CH2M Hill's Mark Alpert discussed the procurement process for design-build contracts at the American Water Works Association's ACE13 Annual Conference & Exposition.

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2. RFQs AND RFPs:
SELECTING THE DESIGN-BUILDER
Mark E. Alpert
CH2M HILL
June 10, 2013
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3. Agenda
• Procurement Processes
– 1 step
– 2 step
• What is in an RFP?
• Evaluation and Selection of Design Build firms
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4. PROCUREMENT PROCESS
RFP’s: Selecting the Design-Builder
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5. Basis for Selection
Various Procurement Processes
Single-Step Two - Step
Request for
Qualifications
Request for
Qualifications
Request for
Proposals
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications
+ Costs
Request for
Qualifications
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
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6. Single-Step Two - Step
Request for
Qualifications
Request for
Qualifications
Request for
Proposals
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
Request for
Qualifications
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
Single Step Qualifications Based Selection
 If schedule is a critical
driver
 If maximum
owner/design-builder
collaboration is a priority
 If Owner wants best-
qualified design- builder,
not just the lowest initial
price
 If state/local law allow
qualifications only
selection 6

7. Single-Step Two - Step
Request for
Qualifications
Request for
Qualifications
Request for
Proposals
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
Request for
Qualifications
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
Single Step Best Value Selection
 If schedule is a critical
driver
 If maximum
owner/design-builder
collaboration is a priority
 If Owner prefers (or if
state/local law requires)
inclusion of cost as a
selection factor
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8. Basis for Selection
 Employ evaluation criteria that
are traditionally used for any
qualifications-based selection
 Owner able to conduct process
efficiently
 Reduces total time for
procurement
 Reduces cost of procurement
 Reduces complexity
 Potentially allows for a larger pool
of qualified firms to participate
 Allows price or costs to be
considered with qualifications
 Total cost of construction is not a
factor
 Typical cost considerations
include:
• Fixed fees or hourly billing rates
for design and preconstruction
services
• Design-builder fee or markup
percentage of allowable project
costs
• Fixed fees or billing rates for
General Condition costs
• Project Price for Best Value Fixed
Price Approach
Qualifications-based Selection Best-value Selection
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9. Basis for Selection
Various Procurement Processes
Single-Step Two - Step
Request for
Qualifications
Request for
Qualifications
Request for
Proposals
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
Request for
Qualifications
Request for
Proposals
Qualifications
only
“Best Value”
Qualifications + Costs
 Includes Project
Approach
 Potentially greater degree
of project data provided
with RFP
 Qualifications only or
best value
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10. WHAT IS IN A REQUEST FOR
QUALIFICATIONS (RFQ)
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11. RFQ Contents
• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. SOQ Submission Requirements
• Section 6. SOQ Evaluation and Selection
• Section 7. Conditions for Respondents
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12. RFQ Attachments
• A: Definition of Terms
• B: Scope of Design-Builders Services
• C: Draft PDB Contract
• D: Project Background Documents
• E: Project Technical Requirements
• F: Submission Forms
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13. Single and Two-Step RFQs
• Procurement Schedule
• Single-Step - includes
Project Approach and
Draft Contract Markup
• Evaluation criteria/weighting
• Selection or short-list
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14. Required Contents for Submission
• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. SOQ Submission Requirements
• Section 6. SOQ Evaluation and Selection
• Section 7. Conditions for Respondents
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15. Required Contents for Submission
Design-Builder Profile
• General
• Legal Structure
• Project office location
• Financial condition
• Performance bonds
• Insurance
• Material adverse changes
in financial position
• Legal proceedings
• Completion of contracts
• No violation of laws
• Not debarred from
bidding
Provides General, Legal and Financial
Information Concerning the Design-builder
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16. Required Contents for Submission
Project Team
• Organization
– Roles and
responsibilities of
all firms
– Organizational charts
• Key Personnel
– Roles and responsibilities
defined if other firms on
proposing team
– Resumes
Describes Key Personnel And Additional Firms
Organization • Roles and Responsibilities • Resumes
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17. Required Contents for Submission
Experience
• Reference projects – number
specified by owner
• Three categories:
– Design
– Construction
– Design-build
• Information provided for each
project:
– Name of owner
– Year started and completed
– Owner reference and contact
information
• Information provided for each
project:
– Firms and key personnel that
participated in the project
– Description of the project
• One–page summary table to
cross reference the projects
with project team (firms and
key personnel)
Provides Detailed Information on Relevant Design,
Construction, Design-Build Projects Including Safety
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18. WHAT IS IN A REQUEST FOR
PROPOSALS (RFP)
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19. Request for Proposals
• Used for both
Qualifications-based
selection and Best Value
selection
• RFP for Single-Step also
includes requirements
outlined in Single-Step RFQ
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20. RFP Contents
• Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. Proposal Submission Requirements
• Section 6. Proposal Evaluation and Selection
• Section 7. Conditions for Respondents
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21. • A: Definition of Terms
• B: Scope of Design-Builders Services
• C: Draft Project Agreement
• D: Project Background Documents
• E: Project Technical Requirements
• F: Price Proposal Form
RFP Attachments
Not used if “Qualifications
Only” selection
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22. • Section 1. Background
• Section 2. Project Overview
• Section 3. Progressive Design-Build Services
• Section 4. Procurement Process
• Section 5. Proposal Submission Requirements
• Section 6. Proposal Evaluation and Selection
• Section 7. Conditions for Respondents
Required Contents for Submission
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23. • Transmittal Letter
• Executive Summary
• Project Approach
• Draft Project Agreement Markup
• Fee and Rate Proposal
• Updated Qualifications
Required Contents for Submission
Not used if “Qualifications Only” selection
Not used in Single-Step process
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24. Required Contents for Submission
Project Approach
• Can include discussion
on:
– How collaborative
relationship with the
Owner would be
established
– How the design and
construction processes will
interface
– Critical work components
for success
– The process for GMP
development
• May include discussion on
approach to:
– Communications with
owner and stakeholders
– Quality management
– Risk management
– Adherence to the GMP and
schedule
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25. Required Contents for Submission
Draft Project Agreement Markup
• Allows proposers to
revisions to the contract
that would more efficiently
allocate:
– Risk
– Improve parties
understanding of risk
allocation
– Improve clarity
• Owner is not obligated to
accept any of the suggested
revisions
Provides a Description and Discussion of the Rationale
for Proposed Revisions to the Draft PDB Contract
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26. Required Contents for Submission
Cost Proposal
• Permitting, design, and
services during
construction
• Detailed breakdown of
cost of construction
including self-
performance,
subcontracts, vendors,
and general conditions
• Professional fees
• Markup on direct cost
of construction
• Direct cost of
construction
– Subcontracts
– Vendors
– General Conditions
• Bonds and Insurance
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Best-value (Fixed Price) Best-value (GMP)

