Design-Build Contractor Selection Lessons Learned

How to Choose Your Dance PartnerDesign-Build Contractor Selection Lessons Learned

Kam Shadan, P.E.Vice President

Gannett Fleming, Inc. San Francisco, California

Overview

• What is important?

• Who should be involved?

• How to avoid pitfalls?

Overview

• Livermore-Amador Valley Transit Authority (LAVTA)

• Santa Clara Valley Transportation Authority (VTA)

Livermore-Amador Valley Transit Authority (LAVTA)

• Staff: 15 Administration and 120 Operations

• Project Scope: Bus Fuel & Wash Facility

• Budget: $ 6 Million

• Schedule: January 2013 (14 months)

Livermore-Amador Valley Transit Authority (LAVTA)

Livermore-Amador Valley Transit Authority (LAVTA)

• Design: 30%

• Selection Period: 5 Months

• Selection Panel

• Number of bidders: 4

• Protests: None

Livermore-Amador Valley Transit Authority (LAVTA) – Pre-Qualification

• State of California Public Code

• Key Personnel: 15%

• Architect/Engineer: Pass/Fail

• Claims History: 25%

• Disqualification History: 20%

• Statutory/Safety: 25%

• Financial Information: 15%

• Insurance & Bonding: Pass/Fail

Livermore-Amador Valley Transit Authority (LAVTA) – Proposal

• Price Proposal: 40%

• Experience/References: 35%

• Life Cycle Costs: 5%

• Apprenticeship Program: 5%

• Safety/Environmental: 5%

• Technical/Management/Quality: 10%

Santa Clara Valley Transportation Authority (VTA)

• Staff: 635 Administration and 1406 operations

• Project Scope: Rail Extension, Stations, and Systems

• Contract: $ 772 Million

• Schedule: June 2018 (6+ years)

Santa Clara Valley Transportation Authority (VTA)

Berryessa Station, San Jose

Santa Clara Valley Transportation Authority (VTA)

BART Silicon Valley Extension –

Alameda and Santa Clara County, California

Santa Clara Valley Transportation Authority (VTA)

• Design: 65%

• Selection Period: 10 Months

• Selection Panel

• Number of bidders: 4

• Protests: None

Santa Clara Valley Transportation Authority (VTA) - Pre-Qualification

• State of California Public Code

• Key Personnel: 15%

• Architect/Engineer: Pass/ Fail

• Claims History: 25%

• Disqualification History: 20%

• Statutory/Safety: 25%

• Financial Information: 15%

• Insurance & Bonding: Pass/Fail

Santa Clara Valley Transportation Authority (VTA)- Proposal

• Price Proposal: 47%

• Schedule Savings: 20%

• Life Cycle Costs: 5%

• Safety/Environmental: 5%

• Technical/Management/Quality: 23%

Summary – Lessons Learned

• Thorough Pre-Qualification process to avoid risk of ending up with a loser:

o Expand on the state mandated requirements

o Emphasize past experience

o Ask for scope growth history

o Require cost savings history

Summary – Lessons Learned

• Thorough Pre-Qualification process to avoid risk of ending up with a loser:

o Assure local staff are available

o Involve legal and finance

o Allow adequate time

o Eliminate marginally qualified teams

Summary – Lessons Learned

• Focus the proposal process to control risk, scope, budget, schedule, quality and safety:

o Define and allocate risks fairly

o Define third party, ROW and major utility work

o Advance design to define and allocate project risks

Summary – Lessons Learned

• Focus the proposal process to control risk, scope, budget, schedule, quality and safety:

o Smaller project needs more definition

o Control changes to the prescriptive requirements

o Define process for changes within guidance documents

Summary – Lessons Learned

• Focus the proposal process to control risk, scope, budget, schedule, quality and safety:

o Consider bidding the schedule

o Define change control process

o Require quality assurance process

o Require safety and security process

Summary – Lessons Learned

• Focus the proposal process to control risk, scope, budget, schedule, quality and safety:

o Require complete design packages

o Have proposers solve real problems

o Allow for stipend to offset proposal costs

o Make cost majority of the score

About the Speaker

Kam Shadan, M.S., P.E. is a Vice President at Gannett Fleming. Mr. Shadan has over 35 years of experience in management of major capital projects, including over 13 years as the Program Manager for Capital Projects at the San Francisco Muni, and 14 years as the FTA Program Manager for Oversight of the FTA funded mega transit projects on the west coast.

Mr. Shadan also provides oversight advisory services for Public-Private Partnerships (P3) and Transit Oriented Development (TOD) projects; and assists agencies in forensic analysis and dispute resolution services regarding project/construction management standards of care for mega capital projects.

Mr. Shadan is a graduate of the Harvard Business School’s Project Development and Capital Market Access Program and Venture Capital and Private Equity executive programs. He has a B.S. in Engineering from U.C. Berkeley, and a M.S. in Engineering Management from University of Santa Clara.

He is the lead author of the FTA’s National Construction Project Management Handbook, author of articles on “the Art of Oversight” published by APTA passenger Transport in 2010 and articles on Public Private Partnership and Transit Oriented development “Build it Now” published by California Transit Association in 2008. Mr. Shadan is an elected member of the Executive Committee of the California Transit Association. He is a licensed professional engineer, and an engineering and building contractor in California. He can be contacted at kshadan@gfnet.com; 415-384-0822 x3505