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QUALIFICATIONS QUALIFICATIONS BASED BASED SELECTION SELECTION WHY VALUE OUTWEIGHS COST IN WHY VALUE OUTWEIGHS COST IN THE SELECTION OF DESIGN THE SELECTION OF DESIGN SERVICES SERVICES

QUALIFICATIONS BASED SELECTION

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QUALIFICATIONS BASED SELECTION. WHY VALUE OUTWEIGHS COST IN THE SELECTION OF DESIGN SERVICES. What is QBS?. A nationally endorsed procedure for selecting and retaining design professionals that will provide the best value to the owner in terms of quality and total project cost. - PowerPoint PPT Presentation

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Page 1: QUALIFICATIONS BASED  SELECTION

QUALIFICATIONS QUALIFICATIONS BASED BASED

SELECTIONSELECTION

WHY VALUE OUTWEIGHS COST IN WHY VALUE OUTWEIGHS COST IN THE SELECTION OF DESIGN THE SELECTION OF DESIGN

SERVICESSERVICES

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What is QBS?What is QBS?

• A nationally endorsed procedure for selecting A nationally endorsed procedure for selecting and retaining design professionals that will and retaining design professionals that will provide the best value to the owner in terms of provide the best value to the owner in terms of quality and total project cost.quality and total project cost.

• A competitive procurement approach that A competitive procurement approach that emphasizes quality attributes.emphasizes quality attributes.

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HistoryHistory• Prior to 1939Prior to 1939

• Most design done by federal employeesMost design done by federal employees

• 1939 A/E Selection Provision1939 A/E Selection Provision• 1947 Armed Services Procurement Act and 1947 Armed Services Procurement Act and

1949 Federal Property and Administrative 1949 Federal Property and Administrative Procedures ActProcedures Act

• 1972 – The Federal “Brooks” Law (P.L. 92-1972 – The Federal “Brooks” Law (P.L. 92-582) signed582) signed• Codified into federal law the qualifications-based selection Codified into federal law the qualifications-based selection

process for A/E servicesprocess for A/E services

• 1984 Competition in Contracting Act1984 Competition in Contracting Act

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Who Uses QBS?Who Uses QBS?• Local, state and federal governmental agencies Local, state and federal governmental agencies

that procure A/E servicesthat procure A/E services

• Private industryPrivate industry

• Other public and private institutionsOther public and private institutions

• Design professionals when hiring other design Design professionals when hiring other design professionalsprofessionals

• Other users of services/products who place Other users of services/products who place quality first (“The doctor example”)quality first (“The doctor example”)

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Engineering ServicesEngineering Services

• Are services; not commoditiesAre services; not commodities

• Engineers provide: Engineers provide: • Technical ExpertiseTechnical Expertise

• InnovationInnovation

• Latest TechnologyLatest Technology

• High Degree of Professional CompetenceHigh Degree of Professional Competence

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Why not use low-bid?Why not use low-bid?• To those not familiar with our industry low-bid To those not familiar with our industry low-bid

may seem logical may seem logical

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The Reality of BiddingThe Reality of Bidding

• Low-bidding leads to inferior results and Low-bidding leads to inferior results and actually increases overall project costsactually increases overall project costs

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The cost of A/E services is typically less than The cost of A/E services is typically less than 1% of the project life-cycle costs.1% of the project life-cycle costs.

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Choose Quality First and Then Decide If You Choose Quality First and Then Decide If You Can Afford ItCan Afford It

Everyday decisions are based on this principal. Everyday decisions are based on this principal.

Vs.

Or?$500 $80,000

$25,000

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What Does the Owner Really Want?What Does the Owner Really Want?

Lowest Construction CostLowest Construction CostLowest A/E CostLowest A/E CostLowest Life-Cycle CostLowest Life-Cycle CostValueValue

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QBS: The ProcessQBS: The Process

• Selecting a Design FirmSelecting a Design Firm1. An owner identifies the general scope of work and 1. An owner identifies the general scope of work and

develops a selection schedule.develops a selection schedule.