27. Required Contents for Submission
Updated Qualifications
• Any proposed changes
to the SOQ
• Resumes of additional
personnel proposed
• Proposed changes
subject to acceptance
of owner
Confirm Prior SOQ and Describes Any Changes to Project Team
or Key Personnel and Explains Reason for Change
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28. EVALUATION CRITERIA
Evaluation Criteria and Scoring Methodology
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29. Evaluation Criteria and Scoring Methodology
EVALUATION CRITERIA
• Fair
• Clear
• Transparent
• Pass/Fail
– Performance bond
– Net worth
– Material adverse
conditions
– Licensing and registration
– Design experience
– Construction experience
– Design-build experience
– Safety record
Should be Designed to Select a Design-Builder with the Highest
Probability of Achieving an Owner’s Project Objectives
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30. Evaluation Criteria and Scoring Methodology
Procurement
Approach
Document
Quals
BestValue
Design-
Builder
Key
Personnel
Organization,
Management
and Safety
Project
Approach
Cost /Fee
&
Rate
Proposal
RFQ 1200 X l l l l
RFP 1300 X l l l l l
RFQ 1400 X l l l
RFP 1500 X l l l l l
RFP 1500 X l l l l
Experience and capabilities
Two - Step
Single-Step
Evaluation Criteria
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31. Typical/Suggested Scoring Methodology
Procurement
Approach
Document
Quals
BestValue Design-
Builder
Key
Personnel
Organization,
Management
and Safety
Project
Approach
Fee
&
Rate
Proposal
RFQ 1200 X 40% 30% 15% 15%
RFP 1300 X 30% 20% 15% 15% 20%
RFQ 1400 X 40% 40% 20%
RFP 1500 X 30% 20% 15% 15% 20%
RFP 1500 X 40% 30% 15% 15%
Experience and capabilities
Two - Step
Single-Step
Evaluation Criteria
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32. DISCUSSION
RFP’s: Selecting the Design-Builder
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