1. Architect/Engineer Selection Process Contractor Selection Process
2009 Annual EdPAC Buyer’s Workshop Kent D. Beers Director State Purchasing
Architect/Engineer Selection Process
Contractor Selection Process
Project Management
2008 Legislative Audit Report
Procurement Best Practices
Text: Audit, Utah Code, Admin. Rule

2. Audit Statement of Law Selection of A/E & Construction Services
Antitrust Laws Help to Protect Competition
Utah Code identifies the purpose of antitrust laws
The Legislature finds and determines that competition is fundamental to the free market system and that the unrestrained interaction of competitive forces will yield the best allocation of our economic resources, the lowest prices, the highest quality and the greatest material progress, while at the same time providing an environment conducive to the preservation of our democratic, political, and social institutions.
The purpose of this act is, therefore, to encourage free and open
competition in the interest of the general welfare and economy of this state by prohibiting monopolistic and unfair trade practices, combinations and conspiracies in restraint of trade or commerce and by providing adequate penalties for the enforcement of its provisions.
Procurement Best Practices: Agree

3. Audit Recommendation Selection of Architect & Construction Services
We recommend that school districts competitively bid the procurement of architectural and construction services for each new design or construction project.
Nine of 21 school districts surveyed (43%) have not adequately fostered competition in procuring architectural services for large purchases costing over $80,000.
The lack of competition can be attributed to the following practices:
not bidding each new project,
maintaining the same architectural firm for multiple years,
accepting dated prequalified firms, and
bundling dissimilar projects.

4. Procurement Best Practices Architectural Services
Not bidding each new project
Architectural Services are Not bid. Architectural firms are selected based on qualifications. Fees are negotiated after selection is made (63G-6-701).
A selection should be conducted for Architectural services on each project above the “small procurement” limit.
Maintaining the same architectural firm for multiple years
A selection should be conducted for Architectural services on each project above the “small procurement” limit (R ).
Accepting dated prequalified firms
Qualifications for Architects should be submitted on each project or annually for small projects.
Bundling dissimilar projects
Bundling of Architect services should only be used for “similar” type projects

5. Procurement Best Practices Architectural Services
A/E Selected on Qualifications – Fee Negotiated Utah Code 63G It is the policy of this state to publicly announce all requirements for architect-engineer services and to negotiate contracts for architect-engineer services on the basis of demonstrated competence and qualification for the type of services required, and at fair and reasonable prices. Statement of Interest and Qualifications (SOIQ)

6. Procurement Best Practices Architectural Services
R Small Purchases of Architectural Services
When the procurement of Architect-Engineer Services is estimated to be less than $50,000, the procurement officer may select the provider directly from either the list of firms who have submitted annual statements of qualifications and performance data, or from other qualified firms if necessary. If the procurement is estimated to exceed $50,000 then the selection method prescribed by the following sections [SOIQ] apply.
Note: Each District should verify their Small Purchase limit

7. Procurement Best Practices Architects Selected by SOIQ
R Request for Statements of Interest
A request for statements of interest (SOI) shall be prepared which describes the state's requirements and sets forth the evaluation criteria The request for statements of interest (SOI) shall include notice of any conference to be held and the criteria to be used in evaluating the statements of interest, qualifications and performance data and selecting firms, including:
(a) competence to perform the services as reflected by technical training and education, general experience, experience in providing the required services and the qualifications and competence of persons who would be assigned to perform the services.
(b) ability to perform the services as reflected by workload and the availability of adequate personnel, equipment, and facilities to perform the services expeditiously, and
(c) past performance as reflected by the evaluations of private persons and officials of other governmental entities that have retained the services of the firm with respect to factors such as control of costs, quality of work, and an ability to meet deadlines.

8. Procurement Best Practices Architects Selected by SOIQ
R Annual Statement of Qualifications and Performance Data
(a) the name of the firm and the location of all of its offices, specifically indicating the principal place of business,
(b) the age of the firm and its average number of employees over the past five years,
(c) the education, training, and qualifications of members of the firm and key employees,
(d) the experience of the firm reflecting technical capabilities & project experience,
(e) the names of five clients who may be contacted, including at least two for whom services were rendered in the last year,
(f) any other pertinent information regarding qualifications and performance data requested by the Procurement Officer.
A standard form or format may be developed for these statements of qualifications and performance data. Firms may amend statements of qualifications and performance data at any time by filing a new statement.

9. Procurement Best Practices Construction
Not bidding each new project 53A (2)(a) School Districts should use competitive procurement for new construction projects “if the total estimated accumulative building project cost exceeds $80,000. Each project should be bid out separately via (a) Low Bid, (b) RFP Process, or (c) Multi-Step Sealed Bidding. Bundling dissimilar projects Bundling should only be used for “similar” type projects

10. Procurement Best Practices Construction
R Competitive Sealed Bidding (Low Bid)
Low Bid With Minimum Requirements
5-Years Experience Similar Type of Project
References
Qualifications/Certifications
Acceptable Past Performance Rating
Bonding Capability
Etc.