2. A request for qualifications is issued.2. A request for qualifications is issued.

3. Statements of qualifications are evaluated.3. Statements of qualifications are evaluated.

4. A short-list of qualified firms to be interviewed is 4. A short-list of qualified firms to be interviewed is determined.determined.

5. Interviews are conducted and the firms are ranked.5. Interviews are conducted and the firms are ranked.

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QBS: The ProcessQBS: The Process• Negotiating a ContractNegotiating a Contract

6. The owner invites the highest ranked firm to assist in defining a 6. The owner invites the highest ranked firm to assist in defining a detailed scope of work. detailed scope of work.

7. The design firm develops and submits to the owner a detailed fee 7. The design firm develops and submits to the owner a detailed fee proposal, based on the agreed upon scope of work.proposal, based on the agreed upon scope of work.

8. If the proposed fee is not acceptable to the owner, the owner and 8. If the proposed fee is not acceptable to the owner, the owner and designer work together to modify the scope of work, schedule and designer work together to modify the scope of work, schedule and budget to determine if an agreement on fee can be achieved. budget to determine if an agreement on fee can be achieved.

9. If an agreement cannot be reached with the top ranked firm, those 9. If an agreement cannot be reached with the top ranked firm, those negotiations are ended and negotiations begin with the next most negotiations are ended and negotiations begin with the next most qualified firm. qualified firm.

10. An agreement covering the above is executed. 10. An agreement covering the above is executed.

11. Firms involved in the selection process are given post-selection 11. Firms involved in the selection process are given post-selection feedback, when requested.feedback, when requested.

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APWA Flow-ChartAPWA Flow-Chart

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Evaluating QualificationsEvaluating Qualifications

TrainingTrainingTrainingTraining ExpertiseExpertiseExpertiseExpertise

ReferencesReferencesReferencesReferences

ExperienceExperienceExperienceExperience AvailabilityAvailabilityAvailabilityAvailability

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Why QBS?Why QBS?• Life Cycle Cost ConsiderationsLife Cycle Cost Considerations• Team BuildingTeam Building• Technology/InnovationTechnology/Innovation• Reduced ChangesReduced Changes• Flexible Contract ApproachesFlexible Contract Approaches• Competition Among Best Performers; Not Low BiddersCompetition Among Best Performers; Not Low Bidders

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Questions?Questions?

• What happens if the Owner and A/E can not What happens if the Owner and A/E can not agree on the fee for the services?agree on the fee for the services?• The Owner terminates negotiations with the first ranked The Owner terminates negotiations with the first ranked

firm and begins negotiation with the second ranked firm. firm and begins negotiation with the second ranked firm. The Owner is always in control of the process. This The Owner is always in control of the process. This happens only rarely, since the A/E has invested significant happens only rarely, since the A/E has invested significant resources to arrive at this point.resources to arrive at this point.

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Questions?Questions?

• Why not ask for prices from three qualified Why not ask for prices from three qualified firms?firms?• Each firm will offer a price based on its own interpretation Each firm will offer a price based on its own interpretation

of the scope and not necessarily that of the owner. Each of the scope and not necessarily that of the owner. Each price therefore, represents a unique and unilateral scope. price therefore, represents a unique and unilateral scope.

• Since most equally qualified firms have similar labor cost, Since most equally qualified firms have similar labor cost, overhead, and profit structures, they will cut scope first to overhead, and profit structures, they will cut scope first to be price competitive.be price competitive.

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Questions?Questions?

• Does QBS encourage competition?Does QBS encourage competition?• Absolutely. The A/E will make a serious Absolutely. The A/E will make a serious

investment in the preparation of qualifications investment in the preparation of qualifications packages and the interview process at minimal packages and the interview process at minimal expense to the Owner. This investment will also expense to the Owner. This investment will also ensure that the A/E – Owner negotiations are ensure that the A/E – Owner negotiations are successful.successful.

