1. Best Value Business Model Supplemental Pre-Proposal Information Video RFP 2013-0045: Part A Design-Build St. Joseph’s College Residence

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 Part A – Phase 1 Part B – Phase 2

4. 4 Best Value Model Contract Award Part A – Phase 1 Part B – Phase 2

5. 5 Best Value Objectives Client outsourcing to experts based on performance & value Minimize risk of non-performance – Leverage Proponent expertise to optimize project delivery – Highest value for cost – High performance and client satisfaction Minimize the need for client management, direction, and decision making. – Ability to lay out optimal project plan – Lay out what you need from the Client In return, the vendors can maximize profit by being more efficient

6. 6 Best Value Model - Selection Part A – Phase 1

7. Selection Objectives – Part A Selection based upon Proponent Expertise:  Ability to understand the project & plan your approach  Identify & mitigate risks to the project  Add value to optimize project

8. CriteriaCommittee Rating Numerical Value Project Capability Risk Assessment Value Added Past Performance Information Interviews Evaluation Criteria – Part A 8

9. Selection Steps – Part A 9 Vendor STEP 1: RFP Project Capability Risk Assessment Value Added PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritize for Short List Vendor STEP 4 Move forward to Part B

10. 3 Written Submittals – Part A Risk Assessment Risk Assessment Value Added Project Capability Project Capability Simpleconcise Simple, concise, actionable plans = risks you don’t control = capability to meet requirements = additional expertise beyond requirements Allows Vendors to differentiate themselves based upon their ability to identify and minimize risks to the project.

11. 11 Project Capability Differentiate capability to meet the requirements of the project. Identify potential problems you see (technical concerns that you control) Describe your plan or approach. – Describe how it is minimized with your expertise & your project approach. Include documented performance of your firm and/or key people – Where you have successfully implemented similar solutions on past projects – Supporting documentation may be requested

12. 12 Project Capability Template

13. 13 Risk Assessment Identify major project risks the Proponent DOES NOT control Concerns that you have to the project being successful Explain why the risk is a risk Should be a risk specific to the current project Identify solution to avoid / minimize the risk Lay out your plan to avoid or minimize each risk from impacting the project Prioritize in order of importance

14. Risk Assessment 14 Template

15. Value Added Provide ways to maximize value within budget – Provide more scope or more service within the GMP Maximize value above & beyond Statement of Requirements – Understand the need better than the University can specify Options or alternates that may or may not be invoked If no cost (within GMP)= $0 If an additional cost impact = approx, RoM, Range

16. Value Added 16 Template

17. Examples 17 Project Capability

18. Plan 1 – We will use our 20 years of experience in working with mechanical systems to provide an optimal heating and cooling system design. Plan 2 – We have identified the design of the heat/cooling system as a risk. We have bid using best rated mechanical contractor in the area (rated at 9.8 out of 10.0, next best rated 9.1) – The mechanical contractor has installed mechanical systems on three DB projects with similar scope requirements. – The Mechanical system will be provided by one manufacturer, and will be commissioned by the manufacturer, contractor, and general contractor. – We will ensure that the system performance and installation is verified in the pre-award period. Example of Solutions Risk: Design of Heating/Cooling System Type: Project Capability

19. Plan 1 – We will work with the owner to ensure our cooling & dehumidication process meets acceptable tolerances. – The owner can be assured all risks associated with cooling & dehumidication will be eliminated because we offer the benefit of a highly qualified project team. Plan 2 – On two previous projects totaling $74.6M where cooling & dehumidification were required during construction, the projects’ schedule deviation rate was (-6.3%), the contractor change order rate was 0%, and the projects received an overall customer satisfaction rating of 100%. 19 Example of Solutions Risk: Weather Protection (cooling & dehumidification) Type: Project Capability MARKETING INFORMATION

20. Project Manager Experience – The proposed Project Manager and Pre-Construction Manager have put in place $87.4M in design-build construction projects in the past five years. – The team’s schedule deviation is (-1.5%), their contractor generated change order rate is 0%, and their overall customer satisfaction rating is 98%. Roofing Subcontractor – We have selected a roofing contractor who surveyed 8 past clients on completed jobs worth $750,000 and received a customer satisfaction rating of 10 out of 10. 20 Example of Solutions Risk: Documented Performance Type: Project Capability

21. 21 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 Solutions Risk: Noise from Demolition Type: Project Capability

22. Examples 22 Risk Assessment

23. Plan 1 – We will work with the owner to ensure design reviews are handled in a timely manner to minimize schedule impacts. Plan 2 – We propose the owner must review critical design submittals within five (5) business days to meet the proposed schedule. – During the Pre-Award phase we will provide a submittal schedule showing what submittals are critical and when the owner will receive the submittals. This will be coordinated with all key stakeholders to ensure up front schedule agreement. – Once submittals are provided, a weekly log will be distributed to track the review status. – If the review goes longer than five (5) days, the critical submittal item will be added to the weekly risk report. 23 Example of Solutions Risk: Owner Design Reviews Type: Risk Assessment

