1. 5/17/2015 Pre-Proposal Meeting Best Value Model

2. This presentation is being provided for educational purposes only Please refer to the RFP for specific instructions If there are any inconsistencies, the RFP and Amendments shall take precedence over this presentation

3. 3 Best Value Model

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5. 5 PBSRG Research Results Worldwide as a leader in Best-Value Systems  18 Years  1,600+ Projects  $4.6 Billion Services & Construction  $1.8 Billion Netherlands infrastructure construction test  5% Increase in Vendor profit  98% On-time, On-Budget, Customer Satisfaction  ASU – investments of over $100M due to Best Value  GSA (largest organization in U.S. delivering services) implementation in 2009  Tests also in Africa, Southeast Asia, Canada, & Australia

6. 6 Best Value Objectives Client outsourcing to experts based on value and performance Minimize risk of non-performance – Vendors optimize project delivery – Complete to the expectations – Customer satisfaction / No complaints Minimize the need for client management, direction, and decision making. In return, the vendors can maximize profit by being more efficient

7. 7 Best Value Model

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9. What are we trying to accomplish? Selection Based upon Proponent Expertise:  Ability to understand and plan the project  Identify risks to the project  Mitigate risks to the project  Add value to optimize project delivery  Cost Competitive

10. Selection Steps 10 Vendor STEP 1 RFP (Risk, Project Plan, Value Added, Cost, PPI) Vendor STEP 2 Interviews Vendor STEP 3 Prioritization Vendor STEP 4 Move forward to Pre Award

11. Evaluation Weights 100 PointsCRITERIA 10 PointsPrice – Fixed Percentage Fee Range 45 Points (15) Program Capability Program Plan Program Risk Assessment Program Value Added 20 PointsInterview Project Manager 25 Points (12) (13) Past Performance Information Construction Management Firm Project Manager 11 2 Proponents selected to the Preferred Supplier List

12. Blind Submittals – Project Capability Program Risk Assess. Program Risk Assess. Value Added Program Plan = identify, prioritize, and minimize risks to the Program Plan (focus on risks that you DO NOT control) = plan to execute the program (capability to meet requirements) = value beyond the specifications (think in the best interest of the client) Allows Vendors to differentiate themselves based upon their ability to identify and minimize risks to the project.

13. 13 Program Plan Differentiates capability to meet the requirements of this project Plan to execute and support the program and all projects moving forward. May include (but is not limited to): – General Program Approach – Staffing and Personnel – Resources that will be committed – How project work will be executed – How you will integrate with University Policies and Procedures No names, two pages, no marketing, part of final contract

14. 14 Program Plan Template

15. 15 Program Risk Assessment Identify major project risks Focus on Risks that have not yet been minimized before the start of the project (risks that the Vendor does not control) – Explain why the risk is a risk – May cause cost increases, schedule delays, change orders, or cause dissatisfaction to the client – Should be non-technical – Should be a risk specific to the program Identify solution to avoid / minimize the risk Non-technical explanation Must explain how risk is avoided or minimized from occurring For high score solution should contain performance information & best value practices

16. Program Risk Assessment 16 Template

17. 17 Program Value Added Value Added – Identify value added options “beyond” the standard requirements Options to adjust the scope or increase the value of services delivered (expectation, cost, schedule, delivery, owner satisfaction) – Explain why it is a value add for the University

18. Program Value Added 18 Template

19. Plan 1 – We will use our 20 years of experience in working with mechanical systems to minimize the risk of the heating and cooling system design. Plan 2 – We have identified the design of the heat/cooling system as a risk. It has not been used before in the area. Will ensure that the system performance and installation is verified in the pre-award period. – We have bid using best rated mechanical contractor in the area (rated at 9.8 out of 10.0, next best rated 9.1) – Mechanical contractor identified modifications to the design to improve output and sustainability of the system with the following impacts (mechanical system cost minimized by 15% - see VA#1) – Mechanical system will be provided by one manufacturer, and will be commissioned by the manufacturer, contractor, and general contractor, who will take full responsibility of commissioning the system Example of Solutions Risk: Design of Heating/Cooling System Type: Project Capability