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Questions?Questions?

• Does QBS result in higher A/E fees?Does QBS result in higher A/E fees?• Not when you consider the final project costs. The Not when you consider the final project costs. The

Maryland experience between 1976 and 1982 showed that Maryland experience between 1976 and 1982 showed that fee bidding or two envelope bidding (technical and price fee bidding or two envelope bidding (technical and price proposals) may offer a lower initial price but the “savings” proposals) may offer a lower initial price but the “savings” are lost in change orders and time delays.are lost in change orders and time delays.

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Questions?Questions?

• How does the owner know that he is getting a How does the owner know that he is getting a fair price in the negotiation?fair price in the negotiation?• A/E’s typically get about 85% of their business from repeat A/E’s typically get about 85% of their business from repeat

clients. Client satisfaction ranks second only to the A/E’s clients. Client satisfaction ranks second only to the A/E’s public safety professional responsibility. A reputation of public safety professional responsibility. A reputation of inflated fees without commensurate high quality (value) is inflated fees without commensurate high quality (value) is a sure formula for losing clients and not in the best a sure formula for losing clients and not in the best business interest of the A/E.business interest of the A/E.

• If the owner can not be convinced that the fees are fair, he If the owner can not be convinced that the fees are fair, he does not have to buy the A/E’s services.does not have to buy the A/E’s services.

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Common MisconceptionsCommon Misconceptions• QBS takes longer – False: QBS fosters teamwork between the QBS takes longer – False: QBS fosters teamwork between the

client and engineering and facilitates construction, leading to client and engineering and facilitates construction, leading to faster project deliveryfaster project delivery

• QBS is a waste of taxpayer money – False: In fact, low-bid is QBS is a waste of taxpayer money – False: In fact, low-bid is more expensive because it leads to increased change orders more expensive because it leads to increased change orders and high project maintenance costs. Furthermore, QBS and high project maintenance costs. Furthermore, QBS ensures the public gets a high quality and safe design. ensures the public gets a high quality and safe design.

• QBS eliminates price as a selection criteria – False: Price is a QBS eliminates price as a selection criteria – False: Price is a factor! Price becomes a factor only after the most qualified factor! Price becomes a factor only after the most qualified firm has been identified and a detailed scope of work has been firm has been identified and a detailed scope of work has been jointly developed by the owner and design professional.jointly developed by the owner and design professional.

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QBS Case Study #1QBS Case Study #1

• You are one of three engineers that an owner has You are one of three engineers that an owner has asked for a price proposal for a site plan for a asked for a price proposal for a site plan for a business park. Your work will include permitting and business park. Your work will include permitting and stormwater management.stormwater management.

• You have determined that the site is suitable for an You have determined that the site is suitable for an innovative bio-filtration stormwater management innovative bio-filtration stormwater management facility. This innovative design may allow more facility. This innovative design may allow more parking and office floor space when compared to a parking and office floor space when compared to a conventional stormwater management basin. conventional stormwater management basin. However, the design and permitting effort (scope) for However, the design and permitting effort (scope) for the innovative design is about 1.5 times the cost of the innovative design is about 1.5 times the cost of the conventional basin design. the conventional basin design.

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Here are your choices of action:Here are your choices of action:1. Call the owner and ask to explain the opportunities 1. Call the owner and ask to explain the opportunities of innovative design in the hope that he will accept of innovative design in the hope that he will accept your higher price.your higher price.2. Ask the owner to tell the other engineers to base 2. Ask the owner to tell the other engineers to base their fee on the bio-filtration design so that their fee on the bio-filtration design so that everyone’s fees are comparable.everyone’s fees are comparable.3. Give the owner two fees, one for the conventional 3. Give the owner two fees, one for the conventional design and one for the innovative design and let him design and one for the innovative design and let him decide.decide.4. Base your fee on the conventional design so your 4. Base your fee on the conventional design so your fee is low and hope you get the job.fee is low and hope you get the job.

