US Army Corps of Engineers

BUILDING STRONG®

CONSTRUCTION CONTRACTING

Presenter Name John Moore

Chief Contracting Division

Savannah District

20 May 2010

BUILDING STRONG®

AGENDA

ACQUISITION PROCESS

► ACQUISITION PLANNING► ACQUISITION DECISIONS

BEST VALUE

► BEST VALUE CONTINUUM► TRADE OFFS► SOURCE SELECTION CRITERIA► SOURCE SELECTION DECISION

SOCIO-ECONOMIC CONSIDERATIONS

IDIQ CONTRACTS► MATOC COMPETITION PROCESS► BENEFIT OF MATOCS/SATOCS

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RFP Process

START Acquisition

Planning

Develop Evaluation

Criteria

Issue Solicitation

Proposals Submitted

Initial Evaluation

Competitive Range

FIN

ISH Award

Source Selection

Final ProposalRevisions

Discussions

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Considerations in Acquisition Planning

• Project Size and Budget

• Scope Complexity

• Urgency

• Customer/Politics

• Funding Stream

• Market Conditions

• Socio-Economic Programs

• Availability of Current Contract Vehicles

• In-House Staff Capacity/Capability

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Acquisition Decisions

• In-House vs. Contract• Solicitation – IFB or RFP• Contract Type – Fixed Price or Cost• Small Business or Unrestricted• Design-Bid-Build or Design-Build• Existing Contract or New Acquisition• Sole Source or Competitive

Acquisition Planning is Risk Management!

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The Best Value Continuum

CONTRACTORCONTRACTORLeast Control

AssumesGreatest Risk/

Control

AssumesGreatest Risk/Control

Invitation for Bid – Sealed Bid

Low Price Technically Acceptable

Price-Performance Trade-off

One Step Design-Build

Two Step Design-Build

GOVERNMENTGOVERNMENT

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THE BEST VALUE CONTINUUM

INVITATION FOR BID

PROs:

Relatively fast acquisition phase Less Resources needed during acquisition

CONs:

Government assumes most risks No quality control over Contractor selection No negotiations! Long lead time for design

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Request for Proposal

PROs:

Contractor selection based on pre-established evaluation criteria

Performance evaluated with price Ability to negotiate

CONs:

More resource intensive Acquisition Time is Longer

THE BEST VALUE CONTINUUM

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BEST VALUE TRADE-OFFS

PROJECT REQUIREMENTSPROJECT REQUIREMENTS•SIZESIZE•COMPLEXITYCOMPLEXITY•FUNDING STREAMFUNDING STREAM•RESTRICTIONSRESTRICTIONS

•COSTCOST•SCHEDULESCHEDULE

•QUALITY QUALITY •SCOPESCOPE•PAST PAST PERFORMANCEPERFORMANCE

RISKRISK

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SOURCE SELECTION CRITERIA

True discriminators have the following characteristics:

A reasonable expectation of variance among offerors

An assessable variance (quantitative or qualitative measurement)

The requirement(s) warrant a comparative evaluation of that Factor (worthy of a Price/Cost Premium)

Do Criteria Focus on Issues of Substance?

Is there time to evaluate the selected criteria?

ID of skilled evaluators to assess the criteria?

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THE SOURCE SELECTION DECISION

Represents the Source Selection Authority’s rational and independent judgment;

Is based on a comparative analysis of the proposals;

Must be consistent with solicitation evaluation factors and subfactors.

Must Reflect Why Discriminators among Offerors (e.g. Lower Risk, Better Past Performance, Strengths and Weaknesses) are:

Worth of any Price Premium, or

Not Worth of a Price Premium

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Socio-economic Considerations:

Unrestricted

Small Business

8(a)

SDVOSB

HubZone

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SOCIO-ECONOMIC TARGETS

Small Businesses 32.0%

Small Disadvantaged Businesses 18.0%

Women-Owned Small Businesses 5.8%

HUBZone Small Businesses 10.0%

Service Disabled Veteran-Owned Small Bus. 3.0%

HBCU/MI 13.0%

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IDIQ Contracts

Single Award (SATOC)

• One contractor

(no competition for task orders)

• Examples– 8(a) < $3 Million– A-E– O&M Construction

Multiple Award (MATOC)

• Multiple contractors

(compete for task orders)

• Examples– GSA– COS

etc

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MATOC COMPETITION PROCESS

• RFP Letter & SOW

• Evaluation Criteria Identified in RFP Letter

• Technical Board for Design Build T.O.s

• Importance of Price vs Technical

• Source Selection Decision

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THE BENEFIT OF MATOCS/SATOCS

• Time Advantage - No 30 day Synopsis

• Ability to manage workload/manpower

• Limited Number of Offerors

• Less Cost to Issue/Award a T.O.

• Can Involve Contractors During Design Development

• More Balanced use of MATOCs and Stand Alone Contracts as Workload Draws Down

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Questions?Questions?