20. 20 Plan 1 – We will work with the user to minimize the impact of noise from demolition. Plan 2 – We have planned to demolition during off hours and weekends. This will have a slight impact on our cost (less than 1%), but the impact to customer satisfaction justifies this. – We will also install rubber sheets on the floors to diminish noise and vibrations. – Both solutions can be performed within your budget. – Both solutions have been used on multiple previous projects w/ high levels of customer satisfaction (9.4/10). Example of Execution Plan Solution Plan: Noise from Demolition Type: Risk that Contractor does control

21. 21 Example of Risk Assessment Solutions Risk: Risk the Contractor does not control Example of Risk Assessment Solutions Risk: Concrete Escalation Type: Risk the Contractor does not control Risk Solution 1 – The owner can be assured all risks associated with material escalations will be eliminated because we offer the benefit of an experienced project team that includes the most detailed, prequalified and extensive list of subcontractors and suppliers, from around the world. Risk Solution 2 – The cost of concrete has been rising drastically. Since this project requires a substantial amount of concrete, cost is a risk. To minimize this risk, we have secured and signed a contract with a local concrete manufacturer to prevent any increase in cost during the duration of this project. MARKETING INFORMATION

22. 22 Risk Solution 1 – Coordination with [water company] is critical. We will coordinate and plan with [water company] as soon as the award is made to make sure that we get water to the site to irrigate the fields. Risk Solution 2 – We will coordinate and schedule the water with [water company]. However, based on past experience there is a high risk they will not meet the schedule (the water company does not meet schedule over 90% of the time). – We will have temporary waterlines setup and ready to connect to the nearby fire hydrant to irrigate until [water company] is ready. – We will also have water trucks on-site if there is problems with connecting the lines. Example of Solutions Risk: Getting water to the site (utilities) Risk the Contractor does not control Type: Risk the Contractor does not control

23. Example of Value Added

24. 24 Example: Value Added Items Reroofing this building will not stop all water leaks. The majority of the leaks are caused by cracks in the parapet walls, broken/missing glass, and poor caulking. For an additional $20K and 3 weeks in schedule we can replace and repair all of these items.

25. 25 We are Looking for Vendors Who Can Think Ahead… …And Act In The Client’s Best Interest

26. 26 Things to Avoid Marketing Information: – Our company is known worldwide as a leader in online education. – We will use our long history to make sure the project is a success. – We will use state-of-the-art process to make it a success. Transferring risk back to client: – We will work with the owner to resolve issues – We will have team meetings / partnering meeting with the owner General risks and/or general solutions: – We will plan ahead to coordinate activities – We will plan ahead to get classes scheduled and created Overly Technical data: – The system we propose has 200% increase in PRX bandwidth modularity.

27. Submittal Requirements Submittal DocumentMaximum Page Length Program PlanTwo (2) pages Program Risk AssessmentTwo (2) pages Program Value AddedTwo (2) pages 27 NOT Must NOT contain ANY identifying information (names, company names, project names, product names, etc.) Must use the provided template (can submit as many risks as fit within the 2 page limits of each submittal)

28. Selection Steps 28 Vendor STEP 1 Risk, Project Plan, Value Added, Cost, PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritization Vendor STEP 4 Move forward to Pre Award

29. 29 Past Performance Information (PPI) PPI collected on all Proponents and their critical team components. Once the PPI is collected, it is stored in a database. Project Close Out ratings from Client as part of PSL program – updates PPI for future work

30. Critical Components Past Performance Information will be collected on:  Construction Management Firm – 7 References Maximum  Project Manager – 5 References Maximum 30

31. PPI – Similar CM projects during last three (3) years 9/1/2009 to 8/31/2012 – Past projects of $5M or less per project – Firms/ individuals who have completed a project at UA must identify the most recent CM project completed during the last 3 years – May provide more than one project that was completed at UA – UA references must be authorized via Pat Jansen or Hugh Warren 31