QBS Case Study #1QBS Case Study #1

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Who Chose Option #1? (Who Chose Option #1? (Call the owner to Call the owner to explain the opportunities of innovative design…hope he accepts explain the opportunities of innovative design…hope he accepts

your higher price.)your higher price.)

• The owner says that it is a great idea. So you The owner says that it is a great idea. So you give him your higher fee based on the give him your higher fee based on the innovative approach. innovative approach.

• But the owner calls a week later to thank you But the owner calls a week later to thank you for your effort but he just had to take the for your effort but he just had to take the engineer whose fees were 65% less than yours. engineer whose fees were 65% less than yours. But he will invite you to bid next time. But he will invite you to bid next time.

QBS Case Study #1QBS Case Study #1

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Who Chose Option #2 Who Chose Option #2 (Owner tells other (Owner tells other engineers to base their fee on the bio-filtration design.)engineers to base their fee on the bio-filtration design.)

• The owner says, fine. Just write a scope so he can hand it to The owner says, fine. Just write a scope so he can hand it to the other engineers.the other engineers.

• One of the other engineers calls you to ask what a bio-One of the other engineers calls you to ask what a bio-filtration facility is.filtration facility is.

• The owner calls a week later and says that he chose the The owner calls a week later and says that he chose the engineer whose price was 65% lower than yours. Without engineer whose price was 65% lower than yours. Without telling you, he thinks that you price gouge and will not call telling you, he thinks that you price gouge and will not call you again.you again.

• The selected engineer later talks the owner out of the risky The selected engineer later talks the owner out of the risky bio-something design and goes ahead and designs the big ugly bio-something design and goes ahead and designs the big ugly hole. Yes, he was the one with the low fee.hole. Yes, he was the one with the low fee.

QBS Case Study #1QBS Case Study #1

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Who Chose Option #3 Who Chose Option #3 (Give the owner two (Give the owner two fees, one for the conventional design and one for the fees, one for the conventional design and one for the

innovative design.innovative design.

• The owner calls and says that he really likes the innovative The owner calls and says that he really likes the innovative option but the low conventional design fee looks really option but the low conventional design fee looks really tempting. Even though you were not the lowest fee among the tempting. Even though you were not the lowest fee among the three engineers, he would be happy to give you the job if you three engineers, he would be happy to give you the job if you would go with the innovative option for the conventional would go with the innovative option for the conventional option fee. If you can’t, he will have to go with the lowest fee option fee. If you can’t, he will have to go with the lowest fee of one of the other engineers.of one of the other engineers.

QBS Case Study #1QBS Case Study #1

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Who Chose Option #4 Who Chose Option #4 (Base your fee on the (Base your fee on the conventional design so your fee is low)conventional design so your fee is low)

• Congratulations, you got the job. Your price was 65% lower Congratulations, you got the job. Your price was 65% lower than the next engineer. This client thinks you’re a great guy.than the next engineer. This client thinks you’re a great guy.

• Three months later your multiplier is 1.4 and the project is Three months later your multiplier is 1.4 and the project is behind schedule. You and the owner are barely speaking since behind schedule. You and the owner are barely speaking since you have submitted seven change orders for out-of-scope you have submitted seven change orders for out-of-scope work. The owner says, “How can this be? You said that this is work. The owner says, “How can this be? You said that this is a conventional design! Don’t you know your own business!”a conventional design! Don’t you know your own business!”

QBS Case Study #1QBS Case Study #1

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Moral of the StoryMoral of the Story• When price is on the table it trumps other When price is on the table it trumps other

considerations, even quality and innovation. considerations, even quality and innovation. However, in many cases, the difference in quality However, in many cases, the difference in quality outweighs the apparent savings in fees when outweighs the apparent savings in fees when considering the life cycle costs.considering the life cycle costs.

• Had the owner used QBS he would have worked with Had the owner used QBS he would have worked with the innovative engineer to develop a layout that the innovative engineer to develop a layout that would have generated more rentable office space and would have generated more rentable office space and a higher rate of return on his development a higher rate of return on his development investment.investment.

