1. City of Rochester 2 nd Street Upgrade 9/15/2015 Dean Kashiwagi, PhD, PE Jake Smithwick Arizona State University

2. 2 This presentation is for educational purposes only. Please refer to the final RFQ for specific instructions

3. RFQ Requirements 3

4. Summary of DB Process 4

5. RFQ Schedule 5 Planned DateAction August 18, 2011Issue RFQ September 22RFQ Educational Meeting September 29, 2:00pmRFQ Questions due October 11SOQs Due October 17Notify short-listed Submitters October 18Issue RFP November 3RFP Educational Meeting January 18Interviews February 2012Pre-Award Period March 2012Notice to Proceed

6. Selection Criteria 6 WeightCriteriaRated?Attachment RFQ Phase 20 PointsPast Performance InformationNo Exhibit 1 50 PointsProject Capability PlanYesD 50 PointsRisk PlanYesC Pass / FailResource AvailabilityNo Pass / FailLegal & FinancialNoAppendix B RFP Phase ~100 PointsProposed Design SchematicYes? ~75 PointsInterviewYes? ~5 PointsScheduleYes?

7. Three Phases 7 PHASE 1PHASE 2 PHASE 3 CLARIFICATION RFQ RFP

8. Best Value System (alignment of expertise, minimization of effort) 8 CLARIFICATION Vendor is an Expert Vendor is NOT an Expert Vendor is an Expert

9. Performance Information Procurement System 9 CLARIFICATION Vendor is an Expert Vendor is NOT an Expert Vendor is an Expert Dominant Simple Differential Clarification Both parties may walk Risk Management Quality Control Quality Assurance

10. Initial conditions Final conditions Event Time Laws (Control, impact, and influence)

11. Us Risks Risks Technical Scope Don’t Control Technical Scope Don’t Control Me vs. Them Paradigm Shift: contractors should have minimal technical risk and minimize risk that they do not control

12. Industry Structure High I. Price Based II. Value Based IV. Unstable Market III. Negotiated-Bid Specifications, standards and qualification based Management, direction, and control Decision making Technical expertise on client’s side Best Value (Performance and price measurements) Quality control and quality assurance Perceived Competition Performance Low High Owner selects vendor Negotiates with vendor Vendor performs

13. Selection Process 1313 Filter 1 Past Performance Information Filter 2 Filter 4 Prioritize (Identify Best Value) Filter 5 Pre-Award Period QUALITY OF VENDORS Filter 3 Interview Proposed Design Value Added Price AWARD High Low Blind Rating Project Capability Risk (no control) PA Docs WRR RMP Technical Documents Criteria PPI Interview Technical Risk Value Added (?) Financials Proposed Design Dominance Check Ratings are dominant Best value is within high and low cost ranges BV vendor has dominant information Vendor is an Expert Vendor is not an expert RFQ RFP

14. RFQ Criteria Past Performance Information (PPI) Blind review – Project Capability Plan – Risk (vendor does not control) Resource Availability (Pass / Fail) Legal and Financial (Pass / Fail)

15. Project Capability Overview Differentiate their capability to meet the technical requirements of this project Identify "vision” or “plan” for the alignment of expertise over the duration of the project Evaluation Support statements of performance with experience in design and construction of urban street and underground utility projects (metrics, numeric scores, deviation rates, etc.) Use either verifiable performance metrics or best value practices with performance measurements or references of best value practices

16. Risk Plan List and prioritize major risk items on this project that the submitter does not control Explain how proposer will mitigate, manage, and/or minimize the risk from occurring – mitigation plan was used previously, and the impact on performance in terms of customer satisfaction and the number of times it was used Tracking all deviations on the project Method of minimizing contract transactions Performance measurements, past performance measurements, measurements that define performance – Submitter has implemented the mitigation plan before – Submitter has been successful in mitigating time and cost deviation of their past projects. – previous clients have been very satisfied with Submitter's results. – projects were similar to the current project being advertised.