11. Procurement Best Practices Construction
R Use of Competitive Sealed Proposals (RFP)
Appropriateness. Competitive sealed proposals may be a more appropriate method for a particular procurement or type of procurement than competitive sealed bidding, after consideration of factors such as:
(a) whether there may be a need for price and service negotiation;
(b) whether there may be a need for negotiation during performance of the contract;
(c) whether the relative skills or expertise of the offerors will have to be evaluated;
(d) whether cost is secondary to the characteristics of the product or service sought, as in a work of art; and
(e) whether the conditions of the service, product or delivery conditions are unable to be sufficiently described in the Invitation for Bids.
See: State Purchasing’s RFP Manual

12. Procurement Best Practices Construction
R Multi-Step Sealed Bidding
Definition. Multi-step sealed bidding is a two-phase process consisting of a technical first phase composed of one or more steps in which bidders submit unpriced technical offers [SOIQ] to be evaluated by the purchasing agency, and a second phase in which those bidders whose technical offers are determined to be acceptable during the first phase have their price bids considered.
It is designed to obtain the benefits of competitive sealed bidding by award of a contract to the lowest responsive, responsible bidder, and at the same time obtain the benefits of the competitive sealed proposals procedure through the solicitation of technical offers [SOIQ] and the conduct of discussions to arrive at technical offers and terms acceptable to the purchasing agency and suitable for competitive pricing.

13. Audit Recommendation Architectural Services
We recommend that school districts implement the following:
Evaluation criteria be weighted to reflect the priority of the information asked for in statement of interest and qualifications (SOIQ), following the Division of Purchasing guidelines. R to 650
Evaluation criteria, including the criteria weighting, be clearly stated in SOIQs. Agree
Criteria be evaluated consistently by selection committee members based upon a predetermined definition. Agree
Architect selection committees have one member who is well qualified in the profession of architecture or engineering Agree
Selection committees have the necessary expertise and skills to evaluate proposals Agree
Selection committee members read and sign a confidentiality and conflict-of-interest statement Agree

14. Procurement Best Practices Architectural Services
R Evaluation of Statements of Interest, Qualifications & Performance Data
R Selection of Firms for Discussions
R Discussions
R Selection of the Most Qualified Firms
R Negotiation and Award of Contract
R Failure to Negotiate Contract with the Most Qualified Firm
R Notice of Award
R Failure to Negotiate Contract with Firms Initially Selected as
Most Qualified

15. Procurement Best Practices
Repeat Design
Maximum Fee: 4% to 4.3%
Bundled Projects
Maximum Fee: 3.8% to 4.3%

16. Procurement Best Practices Construction
Construction Delivery Methods
Design/Bid/Build
Hire Architect to Design
Contractors Bid Project Based on Design
Contractor Builds Project
Design/Build
Architect and Contractor Form Partnership (District contracts with 1 firm)
Construction Manager/General Contractor (CMGC)
Hire Construction Manager
Hire Architect – Construction Manager aids Architect with Design costs
Construction Manager Becomes General Contractor

17. Audit Recommendation Construction
We recommend that school districts implement the following: Fee proposals be evaluated objectively and independently from the qualitative proposal. Best Practice: Price = 40% No Less Than 30% Evaluation criteria be weighted to reflect the priority of the information asked for in an RFP following the Division of Purchasing guidelines. Agree State Purchasing’s RFP Manual & R to 217 Evaluation criteria, including the criteria weighting, be clearly stated in RFPs Agree Criteria be evaluated consistently by selection committee members based upon a predetermined definition. Agree Selection committees have the necessary expertise and skills to evaluate proposals. Agree Selection committee members read and sign a confidentiality and conflict-of-interest statement. Agree

18. Audit Recommendation Construction
We recommend that school districts provide oversight for the procurement of subcontractors.
school districts should have greater involvement and oversight for the procurement of subcontractors. Even though the procurement of subcontractors is handled by the construction manager or general contractor, school districts should review and approve selected subcontractors.

19. Procurement Best Practices Construction
Districts Should Oversee “Method” used to Select Subcontractors
Assistant Attorney General for Purchasing/DFCM cautions against over involvement in the Construction Manager’s or General Contractor’s selection of subcontractors
If Purchasing or DFCM becomes so involved in the monitoring and approval of subcontractors, the Construction Manager or General Contractor can claim that the state made the selection of the Subcontractor and is therefore responsible for errors or faulty work committed by a subcontractor.
Purchasing and DFCM can dictate the “method” that the Construction Manager or General Contractor uses to select subcontractors: low bid, two stage selection, RFP, etc.
Districts should consult with their Attorney on this issue.

20. Procurement Best Practices Project Management
Project Management Consultant (Project Controls)
Provide oversight throughout all phases (design/construction) of the project
Specialized Project Management Team
Experienced Project Managers,
Professional Engineers (civil, mechanical, electrical, structural),
Cost Engineers/Estimators,
Schedulers,
LEED Consultants (energy efficiency),
Software Engineers.
Cost Control (audit, duplicate pmts, overcharges, C.O.s, etc.),
Quality Control (evaluation of materials and proper installation),
Schedule (ensure projects are completed on time),
Review of Claims & Change Orders
Report saving clients, on average, 10 times fee

21. Procurement Best Practices Project Management
DFCM uses a Cost Control firm on major projects
DFCM uses a Cost Control firms on all CMGC projects
DFCM reports savings of approximately 3 times fee
Cost Control Firm
Audit Function
Invoices
Duplicate Payments
Overcharges
Change Orders
Materials
Labor
Travel

22. Procurement Best Practices Project Management
Construction Project Management
Training and Certification Course
Sponsored by
Office of Education and Division of State Purchasing
One-Day Training Course for District Personnel
Importance of Competition
Procurement of Construction Related Services
Source Selection Methods for Architects and Engineers
Project Delivery Methods
Selection Methods for Project Delivery Methods
Contract Administration