QBS Case Study #1QBS Case Study #1

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Case Study #2Case Study #2• Three engineers were invited to submit technical and price Three engineers were invited to submit technical and price

proposals for a wastewater treatment plant upgrade project.proposals for a wastewater treatment plant upgrade project.• The price proposals and technical scores were:The price proposals and technical scores were:

1. $ 349,0001. $ 349,000 88882. $ 388,0002. $ 388,000 85853. $ 325,0003. $ 325,000 8484

• You are the Director of Public Works and have to recommend You are the Director of Public Works and have to recommend a firm for the project.a firm for the project.

• Here are your choices:Here are your choices:1. Choose the firm with the highest ranked technical 1. Choose the firm with the highest ranked technical proposal for $349,000.proposal for $349,000.2. Choose the firm with the low price.2. Choose the firm with the low price.

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Who Chose Option #1 Who Chose Option #1 (the firm with the (the firm with the

highest ranked technical proposal for $349,000.)highest ranked technical proposal for $349,000.)

• After you have notified the winning firm, the After you have notified the winning firm, the President of the County Council calls and asks President of the County Council calls and asks you to attend the next Council meeting to you to attend the next Council meeting to explain why you agreed to pay an additional explain why you agreed to pay an additional $24,000 when the technical scores of “equally $24,000 when the technical scores of “equally qualified firms” were so close.qualified firms” were so close.

Case Study #2Case Study #2

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Who Chose Option #2 Who Chose Option #2 ((the firm with the low the firm with the low price.)price.)

• You have made the Council and the County Procurement You have made the Council and the County Procurement Agent happy.Agent happy.

• At the 50% submission, you realize that an important item of At the 50% submission, you realize that an important item of scope was not included in your Request of Proposal or in the scope was not included in your Request of Proposal or in the A/E’s original fee. To be fair you ask the A/E for a change A/E’s original fee. To be fair you ask the A/E for a change order. It amounts to $30,000. order. It amounts to $30,000.

• The County Council President calls and asks you to explain The County Council President calls and asks you to explain why you didn’t select the most qualified firm who “would why you didn’t select the most qualified firm who “would have known about this” and would have charged $6,000 less have known about this” and would have charged $6,000 less considering the change order that you now ask for. considering the change order that you now ask for.

Case Study #2Case Study #2

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Moral of the StoryMoral of the Story• When the owner writes the scope without the A/E’s When the owner writes the scope without the A/E’s

input, he is exposed to a greater risk of change orders.input, he is exposed to a greater risk of change orders.

• When multiple prices are on the table, the owner is When multiple prices are on the table, the owner is not in control; the price is.not in control; the price is.

• Had the Director used QBS, he would have been able Had the Director used QBS, he would have been able to identify contingencies and have a contract means to identify contingencies and have a contract means to handle them. He would also have been able to tell to handle them. He would also have been able to tell the Council that the procurement method he used is the Council that the procurement method he used is widely endorsed by governmental and professional widely endorsed by governmental and professional organizations.organizations.

Case Study #2Case Study #2

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Case Study #3Case Study #3• What the City Wants…What the City Wants…

• Consultants are requested by a City to submit price proposals for Consultants are requested by a City to submit price proposals for providing complete engineering services for a Water providing complete engineering services for a Water Transmission Line Replacement Project. Transmission Line Replacement Project.

• The advertisement states that the City wishes to replace 5,000 The advertisement states that the City wishes to replace 5,000 feet of an existing 8-inch transit line with a new 12-inch asphalt feet of an existing 8-inch transit line with a new 12-inch asphalt dipped and wrapped steel transmission line. The City has a dipped and wrapped steel transmission line. The City has a policy of using steel pipe on all transmissions lines, and the policy of using steel pipe on all transmissions lines, and the Council has determined that they can afford only a 12-inch Council has determined that they can afford only a 12-inch diameter line. diameter line.