24. Plan 1: We will work closely with the Owner to minimize all risks associated with program development and our team can be very innovative in developing alternative design solutions for different building needs Plan 2: The work will commence with a “Core and Shell” approach to the building Recommend a planning approach that works with a space “budget” at this point. The adjacencies and specific room requirements can be developed at the “tenant fit-up” stage of the project. Will obtain an understanding of all user and breakdown of space at least one month prior to the first visioning session. Should the time line require fast decisions, the team may require that the planners responsible for the chosen occupants provide their “best judgment” to the design team and refine that data as the process continues. The Design Architect will serve as the primary line of communication in such a situation. 24 Example of Solutions Risk: Program Development – Design Example of Solutions Risk: Program Development – Design Type: Risk Assessment

25. 25 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 Assessment Type: Risk Assessment

26. Examples 26 Value Added

27. 27 Item 1: Structural Approach to support Mechanical Equipment Why is it a Value Add? – We propose to design and construct an independent structure within the existing building to support mechanical equipment. – An added benefit of this is to create full interstitial space above the main floor. All future maintenance work can be accessed via the interstitial level and eliminates disruption of the facility below. – The independent structure is constructed of load bearing steel studs with joists that minimizes space taken up by structure. Cost Impact: – $0 Value Added Example

28. 28 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 $10K and 3 weeks in schedule we can replace and repair all of these items.

29. 29 We are Looking for Proponents Who Can Think Ahead… …And Act In The Client’s Best Interest

30. 30 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.

31. Submittal Requirements Submittal DocumentMaximum Page Length Project CapabilityTwo (2) pages Risk AssessmentTwo (2) pages Value Add PlanTwo (2) pages 31 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) List Risks in order of priority

32. Selection Steps – Part A 32 Vendor STEP 1: RFP Project Capability Risk Assessment Value Added PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritize for Short List Vendor STEP 4 Move forward to Part B

33. Past Performance Information Collected For:  Company / Firm  Key Personnel The Proponent picks their own references The Proponent collects all surveys Close out ratings at the end of the contract will be used to update PPI scores going forward at UofA 33

34. Past Performance Information Collected For:  Company / Firm  Key Personnel The Proponent picks their own references The Proponent collects all surveys Close out ratings at the end of the contract will be used to update PPI scores going forward at UofA 34

35. 35 PPI Survey / Questionnaire

36. 36 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

37. 37 Example Survey (Firm and Individuals) Proponent Past Client Proponent Past Client

38. 38 The Evaluation Process Submittal Evaluation Members Proposal Form (1 page) Proposal Form, $, & Other Documentation Proposal Form (1 page) Risk Plans Total Score Contracting Officer Contracting Officer

39. Selection Steps – Part A 39 Vendor STEP 1: RFP Project Capability Risk Assessment Value Added PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritize for Short List Vendor STEP 4 Move forward to Part B

40. Shortlisting If necessary short listing will be conducted prior to interviews (depending on the number of Proponent) Interviews: – Pre-Construction Manager & Project Manager – Design Architect & Structural Engineer

41. 41 Interview Format Q&A Interview, NOT a presentation Individuals will be interviewed separately. A standard set of questions will be generated and asked to each individual. Typically interview times will last about 15-30 minutes per individual No substitutions will be allowed.

42. Best Value Interviews: Identifying Expertise Examples of questions asked: 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? 8.Other questions regarding the RFP requirements 42

43. Selection Steps – Part A 43 Vendor STEP 1: RFP Project Capability Risk Assessment Value Added PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritize for Short List Vendor STEP 4 Move forward to Part B

44. Simple Scoring Methodolgy 44

45. Selection Steps – Part A 45 Vendor STEP 1: RFP Project Capability Risk Assessment Value Added PPI Vendor STEP 2 Interviews Vendor STEP 3 Prioritize for Short List Vendor STEP 4 Move forward to Part B

46. 46 Selection Process – Part B Short listed firms Separate Evaluation Criteria

47. 47 Best Value Model

48. How to Clarify a Plan What is it / Why is it important? Period of time allotted before work begins for the Proponent to: – Present their project/service plan – Set a plan for its delivery / clarify that their plan 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

49. How to Clarify a Plan What is it / Why is it important? Period of time allotted before work begins for the Proponent to: – 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

50. Clarification / Preplanning 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 Technical Level Performance Reports / Metrics Additional Documentation Technical Details Project Schedule High level demos PA Document End

51. 51 Clarification / Preplanning Period

52. 52 Best Value Model

53. 53 Weekly Risk Report Excel Spreadsheet that tracks unforeseen risks that impact the project Client will setup and send to vendor once the Award is issued. ASU will provide additional training. The final project rating will be impacted by the accuracy and timely submittal of the WRR

54. 54 Unforeseen Risks PERFORMANCE SUMMARY Vendor Performance Client Performance Individual Performance Project Performance RISK MANAGEMENT PLAN Risk Schedule WEEKLY REPORT Risk Unforeseen Risks Measurement of Deviation from the Expectation Management by Risk Minimization

55. Questions? 55 Chris Miller Contracting Specialist chris.miller@ualberta.ca Phone: (780) 492-2250 Fax: (780) 492-0607