17. Blind submittals are simple The what, but not the how Supported by verifiable performance information or best value practice with performance information (if no verifiable performance information, receive an average rating) Rating dominant performance, average, and dominantly poor No names 2 page limits

18. Blind submittal examples Simple – Example 1: The project manager being proposed on this project is very experienced in design-build, mechanical system type and innovative projects. The what, but not the how – Example 2: the mechanical subcontractor can install a system that minimizes the installation time by 20% and the system minimizes the annual energy consumption by 15% Supported by performance information – Example 1: PM record over the past 5 years, 10 DB projects, $250M average scope, customer satisfaction is 9.5/10.0, deviation rate is less than 1% – Example 2: Last five projects, customer satisfaction is 9.5/10, deviation rate is less than 1%, 20% earlier finish, installed system have average energy consumption 15% under average consumption, references available on request. 18

19. 19

20. 20

21. 21 2 pages max!

23. 1 1 page max!

24. A note on formatting… Project Capability and Risk Plan must NOT contain names Page limits Two (2) – Attachment C (Risk): Two (2) pages max Two (2) – Attachment D (Project Capability): Two (2) pages max One (1) – Attachment E (Resource Availability): One (1) pages max Not allowed to re-create, re-format, or modify the template (cannot alter font size, font type, font color; add colors, pictures, diagrams, etc) 24

26. PPI Submittal Vendor VENDOR Prepare and Send Survey Questionnaires to Past Clients Step 2 Step 3 Collect/Receive Completed SurveysPrepare Reference List Step 1 Enter data into Reference List Step 4 Package all material (Reference List and Surveys) and Submit Step 5 Phase 1

27. 27 PPI Details PPI will be collected on all vendors and their critical team components. Critical Team “Components”: – Contractor / Design-Builder (firm) – Engineering Company (firm) – Project Manager (individual) – Project Engineer (individual) – Project Superintendent (individual) – Project Lead Design Engineer (individual) Phase 1

28. Step 1: Prepare Reference List 28 Profile sheet SURVEY CODE FIRST NAME LAST NAMEPHONEFAX CLIENT NAME PROJECT NAME DATE COMPLETED COST OF PROJECT PROJECT TYPE Past Project Info sheet Phase 1

29. Step 2: Prepare & Send Surveys Past Project Info Profile Send List Project Manager & Site Superintendent on each survey! 29 Client Phase 1

30. 30 Step 2 cont’d: Survey Form Phase 1

31. 31 Step 2 cont’d: Add Your Fax #! Phase 1

32. 32 Step 2 cont’d: Surveys MUST Be Signed Phase 1

33. Step 3: Collect & Receive Surveys 33 Fax, Email, Mail Client Contractor Phase 1

34. Step 4: Enter Data into Reference List 34 Phase 1

35. Step 5: Scan Surveys & Burn CD 35 Reference ListsReturned Surveys scanned to PDF CD-ROM Excel (XLS) file Phase 1

36. I already have PPI… 36 ? Phase 1

37. Summary of PPI Requirements Require number of surveys submitted: – Firms: Five (5) – Individuals: Three (3) Projects must be 100% complete (final payment received) Project list must contain different projects The survey must be signed Turn in electronic copies of surveys (PDF) and Reference Lists (XLS) Projects do not need to be similar 37 Phase 1

38. How The Submittal Process Works 38 Submittal Evaluation Members Proposal Form (1 page) Other Documentation Proposal Form (1 page) Risk Plan, Project Capability Plan Average Score Contracting Officer Contracting Officer Phase 1

39. 2012 Best Value Annual Conference Feb 13-17, 2012 in Tempe, AZ Train the trainer advanced curriculum Certification of trainers Meet most visionary clients and vendors Lessons Learned from all projects including services, IT, and construction Organization measurement and optimization How to implement change How to reduce size without increasing risk Job opportunities in Asia in best value environments Early Registration before Dec 15, 2011: For more details visit us at www.pbsrg.com

40. Comments / Questions 40 Jake.Smithwick@asu.eduwww.pbsrg.com