• The city desires a lump sum “bid” for all of the engineering, The city desires a lump sum “bid” for all of the engineering, including surveying, design, contract administration, and including surveying, design, contract administration, and inspection.inspection.

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• Problems….Problems….• If a consultant wants to be competitive on this job he must first If a consultant wants to be competitive on this job he must first

accept the fact that the line size must be 12 inches, and the accept the fact that the line size must be 12 inches, and the material used must be asphalt dipped an wrapped steel pipe. material used must be asphalt dipped an wrapped steel pipe.

• Several assumptions could cause the engineer to price himself Several assumptions could cause the engineer to price himself out of the job. For example…out of the job. For example…

• He includes costs for soil testing to see if corrosive soils may exist on the He includes costs for soil testing to see if corrosive soils may exist on the route, this making steel pipe unsuitable.route, this making steel pipe unsuitable.

• He includes the cost to evaluate the City’s overall water supply and He includes the cost to evaluate the City’s overall water supply and transmission facilities beyond the limits of this project to see if a 12-inch transmission facilities beyond the limits of this project to see if a 12-inch line will fit the long-range needs of the City. line will fit the long-range needs of the City.

• Several stream crossing are involved in the project, and if the engineer Several stream crossing are involved in the project, and if the engineer assumes the responsibility for securing the necessary crossing permits as a assumes the responsibility for securing the necessary crossing permits as a part of his work. part of his work.

Case Study #3Case Study #3

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Case Study #3Case Study #3• The City thinks it is getting a valuable product for the The City thinks it is getting a valuable product for the

least engineering cost. least engineering cost. • In fact…In fact…

• The choice material maybe wrong for the type of soil.The choice material maybe wrong for the type of soil.

• The size of the line maybe too small for the long-range The size of the line maybe too small for the long-range needs of the City. needs of the City.

• Additional work (securing steam crossing permits) may Additional work (securing steam crossing permits) may have to be done by the City themselves. have to be done by the City themselves.

• These problems are likely to lead to change orders, These problems are likely to lead to change orders, time delays, higher life-cycle project costs, and time delays, higher life-cycle project costs, and contention between the engineer and City.contention between the engineer and City.

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Case Study #3Case Study #3• What if the City had used QBS instead…What if the City had used QBS instead…

• After the selection of the most qualified engineer, the After the selection of the most qualified engineer, the engineer could meet with the City to discuss the various engineer could meet with the City to discuss the various items of work to be done. items of work to be done.

• The engineer could explain the various elements of the The engineer could explain the various elements of the project, from a technical standpoint, and point out potential project, from a technical standpoint, and point out potential problems. problems.

• The engineer and City collaborate to develop a detailed The engineer and City collaborate to develop a detailed scope of work so that both parties are fully aware of what scope of work so that both parties are fully aware of what is to be done during the project. is to be done during the project.

• The engineer and City negotiate a fair and reasonable price The engineer and City negotiate a fair and reasonable price based on the scope of work. based on the scope of work.

• The City receives the best value for its buck. The City receives the best value for its buck.

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Case Study #4Case Study #4• The community of Knob Hill’s main water transmission line which bring The community of Knob Hill’s main water transmission line which bring

drinking water to the citizens was exposed by winter floods. Anxious to get drinking water to the citizens was exposed by winter floods. Anxious to get the problem resolved the community asked for bids from consultants. the problem resolved the community asked for bids from consultants.

• Needing the work, and despite the fact that their engineers were mainly Needing the work, and despite the fact that their engineers were mainly trained in designing roads and highways, Firm XYZ successfully trained in designing roads and highways, Firm XYZ successfully submitted the lowest bid and proceeded to complete the project design. submitted the lowest bid and proceeded to complete the project design.

