initiate Pre-Award Period Weekly Risk Reporting Recommended to Hold a weekly phone call  Review schedule  Review issues/risks  This carries forward into the project Risk Minimization - Lists of risks/concerns/issues from the client, users, etc. Begin Pre-Award and RMP development – will become functional pieces of contract

W W W. P B S R G. C O M Best Value Vendor Characteristics Preplans and Minimizes Risk on Each Initiative  Has a plan and knows the risks to the plan  Is transparent  Communicates clearly  Asks good questions, knows what they don’t know Measures Performance and drives accountability Uses Dominant Information to Differentiate themselves/show value added Educates the Client and helps the client be a better client Educates themselves and has a continually enhanced vision Holds themselves and the client accountable Their plan is aligned so that when they win, the client automatically wins 33

W W W. P B S R G. C O M Best Value Client Characteristics Ensures their needs and concerns are known by the vendor Ensures the vendor has a plan that addresses each need/concern/risk Is a facilitator to the vendors development of the plan(s) Enforces the best value structure  Weekly risk reporting is being done  Each risk is given a client satisfaction rating  Measurements by vendor are being done  Do not be pulled into making decisions you do not need to make Educates themselves and the vendor  Avoids reversion to previous practices  Transfers risk and control Holds the vendor and themselves accountable Ensures the plan is aligned so they win and the vendor wins 34

W W W. P B S R G. C O M 35 Comments / Questions W W W. P B S R G. C O M

36 Uncontrollable Risk 1 The client has agreed to move storage boxes prior to the NTP. The boxes are blocking the wall where we will install the new electrical equipment. If the material is not moved we will not be able to install the equipment. If material is not moved we will perform the following: 1.Immediately notify the client and track in our weekly report. We will mobilize and perform other functions. However, if material is not moved by 2 nd week, this will cause delays. 2.If the client cannot get the material moved, we can move the material into another room (on the same floor) at no additional cost or time delay. The client will have to move the material back. 3.Or, we can rent a storage container for the duration of the project and move the material into storage and back into the room after completion. This will cost $1,500 and add 1 week to our schedule.

W W W. P B S R G. C O M 37 Uncontrollable Risk 2 One of the biggest risk on this service is falling debris from the roof deck onto personnel or equipment below the deck. On this service, the personnel and equipment are protected since there is a dropped ceiling beneath the deck. The PM (client) has assured us that these tiles have been installed properly and we have randomly spot checked areas to determine that they will perform. However, if for some reason the ceiling tile fails, we will perform the following:  Immediately stop all work and determine the extent of damage  Identify if work can proceed as is, or if additional protection is needed  We can modify our schedule to work off-hours to protect falling debris from hitting personnel, but this will not protect equipment. There will be no impact to cost or time if we have to work off-hours.  We can purchase large tarps (100’x100’) and place them beneath the ceiling tiles. This will protect both personnel and equipment. These special tarps will cost an additional $5K and will take an additional 2 weeks to setup and move.  Identify any actions required from the client