32. 32 PPI Process The Proponent is responsible for sending out a survey questionnaire to each of their past clients. The survey must be faxed/emailed back to the Proponent The Proponent will submit all surveys to the Owner with their submittal. Setup and send Survey Forms Past Client Evaluates and Returns Vendor Past Client Vendor Proponent

33. 33 Past Performance Information 3 Parts: – Survey Questionnaire – Reference List – PPI Score Survey Scores are 1-10 and used in Evaluation Criteria Firm (as the Proponent) and the Project Manager must have separate reference lists.

34. 34 Survey Form

35. 35 Don’t Forget to Add Your Email and verify signature Don’t forget to have the evaluator sign the form Fax or Email

36. 36 Example Survey (Firm and Individuals) Vendor Past Client Vendor Past Client

37. 37 Firm (as the Proponent) and the Project Manager will create a “Reference List” (which identifies all projects being surveyed) PPI Reference List NO PAST CLIENT NAME PERSON COMPLETING THE SURVEY PHONE NUMBER EMAIL PROJECT INFO Final Cost of Project (Including CM Fees & GST) Month, Date, Year Completed 1ABC UniversityJoe Smith602-488-6129joe.smith@abc.com Classroom Renovation $850,00Jan 31, 2010 2Tempe CollegeTodd Sayles602-897-1122tsayles@tempeco.edu Lab Fume Hoods $1,250,000Dec 12, 2011 3Biltmore PlazeJudy Smith555-555-5646judy@biltmore.com SMART Classroom $740,000Mar 13, 2011 4 5 6 7

38. 1ABC UniversityJoe Smith602-488-6129joe.smith@abc.com Classroom Renovation $850,00Jan 31, 2010 2Tempe CollegeTodd Sayles602-897-1122tsayles@tempeco.edu Lab Fume Hoods $1,250,000Dec 12, 2011 3Biltmore PlazeJudy Smith555-555-5646judy@biltmore.comSMART Classroom $740,000Mar 13, 2011 38 Survey Must Match Reference List SMART Classroom 3/15/2011

39. 39 References The reference list must contain different projects You may submit multiple jobs for the same past client

40. Enter Survey Scores 40

41. 41 PPI Summary PPI is a one time step. The vendor and individual do not need to repeat on every project. The vendor and individual must create a “Reference List” and prepare and send out survey forms. The vendor should pick their own references The vendor should collect all surveys Close out ratings from completed projects within the CM program will be used to update PPI scores going forward

42. 42 Pricing RFP

43. 43 How The Submittal Process Works Submittal Evaluation Members Proposal Form (1 page) Proposal Form, $, & Other Documentation Proposal Form (1 page) Plans Total Score Contracting Officer Contracting Officer

44. Selection Steps 44 Vendor STEP 1 Risk Assessment, PC, Value Add, Cost, PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritization Vendor STEP 4 Move forward to Pre Award

45. Shortlisting If necessary short listing will be conducted prior to interviews (depending on the number of vendors)

46. 46 Interview Format The client will actually “interview” each critical individual. This is not a “presentation” All individuals will be interviewed separately. The client will not allow group interviews with the vendors team. The client will not allow any other individuals to be present during interviews A standard set of questions will be generated and asked to each individual. Generally, interview times will last about 15-30 minutes per individual The client has the option to clarify any answers (or ask additional questions to clarify an answer). No substitutions will be allowed. Individuals listed on Proposal Form must be present. If a team member is not present for the interview, they will jeopardize the teams competitiveness.

47. Primary Questions 1.Why were you selected for this project? 2.How many similar projects have you worked on? Individually and as a Team? 3.Describe a similar project you have developed/worked on to the current project. 4.What is different about this project from other projects that you have worked for? 5.Draw out the process for this project by major milestone activities. 1.Identify, prioritize, and how you will minimize the risks of this project. 2.What risks don’t you control? How will you minimize those risks? 3.What do you need from the client and when do you need it? 6.How are you going to measure your performance during the project? 7.What value do you bring to the project in terms of differences based on dollars, quality, expertise, or time?