• Soon after construction began a stop work order was issued by the Dept. of Soon after construction began a stop work order was issued by the Dept. of Fish and Wildlife because Knob Hill had obtained neither a “Dredge and Fish and Wildlife because Knob Hill had obtained neither a “Dredge and Fill Permit’ or a “Stream Crossing Permit” from the Department. In Fill Permit’ or a “Stream Crossing Permit” from the Department. In addition, work in the flowing stream was not allowed for another six addition, work in the flowing stream was not allowed for another six weeks, after the native salmon had hatched an moved downstream. By weeks, after the native salmon had hatched an moved downstream. By contract, Firm XYZ was not responsible for obtaining the necessary contract, Firm XYZ was not responsible for obtaining the necessary permits, having made it Knob Hill’s responsibility in order to keep their permits, having made it Knob Hill’s responsibility in order to keep their “bid” low. Having never done this type of project before, however, the “bid” low. Having never done this type of project before, however, the firm’s staff was unaware that in-stream work was only allowed for a six firm’s staff was unaware that in-stream work was only allowed for a six week period late in the summer. week period late in the summer.

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• Claim letters began to arrive weekly from the contractor, claiming damages Claim letters began to arrive weekly from the contractor, claiming damages for delays on the contract. The same contractor had already bid and had for delays on the contract. The same contractor had already bid and had been awarded other construction work during the late summer. They had been awarded other construction work during the late summer. They had only bid on this job because of the early timing of the work in the only bid on this job because of the early timing of the work in the construction season. construction season.

• Whether or not Firm XYZ knew the permits were required it did not Whether or not Firm XYZ knew the permits were required it did not concern them because they were not responsible for this task. . concern them because they were not responsible for this task. .

• In the end, Knob Hill paid more than double the stream crossing In the end, Knob Hill paid more than double the stream crossing transmission line cost to another contractor whom they hired under force transmission line cost to another contractor whom they hired under force contract. Firm XYZ was blamed by the Council members for their failures contract. Firm XYZ was blamed by the Council members for their failures to point out the seriousness of having the necessary permits and not to point out the seriousness of having the necessary permits and not scheduling the construction during the proper time frame. scheduling the construction during the proper time frame.

Case Study #4Case Study #4

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• Had Knob Hill used QBS…Had Knob Hill used QBS…• They probably would have selected a firm with experience They probably would have selected a firm with experience

in water line crossings of streams and would have been in water line crossings of streams and would have been familiar with the permitting process and Dept. of Fish and familiar with the permitting process and Dept. of Fish and Wildlife in-stream construction regulations. Wildlife in-stream construction regulations.

• By working with the consultant to develop a proper scope By working with the consultant to develop a proper scope of work coupled with appropriate fees that were enough to of work coupled with appropriate fees that were enough to cover some of the “extra services”, such as the permitting, cover some of the “extra services”, such as the permitting, instead of simply bidding the design work out, Knob Hill instead of simply bidding the design work out, Knob Hill would have been able to save time and money in the long would have been able to save time and money in the long run. run.

Case Study #4Case Study #4

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Federal InitiativesFederal Initiatives

• ACEC secured QBS language in new ACEC secured QBS language in new federal procurement regulations and federal procurement regulations and pending water legislation.pending water legislation.

• Ongoing defense of QBS with federal Ongoing defense of QBS with federal agencies.agencies.

• TEA-21 Reauthorization language TEA-21 Reauthorization language

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State InitiativesState Initiatives• Forty-five states currently have QBS (mini-Forty-five states currently have QBS (mini-

Brooks”) lawsBrooks”) laws

• Hundreds of municipalities use QBSHundreds of municipalities use QBS

• QBS is prone to attack by state administrations QBS is prone to attack by state administrations and legislators unfamiliar with the processand legislators unfamiliar with the process• Alabama situationAlabama situation

• Reverse auctions in Minnesota & KentuckyReverse auctions in Minnesota & Kentucky

• Louisiana attempts to use the “two-envelope” systemLouisiana attempts to use the “two-envelope” system

• The key is education!The key is education!

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State InitiativesState Initiatives• The Good NewsThe Good News

• The list of QBS states continues to growThe list of QBS states continues to grow• Alabama, Michigan, Georgia, and Hawaii all in the past 4 yearsAlabama, Michigan, Georgia, and Hawaii all in the past 4 years

• Many states are successfully promoting QBS at the local level. Many states are successfully promoting QBS at the local level. • Oregon: Amended QBS law to include local agencies using state Oregon: Amended QBS law to include local agencies using state

money for projects. Twenty-one states have similar law. money for projects. Twenty-one states have similar law. • New York: Was able to expand their QBS law to include public New York: Was able to expand their QBS law to include public

benefic corporation and authorities. benefic corporation and authorities. • Colorado & others: Currently trying to expand QBS to the local Colorado & others: Currently trying to expand QBS to the local

level. level.

• The Bad NewsThe Bad News• Attempts to skirt the QBS process still arise – usually by contracting Attempts to skirt the QBS process still arise – usually by contracting

officers unaware of the law.officers unaware of the law.• Again, the key is education!Again, the key is education!

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Who Endorsed QBS Nationally?Who Endorsed QBS Nationally?

• American Bar AssociationAmerican Bar AssociationAmerican Council of Engineering Companies American Council of Engineering Companies American Institute of ArchitectsAmerican Institute of ArchitectsAmerican Public Works AssociationAmerican Public Works AssociationAmerican Road & Transportation Builders Association American Road & Transportation Builders Association American Society of Civil EngineersAmerican Society of Civil EngineersAmerican Society of Landscape ArchitectsAmerican Society of Landscape ArchitectsAmerican Water Works AssociationAmerican Water Works AssociationInternational Interior Design AssociationInternational Interior Design AssociationNational Society of Professional Engineers National Society of Professional Engineers National Society of Professional Surveyors National Society of Professional Surveyors Professional Engineers in Private PracticeProfessional Engineers in Private PracticeSociety for Marketing Professional Sesrvices Society for Marketing Professional Sesrvices Society of Interior Designers Society of Interior Designers

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TestimonialsTestimonials• "QBS is an invaluable tool for us. It consistently delivers high-quality, on-time "QBS is an invaluable tool for us. It consistently delivers high-quality, on-time

infrastructure projects for the citizens of New York." - infrastructure projects for the citizens of New York." - William F. O'Connor, Deputy William F. O'Connor, Deputy Commissioner, New York State Office of General Services. Commissioner, New York State Office of General Services.

• "The public interest is best served when government agencies select engineers, architects "The public interest is best served when government agencies select engineers, architects and related professional services and technical consultants for projects and studies and related professional services and technical consultants for projects and studies through QBS." - through QBS." - Marty Manning, Former President, American Public Works Marty Manning, Former President, American Public Works AssociationAssociation..

• "We were extremely pleased with the engineering firm that was elected through the QBS "We were extremely pleased with the engineering firm that was elected through the QBS process. Both the facility plan and the actual construction project met our criteria and process. Both the facility plan and the actual construction project met our criteria and expectations. We will definitely be using the QBS process for our future projects.”expectations. We will definitely be using the QBS process for our future projects.” - Robert Pirtle, Chairman, Delaware County Regional Wastewater District- Robert Pirtle, Chairman, Delaware County Regional Wastewater District

• ““QBS has allowed us to obtain the right personnel to give us options to the future of our QBS has allowed us to obtain the right personnel to give us options to the future of our water utilities."water utilities." - Monty Garrett, Town of Milltown - Monty Garrett, Town of Milltown

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ResourcesResources

• ACEC’s Online QBS Resource CenterACEC’s Online QBS Resource Center• http://www.acec.org/advocacy/qbs.cfmhttp://www.acec.org/advocacy/qbs.cfm

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ContactsContactsJeffrey L. BeardJeffrey L. BeardVice President, EducationVice President, [email protected]@acec.org

Roger JordanRoger JordanDirector, State Legislative ProgramsDirector, State Legislative [email protected]@acec.org