48. Selection Steps 48 Vendor STEP 1 Risk Assessment, Value Add, Cost, PPI, Schedule Vendor STEP 2 Interviews Vendor STEP 3 Prioritization Vendor STEP 4 Move forward to Pre Award

49. Simple Excel Analysis 49

50. Selection Steps 50 Vendor STEP 1 Risk Assessment, Value Add, Cost, PPI, Schedule Vendor STEP 2 Interviews Vendor STEP 3 Prioritization Vendor STEP 4 Move forward to Pre Award

51. Evaluation Weights 100 PointsCRITERIA 10 PointsPrice – Fixed Percentage Fee Range 45 Points (15) Program Capability Program Plan Program Risk Assessment Program Value Added 20 PointsInterview Project Manager 25 Points (12) (13) Past Performance Information Construction Management Firm Project Manager 51 2 Proponents selected to the Preferred Supplier List

52. Selection Summary 100 PointsCRITERIA 70 PointsFixed Percentage Fee – competitive bid 20 Points (15) (05) Specific Project Capability Project Risk Assessment Project Value Added 10 PointsPast Performance Information – closeout rating from previous UA CM based on projects awarded for this program) 52 Project Evaluation Criteria

53. 53 Best Value Model Not DetailedDetailed

54. 54 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 plan / 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 – 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 – Coordinate the schedule

55. Pre Award / Clarification Period 55

56. 56 Pre Award Deliverables 1.Scope Clear and Detailed Project Scope (what is and what is not included) – Set Baseline Expectation 2.Uncontrolled Risks List A list of Risks Vendor does not control with plans to minimize 3.Identified Technical Risks List A list of all project risks with plans to minimize 4.Milestone schedule 5.Client Action Item List 6.Weekly Risk Report 7.Performance Metrics 8.Fee 9.Other: Agreed to Value Adding Options, Original Risk submittals, Interview Minutes, etc.

57. 57 Pre Award 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 Meeting is to summarize all of the coordination that has been complete and walk through the PA Document Upon successful completion of the PA Meeting, the client will make the award

58. 58 Best Value Model

59. 59 Weekly Risk Report Excel Spreadsheet that tracks unforeseen risks that impact the project Client will setup and send to vendor once Award/NTP issued. PBSRG will provide additional training. The final project rating will be impacted by the accuracy and timely submittal of the WRR

60. 60 Unforeseen Risks PERFORMANCE SUMMARY Vendor Performance Client Performance Individual Performance Project Performance RISK MANAGEMENT PLAN Risk Risk Minimization Schedule WEEKLY REPORT Unforeseen Risks Risk METRICS Time linked Financial Operational/Client Satisfac. Environmental Measurement of Deviation from the Expectation Management by Risk Minimization

61. Post Project Rating Update PPI Filter 1 Past Performance Information Filter 2 Capability Filter 4 Prioritize (Identify Best Value) Filter 5 Pre-Award Period QUALITY OF PROPOSERS Filter 3 Interview AWARD High Low Blind Rating Project Capability Risk Value Added Financials PA Docs WRR RMP Technical Documents Criteria PPI Interview Project Capability Risk Value Added Financials Dominance Check Ratings are dominant Best value is within high and low cost ranges BV contractor has dominant information

62. Procurement Schedule 62 Pre-Proposal Information Session8/29/2012 Last Date for Questions9/7/2012 RFP Closing Date9/12/2012 Interviews for Short Listed (tentative)9/25/2012 Selection of 2 Suppliers9/26/2012 Pre Award Phase9/26/2012 Effective Date for PSL9/27/2012 to 10/3/2012

63. Questions? 63 Chris Miller Contracting Specialist chris.miller@ualberta.ca Fax: (780) 492-0607